Finance Minister Nirmala Sitharaman did not announce any alteration in headline tax rates, signalling policy continuity even as the broader direct tax framework transitions to the new Income Tax Act, 2025 from April 1, 2026.
The Indian government on Sunday kept personal income tax rates unchanged in the Union Budget 2026-27, offering no revision in slab rates under either the new or old tax regime.
Finance Minister Nirmala Sitharaman did not announce any alteration in headline tax rates, signalling policy continuity even as the broader direct tax framework transitions to the new Income Tax Act, 2025 from April 1, 2026.
While rates remain the same, the Budget focused on simplifying compliance and rationalising procedures, including redesigned return forms and relief in select TDS and TCS provisions. The decision to hold rates steady suggests the government is prioritising stability in tax policy and fiscal consolidation over broad-based rate cuts.
Income tax highlights from Union Budget 2025
– Zero income tax for individuals earning up to ₹12 lakh annually under the new tax regime.
– Extension of the time limit for filing updated returns from two years to four years for any assessment year.
– Increase in the annual Tax Deducted at Source (TDS) limit on rent from ₹2.40 lakh to ₹6 lakh.
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