WEBVTT NOTE language en-US 00:00:00.120 --> 00:00:06.967 Recognizing the need to enable critical infrastructure and boost investment 00:00:07.058 --> 00:00:12.080 in data centers, I propose provide I propose to provide 00:00:12.171 --> 00:00:17.467 tax holiday till 2047 to any foreign company that provides 00:00:17.558 --> 00:00:23.584 cloud services to customers globally by using data center services 00:00:23.675 --> 00:00:24.680 from India. 00:00:25.800 --> 00:00:29.667 Budget 2026 has quietly redrawn the rules of income tax 00:00:29.737 --> 00:00:32.480 in India and for millions of taxpayers. 00:00:32.720 --> 00:00:38.180 The changes announced by Finance Minister Nirmala Sitaraman will directly 00:00:38.254 --> 00:00:42.518 impact how they save, invest, trade and file returns from 00:00:42.592 --> 00:00:43.640 April 1, 2026. 00:00:43.960 --> 00:00:46.531 This is not just another a budget tweak, it is 00:00:46.587 --> 00:00:48.600 a reset of Indias direct tax system. 00:00:48.880 --> 00:00:52.685 At the center of the overhaul is the new Income 00:00:52.766 --> 00:00:56.896 Tax Act 2025, which will replace the six decade old 00:00:56.977 --> 00:00:58.839 Income Tax Act of 1961. 00:00:59.000 --> 00:01:03.029 The government says the goal is very simple, clear language, 00:01:03.096 --> 00:01:08.200 fewer disputes, easier compliance and less confusion for ordinary taxpayers. 00:01:08.400 --> 00:01:11.760 Sitaraman called it a reform for a modern digital India. 00:01:12.040 --> 00:01:15.520 The first big change effects families sending money abroad. 00:01:15.720 --> 00:01:21.014 Tax collected at source on overseas remittances for education and 00:01:21.096 --> 00:01:24.680 medical treatment will be cut from 5% to 2%. 00:01:24.840 --> 00:01:28.818 This will ease cash flow pressure on parents paying foreign 00:01:28.885 --> 00:01:31.919 universities fees or hospital bills overseas. 00:01:32.160 --> 00:01:35.120 The second changes gives taxpayers more breathing room. 00:01:35.480 --> 00:01:38.855 The deadline for filing a revised return will now be 00:01:38.920 --> 00:01:42.296 extended from nine months to 12 months after the end 00:01:42.361 --> 00:01:43.400 of the tax year. 00:01:43.640 --> 00:01:47.779 This fixes a long standing issues where people filing late 00:01:47.851 --> 00:01:51.919 had no time left to correct mistakes from market traders. 00:01:51.960 --> 00:01:54.520 Budget 2026 brings higher cost. 00:01:54.680 --> 00:01:59.077 The security transaction tax on equity futures and options has 00:01:59.148 --> 00:01:59.999 been raised. 00:02:00.280 --> 00:02:02.440 Futures will attract higher STT. 00:02:02.720 --> 00:02:05.200 Options trading will also become more expensive. 00:02:05.480 --> 00:02:09.171 This is a clear signal that speculative trading will cost 00:02:09.236 --> 00:02:09.559 more. 00:02:09.760 --> 00:02:12.400 Gold investors also need to be very careful. 00:02:12.600 --> 00:02:16.906 Capital gains tax exemption on sovereign gold bonds will now 00:02:16.978 --> 00:02:20.639 apply only if the bonds are brought at the original 00:02:20.711 --> 00:02:23.079 RBI issue and held till maturity. 00:02:23.320 --> 00:02:26.906 Those buying SGB from the secondary market may lose the 00:02:26.971 --> 00:02:28.080 tax free benefit. 00:02:28.280 --> 00:02:32.040 A major correction has been made in share buyback taxation. 00:02:32.280 --> 00:02:36.225 Buybacks will again be taxed as capital gains instead of 00:02:36.295 --> 00:02:37.000 dividends. 00:02:37.200 --> 00:02:40.353 Investors will now pay tax only on net gains, not 00:02:40.417 --> 00:02:41.640 on the full amount. 00:02:41.840 --> 00:02:45.291 This is good news for long term investors, but promoters 00:02:45.353 --> 00:02:47.879 will face higher taxes to prevent misuse. 00:02:48.160 --> 00:02:51.148 The government has also announced A1 time for an asset 00:02:51.203 --> 00:02:52.200 disclosure scheme. 00:02:52.400 --> 00:02:57.231 Taxpayers can declare undisclosed overseas income or assets without facing 00:02:57.296 --> 00:02:58.080 prosecution. 00:02:58.280 --> 00:03:03.640 Small taxpayers, students, salaried employees and Nris are the focus. 00:03:03.880 --> 00:03:06.520 The aim is comply, not punishment. 00:03:06.720 --> 00:03:10.040 Return filing timelines have also been clarified. 00:03:10.200 --> 00:03:14.567 July 31st remains the deadline for ITR 1 and ITR 00:03:14.658 --> 00:03:14.840 2. 00:03:15.040 --> 00:03:18.480 Non audit taxpayers can file by August 31st. 00:03:18.600 --> 00:03:21.758 Revised returns can be filed till March 31st with a 00:03:21.820 --> 00:03:22.440 small fee. 00:03:22.680 --> 00:03:26.200 Some TDs rules for Nris have also been eased. 00:03:26.360 --> 00:03:29.320 Small taxpayers will benefit from automation. 00:03:29.520 --> 00:03:33.416 A new system will allow rule based approval for lower 00:03:33.489 --> 00:03:37.680 or nil TDs certificates without approaching tax officers. 00:03:38.000 --> 00:03:43.200 Depositories will also handle Form 15-G and 15-H reducing paperwork. 00:03:43.400 --> 00:03:45.800 Crypto investors face tighter scrutiny. 00:03:46.040 --> 00:03:50.272 Crypto exchanges that fail to report transactions will face daily 00:03:50.337 --> 00:03:51.640 penalties and fines. 00:03:51.920 --> 00:03:56.214 The government is clearly cracking down on undisclosed digital asset 00:03:56.277 --> 00:03:56.719 income. 00:03:56.840 --> 00:04:00.160 Finally, Nris buying property in India get relief. 00:04:00.520 --> 00:04:04.355 Resident buyers will no longer need a TAN to deduct 00:04:04.430 --> 00:04:06.159 TDs and will be enough. 00:04:06.400 --> 00:04:10.200 This will speed up property deals and reduce confusion. 00:04:10.440 --> 00:04:13.600 Put together, Budget 2026 signals a clear message. 00:04:13.960 --> 00:04:19.424 Simplify compliance, tighten reporting and modernize Indias tax system for 00:04:19.498 --> 00:04:20.679 the next decade. 00:04:20.880 --> 00:04:24.360 For taxpayers, these 10 changes are not optional reading. 00:04:24.520 --> 00:04:28.160 They are rules that will soon shape everyday financial decisions.