Income Tax Budget 2026 highlights: No change in tax slabs, new act to come into effect from April 1

Income Tax Budget 2026 LIVE: This blog is now closed and will not be updated.

Union minister Raksha Khadse has said that the Budget 2026 was presented with “youth in mind”.
"This budget has been presented with the youth in mind. As the Finance Minister said earlier, the discussion that took place in front of the Prime Minister regarding the development of India, the youth had their own views on every sector. Whether it was about infrastructure, sports, agriculture, or human empowerment, the budget was presented with all these views... In particular, the Khelo India Mission was also discussed here, through which we can strengthen grassroots talent identification. After that, we discussed how we can expand the sports science sector, enabling our athletes to perform better and receive greater support for their development," she told ANI.

Tamil Nadu BJP leader Tamilisai Soundararajan said that the Budget 2026 will be beneficial for all sections of society.
"The budget will be beneficial for all sections of society, particularly women. We are very happy. Finance Minister Nirmala Sitharaman presented the Budget for the ninth consecutive term. I thank our Prime Minister for making Tamil Nadu proud," she told PTI.

Congress leader Shashi Tharoor said on Sunday that India not allocating any money for the Chabahar Port "looks like surrender".
“Last year they had announced ₹100 crores for the Chabahar port in the budget estimates. Then that went up to ₹400 crores in the revised estimates, and this year's budget is zero, which looks like we're giving up on the port. In view of the current geopolitical situation, with the squeeze on Iran, the increasing sanctions from Western countries, and the demand that we not cooperate with Iran, it's a very valuable relationship we've had for a long time, but it looks like we appear to be abandoning the idea of spending any money on that port,” Tharoor told ANI.

"It may be true that there are practical obstacles. If everything is sanctioned, how do you spend money? And what happens to those who do go there? Because those companies are active in Chabahar, then will be sanctioned by the West as well. Even Indian companies will be sanctioned. So that may be the reason. But it does look like it's a surrender to a particular policy that has been imposed from the outside on Iran. The very fact that there is no money in the budget suggests that," he added.

Former finance minister P. Chidambaram said on Sunday that the Budget 2026 speech did not address any challenges listed in the economic survey.

"The major challenges in the Indian economy are spelt out, enumerated in the economic survey. I have listed 10 or 11 challenges in my statement. I can repeat them, but that will not take the argument further. I want to ask your viewers, how has the Finance Minister addressed the challenges listed in the Economic Survey? She has not even mentioned those challenges. For example, she has not mentioned the penal tariff imposed by the United States, throwing the whole world off gear. She has not addressed the growing trade deficit of India, especially with China, over 100 billion dollars last year,” Chidambaram told PTI.

BJP MP Kangana Ranaut called the Budget 2026 “wholesome”, pointing out several measures.
"I think this is a very wholesome budget, especially for women. The sensitive issues of hostels, Ayurveda, and Yoga have been addressed in the budget. Emphasis has been placed on increasing tourism in Himachal Pradesh. We are very grateful for this, and we thank them for it," Ranaut said.

AAP chief Arvind Kejriwal said that the Budget 2026 will “increase inflation” throughout the country.
"I was looking at the budget. First of all, there is nothing in the budget for Goa. The central government has completely forgotten about Goa. There is nothing for Goa or the people of Goa. Secondly, from a national perspective, this budget will increase inflation, create more unemployment, and today, the biggest problems for young people are unemployment and inflation. There is no concrete blueprint for creating jobs, and this budget will only increase inflation," Kejriwal said in Goa.

Congress leader KC Venugopal slammed the Union Budget 2026, calling it “total disappointment”.
“Total disappointment for Kerala, no mention of promised AIIMS,” Venugopal told the media.

Karnataka chief minister Siddaramaiah criticised the Union Budget 2026, saying it did not provide any relief to the entire South India.
"This is an injustice caused by the Government of India. We had hoped that this budget would provide us with relief. But Karnataka has not been given any relief, and not just Karnataka, but the entire South India," Siddahramaiah told the media.

Railway minister Ashwini Vaishnaw detailed the high-speed rail network proposed in the Union Budget 2026.
"Chennai, Bengaluru, and Hyderabad will form a South High-Speed ​​Triangle or South High-Speed ​​Diamond, which will prove to be a great boon for all five South Indian states: Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and the Union Territory of Puducherry. The Chennai-Bengaluru travel time will be reduced to just one hour and thirteen minutes. Bengaluru-Hyderabad will be just a two-hour journey. Chennai-Hyderabad will be a two-hour and fifty-five-minute journey. Chennai, Bengaluru, and Hyderabad are all major economies, very large cities, and major hubs of IT technology. Creating this high-speed diamond will bring a major growth multiplier to the South Indian states, which is good for the country and very good for all the residents of the South Indian states," Vaishnaw told the media.

