Union Budget 2026 LIVE Updates: Staggered Timeline for Filing Tax Returns; Fiscal Deficit Estimated at 4.3% of GDP

Union FM Nirmala Sitharaman says, "To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment."

Union FM Nirmala Sitharaman says, "To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods, imported for personal use, from 20% to 10%."

Union FM Nirmala Sitharaman says, "I propose as a special one-time measure to facilitate sales by eligible manufacturing units in SEZs (Special Economic Zones) to the domestic tariff area at concessional rates of duty. The quantity of such sales will be limited to a prescribed proportion of their exports."

Union FM Nirmala Sitharaman said, "It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair or overall requirements by units in the defence sector."

What Gets Cheaper, What Gets Costlier, Full List That Hits Your Wallet here

Union FM Nirmala Sitharaman says, "It is proposed to provide basic customs duty exemption to the import of capital goods required for the processing of critical minerals in India."

Union FM Nirmala Sitharaman says, "I propose to extend the basic customs duty exemption on import of goods required for nuclear power projects till 2035 and expand it for all nuclear plants irrespective of their capacity."

Union FM Nirmala Sitharaman says, "I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries to those used for manufacturing lithium-ion cells for battery energy storage systems also. I propose to exempt the basic customs duty on import of sodium antimonate for use in the manufacturing of solar glass."

Union FM Nirmala Sitharaman says, "I propose to increase the limit for duty-free imports of specified inputs used for processing sea foods for export from the current 1% to 3% of FOB value of the previous year's export turnover. I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well."

Union Finance Minister Nirmala Sitharaman proposed an outlay of Rs 20,000 crore over the next five years to support Carbon Capture, Utilization and Storage (CCUS) technologies. The funding aims to help scale up projects and improve technology readiness for wider end-use applications across sectors.

The Income Tax Act, 2025, is set to come into effect from 1 April 2026, featuring simplified rules, redesigned forms, and multiple direct tax relief measures, including lower TCS rates and new exemptions. These reforms aim to ease compliance for taxpayers, reduce tax burdens on specific transactions, and eliminate ambiguities impacting individuals and service providers.

• Income Tax Act 2025: New income tax framework to take effect from 1 April 2026 with simplified rules and redesigned forms.
• Motor Accident Compensation: Interest awarded by the Motor Accident Claims Tribunal to natural persons exempted from income tax.
• TCS Rates: Reduction of TCS on overseas tour program packages and on LRS remittances for education and medical purposes to 2%.
• Manpower Services: Supply of manpower services brought under contractor payments for TDS purposes to eliminate ambiguity.

Union Finance Minister Nirmala Sitharaman says, “I propose to reduce TCS rate on sale of overseas tour program packages from current 5% and 20% to 2% without any stipulation of amount. I propose to reduce the TCS rate for pursuing education and medical purposes under the liberalised remittance scheme from 5% to 2%.”

The Finance Ministry has extended the deadline for revising income-tax returns to March 31, 2026, with a fee. The original filing deadline for ITR-1 and ITR-2 remains July 31, 2026.

Union FM Nirmala Sitharaman says, "I propose a scheme for small taxpayers wherein a rule-based automated process will enable obtaining a lower or nil deduction certificate instead of filing an application with the assessing officer. For the ease of taxpayer holding securities in multiple companies, I propose to enable depositories to accept Form 15G or Form 15H from the investor and provide it directly to various relevant companies."

Union Budget 2026-27 | Union Finance Minister Nirmala Sitharaman says,"...The Government has accepted 16th Finance Commission recommendations to retain the vertical share of devolution at 41%. I have allocated Rs 1.4 lakh crores for states for FY2026-27."

Union FM Nirmala Sitharaman says, "I propose that any interest awarded by the motor accident claims tribunal to a natural person will be exempt from income tax and any TDS on this account will be done away with."

Union Finance Minister Nirmala Sitharaman says,"We will develop ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir, also in Araku Valley in Eastern Ghats and also Western Ghats. Turtle trails along key nesting sites in Odisha, Karnataka and Kerala will be developed."

