Budget 2026 Live Updates: 10 key things individual taxpayers should know

Budget focuses on growth, jobs and people's aspirations, will greatly benefit Goa: CM Sawant

Goa Chief Minister Pramod Sawant on Monday hailed the Union Budget stating it places growth, jobs and people's aspirations at the centre while maintaining fiscal discipline.

It would significantly benefit Goa, which will receive Rs 5,570.83 crore as its devolved tax share, he said addressing a press conference.

"The Budget strengthens India's journey towards 'Viksit Bharat' through enhanced public investment, faster reforms and new opportunities in tourism, services, MSMEs and the blue economy," he said.

The proposed upgradation of National Council for Hotel Management and Catering Technology into National Institute of Hospitality would help improve quality standards and create industry-ready talent, along with the plan to upskill 10,000 tourist guides across 20 iconic sites through a standardised 12-week hybrid training programme in collaboration with Indian Institute of Management (IIM), he said.

Customs revenue target modest, achievable: CBIC chief

The government has projected a modest 5 per cent growth in customs revenue for FY2026-27 after taking into account the impact of free trade pacts, duty exemptions on capital goods imports and tapering of edible oil imports, a top official said on Monday.

Goods and Services Tax (GST) revenues in FY27 are projected to grow at 6.3 per cent, with a buoyancy of 0.94 even after a reduction in tax rates on about 375 items with effect from September 22, 2025, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi said in a post-Budget interview to PTI.

The FY'27 tax revenue targets are realistic and achievable, the CBIC chief added.

The Budget has projected a 5 per cent growth in Customs revenue at Rs 2.71 lakh crore in FY'27. In GST, the collection is estimated at Rs 10.19 lakh crore, which would be a 6.3 per cent growth YoY after excluding the compensation cess which ended in January.

Chaturvedi said modest growth projections in Customs are based on the assumption that there would be more free trade agreements (FTA), which would mean that there would be a preference for the MFN rate over tariff rates. This could result in a downside for the revenues.

In a move expected to bring relief to employers and reduce routine tax disallowances, the finance bill has proposed a key change to the treatment of employees’ provident fund (PF), ESI and similar contributions, allowing deductions even where there is a delay in deposit, provided the amount is deposited by the employer entity with the relevant welfare fund authorities before the due date of its Income-tax return.

At present, employers can claim deduction for employees’ PF and ESI contributions only if the amounts are deposited within the strict timelines prescribed under the respective welfare laws. Even a minor delay permanently disqualifies the expense for tax purposes, a position that had been settled by the Supreme Court (SC) after years of litigation

Budget 2026 boosts for an AI-first digital and fintech economy

“The Union Budget 2026 sends a strong signal that India is moving from building digital rails to powering an AI-first economy on top of them. By deepening investments in AI-driven governance and R&D, the government is creating a strong foundation for fintech and the wider digital economy. The new Rs 10,000-crore MSME & SME Growth Fund strengthens this ecosystem by improving access to growth capital for the businesses that fintechs serve and finance, creating a more scalable and resilient market. Lastly, the continued emphasis on regulatory sandboxes and innovation-friendly frameworks will also help fintechs test new models, from Web3 and digital assets to cross-border and next-generation payments, in a safe and supervised environment. This combination of public policy support and private-sector innovation is what will help India lead the next phase of inclusive, technology-driven growth.” said Arpit Chug, CFO, Razorpay.

Budget 2026 strengthens domestic renewable manufacturing and energy security

Jitendra Agrawal, COO – Renewable Equipment Manufacturing Business (REM), ACME Group said "The latest Union Budget sends a strong and timely signal for domestic manufacturing, particularly in renewable equipment and clean energy supply chains. Higher public capital expenditure, coupled with targeted customs duty exemptions for battery energy storage systems and solar glass inputs, will significantly strengthen India’s manufacturing competitiveness. The emphasis on energy security, critical mineral processing, infrastructure-led growth, and ease of doing business also creates the right foundation for scale, technology adoption, and localization. For renewable equipment manufacturers, this policy clarity will encourage long-term investments, resilient supply chains, and accelerated capacity expansion, supporting India’s transition toward a self-reliant, sustainable, and globally integrated clean energy manufacturing ecosystem."

"Unlike last year, which saw some big announcements in the budget, the latest edition is more about finding stability. Focusing on maintaining a steady growth momentum and a strict fiscal discipline will go a long way in pushing towards our goal of becoming a developed economy by 2047". Agrawal added.

Budget 2026 boosts FMCG ecosystem with rural push and logistics reforms

Rajiv Kumar, Vice Chairman, DS Group said “The budget strikes a balance between fiscal stability and aggressive growth, positioning India for a resilient economic future. For the FMCG sector, the Viksit Bharat agenda serves as a vital catalyst by synchronizing demand and supply-side enablers. Specific interventions in agriculture like push for production of cocoa, fisheries and animal husbandry are poised to boost rural incomes. Simultaneously, the expansion of TReDS and improved credit access will alleviate working capital pressures for distributors and contract manufacturers, fortifying the entire FMCG ecosystem."

