Union Budget 2026: Compliance Simplified, Not Tax Slabs

• Union Budget 2026 focuses on procedural reforms to simplify tax compliance and reduce litigation, rather than changing personal income tax slab rates.
• Key changes include extended due dates for ITR filing for non-audit cases (August 31) and revised returns (12 months from tax year end with a nominal fee).
• Flexibility for updated returns with 10% additional tax and no penalty, aiming to reduce litigation and encourage voluntary error correction.
• Homebuyers are relieved as resident individuals/HUFs buying property from NRIs no longer need a TAN for tax deduction, effective October 1, 2026.
• FAST-DS 2026 offers a one-time disclosure scheme for small taxpayers with undisclosed foreign assets/income up to INR 1 crore, with tax and additional tax, and relief from prosecution for non-reporting of foreign assets up to INR 20 lakhs retrospectively.

Why It Matters: Budget 2026 prioritizes easing tax compliance and reducing litigation through procedural reforms and disclosure schemes.