Union Budget 2026 introduces seven major impacts on income tax filing under the new Income Tax Act effective April 1, 2026. Changes include simplified ITR forms, extended revised return deadline to March 31 with fee, updated filing dates for non-audit cases to August 31, share buyback taxation as capital gains with promoter surcharges, updated returns allowing loss reductions, automated nil-deduction certificates, and a one-time foreign assets disclosure scheme for small taxpayers. These aim to ease compliance and reduce litigation while modernizing the system.

Union Budget 2026 described as "not a big bang but build better one," focusing durable growth through manufacturing infrastructure MSMEs fiscal discipline amid global fragility. Key highlights: capex Rs 12.2 lakh crore FY27, higher defence railways allocations, manufacturing boosts pharmaceuticals semiconductors electronics textiles, 200 legacy industrial clusters revival, MSME export champions support, debt-to-GDP anchor 55.6% FY27, fiscal deficit 4.3%, banking review committee. It offers policy continuity investor reassurance avoiding populist measures post-last year's tax relief.

Union Budget 2026-27 allocates Rs 20,000 crore for carbon capture and utilisation initiatives targeting hard-to-abate sectors like steel and cement. The scheme supports technologies to reduce emissions aligning with net-zero goals. This marks dedicated funding push for CCUS deployment amid India's rising industrial output and climate commitments. The budget emphasizes sustainable growth with multi-sector incentives, though specific implementation details and timelines remain to be outlined.

Finance Minister Nirmala Sitharaman attributed the rupee's slide to an all-time low of 92 against the dollar to global uncertainty rather than domestic weaknesses, stating India has strengthened fundamentals. The currency is down 2% this year and nearly 5% since US tariffs. The Economic Survey notes strong 8.2% GDP growth but persistent trade deficits and capital flow dependence. RBI intervenes against volatility without targeting levels. A weaker rupee cushions exports against tariffs but risks investor sentiment if prolonged.

Union Budget 2026-27 retains Pradhan Mantri Awas Yojana (PMAY) allocation at similar levels without significant expansions or modifications to the flagship housing scheme. PMAY Urban and Gramin continue focus on affordable housing for EWS/LIG/MIG categories with interest subsidies and direct assistance. Overall rural development and urban affairs ministries see moderate increases, but no new targets or scheme overhauls announced. The budget prioritizes infrastructure and manufacturing, with housing support through existing frameworks amid fiscal prudence.

Union Budget 2026 introduces changes prompting taxpayers to compare old and new regimes using break-even points for optimal savings. The new regime offers lower rates but fewer deductions; old retains exemptions like HRA, 80C, 80D. Break-even analysis helps determine income levels where one regime saves more, factoring standard deduction Rs 75,000 new (Rs 50,000 old), NPS contributions, and other claims. Tools calculators assist choice before July 31 deadline for salaried. Experts recommend evaluating personal deductions for maximum benefit.

Union Budget 2026-27 allocates Rs 1,102 crore under "Cabinet" head for salaries, allowances of ministers, entertainment of state guests, and ex-governors' expenses—a marginal increase from previous year. This covers Council of Ministers operations, hospitality for dignitaries, and pension/support for former governors. The provision reflects standard administrative expenditure amid broader fiscal priorities on infrastructure, defence, and social schemes. Overall government spending focuses on growth with fiscal deficit targeted at 4.3% GDP.

Union Budget 2026 proposes retaining states' share in central taxes at 41% for 2026-31, following Finance Commission recommendations after state consultations. Previous period saw reduction from 42% due to Jammu & Kashmir reorganisation. States sought 50% for rising health education infrastructure needs, but effective share declined with cess/surcharge growth outside divisible pool. Centre provides Rs 1.40 lakh crore grants for FY27. The decision balances fiscal federalism amid revenue constraints and expenditure pressures.

Finance Minister Nirmala Sitharaman announced seven high-speed rail corridors in Union Budget 2026 to serve as development linkages between major cities with sustainable passenger mobility. Routes include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. The initiative aims to connect financial hubs, tech centers, manufacturing clusters, and emerging cities, reducing travel times and supporting economic growth through cleaner transport options. This forms part of broader infra push with record capex.

Union Budget 2026 announces two high-speed rail corridors involving Tamil Nadu (Hyderabad-Chennai and Chennai-Bengaluru) to slash travel times and boost connectivity. West Bengal gets the Dankuni-Surat East-West freight corridor for logistics efficiency. Other highlights include rare earth corridors covering Tamil Nadu, special bird-watching trains for Pulicat Lake ecotourism, and targeted supports like jute production upgrades in West Bengal. The budget subtly focuses on poll-bound states with sectoral and infrastructural incentives amid election timelines.