"On the operational front, significant outlays for freight corridors, inland waterways and Tier II-III infrastructure are expected to lower logistics overheads and bridge the gap in last-mile connectivity encouraging deeper regional penetration. These logistical gains, paired with a focus on domestic manufacturing, chemical parks and energy security, will help stabilize input costs against global volatility." he added.

"The regulatory environment encourages growth and Ease of Doing Business. The shift from penalty to fee-based compliance, together with incentives for data-driven IT strength, enables businesses to shift attention from regulatory issues to digital optimization. In addition, the simplification of customs duties and the digitalization of GST procedures will improve supply chain predictability and help with export competitiveness. Finally, the budget covers the basic pillars of productivity by connecting tourism and wellness, with mass-scale skill development. This comprehensive strategy promotes a productive population and a seamless business environment thereby cementing India’s long-term growth trajectory and ensuring a sustainable consumption story for the future years.” Kumar said.

Realty sector leaders have termed Union Budget 2026-27 as infrastructure-led and growth-oriented, saying higher capital expenditure, asset monetisation and risk-sharing mechanisms could accelerate project execution, improve financing access and support long-term demand.

Industry executives said the government’s decision to raise capital expenditure and introduce financing support tools signals policy continuity around infrastructure-driven growth, which has strong spillover effects on housing, commercial real estate and urban expansion.

The Budget has rolled out a sweeping reset of India’s transfer pricing framework, aiming to cut litigation, improve tax certainty and make the country a more attractive base for multinational companies (MNCs) and global capability centres.

Presenting the proposals, finance minister Nirmala Sitharaman announced far-reaching reforms to safe harbour rules and Advance Pricing Agreements (APAs), with a sharp focus on the IT and technology-driven sectors.

A key change is the consolidation of software development, IT-enabled services, KPO and contract R&D into a single category of “Information Technology Services”, with a uniform safe harbour margin of 15.5%. This replaces multiple, higher margins and is expected to address long-standing disputes around classification and profitability.

Budget 2026: Strong capex, manufacturing push to drive durable and inclusive growth

Mukundan Menon, MD, Voltas Ltd. said "The Union Budget 2026–27 reflects a confident and future ready macroeconomic vision, firmly aligned with India’s Viksit Bharat aspirations. By combining strong fiscal discipline with a record public capital expenditure outlay of ₹12.2 lakh crore, the government has reinforced the foundation for inclusive, broad based, and durable growth."

"The Budget’s strategic push on manufacturing and technology is especially significant for the consumer durables sector. Initiatives such as the India Semiconductor Mission 2.0 and the enhanced ₹40,000 crore outlay for electronics component manufacturing will meaningfully deepen domestic value addition. These measures not only improve affordability for consumers but also elevate India’s competitiveness in global value chains." he added.

"Equally important is the Budget’s sustained emphasis on urban infrastructure development. Investments in modern transit systems, housing, and smart city capabilities create a multiplier effect, boosting jobs, strengthening income visibility, and expanding the addressable market for technology-driven, energy-efficient appliances. Overall, this Budget strengthens a constructive growth cycle, enhanced investments will translate into more robust incomes, which in turn will drive demand for Make in India, energy-efficient, and smart consumer technologies. It sets the stage for sustained momentum in domestic manufacturing and positions India strongly for the next phase of transformation." Menon said.

Budget 2026: Biopharma Shakti -a long-term bet on innovation, IP, and import substitution

Manmeet Kaur, Partner at Karanjawala & Co. said "The proposed Rs 10,000 crore investment over five years signals a strategic push to position India as a bio-pharma hub, leveraging its strengths in generics and vaccine manufacturing. Spreading the outlay over multiple years limits fiscal strain while aiming to crowd in private R&D and scale manufacturing. The real payoff will depend on regulatory speed, IP certainty, and the ability to move up the value chain beyond low-margin formulations.
Biopharma Shakti marks a strategic shift from scale-based generics to innovation-led biopharma, aligned with India’s rising burden of non-communicable diseases. The Rs 10,000-crore outlay is fiscally prudent but the pay off lies in the long-term productivity, IP creation, and import substitution"

Budget focusses on investment as tool for growth; deficit target outlines govt's priority: FM

Finance Minister Nirmala Sitharaman on Monday said the Union Budget for FY27 has focussed on investment as a priority tool for boosting consumption, and the trajectory of fiscal deficit shows that the government's priority is growth.

Interacting with the media after the 2026-27 Budget presentation, Sitharaman also the volatility in gold prices is due to global uncertainty, and many central banks are investing in gold.

