Union Budget 2026–27: No Income Tax Changes; New Tax Act From 1 April; STT on Futures Hiked

1 February 2026
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Source: PIB Press Releases; PRS India Budget Analysis; EY Budget Highlights; KPMG India; ClearTax; IndiaGovernment Budget Documents

Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget. No changes to income tax slabs for FY 2026-27. The major personal tax overhaul was done in Budget 2025 (zero tax up to ₹12 lakh under new regime). The new Income Tax Act 2025 comes into force from 1 April 2026 with simplified rules and forms. Key measures affecting individuals: STT on futures raised from 0.02% to 0.05%. TCS on overseas tour packages reduced from 5%/20% to 2%. Share buybacks now taxed as capital gains for all shareholders. Interest from Motor Accident Claims Tribunals exempted from income tax. Fiscal deficit targeted at 4.3% of GDP. Capital expenditure increased to ₹12.2 lakh crore. MAT rate reduced from 15% to 14%. Updated returns now allowed even for cases under first-level appeal.

💰 Impact on your wallet: No immediate tax saving for salaried individuals this year. If you trade F&O, the STT increase from 0.02% to 0.05% raises your trading costs meaningfully — a trade worth ₹10 lakh now costs ₹500 in STT versus ₹200 earlier. If you’re planning an international holiday, the TCS reduction to 2% on tour packages means less money blocked upfront. The new simplified Income Tax Act will make filing easier from next year. Start familiarising yourself with the new forms when notified.

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