Budget 2026: Key Tax Tweaks for Investors and NRIs; Buybacks, SGB Redemption, TCS/STT and Property TDS

The Union Budget 2026 announced several tax reforms that take effect from April 1, 2026. While the income tax slabs and standard deduction remain unchanged, new rules simplify compliance and adjust rates on specific transactions. 

New Income Tax Act and Simplified Forms 

From April 1, 2026, a new income tax act will be operational. The government will issue simplified rules and redesigned forms aimed at ordinary taxpayers. The changes are intended to reduce procedural complexity without altering the existing tax structure. 

Unchanged Income Tax Slabs and Standard Deduction 

Section 87A rebate makes tax zero up to ₹12,00,000 and a standard deduction of ₹75,000 continues for salaried taxpayers. 

Reduced TCS Rates 

TCS on overseas tour packages falls to a flat 2% with no threshold. Under the Liberalised Remittance Scheme, TCS on education and medical remittances also reduces to 2% from the earlier 5%. 

Read More: Union Budget 2026: Finance Minister Introduces New Tax Act Effective April 1, 2026! 

Extended Revised ITR Filing Deadline 

Taxpayers can now revise returns until March 31, 2026, by paying a nominal fee, extending the previous deadline of December 31. 

PAN Based TDS for NRI Property Sales 

For sales of immovable property by non-residents, TDS will be deducted using the resident buyer’s PAN based challan, eliminating the need for a TAN. 

Changes to Securities Transaction Tax and Share Buybacks 

STT on futures rises to 0.05% and on options premium to 0.15%. Share buybacks are now treated as capital gains for all shareholders, with corporate promoters taxed at 22% and non-corporate promoters at 30%. 

Other Notable Adjustments 

Customs duty on personal imports drops to 10% from 20%. Interest on motor accident compensation becomes tax free. TDS on manpower supply services is clarified at 1% or 2% as applicable. 

Conclusion 

Budget 2026 introduces a new income tax act, retains existing slabs, lowers TCS rates, extends the revised return deadline and updates TDS, STT and share buyback taxation. These measures aim to simplify compliance while maintaining the current tax burden. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.