"It also shows that investors do not have confidence in any one particular currency. and hence the rush to buy gold," Sitharaman said.

Talking about hike in securities transaction tax (STT) on F&O trades, the minister said it is a "sort of deterrence so that people do not go headlong in speculative" derivative trading.

According to studies by Sebi, over 90 per cent of retail investors' trades in the F&O segment lead to losses, and the capital markets regulator has also taken steps to reduce volumes in the past.

"We have only touched the F&O trade which is highly speculative. I have received calls from many parents saying their children are severely losing money, and also seeking government intervention. The STT hike in F&O will act as a deterrence so that people do not go headlong with that," Sitharaman said.

Budget 2026: Steel industry players say budget's push towards infra, MSME to support demand

Increased capital expenditure, provisions for industrial clusters, and focus on MSMEs in the FY27 budget are expected to strengthen economic activities and support steel demand, steel industry players said on Monday.

Presenting the annual Budget for the next financial year on Sunday, Finance Minister Nirmala Sitharaman announced a series of measures covering infrastructure, renewables, logistics and the MSME sector.

Sharing his views with PTI, Naveen Jindal, President of the Indian Steel Association, said that a 22.2 per cent effective increase in capital expenditure, focus on freight corridors and inland waterways, and the Rs 10,000-crore container manufacturing scheme are expected to strengthen infrastructure activity, improve trade logistics and support steel demand.

Dilip Oommen, CEO of AMNS India, said the steps to strengthen project financing, revive industrial clusters and expand infrastructure in Tier-II and Tier-III cities will boost domestic manufacturing and enhance competitiveness.

The support extended to MSMEs is a significant move as a substantial portion of India's stainless steel capacity lies in this segment. The measures will empower smaller units to upgrade technology, improve quality and compete more effectively against substandard imports, said Rajamani Krishnamurti, President of the Indian Stainless Steel Development Association (ISSDA).

According to Abhyuday Jindal, Managing Director of Jindal Stainless, MSMEs are the backbone of manufacturing and initiatives such as the SME Growth Fund, the Self-Reliant India Fund top-up and simplified compliance norms will strengthen the overall value chain.

In her Budget speech, the Finance Minister also proposed a Rs 20,000-crore allocation for Carbon Capture, Utilisation and Storage (CCUS).

Parmod Sagar, Chairman, Managing Director and CEO of RHI Magnesita India, said the continued momentum of infrastructure-led growth, supported by an enhanced capex outlay of Rs 12.2 lakh crore, is a welcome move and will significantly benefit enabling industries such as refractories.

Budget 2026: Union Budget's push for AI-led capacity building

Commenting on the AI-led capacity, Ameet Verma, co-founder and CEO of mple AI told TOI, “The Union Budget’s focus on AI-led capacity building is a strong and practical move. India doesn’t just need innovation funding—it needs structured, scalable ways to skill people for real business scenarios.

From our experience working with large enterprises, the gap is not intent but execution. AI missions, combined with industry participation, can bridge this gap by turning research and technology into everyday workplace capability. Done right, this can significantly improve productivity across sectors.”

Budget 2026: 'A shift towards simpler, consumption-friendly tax compliance for individuals'

Vikas Garg, Chairman, Ebix Group, told TOI, “ The Union Budget 2026 presents a clear and credible economic roadmap, combining growth ambition with fiscal discipline. With public capital expenditure raised to Rs 12.2 lakh crore and the fiscal deficit targeted at 4.3 percent of GDP, the Budget reinforces macroeconomic stability while sustaining investment-led growth. The emphasis on infrastructure, the creation of a dedicated Rs 10,000 crore SME Growth Fund, and continued support for MSMEs through improved credit flow and formalisation reflect a clear focus on productivity, employment, and efficient capital allocation. The recognition of tourism as a core economic driver, supported by investments in connectivity, destination development, and skilling, strengthens its role in employment creation and foreign exchange earnings. Measures such as the reduction in TCS on overseas tour packages also signal a shift towards simpler, consumption-friendly tax compliance for individuals. Taken together with steps to deepen capital markets, improve credit flow, and enhance ease of doing business, the Budget strikes a disciplined balance between ambition and prudence, positioning India as a stable, investable, and globally competitive economy.”

Budget 2026: Government to carefully read fiscal targets

​

The Centre will need to move cautiously to ensure its fiscal targets and debt reduction roadmap stay on track, given the substantial funds that will flow to states after the implementation of the 16th Finance Commission recommendations, Expenditure Secretary V Vualnam said on Monday.The 16th Finance Commission, chaired by Arvind Panagariya, has recommended a 41 per cent share of states in Central taxes for a five-year period starting April 1, 2026. It has also proposed doubling grants to local bodies, while discontinuing post-devolution revenue deficit grants for states.

In a post-Budget interview with PTI, Vualnam said the states’ share in Central tax collections under the Finance Commission’s devolution formula would be around Rs 14 lakh crore.

