Budget 2026 Highlights: Income Tax, GST & STT Changes Explained
A Glimpse of Budget 2026 Income Tax No change in Income Tax Rates New and simpler Income Tax Law to take effect from 01.04.2026 TCS on overseas payments for: Tourism Education & medical purposes Reduced from 5% to 2% ITR filing due date for non-audit business taxpayers and trusts extended to 31st August ITRs can now be revised up to 31st March (earlier 31st December) No TAN required for paying TDS on purchase of immovable property from Non-Residents Pre-deposit for filing appeal reduced to 10% of tax demand Lower / No TDS deduction certificate can now be applied online, reducing manual interface Buyback of shares: Taxed as capital income for shareholders Promoters to pay additional tax MAT credit now partially allowed under the New Regime MAT treated as final tax for companies at 14% Indirect Tax 90% provisional refund allowed on Inverted Duty Structure refund claims Place of Supply (POS) for intermediary services shifted: From location of supplier To location of recipient Enabling service providers to claim refund on exports GST reduction on post-sale discounts: Linking credit notes with specific invoices removed No prior agreement required to establish the discount GST refunds below ₹1,000 can now be claimed for: Exports with payment of tax Benefiting small exporters, especially via couriers Financial Markets STT increased: Futures: from 0.02% → 0.05% Option premium: from 0.10% → 0.15% Option exercise: from 0.125% → 0.15%
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