Sabka Sath, Sabka Vikas - The Union Budget 2026-27 highlights sustainable economic growth, capacity building, and inclusive development. The focus will be on scaling manufacturing and infrastructure, and on simplifying the tax structure through a new Income Tax Act.
Key Figures at a Glance
|
No changes were made to the personal income tax slabs or rates in this budget.
|
However, please note that the Income Tax Act, 2025, will replace the old Income Tax Act of 1961. The new act will come into effect from April 1, 2026. It will aim to modernise and simplify tax rules. |
The tax rates introduced in the previous budget remain applicable for the Financial Year 2026-27. Individuals earning up to ₹12 Lakh effectively pay no tax.
News Update
Union Budget 2026 introduces several key regulatory changes, including the removal of capital gains tax exemptions for Sovereign Gold Bonds bought in the secondary market and an increase in the Securities Transaction Tax (STT) on derivatives. Additionally, the budget simplifies property purchases from NRIs by allowing the use of PAN instead of TAN, reduces TCS on large overseas education and medical remittances to 2%, and implements new daily penalties for non-compliance in cryptocurrency reporting.
- As reported by ZeeNewson February 03, 2026
If your income is higher, you will have to pay taxes based on the slabs mentioned below -
|
Income Slab (₹) |
Tax Rate |
|---|---|
|
Up to ₹4 Lakh |
Nil |
|
₹4 Lakh - ₹8 Lakh |
5% |
|
₹8 Lakh - ₹12 Lakh |
10% |
|
₹12 Lakh - ₹16 Lakh |
15% |
|
₹16 Lakh - ₹20 Lakh |
20% |
|
₹20 Lakh - ₹24 Lakh |
25% |
|
Above ₹24 Lakh |
30% |
|
This was the first budget prepared in the Kartavya Bhawan, and it is inspired by 3 Kartavyas. |
||
Accelerate sustainable economic growth, improve productivity and competitiveness, and build resilience to global dynamics. |
Fulfil people’s aspirations and build their capacity to make them strong partners in the country’s path to prosperity. |
Making sure that every family, community, region, and sector has access to resources, amenities, and opportunities for meaningful participation. |
Now let’s take a look at some sector-wise announcements.
Bharat-VISTAAR
A multilingual AI tool, Bharat-VISTAAR, has been proposed to give farmers customised advice. It will integrate digital portals, like the AgriStack portal, and research data.
High-Value Crops
The government will support high-value crops such as coconut, sandalwood, cocoa, and cashew in coastal areas.
Biopharma SHAKTI
A new scheme is launched with an outlay of ₹10,000 Crore over 5 years to make India a global hub for biopharmaceuticals. It will create a network of 1,000 accredited clinical trial sites.
India Semiconductor Mission (ISM) 2.0
The ISM 2.0 has been launched to focus on producing equipment, materials, and chip design in India.
Electronics Components
The budget for the Electronics Components Manufacturing Scheme has been increased to ₹40,000 Crore.
Rare Earth Corridors
Support has been proposed for Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to set up processing facilities for rare earth minerals, which are critical for modern electronics.
Creating Champion SMEs
A dedicated ₹10,000 Crore fund to incentivise SMEs based on select criteria.
Self-Reliant India Fund
An additional ₹2,000 Crore allocated to support micro-enterprises.
Corporate Mitras
A new cadre of professionals will be developed in Tier-II and Tier-III towns. They are expected to help MSMEs with finance and compliance.
High-Speed Rail
7 new high-speed rail corridors proposed between major cities to act as "growth connectors".
Mumbai-Pune
Pune-Hyderabad
Hyderabad-Bengaluru
Hyderabad-Chennai
Chennai-Bengaluru
Delhi-Varanasi
Varanasi-Siliguri
Infrastructure Risk Guarantee Fund
This fund is to build confidence among private developers regarding infrastructure risks during the construction phase. Public capital expenditure to be increased to ₹12.2 Lakh Crore in FY 2026-27.
Medicine
Basic customs duty is exempted on 17 life-saving drugs/medicines. This reduces the cost of treatment for cancer and rare diseases.
TCS Rationalization
Tax Collected at Source (TCS) on overseas tour packages and education/medical remittances reduced to 2%.
Here are some of the products that have either become dearer or cheaper based on the new budget -
|
Costlier |
Cheaper |
|---|---|
|
|
The Union Budget 2026-27 sets a clear roadmap for a modern and self-reliant India. High-tech industries like Biopharma and Semiconductors are being focused on. By integrating AI into agriculture, the government is future-proofing the economy.
For the common taxpayer, the Union Budget offers stability. There are no immediate changes to tax rates. There will be a smoother tax experience under the upcoming Income Tax Act, 2025. This budget balances the need for heavy infrastructure spending with the goal of 'Ease of Living' for every citizen. It ensures that the nation's growth is both rapid and inclusive.
The theme of the budget is Yuva Shakti–driven growth.
17 life-saving medicines and capital goods required for manufacturing lithium-ion batteries and processing critical minerals have become cheaper due to customs duty exemptions.
Tax, Filing & Linking Guide
Finance and Legal Term Differences
Banking & Investment Tips
Fixed Deposit Insights and Guides
Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
Was this information useful?
