Union Budget 2026-27: Key Highlights [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026). This is her 9th consecutive budget.

The key highlights are as follows:

1. To develop India's global bio-pharma hub, propose Biopharma Shakti with Rs 10,000 Rr outlay over 5 years"
2. Proposed Ministerial rich states of Odisha, Kerala, Tamil Nadu, AP to establish dedicated rare earth corridors for mining, processing and research
3. Proposed ICAI, ICMAs and ICSIs to launch short term courses to help MSMEs with compliances
4. Proposed to raise capex target to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for current fiscal.
5. Proposes Comprehensive Review FEMA (Non-debt Instruments Rules)
6. New IT Act from 1st April 2026 and new forms will be out soon
7. ITR-1 & ITR-2 Filing Deadline Set for 31 July; Non-Audit Business/ Trust Returns Due by 31 August
8. "Propose to tax buyback for all types of shareholders as capital gains"
9. Reduced TCS on Award of Motor Accident Claims Tribunals
10. New Amnesty Scheme allowing NRIs to disclose undisclosed Overseas Income
11. Non production of Books of accounts, documents to be decriminalized
12. Non disclosure of overseas assets worth 20 Lakh rupees immune from prosecution with retrospective effect, w.e.f 1st April 2024
13. TDS on sale of property by NRIs slashed
14. Safe harbour rules for IT services to be amended to be automated without manual approval of AO
15. No TAN required for property deals by NRIs
16. MAT: NRIs paid tax on presumptive basis; Amendments to ICDS
17. Tax Holiday till 2047 to any foreign company establishing cloud services in India
18. Tax Holiday till 2047 to Data Centres
19. TCS on Foreign Tours slashed to 2%: Budget 2026
20. No further credit accumulation to MAT Credits
21. customs duty relief on various goods including cancer drugs
22. BCD on imports of Capital goods imports for processing critical minerals
23. Effective tax on corporate promoters to be 22%; non-corporate promoters to have tax of 30% on buybacks

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