Budget FY27: Buybacks Taxed, TCS Cut, ITR Revision Window Extended

• Finance Minister Nirmala Sitharaman announced significant tax and compliance changes in the Budget FY2026-27.
• Taxpayers can now revise returns until March 31 with a small fee, extending the window for ITR-1 and ITR-2.
• Share buybacks will be taxed as capital gains for all shareholders, and TDS will apply to immovable property sales by non-residents.
• TCS on overseas tour packages has been reduced to 2% from the previous 5-20% range.
• The IT sector sees an overhaul of safe harbour rules, with a common 15% margin and automated approvals for five years.

Why It Matters: Budget FY27 introduces major tax reforms, including new taxes on buybacks, reduced TCS, and extended ITR revision.