Union FM Nirmala Sitharaman says, "Bharat Vistar - Virtually Integrated System to access Agricultural Resources. I propose to launch Bharat Vistar, a multilingual AI tool that shall integrate the agri-stack portals and the ICAR package on agricultural practices with AI systems."

Presenting the Budget Estimates for 2026–27, the Finance Minister highlighted the government’s continued focus on fiscal consolidation alongside growth.

The debt-to-GDP ratio is estimated at 55.6 per cent in BE 2026–27, improving from 56.1 per cent in the Revised Estimates (RE) for 2025–26.

The fiscal deficit for BE 2026–27 is projected at 4.3 per cent of GDP, lower than the 4.4 per cent of GDP estimated in BE 2025–26.

On the receipts side, non-debt receipts are estimated at Rs 36.5 lakh crore in BE 2026–27, while the Centre’s net tax receipts are pegged at Rs 28.7 lakh crore.

The government has projected total expenditure at Rs 53.5 lakh crore for 2026–27, reflecting continued support for key programmes while adhering to the fiscal consolidation path.

Union Finance Minister Nirmala Sitharaman says,"I propose multiple steps towards setting up new institutes, University townships, girls hostel and telescope infrastructure facilities in investment in higher education sector. A girls hostel will be built in every district of the country."

Union FM Nirmala Sitharaman says, "The Sports Sector provides multiple means of employment, skilling and job opportunities. Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the Sports sector over the next decade."

Union FM Nirmala Sitharaman says, "To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of varieties in major coconut-growing states. A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030."

Union Finance Minister Nirmala Sitharaman says,"India’s Animation, Visual Effects, Gaming and Comics AVGC sector is a growing industry, projected to require 2 million professionals by 2030. I propose to support the Indian Institute of Creative Technologies, Mumbai in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges."

Union Finance Minister Nirmala Sitharaman says, “I propose to set up three new All India Institutes of Ayurveda; Upgrade Ayush pharmacies and drug testing labs and make available more skilled persons; Upgrade the WHO global Traditional Medicine Centre in Jamnagar.”

FM Nirmala Sitharaman proposes raising investment limit for individual PIO from 5 percent to 10 percent.

FM said, "I propose setting up a high-level committee on banking for Viksit Bharat to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection. The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. In order to achieve scale and improve efficiency in the public sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation."

FM announced," I also propose to top up the Self Reliant India Fund set up in 2021 with 2000 crores to continue supporting micro enterprises and maintain their access to risk capital. Liquidity support with trends, more than seven lakh crore has been made available to MSMEs. To leverage its full potential, I propose four measures.

1. Mandate TREDZ as the transaction settlement platform for all purchases from MSMEs by CPSEs, serving as a benchmark for other corporates.
2. Introduce a credit guarantee support mechanism through CGT-MSC for invoice discounting on TREAD’s platform.
3. Link GEM with TREAD for sharing information with TReDS Mandate: All CPSE purchases from MSMEs to use TReDS settlement.
4. Corporate Mitras: Professional institutions to train compliance support paraprofessionals' compliance, MSME support training."

Union FM Nirmala Sitharaman says, "I propose to set up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to recommend measures that focus on the Services Sector as a core driver of Viksit Bharat. This will make us a global leader in services, with a 10% global share by 2047. The Committee will prioritise areas to optimise the potential for growth, employment and exports. They will also assess the impact of emerging technologies, including AI, on jobs and skill requirements and propose measures thereof."

Finance Minister Nirmala Sitharaman on Sunday announced that India will develop seven high-speed rail corridors between key cities.

Union Finance Minister Nirmala Sitharaman, in the Union Budget 2026–27, proposed the Mahatma Gandhi Gram Swaraj Initiative to strengthen khadi, handloom and handicrafts, aiming to boost rural livelihoods and village-based self-reliance.

