Union Budget 2026

Table of Content

1. Income Tax Slab Rates for Tax Year2026-27

2. Budget 2026 Key Highlights: What Items Are Cheaper or More Expensive?

3. Strategic Missions: Biopharma and SME Growth

4. Is Tax Filing Easier in 2026?

5. Why Life Insurance Matters Post-Budget 2026?

6. The Bottom Line

Income Tax Slab Rates for Tax Year2026-27

Under the revised framework, an individual earning up to ₹12 lakh per annum (after applying the Section 87A rebate) effectively pays zero tax under Section 115BAC New Tax Regime. Here are the new income tax slab rates for Tax Year 2026-27 under the Union Budget 2026:

Note: Salaried taxpayers benefit from a Standard Deduction of ₹75,000, further lowering the taxable income. The Old Tax Regime remains unchanged but must be specifically opted for; otherwise, the New Regime applies automatically.

Budget 2026 Key Highlights: What Items Are Cheaper or More Expensive?

The Union Budget 2026 also made strategic adjustments to customs duties to support domestic manufacturing and public health:

The "Cheaper" List

The government has proposed to fully exempted Basic Customs Duty (BCD) on several essential imports to lower the cost of living and production:

• Healthcare Relief: BCD is now proposed to exemptfor 17 life-saving cancer drugs and medicines for 7 rare diseases, significantly reducing out-of-pocket medical expenses.

• Green Energy and Tech:proposed to Exempt lithium-ion cell manufacturing equipment for EV batteries and solar glass ingredients like sodium antimonate.

• Electronics: Customs duty on specific mobile phone components (PCBA and connectors) has been reduced to boost local assembly and export competitiveness.

• Aviation: Full BCD exemption for components and parts required for the manufacture and Maintenance, Repair, and Overhaul (MRO) of civilian aircraft.

The "Dearer" List

To protect the domestic industry and promote public health, certain items will see price hikes:

• Tobacco Products: The National Calamity Contingent Duty (NCCD) on cigarettes and chewing tobacco has been hiked by nearly 60%, reflecting a strong anti-tobacco stance.

• Luxury Imports: Luxury watches and imported premium spirits will attract higher tariffs to encourage "Make in India" for high-end consumer goods.

• Industrial Goods: Duty has been increased on imported umbrellas, specific industrial machinery, and ATM/Cash dispenser machines, where domestic capacity is now deemed sufficient.

Strategic Missions: Biopharma and SME Growth

The budget moves beyond simple tax changes with two massive structural initiatives:

• Biopharma SHAKTI: Launched with an outlay of ₹10,000 crore over 5 years, this mission aims to transform India into a global hub for biologics and biosimilars. It includes upgrading 7 existing NIPERs and creating a network of 1,000+ clinical trial sites.

• ₹10,000 Crore SME Growth Fund: A new equity-linked fund designed to help small and medium enterprises scale into "global champions" without the immediate burden of debt. This is accompanied by a ₹2,000 crore top-up to the Self-Reliant India Fund.

Is Tax Filing Easier in 2026?

Yes, the Union Budget 2026 introduces several major changes specifically designed to make tax filing simpler, more flexible, and less stressful for the common man. Here are the changes made to make ITR filing easier in 2026:

• Extended Correction Window

The deadline for filing revised ITR has been extended from December 31 to March 31 from the end of the relevant tax yearsubject to a nominal fee.

• Filing Deadlines

To prevent portal crashes and ease the burden on tax professionals, the deadline for non-audit cases – including individuals carrying on business or profession not requiring audit, partners of firms not subject to audit (and their spouses covered under section 5A), and trusts whose accounts are not required to be auditedhas been moved to August 31, while salaried individuals continue with the July 31 deadline.

• Automated NIL TDS Certificates

Small taxpayers can now obtain lower or NIL TDS certificates through an automated, rule-based process, eliminating the need to visit an Assessing Officer.

Why Life Insurance Matters Post-Budget 2026?

A significant takeaway from the Union Budget 2026 discussions is the government's push toward "Insurance for All by 2047."

• Protection Beyond Tax Savings: With the New Tax Regime offering higher disposable income but fewer deductions, individuals are encouraged to view life insurance through pure protection and long-term wealth creation rather than just a way to save ₹1.5 lakh in taxes.

• Estate Planning and Wealth Transfer: The budget's focus on simplifying the New Income Tax Act highlights the importance of seamless asset transition. Life insurance remains one of the most efficient tools for legacy planning.

• Social Security Net: As the government pushes for a more formalised economy, life insurance serves as a private social security net. This ensures that life’s uncertainties do not have a negative impact on family goals.

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The Bottom Line

The Union Budget 2026 is a strong call for "Smart Financial Planning." However, the responsibility of securing one's future now rests more on individual choice than on tax-induced savings.

Therefore, incorporating a robust life insurance plan should be the first step in your 2026 financial roadmap. It provides the dual benefit of a safety net for your loved ones and a disciplined way to build a corpus in an era of simplified taxation.

As we transition to the New Income Tax Act, staying informed through official government portals like the Income Tax Department and the Indian Budget is essential for every responsible taxpayer.