Date: February 1, 2026
By: Smart Ai Hub
Category: Finance / News
The wait is over! Finance Minister Nirmala Sitharaman has presented the Union Budget 2026-27 today, marking her historic ninth consecutive budget speech. With the vision of a "Viksit Bharat" (Developed India), this budget sets the roadmap for the New Income Tax Act, massive infrastructure pushes, and relief for the common man. If you missed the Budget speech live, don’t worry—we have the complete Budget summary and key highlights of Budget 2026 right here.
Top 5 Key Highlights of Budget 2026
New Income Tax Act Implementation: The biggest news from the Budget speech is the confirmation that the New Income Tax Act will officially come into effect from April 1, 2026. This aims to simplify compliance and reduce litigation.
Capex Push: The capital expenditure (Capex) outlay has been increased to ₹12.2 trillion, focusing on defense, railways, and urban infrastructure.
TCS & TDS Relief: A major relief for travelers and students—TCS rates on overseas tour packages and TDS on LRS for education/medical purposes have been slashed to 2% (down from 5-20%).
Fiscal Deficit Target: The government is sticking to fiscal prudence with a deficit target of 4.3% of GDP for FY 2026-27.
Digital & MSME Focus: New credit guarantee schemes for MSMEs and a "Safe Harbour" limit increase to ₹2,000 crore for IT services.
Income Tax Updates: Slabs & The New Regime
The question on everyone's mind: Did the Income Tax Slab change?
While many expected a new tax slab 2026, the Finance Minister announced no changes to the existing tax rates this year. However, the focus has shifted entirely to the New Income Tax Act 2025, which simplifies the entire tax code.
Current New Tax Regime Slabs (Applicable for FY 2026-27):
0 - 3 Lakh: Nil
3 - 7 Lakh: 5%
7 - 10 Lakh: 10%
10 - 12 Lakh: 15%
12 - 15 Lakh: 20%
Above 15 Lakh: 30%
Note for Salaried Employees: The standard deduction remains unchanged, but the new streamlined filing process under the Income Tax Act 2025 promises faster refunds and easier ITR filing.
Sector-Wise Budget 2026 Highlights
1. Defense & Infrastructure
The Defense Budget 2026 sees a significant hike, boosting indigenous manufacturing ("Make in India"). Additionally, the Railway Budget focuses on new economic corridors and Vande Bharat expansion.
2. Stock Market & Investors
For investors watching CNBC Awaaz Live or Zee News Live, the market remained stable as there were no negative surprises on Capital Gains Tax. Textile stocks and Defense stocks are expected to rally based on the new PLI scheme announcements.
3. Education & Employment
To boost youth employability, the Finance Minister announced a comprehensive internship scheme for 1 crore youth in top companies, funded via CSR.
FAQs: Union Budget 2026
When will Budget 2026 be announced? It was presented today, February 1, 2026, at 11:00 AM IST.
Where to watch Budget 2026 live? You can watch the replay on Sansad TV, Doordarshan, or live streams on NDTV and Money Control.
What is the new TCS Tax rate? The Tax Collected at Source (TCS) on foreign remittances and tour packages has been standardized and reduced to 2%.
(Conclusion) The Union Budget 2026 is a balancing act between growth and fiscal discipline. With the New Income Tax Act coming into play, FY 2026-27 will be a year of transition and simplification for taxpayers. Stay tuned to our blog for detailed analysis on Income Tax Calculator updates and sector-specific impacts.
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