New Delhi, February 01: Union Finance Minister Nirmala Sitharaman made several major announcements related to the common people in the Budget 2026-27. To provide relief to common taxpayers, the Tax Collection at Source (TCS) levied on education and health has been reduced from 5 percent to 2 percent. Additional time will now be available for revising income tax returns. The deadline for filing ITR-1 and ITR-2 has been fixed as July 31, while the deadline for non-audit business affairs and trusts will be August 31. TDS rules have also been changed for NRIs selling property. The deduction will now be made by the resident buyer and a tax account number will not be required.
Changes in the Tax Regime
โข The tax collected at source (TCS) rate on education and health has been reduced from 5% to 2%.
โข Additional time will be provided for income tax return revisions; revised returns can be filed for a nominal fee.
โข The deadline for filing ITR-1 and ITR-2 will be July 31st.
โข The deadline for non-audit business matters and trusts has been fixed at August 31st.
โข The TDS rules for NRIs selling property have been changed. The deduction will now be made by the resident buyer, and a tax account number will not be required.
โข Budget 2026 has extended the deadline for filing income tax returns from December 31st to March 31st next year.
Health and AYUSH Sector:
Five regional centers will be established to make India a medical tourism hub. AYUSH pharmacies and drug testing laboratories will be upgraded, and the World Health Organization Global Clinical Centre in Jamnagar will also be upgraded.
MSME and Textile Sector:
A โน10,000 crore MSME Development Fund has been announced to strengthen the MSME sector. The textile sector will also receive a boost, and infrastructure will be strengthened in cities with a population of over five lakh.