Union Budget 2026 LIVE Updates: Income Tax Act, 2025 To Be Implemented From April 1; Rules, Tax Returns Forms To Be Notified Shortly

Finance Minister Nirmala Sitharaman announced updated ITR filing deadlines: individuals filing ITR‑1 and ITR‑2 can submit their returns till 31 July, while non‑audit business cases and trusts have time until 31 August.

Tax collected at source rates for education and health reduced from 5% to 20% to 2%, Finance Minister Nirmala Sitharaman announced in her Budget speech. I also propose to reduce TCS rate on the sale of overseas tour programme package from the current 5% and 20% to 2% without any stipulation of amount, she said.

FM Nirmala Sitharaman announced that non-resident individuals will be allowed to invest in listed Indian companies through the Portfolio Investment Scheme. She also proposed raising the investment limit for FPI from 5 per cent to 10 per cent.

FM Nirmala Sitharaman proposed setting up three new All India Institutes of Ayurveda, upgrading Ayush pharmacies and drug testing labs to ensure more skilled personnel, and enhancing the WHO Global Traditional Medicine Centre in Jamnagar.

Finance Minister Nirmala Sitharaman proposed a Rs 40,000 crore investment to boost electronics component manufacturing in India, aiming to strengthen domestic production and reduce import dependence.

Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore fund to create champion SMEs and boost the economy. She also announced a container manufacturing scheme, mega textile parks focused on technical textiles, and the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom.

The target for capex will be raised to from Rs 11.2 crore to Rs 12.2 lakh crore for FY27 earmarked for the current fiscal year. Finance Minister Nirmala Sitharaman also announced a slew of measures to boost infrastructure in the country. She said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities.

Finance Minister Nirmala Sitharaman proposed the development of seven high-speed rail corridors to enhance connectivity and strengthen infrastructure across India.

Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore investment in the biopharma sector over the next five years, aiming to strengthen India’s pharmaceutical industry.

Finance Minister Nirmala Sitharaman highlighted six key areas of focus in Budget 2026: scaling up manufacturing across seven strategic and frontier sectors, rejuvenating legacy industries, creating champion MSMEs, giving a strong push to infrastructure, ensuring long-term security and stability, and developing city economic regions.

Finance Minister Nirmala Sitharaman said, "Reform over rhetoric and people over populism. We have pursued far-reaching structural reforms, ensured fiscal prudence and monetary stability, while continuing to place strong trust in public investment."

Union Budget from Kartavya Bhavan, FM Nirmala Sitharaman said it is guided by three principles: accelerating economic growth, fulfilling people’s aspirations, and “Sabka Saath, Sabka Vikas.”

Finance Minister Nirmala Sitharaman is presenting her 9th consecutive Union Budget in Parliament.

Finance Minister Nirmala Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan on Sunday morning before presenting the Union Budget 2026 in Parliament. As part of tradition, the President offered Sitharaman dahi-cheeni, a customary ritual observed before important events. This practice has become a regular part of the formal proceedings leading up to Budget Day.

The Union Cabinet, which is headed by Prime Minister Narendra Modi, has approved the Union Budget for financial year 2026-27.

This is the first Budget presentation on a Sunday. This is also the third Budget presentation of the BJP-led NDA government's third term in office.

Congress leader Sachin Pilot, told ANI before Budget presentation, "Despite being in power for years, I think the BJP Govt has focused on issues which are not very impactful on the ground. The Govt has formed a new law to almost scrap MGNREGA. They say that they are reforming it, but the reality is that on average, 35 days of MGNREGA are being used in this country. They are promising 125 days. The decisions that used to be taken in villages earlier, in Panchayat - wherein Sarpanch and public representatives used to demand for money and there used to be no shortage of Budget."

"Now, the Govt has decided the Budget and the work will be imposed by Delhi. So, this Govt is trying to snatch away the financial cover of the poor. They had drafted the three black laws with the same stubbornness...We would want that in the coming financial year, they provide relief to the poor, to farmers, to youth and the middle class...," he said.

Gold and silver extended their decline amid selloffs on MCX. Gold Futures declined 9 per cent on the MCX to Rs 1,38,634 per 10 grams level, leading to a 16% crash in gold ETF prices. On the other hand Silver futures fell 9 per cent to the Rs 2,65,652 per kilogram level.

Sin goods, which include cigarettes and pan masala have become costlier from February 1, as new excise duty kicked in ahead of the Union Budget 2026 presentation. As per the new rules, the excise duty will now range from Rs. 2,050-8,500 for every 1,000 non-standard or uniquely designed cigarettes.

Union Minister of Tourism, Gajendra Singh Shekhawat, ahead of the Union Budget presentation, told ANI, "This Budget too will be another step towards making India a Viksit Bharat..."

Congress Leader Shashi Tharoor says he wants Budget 2026 to focus on job's push for youth and support for Kerala.

On Union Budget 2026-27, Akhilesh Yadav, Samajwadi Party Supremo said: "We have no expectations either from the Budget or the Modi govt - we don't have any expectations? In the last few budgets have been only 5% of the people. The govt should assess if it has fulfilled all the promises it had made."