Once grants and other transfers, including Centrally Sponsored Schemes and Central Sector schemes, are factored in, the total amount transferred from the Centre to states would exceed Rs 25 lakh crore. “The government has accepted the recommendations, and we will have to tread very carefully so that our fiscal targets and debt glide path are adhered to,” Vualnam said.

​

Finance minister Nirmala Sitharaman unveiled the Union Budget 2026 on February 1, setting out a clear roadmap for individual taxpayers. While personal income tax rates and the broader structure of taxation stays untouched, the Budget introduced a range of reforms to further simplify the process for taxpayers. The measures focus on easing return-filing timelines, reducing tax collection at source on select transactions, and addressing long-standing practical difficulties faced by small taxpayers.The Budget also had measures for foreign asset holders.

Budget 2026: Initiatives for allied health institutions, train caregivers, regional medical hubs

Kadwin Pillai, managing director of Transworld Educare told TOI, "Budget 2026 reflects a strong commitment to inclusive and aspiration-led growth through the Government’s three Kartavyas, with a clear focus on empowering youth and strengthening access to healthcare and education. Initiatives to upgrade allied health institutions, train caregivers, establish regional medical hubs, and strengthen the AYUSH ecosystem signal a long-term vision to position India as a global hub for medical education and medical value tourism. Measures such as the reduction in TCS on overseas education and medical studies further ease access for students and families aspiring to global-quality healthcare education.”

Budget 2026: Focus on MSMEs, rural development, tax reforms and more

​"I must say that it is a ‘Vikshit Budget’ today. It focuses on MSMEs, rural development, fund establishments, tax reforms, banking facilities, inclusion of academic reforms, support for Ayurvedic institutions, and the inclusion of ICAI and ISI for Corporate Mitra. I think Bharat is truly moving forward. This is a growth-oriented budget that not only addresses immediate benefits for 2026 but also sets a midterm roadmap for the next three to five years, paving the way for a Viksit Bharat by 2047," Sahitya Chaturvedi, secretary general of IBPC and head of audit at Ajmal Group told TOI.

Budget 2026: Calibrated and forward‑looking Budget, majorly in line with expectations

Commenting on the Union Budget, Rahul Jain, president and head at Nuvama Wealth said, "Budget 2026 sets the tone early with its continued focus on manufacturing and infrastructure, reinforcing the government’s infrastructure‑led growth and employment agenda. It is largely a continuation of existing policies, with no major structural shifts. This is understandable given the challenging global backdrop and limited fiscal flexibility.

The decision to leave STCG and LTCG unchanged removes potential uncertainties for investors. The change in buyback taxation, now aligned with capital gains rather than being treated as a deemed dividend taxed at slab rates, is a welcome, investor‑friendly move. While the increase in STT on F&O may weigh on near‑term sentiment, the impact on long‑term investors is likely to be limited.

Capex being raised to Rs 12.2 lakh crore, up about 9% year‑on‑year, while net borrowing at Rs 11.7 lakh crore remains within expectations, underscoring the commitment to fiscal discipline and the medium‑term debt‑reduction path. The higher‑than‑expected RBI dividend also offers additional fiscal comfort.

Overall, this is a calibrated and forward‑looking Budget, broadly in line with expectations, positive for infrastructure, railways, manufacturing and capex‑linked sectors, while maintaining fiscal prudence.”

The Union Budget 2026–27 on Sunday cut allocation for pollution control at a time when the toxic air quality of Delhi-NCR and the Indo-Gangetic Plains has set off alarm bells on an unfolding public health crisis.The Centre has allocated Rs.1,091 crore for pollution control in FY 2026–27, which is Rs 209 crore lower than the revised estimates of Rs 1,300 crore in 2025-26 that was increased from the allocated Rs 853.9 crore that year.

Budget 2026: 'Inclusive growth remains a key theme'

"Union Budget 2026 strikes a strong balance between growth and macro-economic stability, with continued fiscal consolidation improving the estimated fiscal deficit to 4.3% from 4.4% current year and reinforcing investor confidence. The sustained push on capex-led growth across various sunrise sectors such as semiconductors, data centres, critical minerals, electronics, biopharma, infrastructure, shipping and railways strengthens the foundation for long-term capital formation and competitiveness.

Raising the individual PROI investment limit from 5% to 10% and expanding the aggregate cap from 10% to 24% of the company's equity, will deepen overseas participation, improve liquidity and further integrate Indian markets with global capital flows.

Inclusive growth remains a key theme, with the launch of SHE Marts providing women entrepreneurs with organized retail platforms and market access, enabling a transition from self-help livelihoods to enterprise ownership. This is within the parameters set by the She-Mark framework and end-to-end digital financing systems aimed at improving formal credit access for women-led businesses.

