Reactions on budget 2026

(CA Mahesh Indani, chairperson, city branch of ICAI) :

The budget proposes replacing the existing Income Tax Act with a new income tax law, effective from April 1, 2026, nationwide. The new legislation aims to simplify and make the tax filing system more transparent. Income tax return forms will also be streamlined to reduce confusion among taxpayers and enhance ease of doing business. A key change is the introduction of the term “Tax Year,” replacing technical concepts such as “Assessment Year” and “Previous Year,” making it easier to understand when income is taxed. The deadline for filing revised ITR-1 and ITR-2 is July 31, while taxpayers not subject to audit have a deadline until August 31 for the period ending March 31.

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Shaikh Irfan (President, Tax Practitioners' Association, CSN): Finance Minister Nirmala Sitharaman presented the union Budget 2026–27 with a focus on “Yuva Shakti” (youth power), infrastructure development, and simplification of the tax regime. GDP growth for the financial year 2026–27 has been projected in the range of 6.8% to 7.2%.

Capital expenditure has been increased to Rs 12.2 lakh crore from Rs 11.2 lakh crore, aimed at accelerating infrastructure growth. The Tax Collected at Source (TCS) threshold has been raised from RS 7 lakh to Rs 10 lakh. The Minimum Alternate Tax (MAT) has been reduced from 15% to 14%, while the tax deduction limit for senior citizens has been doubled to Rs 1 lakh. The “Yuva Shakti” initiative also places special emphasis on the development of the AVGC sector.

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Relaxing ITR filing timelines & reducing TCS burden on students & patients

Ghous Quazi (financial analyst): The union Budget 2026–27 introduces practical relief measures that enhance taxpayer convenience and promote voluntary compliance. Extending the deadline for filing revised and belated returns until 31 March of the assessment year, with a nominal fee, offers flexibility and reduces inadvertent non-compliance. The staggered return filing timelines—31 July for ITR-1 and ITR-2, and 31 August for non-audit business taxpayers and trusts—are likely to ease system congestion and minimise last-minute errors. Additionally, lowering the TCS rate under the Liberalised Remittance Scheme to 2% for education, medical treatment, and overseas travel significantly improves cash flow for individuals. Overall, the measures reflect a taxpayer-centric approach.