Sensex trading at 82,328.15 points, NSE at 25,314.60, on the day of presentation on Union Budget 2026-27.

In the past Union Budgets, there was a set pattern to how it was released in the Parliament. This pattern is set to break in the Union Budget 2026-27

Ahead of Union Budget, commercial LPG price has been hiked by Rs 49, domestic cylinder rates unchanged

Ahead of Union Budget 2026, Bengal BJP leader Dilip Ghosh says, "We should have faith in the Modi government. Whatever happens will be good and will be for everyone."

Union Finance Minister Nirmala Sitharaman reached Rashtrapti Bhawan and met President Droupadi Murmu before presenting her 9th consecutive Union Budget.

Union Finance Minister, Nirmala Sitharaman has reached Kartavya Bhavan, where the finance ministry moved last year. Sitharaman arrived with the Union Budget tablet, along with her team.

Union Budget 2026 will be tabled in the Parliament on February 1 by Union Finance Minister Nirmala Sitharaman. The special parliamentary session to present the Budget will convene at 11 am, as per Lok Sabha list of business.

Industry experts suggest Union Budget 2026 could help boost demand for green residencies by providing tax incentives to the homebuyers. If the Budget provides such incentive, affordability for green homes could increase, and could be a vital turning point for the industry.

India has seen firm growth in the real estate sector in 2025 despite several external and geopolitical factors. Focus on sustainable and green homes could also significantly reduce energy costs.

Ridhima Kansal, Director, at Rosemoore Home Fragrance Ltd, said, "India's retail industry is on track to grow into a $2 Trillion economic space by 2032 and with the Union Budget approaching, we hope the government will take specific actions to support continued growth in this sector. Specifically, we want to see the government simplify GST slabs to make compliance easier for SMEs, provide greater access to credit through expanded versions of the ECLGS-type programs that currently exist, and encourage investments in digital infrastructure to support omnichannel retailing. We would also like to see a continued emphasis on the "Make in India" initiative through further PLI incentives on consumer products and also through enhanced green incentives for sustainable packaging and logistics. The government should support tourism-related retail growth through expanding e-visas and investing in urban redevelopment to provide additional job creation. All of these changes should enable retailers to manage through inflation, encourage increased levels of consumption and further drive GDP growth."

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt Ltd said, "With the arrival of Budget 2026, the primary demand from the perspective of personal taxes is very clear: align the tax structure with the realities of inflation and income of the present day. For almost ten years now, the limit for Section 80C has been stuck at Rs 1.5 lakh and the health insurance deductions allowed under Section 80D have also been very limited, which taxpayers have been coping with despite the fact that costs of premiums, EMIs, and education have gone up significantly. It is very much reasonable to ask for a hike in the 80C limit to around Rs 3 lakh, an increase in the health insurance limits, and a raise in the income threshold for the highest 30 per cent slab so that the relief becomes more apparent to the families earning between Rs 10–35 lakh."

Jeevan Kasara,Chairman, Steris Healthcare said, "The self-reliance of India in pharmaceuticals and medtech must be accelerated by Budget 2026 with a PLI infusion of Rs 10,000 crore for medical devices, which would cover oncology, imaging, and implants, thereby making a reduction of the 70 per cent import dependence possible and at the same time creating a domestic production amounting to Rs 1.2 lakh crore by 2030. The extension of Ayushman Bharat to 50 crore more citizens (including gig workers) and R&D credits (up to 200 per cent for the biotech sector) will provide affordable care and turn India into the world’s pharmacy with a market size of $130 billion at the end of the decade."

CA Naveen Wadhwa, Vice-President, Taxmann, points out that with the New Income Tax Act, 2025, now in its implementation phase, the government is likely to prioritise a smooth transition for taxpayers. Instead of introducing sweeping changes, the emphasis may be on providing certainty, reducing litigation, and streamlining compliance. “However, a key opportunity lies in rationalising the complex TDS and TCS framework by consolidating the multitude of existing rates into three or four broad categories. Since it is expected that 85–90 per cent of taxpayers have migrated to the New Tax Regime, particularly after over-generous tax-free limits, there is growing speculation that the old regime may now be phased out entirely,” he says.

Aman Sharma, Founder and Managing Director, Aarize Group said, "The NCR area remains the backbone of North India's real estate sector, majorly contributing to residential and commercial development. From the 2026 budget, we are expecting policy interventions to fix infrastructure bottlenecks, streamline approval processes, and expedite environmental clearances. Measures such as stamp duty reductions, easier access to home loans, and incentives for first-time buyers can reassure end-users and increase demand. Focus on infrastructure, connectivity and livability, and further allocations will further aid buyer confidence and support long-term growth. We anticipate the government will recognise NCR's potential and provide support for sustainable growth."

The Union Budget 2026 is being presented today, February 1. Finance Minister Nirmala Sitharaman is set to deliver the Budget at 11:00 AM IST from Sansad Bhavan (Parliament of India), New Delhi.

The presentation is set to be live-streamed on Sansad TV and Doordarshan.