It includes the creation of a Rs 10,000 crore SME Growth Fund to support future job-creating enterprises and a Rs 2,000 crore top-up to the Self Reliant India Fund for micro-enterprise risk capital. A major liquidity package is reinforced with four measures, including mandatory use of TReDS for CPSE purchases, credit guarantee backing for invoice discounting, integration of GeM and TReDS to ease financing, and development of a secondary market for trade receivables. Professional institutions will also train ‘corporate mitras’ to help MSMEs meet compliance needs affordably, especially in Tier 2 and Tier 3 cities.

• FM announced a major integrated programme for the labour-intensive textile sector in Union Budget 2026–27
• National Fibre Scheme to boost self-reliance in silk, wool, jute, man-made and new-age fibres
• Textile Expansion and Employment Scheme to modernise traditional clusters with capital support, technology upgrades and common testing facilities
• National Handloom and Handicraft Programme to integrate existing schemes and provide targeted support to weavers and artisans
• Text-ECON initiative to promote globally competitive and environmentally sustainable textiles and apparel
• SAMARTH 2.0 to upgrade textile skilling through industry and academic collaboration
• Proposal to set up mega textile parks in challenge mode, focusing on technical textiles and value addition
• Launch of Mahatma Gandhi Gram Swaraj initiative to strengthen handloom and handicrafts
• Focus on branding, global market linkages, training, skilling and quality processes

Mumbai - Pune

Pune - Hyderabad

Hyderabad - Bengaluru

Hyderabad - Chennai

Chennai - Bengaluru

Delhi - Varanasi

Varanasi - Siliguri

Finance Minister Nirmala Sitharaman said public capital expenditure has risen sharply from ₹2 lakh crore in 2014-15 to an all-time high of ₹11.2 lakh crore in Budget Estimates 2025-26. To sustain this momentum, she proposed increasing capital spending to ₹12.2 lakh crore in FY 2026-27.

To boost private sector confidence during the infrastructure development and construction phases, the government plans to set up an Infrastructure Risk Guarantee Fund, which will provide prudentially calibrated public credit guarantees to lenders.

Highlighting that InvITs have emerged as an effective asset monetisation tool, the FM said the government will accelerate the recycling of major real estate assets of CPSEs through dedicated InvITs.

To promote environmentally sustainable cargo movement, she also proposed establishing new dedicated freight corridors, including one connecting Dankuni in the east to Surat, strengthening logistics efficiency and green transport.

Union Finance Minister Nirmala Sitharaman says, "A scheme for enhancement of construction and infrastructure equipment will be introduced to strengthen domestic manufacturing of high-value, technology-advanced CIE. This can range from firefighting equipment to a lifts to tunnel boring machines."

Union Finance Minister Nirmala Sitharaman says, "Given that this is the first Budget prepared in Kartavya Bhavan, we are inspired by 3 kartavya.

First kartavya is to accelerate and sustain economic growth by enhancing productivity and competitiveness and building resilience to volatile global dynamics.

Second kartavya is to fulfill aspirations of our people and build their capacity, making them strong partners in India's path to prosperity.

Third kartavya, aligned with the vision of Sabka Saath Sabka Vikas, is to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation."

“Scheme for rare earth permanent magnets was launched in 2025 November. We now propose to support the mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing. To enhance domestic chemical production and reduction in import dependency, we will launch a scheme to support states in establishing three dedicated chemical arks through challenge route on a cluster-based plug-and-play model,” said FM.

Further continuing her speech, the FM added, "Building on this, we will launch ISM 2.0 to produce equipment and materials, design full stack, Indian IP and fortify supply chains. We will also focus on industry led research and training centers to develop technology and skilled workforce."

FM proposes to increase outlay on electronic manufacturing to Rs 40,000 cr in FY27 budget

Presenting Union Budget 2026-27, Union Finance Minister Nirmala Sitharaman says," To accelerate and sustain economic growth, I propose interventions in six areas -Scaling up manufacturing in 7 strategic sectors; Rejuvenating legacy industrial sectors; Creating champion MSMEs; Delivering a push for infra; Ensuring long-term security and stability; Developing city economic regions."