Budget 2026: Did Finance Minister Announce Any Income Tax Relief?

Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on Sunday, marking her ninth consecutive Budget. While expectations were high among salaried taxpayers and the middle class, the Budget did not announce any reduction in income tax rates or changes to tax slabs. There was also no revision to the standard deduction under the new tax regime.

This came as a disappointment for many taxpayers who were hoping for further relief after the changes announced in the previous Budget. Budget 2026 clearly signals continuity in tax rates rather than fresh concessions.

Income Tax Act, 2025 to Take Effect on April 1, 2026

On the direct tax front, the Finance Minister announced that the Income Tax Act, 2025 will come into force from 1 April. The government is expected to notify detailed rules and income tax return (ITR) forms shortly.

The focus of the new law is to simplify tax administration and improve compliance, rather than offering headline tax cuts. The new tax regime continues to exempt income up to ₹4 lakh, followed by graded slab rates, with the highest tax rate applying to income above ₹24 lakh.

Big Change in ITR Revision Deadline

Although tax rates were left untouched, Budget 2026 introduced a major relief in terms of compliance timelines. Taxpayers will now be allowed to revise their income tax returns until 31 March of the relevant assessment year. Earlier, the deadline for revising returns was 31 December.

This change gives taxpayers additional time to correct errors, report missed income, or update details, albeit with a nominal fee. It is expected to reduce litigation and stress related to return filing.

Staggered ITR Filing Timelines Proposed

The Budget also proposed a staggered approach to filing income tax returns. Individuals filing ITR-1 and ITR-2 will continue to have a deadline of 31 July. Non-audit business cases and trusts are proposed to be given time until 31 August.

This move aims to reduce congestion on tax filing portals and improve processing efficiency during the peak filing season.

Read more: Budget 2026: Nil-Deduction Certificate Scheme Explained: What It Means for Small Taxpayers?

Conclusion

Budget 2026 may have disappointed taxpayers looking for immediate income tax relief, but it introduced meaningful procedural changes. By keeping tax rates stable while extending revision deadlines and streamlining filing timelines, the government appears focused on improving ease of compliance rather than reducing tax outgo. For taxpayers, the emphasis now shifts from lower taxes to smoother and more flexible tax administration.

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