Income Tax After Budget 2026 has become a key topic for salaried individuals, professionals, and businesses as the Union Budget 2026–27 introduced important compliance and deadline-related changes while keeping tax slabs unchanged. Although taxpayers were expecting income tax rate cuts, the government focused instead on simplifying procedures, extending timelines, and improving ease of compliance. Understanding Income Tax After Budget 2026 is essential for effective tax planning in FY 2026–27.
In
come Tax After Budget 2026: Key Announcements You Must Know
The Union Budget 2026–27 made several important announcements affecting Income Tax After Budget 2026, especially around return filing deadlines, TDS procedures, and taxpayer convenience.
One of the most significant updates under Income Tax After Budget 2026 is the extension of the revised Income Tax Return (ITR) filing deadline. Taxpayers can now revise their returns up to 31 March, instead of the earlier 31 December deadline, by paying a nominal fee. This gives individuals more flexibility to correct mistakes and disclose income accurately.
Another major relief under Income Tax After Budget 2026 is the exemption of interest awarded by Motor Accident Claims Tribunals from income tax, with no TDS applicable on such income.
Income Tax After Budget 2026: New ITR Filing Deadlines
The government has introduced staggered timelines under Income Tax Budget 2026 to reduce last-minute filing pressure:
-
ITR-1 and ITR-2 filers can continue filing returns until 31 July
-
Non-audit business cases and trusts can file returns until 31 August
-
Revised ITRs can be filed up to 31 March of the assessment year
These changes under Income Tax Budget 2026 aim to improve compliance and reduce penalties caused by rushed filings.
Income Tax After Budget 2026: Tax Slabs Remain Unchanged
A major point of discussion around Income Tax Budget 2026 is that no changes were made to income tax slabs or rates. Both the old and new tax regimes remain the same as the previous year.
New Tax Regime (Default Option)
Under Income Tax After Budget 2026, the new tax regime continues as the default regime:
A major highlight of Income Tax Budget 2026 is that individuals earning up to ₹12 lakh are effectively exempt due to the Section 87A rebate.
Income Tax After Budget 2026: Deductions Under New Regime
Even under Income Tax Budget 2026, the new regime provides some important benefits:
-
Standard deduction of ₹75,000 for salaried employees and pensioners
-
Section 87A rebate for income up to ₹12 lakh
-
Employer’s NPS contribution up to 14% under Section 80CCD(2)
These benefits make the new regime attractive for middle-income taxpayers.
Income Tax After Budget 2026: Old Tax Regime Still Relevant
The old tax regime remains relevant under Income Tax Budget 2026 for taxpayers who claim multiple deductions. Popular deductions include:
-
Section 80C (PPF, ELSS, LIC) up to ₹1.5 lakh
-
HRA and LTA exemptions
-
Home loan interest under Section 24
-
Health insurance under Section 80D
-
Education loan interest under Section 80E
Senior and super senior citizens also continue to enjoy higher basic exemption limits under Income Tax After Budget 2026.
Income Tax After Budget 2026: Which Regime Should You Choose?
Choosing the right regime under Income Tax Budget 2026 depends on your income structure and deductions. Tax experts suggest the new regime suits taxpayers earning up to ₹12 lakh with limited deductions, while the old regime works better for those with significant tax-saving investments, housing loans, and insurance premiums.
Income Tax After Budget 2026 may not have delivered slab reductions, but it brings meaningful relief through extended deadlines, simplified TDS rules, and procedural reforms. With better timelines, improved compliance mechanisms, and flexibility in return revision, taxpayers now have greater control over their tax filings.
Staying informed about Income Tax After Budget 2026 is crucial to avoid penalties, choose the right tax regime, and plan finances efficiently for the coming year.
 Worried about notices due to incorrect income reporting? Get expert assistance on accurate tax filing under the updated income tax slabs – Click here.
