The Union Budget 2026–27, presented on 01 February 2026, introduces wide-ranging Direct Tax reforms aimed at simplifying compliance, reducing litigation, and improving ease of living for taxpayers, in line with the vision of Viksit Bharat. <br /> <br />Key Direct Tax Announcements in Budget 2026 <br />New Income Tax Act <br />Income Tax Act, 2025 to come into effect from 1 April 2026 <br />Simplified rules and redesigned tax forms for easier compliance <br /> <br />Ease of Living for Taxpayers <br />Interest on compensation awarded by Motor Accident Claims Tribunal (MACT) made fully tax-exempt <br />TCS on overseas tours, education and medical remittances reduced to 2% <br />Extension of time for filing revised returns till 31 March with nominal fee <br />Staggered ITR deadlines for individuals and non-audit cases <br /> <br />Litigation & Penalty Reforms <br />Integration of assessment and penalty proceedings into a single order <br />Reduced pre-deposit for appeals from 20% to 10% <br />Decriminalisation of minor technical offences <br />Penalties for certain defaults converted into fees <br /> <br />Foreign Assets Disclosure Relief <br />One-time Foreign Asset Disclosure Scheme for small taxpayers <br />Immunity from prosecution on payment of prescribed tax or fee <br /> <br />Boost for IT & Business <br />IT and IT-enabled services grouped under a single category <br />Higher safe-harbour limits and automated approvals <br />Fast-track Advance Pricing Agreements for IT companies <br /> <br />These reforms aim to create a trust-based, technology-driven tax system that reduces compliance burden while ensuring fairness and transparency. <br /> <br /> #Budget2026 #UnionBudget2026 #IncomeTax #DirectTaxReforms #IncomeTaxAct2025 #TCS #ITR #TaxRelief #ViksitBharat #IndianEconomy<br /><br />Also Read<br /><br />Why India’s Next Growth Phase Depends On NBFCs, Not Just Banks Post Budget 2026? :: https://www.goodreturns.in/personal-finance/why-india-s-next-growth-phase-depends-on-nbfcs-not-just-banks-post-budget-2026-1487265.html?ref=DMDesc<br /><br />How The Budget 2026 Has Impacted The Middle Class Taxpayers In 5 Ways? :: https://www.goodreturns.in/personal-finance/how-the-budget-2026-has-impacted-the-middle-class-taxpayers-in-5-ways-1487017.html?ref=DMDesc<br /><br />Union Budget Agriculture Reforms: How PM Dhan-Dhanya Krishi Yojana Will Benefit 1.7 Crore Farmers :: https://www.goodreturns.in/news/union-budget-agriculture-reforms-how-pm-dhan-dhanya-krishi-yojana-will-benefit-1-7-crore-farmers-1486913.html?ref=DMDesc<br /><br /><br /><br />~HT.178~GR.122~ED.106~
