Finance Minister Nirmala Sitharaman shifted to Part B of the Union Budget 2026-27, focusing on direct tax proposals.

No change in Income tax rate and slab.

The tax-paying timeline will be staggered and ITR can be revised for an extended timeline by paying a small amount.

The budget proposes extending the time limit for filing revised income-tax returns from December 31 to March 31. It will have the provision to do so on payment of a nominal fee.

The budget proposes extended time to revise returns with payment of a nominal fee.

Individuals filing ITR-1 and ITR-2 can continue to file till July 31.

Non-audit business cases and trusts will be allowed to file returns till August 31.

TDS on sale of immovable property by NRIs will now be deducted by the resident buyer. It replaces the earlier requirement of quoting a TAN.

Foreign Asset Disclosure Scheme

The budget proposes a six-month foreign asset disclosure scheme.It will benefit small taxpayers such as students, tech professionals, and relocated NRIs. It will provide them an opportunity to regularize foreign assets with ease.

Non-production of books of accounts and documents

The budget proposes Non-production of books of accounts and documents and requirement of TDS payment where payment is made in kind is being decriminalised. Further minor offences will attract fine only. The remaining prosecutions will be graded commensurate with the quantum of offences. It will entail only simple imprisonment of maximum two years.

Non-Disclosure of Non-Immovable Assets

The budget proposed retrospective immunity for non-disclosure of non-immovable assets up to Rs 20 lakh.The proposal will have  retrospective effect from October 1, 2024.

Reducing TCS on sale of overseas tour packages

The budget proposes TCS reduction. The reduction on overseas tour packages is from 5% and 20% to 2%, with no minimum amount stipulation. TCS remittances for education and medical purposes under the Liberalised Remittance Scheme will be reduced from 5% to 2%.

INDIRECT TAX

The budget proposes to remove certain Custom Duty exemptions on items which are being manufactured in India or where the imports are negligible.

The budget proposes to further simplify the process of ascertaining the rate of duty applicable on a particular item. It proposes to incorporate certain effective rates in various customs notifications to the tariff schedule itself.

Customs Duty Exemption

The budget proposed extending the basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for batteries. It will include those used for producing lithium-ion cells for battery energy storage systems.

The budget also annouced a basic customs duty exemption on the import of sodium antimonate. When used in the manufacturing of solar glass. It aimed at supporting domestic clean energy and renewable manufacturing.

Fish catch in Exclusive Economic Zone (EEZ)

The budget propose fish catch by Indian fishing vessels in Exclusive Economic Zone (EEZ) or in the high seas will be free of duty. Landing of such fish in foreign ports will be treated as exports.

The budget proposes increasing limit for duty-free imports of specified inputs used for processing sea foods for export