On the markets side, the calibrated increase in STT on futures and options seeks to curb excessive speculation while encouraging healthier cash market participation, while we await market reaction to this development. With GDP growth projected at a robust 10%, the Budget reinforces India’s position as a compelling destination for long-term investment and capital market growth," Bhuvaneshwari A., MD&CEO, SBICAP Securities Limited told TOI.

Budget 2026: Tax changes on GCCs, buybacks and MAT set to shape investor strategies

​India hosts more than half of the world’s GCCs, and the move to extend transfer pricing certainty through revised safe harbours and faster advance pricing agreements highlights the country’s intent to remain a leading hub for GCCs and centres of excellence, Gouri Puri, partner at Shardul Amarchand Mangaldas & Co. told TOI. "The government seems to have again revisited taxation of share buy backs reverting to capital gains treatment for non-promoter investments. The fine print will have a major impact on profit repatriation strategies of investors. Big changes on minimum alternate tax making it a final tax with no credits to be offset against future income. This will impact branch offices in gift city."

Budget 2026: This Budget supports skills, education and evolving workforce

Nitin Nahata, CHRO at Gameskraft, said that the Union Budget 2026 clearly shows the direction of India’s next phase of growth by balancing economic growth with reform and accountability. He said the budget supports key areas such as PLI, skill development, entrepreneurship and research, while also focusing on transparent and responsible compliance. The expert further added, "The emphasis on education and innovation is particularly encouraging. The creation of university townships near industrial hubs will strengthen industry–academia collaboration, and the establishment of hostels for girls in every district to promote STEM education reflects a genuinely inclusive approach.The push on digitisation moves compliance away from paperwork towards outcome-driven governance, making policy intent unambiguous. The clarification on GST for manpower services brings predictability for businesses and aligns with the direction of labour codes, while the recognition of gig workers acknowledges how the workforce is evolving in practice."

Union Budget 2026: Taxation shifts from destination to consumption-based

"Indirect taxes, particularly Service Tax and GST, are based on the principle of destination cum consumption-based taxation. This implies that tax is levied where the goods or services are consumed. However, this principle was distorted through the introduction of the concept of ‘intermediary services’, in the Place of Provision of Services Rules, 2012 and later carried forward into GST through the IGST Act, which deemed the supplier’s location as the place of supply. This effectively misapplied the idea of “end beneficiary” as the consumer and nullified the export status of many services and subjected them to GST, contrary to the fundamental principle of destination-based taxation," Mihir Deshmukh, partner at Shardul Amarchand Mangaldas & Co. told TOI.

Budget 2026: Timely initiative to strengthen a stronger local talent pipeline

Srikanth Iyer, CEO & Co-founder, HomeLane said, "As eastern India transitions steadily from supply-driven growth to aspiration-led consumption, the Union Budget 2026's announcement of a new design institute in the region represents a timely initiative to strengthen a stronger local talent pipeline and a more sustainable design ecosystem. The Budget's focus on instilling future-ready skills and the integration of emerging technologies like AI into the services sector offers a chance to align design education more closely with employability and shifting consumer demands. This holds special significance as design, technology, and services converge increasingly in India's expanding urban and semi-urban markets. In tandem with this, the ongoing emphasis on infrastructure development in tier-two and tier-three cities is poised to heighten demand beyond metropolitan areas, unlocking fresh opportunities for organised interior design and home retail enterprises. Collectively, these steps empower the interior design and retail sector to assume a more pivotal role in influencing how households throughout eastern India aspire to, invest in, and interact with their living spaces."

Budget 2026: How a dad’s lament jolted FM into action on girls’ hostels

Finance minister Nirmala Sitharaman recounted a touching personal encounter that jolted her to budget for girls’ hostels in STEM and medical colleges.

In a first-of-its-kind post-budget interaction with around 30 college students, she said, “I met a father recently who said his daughter qualified for a premier institute, but he couldn’t send her because he couldn’t afford a safe place for her to stay nearby. That stayed with me.” Read full story

Budget 2026: D-St blues! Sensex sheds 1.5K, biggest drop on a Budget day

At a time when global markets are witnessing high volatility due to geopolitical uncertainties, the hike in securities transaction tax (STT) on derivatives trades hit investor sentiment on Dalal Street on the Budget day. This in turn led to a sharp sell-off that pulled the sensex down by nearly 1,500 points—its biggest points loss on a Budget day—to close at 80,773 points. The sell-off also left investors poorer by Rs 9.4 lakh crore, the biggest Budget day loss in BSE’s market capitalisation. Read full story

Budget 2026: Shopping overseas? Duty cut feeds import impulse

Shopping overseas will cost you less from April as the amount of tax you pay on foreign goods to get them to India is getting reduced. The budget has proposed to lower the tariff rate (basic customs duty) on all dutiable goods imported for personal use from 20% to 10%. Read full story

Budget 2026: STT shock jolts markets, sensex spirals to worst B-Day loss in pts, M-cap

The special Budget-day trading session on Sunday proved a painful one for the markets, which were left shell-shocked by the hike in Securities Transaction Tax (STT) on derivatives. This led to a sharp sell-off that pulled the sensex down by over 1,500 points — its biggest points loss on a Budget day — to close at 80,723 points. It also left investors poorer by Rs 9.4 lakh crore, the biggest Budget-day loss in BSE’s market capitalisation.