Samajwadi Party MP Dimple Yadav criticised the Union Budget 2026, saying it did not have anything for women, youth, production, or health and education.

"There is nothing in this budget. Just empty technical terms, and the language used is such that the common person won't even understand it. There's nothing for women, youth, production, and with the way the level of health and education is continuously declining in the country, there's nothing for that either... and there's nothing in this budget for our farmer brothers and sisters either. It's a very pessimistic budget," Dimple Yadav told the media.

Union commerce minister Piyush Goyal said he doesn't think that the middle class is disappointed with the Union Budget 2026-27.

"I don't think the middle class is disappointed, because last year such a large-scale income tax exemption was given, which was beyond everyone's expectations... I think the middle class will be happy because there is a focus on strengthening manufacturing, services, education, skill development, attracting more international finance, and increasing exports," he told news agency ANI.

"Since there is an increase in the Security Transaction Tax on options and futures trading, it might be the reason for the current situation (dip in the stock market). I think it's just a matter of a day or two. As people understand how many benefits this budget offers, how well-thought-out it is, how it strengthens the country's economy, and how it attracts large-scale investment, I believe the stock market will show a good surge in a positive direction," he added.

Former NITI Aayog CEO Amitabh Kant reacted to Union Budget 2026-27 and said that it is fiscally prudent and very responsible.

"We are in very complex geopolitics. There's a breakdown of global supply chains and disruption worldwide. In the midst of this, this budget is a fiscally prudent and very responsible budget," he said while speaking to news agency ANI.

"The emphasis was on manufacturing, infrastructure, and cutting-edge areas of technology, which enable India to leapfrog in some areas like data centers and nuclear power... The budget also focuses a lot on sectors that are impacted by American tariffs, such as the marine sector, textiles, labor, and footwear... She also lays emphasis on job-creating sectors like tourism, which will provide a huge impetus to growth with jobs. Overall, this is a very responsible and a very fiscally prudent budget," Kant added.

Congress leader and former finance minister P Chidambaram criticised the Union Budget 2026-27, saying that it failed "the test of economic strategy and economic statesmanship".

"The most serious criticism of the Budget speech is that the Finance Minister is not tired of adding to the number of schemes, programmes, missions, institutes, initiatives, funds, committees, hubs, etc," he said at a press conference.

"I leave it to your imagination how many of these will be forgotten and vanish by next year. Months after the passing of the Income Tax Act, 2026, which will come into force on 1 April, 2026, the Finance Minister has tinkered with some rates. While the impact of the numerous minor changes has to be examined carefully, it must be remembered that the overwhelming majority of the people have no concern with income tax or income tax rates. As far as indirect taxes are concerned, the average person will be concerned with only paragraphs 159, 160 and 161 of the speech. I welcome these minor concessions," he added.

Union minister Hardeep Singh Puri reacted to Union Budget 2026-27 and said that this comes at a time when there is global turmoil, adding that India is an oasis of calm.

"This is Nirmala Sitharaman's ninth consecutive budget, and under the leadership and guidance of the Prime Minister, it is the 13th consecutive budget. This in itself is a very significant development... Our economy has moved from the tenth position globally to the fourth position. Our GDP has increased from two trillion to 4.3 trillion," he added.

Puri further told news agency ANI, "I am using the words "far-sightedness" and "purposeful" because our energy depends on data, and data depends on energy. You have given a 20-year tax holiday for cloud pay data, which will be in India, etc., We are in 2026, and the entire period from 2026 to 2047, until we achieve our goal of a developed India by 2047, is covered. So, all in all, this is a very positive, purposeful, and far-sighted budget. This is a very mature budget... When we talk about EVs, critical minerals are very important. Critical minerals have been given a very high priority in this budget."

Union commerce minister Piyush Goyal said that Union Budget 2026-27 is a "future-ready budget for India".

"Under the leadership of Prime Minister Narendra Modi, the 'Reform Express' has been moving forward at a speed since August 15th. A very important link in this chain has been presented to the nation by Nirmala Sitharaman in this budget. It gives momentum and strength to take the country towards a developed India by 2047. A strong, forward-looking agenda with a great vision is presented to the people of the country through this budget," he told news agency ANI.

Reacting to Union Budget 2026-27, Union minister Dharmendra Pradhan said, "The budget has expanded further compared to the previous one. Last year’s budget allocation was ₹1 lakh 28 thousand 650 crore, which has now been increased to ₹1 lakh 39 thousand 299 crore, 8.27% rise compared to the last budget... Women have contributed significantly to the field of science and technology, more so than in many other nations."

