Budget 2026 — every tax change that matters
Five-minute breakdown of every direct-tax announcement in Union Budget 2026, with side-by-side pre vs post comparison and a section per user type. This page is being built ahead of the 1 February 2026 announcement and will be filled in live as numbers are confirmed.
Pre-Budget vs post-Budget at a glance
Every direct-tax change paired against the FY 2025-26 baseline. Cards marked [TO UPDATE Feb 1, 2026] are placeholders that will be filled in once the Finance Minister concludes her speech and the Finance Bill is tabled.
New Regime Slabs
[TO UPDATE Feb 1, 2026]Slab boundaries: ₹3L / ₹7L / ₹10L / ₹12L / ₹15L. Rebate up to ₹7L.
Pre-Budget signals suggest possible widening of the 0% / 5% bands; replace with actuals after speech.
Section 80C Deduction Cap
[TO UPDATE Feb 1, 2026]Unchanged since FY 2014-15. Industry has lobbied for ₹2L–₹2.5L for years.
Watch this box if you depend on PPF/ELSS/insurance premiums.
Section 80D Health Insurance
[TO UPDATE Feb 1, 2026]Plus ₹25K / ₹50K for parents. Old regime only.
Industry asks: raise to ₹50K self / ₹1L seniors given medical inflation.
Capital Gains — Equity
[TO UPDATE Feb 1, 2026]LTCG exempt up to ₹1.25L per year. STT-paid listed equity.
Budget 2024 already harmonised rates — Budget 2026 likely tweaks exemption ceiling.
Surcharge Cap
[TO UPDATE Feb 1, 2026]Applied above ₹2 crore total income. Marginal relief available.
No major changes expected; watch for HUF/AOP-specific tweaks.
Other Deductions (24(b), NPS, HRA)
[TO UPDATE Feb 1, 2026]Employer NPS: 14% (new), 10% (old). HRA computed normally.
Possible nudge: harmonise NPS employer cap, or revive home-loan interest under new regime for self-occupied first-home.
TDS Thresholds
[TO UPDATE Feb 1, 2026]Bank interest 194A ₹40K / ₹50K seniors. Many thresholds raised in Budget 2025.
Compliance simplification likely — fewer sections, higher thresholds.
See your new tax liability instantly
Once Budget 2026 numbers go live, our calculator updates within 24 hours. Compare old vs new regime under Budget 2026 rules.
What it means for you specifically
Aggregate slab tables hide the real story. Here's how each major user category will likely be affected once Budget 2026 numbers land.
If you draw a salary
- Standard deduction continues at ₹75K under new regime
- Watch for 87A rebate ceiling [TO UPDATE]
- Form 16 layout unchanged for FY 2026-27
- HRA computation [TO UPDATE if any change]
If you're self-employed
- Section 44ADA presumptive limit [TO UPDATE]
- GST registration threshold unchanged at ₹20L services
- Advance tax dates (15 Jun / Sep / Dec / Mar) continue
- TDS u/s 194J likely revised [TO UPDATE]
If you run a business
- Section 44AD turnover ceiling [TO UPDATE]
- Audit threshold (₹1cr / ₹10cr digital) [TO UPDATE]
- MSME 45-day payment rule continues u/s 43B(h)
- Corporate tax rates 22% (concessional) / 25% / 30% likely steady
If you're a pensioner
- Senior citizen FD interest exemption ₹50K u/s 80TTB
- Standard deduction on pension at ₹75K (new regime)
- SCSS/SSY rate revisions decided separately by RBI/MoF
- Form 15H still available below taxable limit
The things that stayed exactly the same
Often as important as what changed. If you were depending on these, no action needed.
- PAN-Aadhaar linking — already mandatory. No new deadline expected.
- ITR-U updated return window — 48 months (extended in Budget 2025; no further change expected in 2026).
- STT rates on equity intraday/F&O — last revised in 2024 [TO UPDATE if changed].
- Health and education cess — 4% on tax + surcharge.
- DDT abolition — dividends continue to be taxable in the hands of the recipient at slab rate.
- EPF interest taxation — interest on contributions above ₹2.5L (₹5L for govt) per year continues to be taxable.
- Section 234A/B/C interest — 1% per month on tax dues / shortfall. No change.
[TO UPDATE Feb 1, 2026]. This list reflects pre-Budget expectation. Move any item to the "changed" section above if Budget 2026 actually touches it. Cross-check the Memorandum to the Finance Bill for full detail.
Quick answers about Budget 2026
When was Budget 2026 announced?
The Union Budget for FY 2026-27 was presented on 1 February 2026. The Finance Bill 2026 typically receives Presidential assent by end of March, after which provisions become law.
From which date are Budget 2026 tax changes effective?
Most income tax provisions apply from 1 April 2026 (start of FY 2026-27 / AY 2027-28). TDS rate changes typically take effect from the same date. Some indirect tax (GST/customs) changes can take effect immediately or from a notified date.
Does Budget 2026 affect ITR filing for AY 2026-27?
No. Returns being filed in 2026 are for FY 2025-26 (AY 2026-27) and continue to be governed by Budget 2025 rules. Budget 2026 changes apply from FY 2026-27 onwards (returns filed in 2027). For your current ITR, see ITR filing AY 2026-27.
Will the old regime continue after Budget 2026?
[TO UPDATE Feb 1, 2026]. As of pre-Budget signals, the old regime is expected to continue but without enhancements. The Government has progressively made the new regime more attractive while leaving old-regime values frozen at FY 2014-15 levels.
Where can I read the official Budget speech and Finance Bill?
Both are published on the official portal indiabudget.gov.in immediately after the Finance Minister's speech. The Memorandum explaining provisions is the most useful document for tax practitioners.