The day’s trading was marked by high volatility. The sensex rallied over 400 points as FM started her speech, fell about 1,100 points after the STT hike proposal was announced, partially recovered by mid-session to trade 600 points down on the day and then dropped again to close below the 81k mark for the first time in four months.

On the NSE, Nifty too treaded a similar path to close 495 points (2%) lower at 24,825 points.

Budget 2026: BJP praises growth, Opposition criticises exclusion

The Union Budget 2026-27, unveiled on Sunday by Finance Minister Nirmala Sitharaman, was hailed by the Bharatiya Janata Party as a strong foundation for Viksit Bharat 2047. On the other hand, Opposition parties had called the budget as ignoring the needs of the people, saying that problems like inflation, unemployment, and the issues raised by differnet states were not properly addressed.

While Prime Minister Narendra Modi and senior BJP leaders hailed it as a bold blueprint for a "Viksit Bharat 2047," promising self-reliance, infrastructure growth, and new avenues for youth employment, the Opposition slammed it as a "missed opportunity," accusing the government of sidelining key states like Kerala, Tamil Nadu, and Odisha, and failing to tackle pressing issues such as inflation, unemployment, and deepening economic inequality.

Budget 2026: TCS reboot - More cash to splash on foreign travels

Budget has proposed to reduce the tax collected at source (TCS) for self-funded education and medical purposes abroad under the liberalised remittance scheme from 5% to 2%. However, the TCS rate for other purposes will continue at 20%.

Govt had last year exempted remittances for education from TCS where such remittance is from a loan taken from a specified financial institution.

The FM has also proposed to reduce TCS on overseas tour packages to 2%.

Currently, TCS for such expenditure is levied at a rate of 5% (for remittances up to Rs 10 lakh) and 20% (for remittances beyond Rs 10 lakh). The move will boost foreign travel.

Budget 2026: Union Budget strengthens growth framework, says CII Gujarat

The Confederation of Indian Industry (CII) Gujarat on Sunday said the Union Budget 2026 provides a strong and positive framework for accelerating economic growth, strengthening manufacturing competitiveness and improving ease of living.

Following a live budget viewing session held in Gandhinagar, CII Gujarat stated that the budget balances immediate economic stimulus with long-term capacity building, guided by the central theme of ‘Sankalp’ and the three stated priorities of economic growth, aspirations and equitable access.

Industry leaders participating in the session highlighted higher public investment, structural reforms and targeted sectoral initiatives as key enablers of sustainable growth.

Premraj Keshyep, Chairman of the CII Gujarat State Council for 2025–26 and Founder and Managing Director of Conmat Heavy Industries Pvt Ltd, said the sharp increase in public capital expenditure to Rs 12.2 lakh crore would have a multiplier effect across infrastructure and heavy industries.

The Union Budget 2026-27 has delivered targeted relief for consumers, exporters and strategic industries, while tightening taxes and select goods or assets. The proposals aim to improve the quality of life, support domestic manufacturing and exports, and generate additional revenue from financial markets and sin products.

Last year, the salaried class cheered, this time it's producers' turn to clink glasses. From morning coffee to stock market trades, the Union Budget 2026–27 quietly redrew the household balance sheet, making some crucial drugs cheaper, while nudging others up, as Union finance minister Nirmala Sitharaman chose long-term industrial muscle over instant consumer relief amid global trade jitters.

Among the most consumer-facing measures, the government, in the Budget, has sharply reduced the tax collected at source (TCS) on overseas tour packages to 2 per cent, down from the earlier 5-20 per cent structure, without any minimum amount.

Similarly, TCS on foreign remittances for education and medical treatment under the Liberalised Remittance Scheme (LRS) has been cut from 5 per cent to 2 per cent, easing cash-flow pressures on households sending money abroad.

Union Budget 2026 Live: Parliament gets Rs 1,492 in Budget

The Union Budget presented by finance minister Nirmala Sitharaman has allocated Rs 1,492 crore for the functioning of both Houses of Parliament.

The allocation for the Lok Sabha has been pegged at Rs 1,009 crore, which includes grants-in-aid for Sansad TV.

The Budget provides Rs 1.56 crore for the salaries and allowances of the speaker and the deputy speaker of the Lok Sabha, while Rs 416.45 crore has been set aside for the salaries and allowances of members of parliament and facilities extended to them.

