Budget 2026: Key tax reforms you need to know

Income tax slabs | Union Budget 2026-27 LIVE: In Budget 2026, the government announced a series of measures aimed at simplifying tax compliance, easing cash-flow pressures, and providing relief to both resident and non-resident taxpayers. Individual Persons Resident Outside India (PROIs) can now invest directly in listed Indian companies through the Portfolio Investment Scheme (PIS).

The budget also reduced Tax Collected at Source (TCS) on overseas tour packages, education, and medical remittances under the Liberalised Remittance Scheme (LRS) to 2%, while interest awarded by Motor Accident Claims Tribunals to individuals will be exempt from income tax. Additionally, taxpayers can now revise returns even after reassessment proceedings with a 10% additional tax, and immunity from penalties and prosecution has been expanded to cover misreporting and certain procedural lapses.

Other significant reforms include decriminalising non-production of books of accounts and TDS procedural defaults, allowing partial set-off of MAT credit,

and proposing MAT as a final tax. Non-residents paying presumptive tax will now be exempt from MAT.

Catch LIVE updates on Budget 2026 income tax here: