Recognizing the need to enable critical infrastructure and boost investment
in data centers, I propose provide I propose to provide
tax holiday till 2047 to any foreign company that provides
cloud services to customers globally by using data center services
from India.
Budget 2026 has quietly redrawn the rules of income tax
in India and for millions of taxpayers.
The changes announced by Finance Minister Nirmala Sitaraman will directly
impact how they save, invest, trade and file returns from
April 1, 2026.
This is not just another a budget tweak, it is
a reset of Indias direct tax system.
At the center of the overhaul is the new Income
Tax Act 2025, which will replace the six decade old
Income Tax Act of 1961.
The government says the goal is very simple, clear language,
fewer disputes, easier compliance and less confusion for ordinary taxpayers.
Sitaraman called it a reform for a modern digital India.
The first big change effects families sending money abroad.
Tax collected at source on overseas remittances for education and
medical treatment will be cut from 5% to 2%.
This will ease cash flow pressure on parents paying foreign
universities fees or hospital bills overseas.
The second changes gives taxpayers more breathing room.
The deadline for filing a revised return will now be
extended from nine months to 12 months after the end
of the tax year.
This fixes a long standing issues where people filing late
had no time left to correct mistakes from market traders.
Budget 2026 brings higher cost.
The security transaction tax on equity futures and options has
been raised.
Futures will attract higher STT.
Options trading will also become more expensive.
This is a clear signal that speculative trading will cost
more.
Gold investors also need to be very careful.
Capital gains tax exemption on sovereign gold bonds will now
apply only if the bonds are brought at the original
RBI issue and held till maturity.
Those buying SGB from the secondary market may lose the
tax free benefit.
A major correction has been made in share buyback taxation.
Buybacks will again be taxed as capital gains instead of
dividends.
Investors will now pay tax only on net gains, not
on the full amount.
This is good news for long term investors, but promoters
will face higher taxes to prevent misuse.
The government has also announced A1 time for an asset
disclosure scheme.
Taxpayers can declare undisclosed overseas income or assets without facing
prosecution.
Small taxpayers, students, salaried employees and Nris are the focus.
The aim is comply, not punishment.
Return filing timelines have also been clarified.
July 31st remains the deadline for ITR 1 and ITR
2.
Non audit taxpayers can file by August 31st.
Revised returns can be filed till March 31st with a
small fee.
Some TDs rules for Nris have also been eased.
Small taxpayers will benefit from automation.
A new system will allow rule based approval for lower
or nil TDs certificates without approaching tax officers.
Depositories will also handle Form 15-G and 15-H reducing paperwork.
Crypto investors face tighter scrutiny.
Crypto exchanges that fail to report transactions will face daily
penalties and fines.
The government is clearly cracking down on undisclosed digital asset
income.
Finally, Nris buying property in India get relief.
Resident buyers will no longer need a TAN to deduct
TDs and will be enough.
This will speed up property deals and reduce confusion.
Put together, Budget 2026 signals a clear message.
Simplify compliance, tighten reporting and modernize Indias tax system for
the next decade.
For taxpayers, these 10 changes are not optional reading.
They are rules that will soon shape everyday financial decisions.