The Economic Times

The Union Budget 2026-27 delivers fiscal prudence without sacrificing growth, keeping deficit consolidation on track while sustaining strong capex. Markets reacted cautiously to the STT hike, but measures on buybacks, PIS liberalisation, bond market development and support for sunrise sectors signal a steady, reform-oriented roadmap focused on long-term competitiveness.

Budget 2026 introduces a New Income Tax Act effective April 1, 2026, with staggered ITR filing deadlines and reduced TCS on overseas tour packages. A new Foreign Asset Disclosure Scheme offers regularization options for small taxpayers, while immunity from prosecution is extended for certain foreign non-immovable asset disclosures.

Union Budget 2026 introduces a significant tax benefit for overseas professionals visiting India. Non-residents will receive a five-year exemption on income earned outside India. This applies to those visiting under government-notified schemes. The tax-exempt status begins from their first visit for service rendering. This move aims to attract global talent by offering clear tax certainty.

All foreign assets must be disclosed in Indian tax returns in the prescribed manner. Non-disclosure of foreign assets can trigger implications under the Black Money Act, 2015, including substantial fines and prosecution. Rental income, whether earned in India or overseas, is taxable in India for tax residents.

Let us understand which out of HRA and home loan can save you more tax after Budget 2026. House Rent Allowance (HRA) is a tax break which salaried taxpayers usually receive, and its one of the few exemptions without a maximum limit.

Around 11 equity mutual funds have transformed a Rs 10,000 monthly SIP into over Rs 1.50 crore in the last two decades. ICICI Prudential Value Fund led the pack, growing a Rs 10,000 SIP to Rs 1.83 crore. Many mid-cap and small-cap funds also delivered substantial returns.

Budget 2026 has eliminated the deduction for interest expenses incurred on loans taken to invest in listed equity shares or mutual funds. This change, effective from April 1, 2026, means dividend and mutual fund income will be fully taxed without any interest offset, leading to a higher tax outgo for investors.

The Budget has withdrawn existing duty concessions on imported coffee roasting, brewing and vending machines. Industry executives said the change in customs duty comes amid pressure from currency movements.

The Budget document proposes a specific exemption for disability pension paid to members of the armed forces, including paramilitary forces, covering both the service and disability components, provided the individual has been invalided out of service due to a bodily disability attributable to, or aggravated by, military, naval or air force service.

A taxpayer has won a significant victory in the Bombay High Court. The court allowed the set-off of short-term capital loss against long-term capital gains. The tax department's addition of Rs 5.43 crore as unexplained cash credit and undisclosed long-term capital gains was deleted. The High Court emphasized consistency, noting similar relief granted to the taxpayer's father and brother.

The Income Tax Appellate Tribunal Mumbai has ruled in favour of a taxpayer. The tribunal stated that the tax department must provide TDS credit shown in Form 26AS. This decision came after a taxpayer missed claiming Rs 73 lakh TDS due to seller's non-disclosure. The tribunal highlighted the department's statutory and constitutional duty to grant credit, even with procedural errors.

New rules allow taxpayers to file revised income tax returns until March 31 for a fee. This extension, effective from April 1, 2026, benefits individuals with international tax obligations. A fee of Rs 5,000 or Rs 1,000 applies based on taxable income. This change provides more time to correct errors in filed returns, addressing a long-standing taxpayer demand.

Union Budget 2026 introduces a new Income Tax Act from April 1, 2026, with simplified rules. Key changes include reduced TCS rates on overseas tour packages and LRS remittances for education/medical. The deadline for revised ITR filing is extended, and PAN-based TDS for NRI property sales is implemented. Share buybacks will now be taxed as capital gains for all shareholders.

The National Pension System is piloting NPS Swasthya, a scheme to cover medical expenses. Subscribers can contribute to a dedicated account, with partial withdrawals available for medical needs. This initiative aims to provide a financial buffer for healthcare costs, complementing existing health insurance.

The full benefit of RBIs 125 basis points rate cut last year is yet to flow evenly to non-bank borrowers or those with older benchmark-linked loans. Changing lenders or part prepayment may ease their woes.

Data shows that smart beta strategies have been highly volatile and cyclical in the short-to-medium term. These strategies have delivered higher returns and outperformed in a bull market but have also underperformed and incurred severe negative drawdowns in a bear market.

India's crypto exchanges are delisting privacy tokens like Zcash and Dash following new AML/CFT rules. This forces investors to rebalance portfolios or face automatic liquidation into stablecoins. The move aims for safer markets and higher compliance, impacting taxation and investor exit strategies.

SBI Pension Funds is launching the Swasthya Pension Scheme to build medical expenditure funds. Pranay Dwivedi highlights its flexibility and tax benefits. He also addresses the fund's equity performance, noting a strategic shift towards growth. Dwivedi emphasizes safety and consistency for subscribers. The NPS aims to increase adoption through digital channels and improved clarity.

Defaults at GripInvest and other bond platforms expose how curated and secured labels are masking credit risks in high-yield bonds and loan pools being marketed to retail investors.

