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Taxation Central Ministry of Finance Income Tax Act, 1961

Union Budget 2026-2027

01-Feb-2026 | F. No. 2(4)-B(D)/2026

Government of India has introduced Union Budget 2026-2027. Budget 2026 Highlights - Due date for revised return has been extended to 31st March from 31st December, with Rs.1000 to Rs. 5000 late fees. - There has been no changes in the income tax slabs and capital gain taxation rates. - Sale of shares on buyback will be taxed under capital gains. - All residents owning foreign assets, including movable and immovable property, bank balances, etc., must fulfil the foreign asset disclosure requirements as laid down in the act. - Until 2047, all foreign companies that render cloud services using data centres located in India are tax-exempt to the extent of income arising in India. - Contrary to expectations, the Securities Transaction Tax (STT) is proposed to be increased for selected securities. - For all the Overseas Banking Units (OBUs) situated in Special Economic Zone (SEZ) , the tax holiday is extended to 20 years, from the current limit of 10 years. - The Income Computation and Disclosure Standard (ICDS) requirements are now to be incorporated in the Indian Accounting Standards (IND AS) itself. The requirement of ICDS will be scrapped with effect from the tax year 2027-28. - Proposals are announced to strengthen tourism infrastructure, develop archaeological and cultural sites, and scale up the sports ecosystem through a long-term mission approach. Kindly refer to the attached document for more information.

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