What Is the Union Budget of India 2026?
The Union Budget of India 2026–27 is the government’s annual financial plan for the country’s income and spending for the year from April 1, 2026 to March 31, 2027. It was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha (Parliament) on 1 February 2026. This budget shows how the government plans to collect money (taxes) and spend money on public services, infrastructure, defence, health, education, etc. (Wikipedia)
When and Who Presented It
The budget was presented on 1 February 2026 in the Indian Parliament. It is officially called the Annual Financial Statement and is part of the Finance Bill, 2026. Finance minister Nirmala Sitharaman presented it on behalf of the Government of India. (Wikipedia)
Total Size and Fiscal Targets
Total Expenditure: ₹53.5 lakh crore
Capital Expenditure (for infrastructure projects): ₹12.2 lakh crore
Targeted Fiscal Deficit: 4.3% of GDP (the gap between revenue and spending)
Government Debt: Around 55.6% of GDP
These numbers mean the government plans to spend significantly on development, while maintaining budget discipline. (Wikipedia)
Income Tax — Slabs and Rates
For individual taxpayers, both new and old income tax regimes remain the same for financial year 2026-27. There were no major changes to personal tax slab rates this year. This means your taxes based on income brackets did not change from previous years. (The Times of India)
Under the new tax regime (FY 2026–27) the rates are roughly: (https://www.bajajfinserv.in)
Up to ₹4,00,000: Nil tax
₹4,00,001–₹8,00,000: 5% tax
₹8,00,001–₹12,00,000: 10% tax
₹12,00,001–₹16,00,000: 15% tax
₹16,00,001–₹20,00,000: 20% tax
₹20,00,001–₹24,00,000: 25% tax
Above ₹24,00,000: 30% tax
Note: The same basic pattern also applies if someone chooses the old tax regime, but with different deductions and exemptions. (https://www.bajajfinserv.in)
The New Income Tax Law
A major change in this budget is the introduction of a brand-new legal framework called the Income-tax Act, 2025, which is set to become effective from 1 April 2026. This new Act replaces the older Income-tax Act of 1961 and simplifies tax laws, easier compliance, and fewer disputes. (Wikipedia)
Tax Reliefs and Incentives
The 2026 budget includes several tax-related benefits:
✔ TCS on overseas tour packages and education/medical remittances is now set at a uniform 2%.
✔ Increased focus on simplifying tax forms and reducing penalties.
✔ New exemptions and adjustments for cooperatives and primary agricultural societies.
✔ Measures to encourage voluntary tax compliance. (Drishti IAS)
Impact on Individuals and Economy
The government expects income tax collections to grow compared to previous years, partly because of increased compliance rather than higher tax rates. However, many critics said there wasn’t major relief for consumers dealing with rising living costs — especially since slab rates stayed the same. (The Times of India)
Why It Matters
Every year, the Union Budget decides how much the government will spend on roads, schools, hospitals, farmers, defence, science, jobs, and more. The 2026 budget specifically focused on:
• Building new infrastructure, including high-speed rail corridors
• Supporting technology sectors like semiconductors and biopharma
• Simplifying taxes through better laws
• Balancing growth with fiscal responsibility
All these aim to keep India growing economically and socially. (Wikipedia)
Real-Life Effects You Should Know
For students and families:
• Your income tax bracket stays the same — no surprise increase. (The Times of India)
• Certain imported medicines (like cancer drugs) have customs duty removed, making them potentially cheaper. (The Times of India)
• Budget encourages job creation and support for youth skills, MSMEs, and new industries. (dbs.bank.in)
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