Budget 2026: New Income Tax Act from April 1, ITR Filing Staggered, Slabs Unchanged

• The Income Tax Act, 2025, will be implemented from April 1, 2026, simplifying direct tax provisions and reducing litigation.
• Income tax slabs remain unchanged in Budget 2026, focusing on compliance ease rather than rate adjustments.
• ITR filing timelines will be staggered: July 31 for ITR 1 and ITR 2, August 31 for non-audit business cases/trusts.
• The new law introduces a single 'tax year' system and allows TDS refunds even for late filings without penal charges.
• Key relief measures include tax exemption for Motor Accident Claims Tribunal interest, reduced TCS on overseas tour packages and LRS for education/medical, and decriminalization of minor tax offenses.

Why It Matters: Budget 2026 introduces a simplified Income Tax Act from April 2026, staggering ITR filings while keeping tax slabs unchanged.