Budget 2026 income tax: Top announcements made by FM Sitharaman - check list

Key announcements:

• The timeline for filing revised returns has been extended from December 31 to March 31, with a nominal fee applicable.
• The due dates for filing tax returns will be changed: individuals filing ITR 1 and 2 will continue to have a deadline of 31 July, while non‑audit business cases and trusts will have a due date of 31 August.
• Non-residents supplying capital goods, equipment, or tooling to toll manufacturers in a bonded zone will be exempt from income tax for five years.
• The TCS rate on education and medical purposes under the Liberalised Remittance Scheme (LRS) has been reduced from 5% to 2%.
• The TCS rate on overseas tours and packages is proposed to drop from 5% or 20% to 2%.
• Small taxpayers will now be able to avail rule‑based lower or nil tax deduction without having to file an application for a lower withholding certificate.
• The government also proposes to exempt any interest awarded by the Motor Accident Claims Tribunal to a natural person
• Furthermore, to help ordinary citizens comply without difficulty, the forms have also been redesigned.