In addition, Rs 586.03 crore has been set aside for Lok Sabha Secretariat expenses, covering salaries of staff and officers, establishment-related requirements, grants-in-aid and expenditure on Sansad TV.

The Rajya Sabha has received an allocation of Rs 482.99 crore. Of this, Rs 2.55 crore has been earmarked for salaries and allowances of the chairman and deputy chairman of the House.

The vice president, who is also the Rajya Sabha chairman, draws his salary for his role as the presiding officer of the Upper House.

The Rajya Sabha has a provision of Rs 3.36 crore for salaries and allowances of the leader of the opposition in the House and his secretariat.

A major portion of the allocation -- Rs 349.37 crore -- has been made for the secretariat, which includes salaries of the officers and staff of the Rajya Sabha secretariat, RSTV, pay and accounts office, and establishment-related needs.

The Budget also allocated Rs 11.70 crore to the secretariat of the vice president to meet the expenditure on the staff and officers, including their travel expenses, other administrative expenses and contingencies of the vice president.

Budget 'exclusionary' for disabled: National Platform for Rights of Disabled

The National Platform for the Rights of the Disabled (NPRD) on Sunday called the Union Budget "exclusionary", adding that the schemes announced for 'divyangs', including one for skill training, are merely another iteration of ineffective schemes that have failed to generate employment for disabled persons.

In a statement issued here, the NPRD said drastic reductions in allocations to key central schemes, education, health, rural development and agriculture have severe consequences for disabled persons and their families.

"The Union Budget 2026-27 continues the exclusionary trajectory of the Modi government in its third term, reflecting a clear pro-corporate and pro-rich bias that deepens inequality and marginalisation. For persons with disabilities, this budget represents not neglect but an active denial of rights," the NPRD said.

It said under the Rights of Persons with Disabilities Act, 2016, the Indian State is legally obligated to ensure equality, non-discrimination and full participation of persons with disabilities.

"Though a slight increase is there in the total allocations to the Department of Empowerment for Persons with Disabilities (DEPwD), the increase will go mainly to the two new schemes that have been announced.

STT hike on F&O aims to put a curb on 'speculative' trading options: Arvind Shrivastav, Revenue Secretary

The hike in Securities Transaction Tax (STT) announced in the Union Budget 2026 applies only to futures and options (F&O) trades and is intended to both boost tax revenue and curb excessive speculative activity, Revenue Secretary Arvind Shrivastava said on Sunday.

The government has proposed a sharp increase in STT rates on F&O transactions. For futures contracts, the STT has been raised from 0.02 per cent to 0.05 per cent. In the case of options, STT on the premium has been increased from 0.1 per cent to 0.15 per cent, while STT on the exercise of options has also been raised to 0.15 per cent.

STT unchanged for other securities

Clarifying concerns, the Income Tax Department said earlier in the day that STT rates for all other securities remain unchanged. “Except futures and options (F&O), STT rates remain the same for others,” the department said in a statement.

F&O volumes far exceed GDP

The department said the scale of speculative trading in derivatives justified the increase. “The total volume of transactions in options and futures is more than 500 times India’s GDP,” it said in a post on X.

“In rupee terms, India’s GDP is around Rs 300 lakh crore, while the volume of options and futures trades exceeds Rs 1.5 lakh lakh crore. Therefore, there is justification for increasing rates to curb purely speculative activity in F&O,” it added.

New Income Tax Act from April 1, 2026

Speaking on the Income Tax Act, 2025, which will come into effect on April 1, 2026, Shrivastava said new rules and forms would be notified soon.

“For taxpayers, the income tax return form is crucial. We aim to roll out simple and technology-savvy forms and make them public well before April 1 so taxpayers can familiarise themselves,” he said.

On the rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), the Revenue Secretary said these mechanisms are meant primarily to act as tax markers and encourage return filing.

“Wherever TDS and TCS were found unnecessary, they have been rationalised,” he said, adding that taxpayers receive credit for such deductions while filing returns.

On share buybacks, Shrivastava said the government has retained the additional buyback tax on promoters, while simplifying the broader framework.

“Buybacks are often used for corporate restructuring. The system has been simplified to reduce compliance burden,” he said.

The government is also moving towards a more facilitative regime for foreign asset disclosures, he said.

“Taxpayers with small foreign income can declare it by paying applicable tax and interest, without facing harsh penalties or prosecution. Earlier, severe penalties discouraged compliance,” he said, referring to last year’s relaxation on prosecution for certain bank balance disclosures.

On customs duty reductions, the Revenue Secretary said the focus of the Budget was to support domestic manufacturing and exports.

“Duties on key commodities have been reduced, which will help manufacturing and boost exports,” he said.

Senior Congress leader P Chidambaram raised concerns over the Union Budget 2026, questioning the government's approach to trade, investment, and defence expenditure.