"To further promote this growth, we plan to establish girls' hostels in every state in collaboration with the respective state governments... We also plan to develop university council for the overall advancement of educational infrastructure and to create a knowledge‑based economy," she added.

At the post-Budget press conference, finance minister Nirmala Sitharaman responded to Congress leader Rahul Gandhi's remarks on Budget and said, "I don't know what course correction he is referring to. The economy and its fundamentals are strong. Global uncertainty is facing many of our sectors, for whom we have brought in so many different schemes for those small and medium enterprises, for textiles, for leather, for people who are working in the rural areas, schemes for benefiting them, for even the farmer and value addition, for women entrepreneurs, self-help entrepreneurs."

"These are ways in which we are reaching out to the common small people to make sure that they don't have to face big changes in their life because of any volatility coming from outside," she added.

Sitharaman also said, "Politically, you want to criticise, you're welcome, please do it. But if you want to give me the facts on which you're basing your argument, I'm willing to hear and willing to reply to that."

Finance Minister Nirmala Sitharaman on Sunday announced a capital outlay of ₹5.95 lakh crore for defence, up from last year’s Budget of ₹4.92 lakh crore. While the total capital outlay has gone up about 22% from last year’s allocation, the budget for modernisation alone has been raised by 24%.

The ministry had wanted an increase of 20%, sources aware of the matter said, with the fresh boost targeted at increasing long-range standoff capabilities, military aircraft, missiles and armed drones in the aftermath of Operation Sindoor.

Read full report here

Here are the items that will get costlier after Union Budget 2026-27:

• Low-cost imported umbrellas
• Potassium Hydroxide
• ATM/Cash dispenser machine and its parts and components
• Film and broadcasting equipment for foreign crews
• Imported Zoo animals and birds
• Fertiliser inputs as Ammonium phosphate/nitro-phosphate fertilisers and Naphtha
• Coffee roasting, brewing or vending machines
• Castor oil cake

Following the presentation of Union Budget 2026-27, here are the items that will get cheaper:

• Cancer drugs
• Drugs, medicines and food for special medical purposes related to seven rare diseases
• Drugs and medicines imported for personal use
• Key components for microwave ovens
• Components or parts, including engines of aircraft
• Solar glass ingredients
• Goods imported for nuclear power projects
• Capital goods for critical minerals

Union minister Kiren Rijiju slammed opposition parties for "playing politics" over the Union Budget, which he said is focused on growth and development.

"All the provisions have been made for the common people only. If those in the opposition do not consider themselves common people, what can we do?" Rijiju told reporters.

"I want to urge my friends in the opposition to welcome this good Budget. Don't play politics over it," he added.

Department of Revenue secretary Arvind Shrivastava said at the post-Budget press conference, "The only change made in STT (Securities transaction tax) is in the future and options. All the other STT rates remain the same. The primary objective of raising the tax rates on STT has been that it is felt that when you look at the volume of transactions in futures and options, whether you compare it to the size of GDP or size of the underlying securities market, it is largely in the realm of heavy speculation, which results in losses to small retail, unsophisticated investors."

"The government's intention is to discourage speculative tendencies. And the increase in rate is essentially in that direction. So it is meant to essentially handle the systemic risk in derivative markets. Even after this increase, however, the rates of STT will remain modest compared to the volume of the transactions that is happening there," he added.

Congress leader Rahul Gandhi reacted to the Union Budget 2026-27 and said that this budget "refuses course correction" and is "blind to India's real crises".

"Youth without jobs. Falling manufacturing. Investors pulling out capital. Household savings plummeting. Farmers in distress. Looming global shocks -- all ignored. A Budget that refuses course correction, blind to India's real crises," Gandhi added.

Reacting to Union Budget 2026-27, Congress national president Mallikarjun Kharge took a swipe at the Centre and said that the Modi government has "run out of new ideas".

"This budget raises more questions than it answers regarding India's significant economic, social, and political challenges. It offers nothing for the poor. They have not presented any solution, positive suggestion, or concrete steps to control inflation," Kharge was quoted as saying by news agency ANI.

He further said, "The Economic Survey indicates that trade uncertainty is a major challenge for India, yet the budget barely acknowledges this problem. Similarly, they have no plan to address the falling value of the rupee... The budget shows no intention of reviving consumer demand."

"The decline in domestic savings and the increasing burden of personal debt have also been ignored... there is no solution to the widespread unemployment crisis among educated youth," he added.

Kharge said, "The Finance Commission's recommendations require further study, but they do not appear to provide any relief to state governments facing serious financial constraints. Inequality has surpassed the levels seen during the British Raj. But the budget doesn't even mention it. Nor have they made any provision for assistance for Scheduled Castes, Scheduled Tribes, Other Backward Classes, Economically Weaker Sections, or minorities."