Understanding a stock's true worth beyond its market price is crucial for investors. Valuation helps identify undervalued opportunities, manage risk with a margin of safety, and allocate capital effectively. While short-term prices fluctuate, long-term trends show convergence with intrinsic value. Both absolute and relative valuation methods offer insights, but require careful analysis.

Financial year-end targets fuel aggressive sales tactics in insurance. Customers are being sold policies they do not need, often through cold calls or bank relationships. This mis-selling is a growing concern, with many victims unaware of their rights or how to seek redressal. Regulators face challenges in curbing this pervasive practice.

Welcome to TrendMap, your guide to the performance of different investment segments. In this edition, we present a 10-year performance tracker of various asset classes. By Sameer Bhardwaj.

If you are confused by personal finance terms, jargon and calculations, heres a series to simplify and deconstruct these for you. In the 88th part of this series, Riju Mehta explains how these debt instruments function.

In the years that the government was exiting one business after another, the Budget was a huge event. There was money to be made punting on which these sectors would be and which business would make the most of it. Tax rates were so high that hiding ones income from the taxman was the biggest concern. We are well past the days of such drama.

Indian businesses in the UAE and Gulf region largely welcomed the Union Budget 2026-27, commending initiatives like India Semiconductor Mission 2.0 and the SME Growth Fund. While some praised the focus on manufacturing and digital transformation, others called for greater emphasis on welfare schemes. The budget signals India's commitment to becoming a stable, policy-forward digital economy.

The Finance Bill 2026 introduces retrospective amendments to the Income-tax Act, 1961, addressing key court rulings. These changes clarify time limits for transfer pricing assessments, validate the jurisdiction of Jurisdictional Assessing Officers for reassessment notices, and protect assessment orders from invalidity due to DIN quoting errors, effective from 2009 and 2021 respectively.

Budget 2026 clarifies that assessment orders under the Income Tax Act will not be invalidated due to mistakes or omissions if a Document Identification Number (DIN) is lawfully generated and quoted.

The Union Budget proposes to restrict capital gains tax exemption on Sovereign Gold Bonds (SGBs) to individuals who subscribe at original issue and hold until maturity. This change, impacting secondary market buyers, aims to align tax benefits with the initial investment scheme and incentivize long-term participation.

Marginal relief offers a tax benefit for resident individuals in the new regime with income just over Rs 12 lakh. This provision ensures their tax payable doesn't exceed the income earned above the Rs 12 lakh threshold, effectively capping their tax liability. For instance, an income of Rs 12.10 lakh results in a tax of only Rs 10,000.

The Budget adopts a measured approach to personal taxation, prioritising structural improvements over immediate tax relief. Through legislative overhaul, procedural simplification and enforcement rationalisation, the Budget lays the groundwork for a more predictable and citizen-friendly tax framework for individuals.

Investors can now submit Form 15G/H directly to depositories to avoid excess TDS on dividend, interest from securities, and mutual fund income. This simplification, effective April 1, 2027, aims to reduce compliance burdens for eligible individuals and HUFs. The new rule allows a single submission for securities held in dematerialized form.

The Budget 2026 hike in Securities Transaction Tax is expected to reduce arbitrage fund returns by about 0.5% next year, according to Capitalminds Deepak Shenoy. While retail investors may see limited impact, arbitrage funds and foreign portfolio investors could face higher costs in futures trading.

The Finance Minister Nirmala Sitharaman, in her budget 2026 speech, announced to raise the STT on Futures to 0.05% from the present 0.02%. STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively.

Budget 2026 introduces some reforms for senior citizens, including streamlined online customs declarations and duty exemptions on 17 cancer drugs and medicines for rare diseases. While no major new tax relief is announced, existing benefits like higher exemption limits and TDS thresholds remain. The Biopharma Shakti initiative aims to reduce long-term healthcare costs.

Budget 2026 has increased Securities Transaction Tax (STT) on futures and options trading to curb excessive retail speculation. Effective April 1, 2026, STT rates on options will rise by up to 50%, and on futures by 150%. This move, alongside SEBI's measures, aims to make high-frequency trading less viable for retail investors.

Budget 2026 introduces significant changes to income tax filing from April 1, 2026. Revised ITR forms will simplify compliance. The deadline for revised ITR filing moves to March 31. Share buybacks will be treated as capital gains for most shareholders. Updated returns for losses will be permitted. A new automated process for nil deduction certificates is coming.

While it was hoped that Budget 2026 clarifies the tax position for debt mutual funds by taxing them at a special rate instead of slab rate, this did not happen. So the capital gains tax rate as applicable last year is now applicable the same for FY 2026-27.

Section 440 of the new Income Tax Act, 2025, is being amended to extend immunity from penalties and prosecution to cases involving income misreporting. This change, effective April 1, 2026, requires taxpayers to pay an additional income-tax of 100% or 120% in lieu of penalties, aiming to reduce litigation and compliance burdens.

Budget 2026 introduces penalties for crypto exchanges failing to accurately report transactions. A Rs. 200 per day penalty will be levied for non-furnishing statements, while Rs. 50,000 will be charged for inaccurate information or failure to correct it. These provisions aim to ensure compliance and deter non-reporting, taking effect from April 1, 2026.