In an exclusive interview with ANI, he said, "There is a tariff threat. There is a penal tariff in India. What is she doing about it? Why has she not even mentioned it in the budget? Have they mentioned the penal tariffs imposed on the United States? The growing trade deficit, especially with China? The low gross fixed capital formation and the private sector's reluctance to invest in India? The uncertain outlook for FDI flows and persistent portfolio investment outflows."

Senior Congress leader added, "These are questions which should be addressed in the budget. These are the issues which concern the country. These are the issues which concern the economists. These are the issues which concern investors. Therefore, these concerns must be addressed. After you address them, we can weigh the merits or demerits of your answer. But you don't even address them. What do I say?"

On defence allocation, Senior Congress leader P Chidambaram said India has not increased defence spending in real terms, noting that while the allocation appears higher, as a proportion of GDP it has fallen from 2.3% in 2013-14 to 1.9% in 2026, and as a share of total expenditure from nearly 16% to 14.5%.

"India has not hiked the defence budget. I'll tell you. India seems to have allocated more money for defence. I don't disagree. But as a proportion of GDP and as a proportion of total expenditure, it is less than what it was in 2013-14. For example, in 2013-14, according to the numbers that I have, the defence expenditure as a percentage of GDP was as high as 2.3%. This year it is 1.9%. As a proportion of total expenditure, it was as high as 16%... close to 16% in 2013-14. Today it is 14.5%," he said.

Chidambaram also questioned the government's approach to capital expenditure and fiscal consolidation in the Union Budget 2026.

He said, "In 2025-26, capital expenditure was cut by Rs 1,44,376 crore. Of this, the Centre's capital expenditure was cut by 25,335 crore, and the States' capital expenditure was cut by 1,19,041 crore. The total is 1,44,376 crore, and that is there in the capital account at the budget at a glance. Therefore, they must explain why capital expenditure was cut in 2025-26. I'm not against outlaying more capital expenditure in 2026-27."

Union Budget live: Shipping, logistics industry says it 'addresses near-term growth priorities'

Shipping and logistics industry said the Union Budget 2026-27 presents a comprehensive and forward-looking macro framework that addresses near-term growth priorities while signalling a long-term structural overhaul of the economy, firmly anchoring India's journey towards Viksit Bharat.

"The government's six-point intervention plan in the areas of manufacturing, MSMEs, infrastructure, security, and city economic regions provides the foundation for a more inclusive, resilient, and future-ready economy," Shashi Kiran Shetty, Founder and Chairman of logistics operator Allcargo Group, said.

The sustained focus on infrastructure development, with a proposed public sector capital expenditure of Rs 12.2 lakh crore in FY27, reiterates the importance of logistics as a growth driver in India's development journey, he said.

Schemes such as the development of new national waterways, the coastal cargo scheme, ship repair ecosystems for inland waterways, and the proposed East-West dedicated freight corridor will greatly enhance the multi-modal connectivity and cargo productivity, and help lower logistics costs, Shetty said.

Also, initiatives such as the Infrastructure Risk Guarantee Fund will further increase investor and lender confidence, leading to faster implementation of large-scale projects, he said.

Describing the 2027-2027 Union Budget as "decisive and forward-looking that firmly positions infrastructure as the foundation of India's growth", JSW Infrastructure Ltd Joint Managing Director and CEO Rinkesh Roy said, "The thought-through push towards port modernisation, inland waterways, coastal shipping, and logistics corridors will make India competitive and marks a structural change".

The additional focus on expanding national waterways, strengthening east-coast connectivity, container manufacturing, and digitalisation of ports aligns closely with our vision of building integrated, port-led logistics ecosystems Creatin, he said.

'Landmark push for world-class infra': Space scientists hail Budget focus on telescope facilities

The Indian astronomical community on Sunday hailed the Union Budget 2026-27 for its landmark push to create world-class observational infrastructure, calling it a transformative step that will enable domestic researchers to lead discovery-class science on par with global peers.

The Budget, presented by Finance Minister Nirmala Sitharaman, has earmarked funding for four major telescope facilities -- the National Large Solar Telescope (NLST), the National Large Optical Infrared Telescope, an upgrade of the Himalayan Chandra Telescope (uHCT), and the COSMOS 2 planetarium project.

Lt Gen A K Bhatt (retd), Director General of the Indian Space Association (ISpA), said the announcement would gradually enhance India's contribution to global space science and strengthen the broader space ecosystem.

"The announcement on expanding telescope infrastructure and learning facilities is a meaningful step towards strengthening India's scientific base in astrophysics and astronomy," Bhatt said in a press statement issued by the ISpA.

Speaking to PTI, renowned solar physicist Dibyendu Nandi of the Indian Institute of Science Education and Research in Kolkata, said large observatory-class telescopes are rare worldwide and getting observation time is often difficult due to high international demand.