Final Analysis
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Union Budget 2026: Confirmed Impact

Status: Verified 2 Feb 2026Last reviewed: 2 Feb 2026

Income Tax Slabs: No Change

Finance Bill 2026 confirms that **Income Tax Slabs for FY 2026-27 remain unchanged**. Focus has shifted to the implementation of the **Income Tax Act 2025** for long-term simplification.

Income Tax Slabs (FY 2026-27)

Income SlabTax Rate
Up to ₹3,00,000Nil
₹3,00,001 - ₹7,00,0005%
₹7,00,001 - ₹10,00,00010%
₹10,00,001 - ₹12,00,00015%
₹12,00,001 - ₹15,00,00020%
Above ₹15,00,00030%
2026 Highlight

Hiked Standard Deduction

The standard deduction for salaried individuals has been increased to **₹75,000** (from ₹50,000) under the New Tax Regime.

Note: Tax rebates under Section 87A ensure Nil tax for income up to ₹7 Lakhs (plus standard deduction).

Macro-Economic Targets (2026-27)

Fiscal Deficit
4.5%
Target for FY 2026-27
Capital Expenditure
₹11.11L Cr
Infrastructure Focus
GDP Growth
7.0%
Projected Real Growth

What gets Cheaper

  • • Mobile Parts & Modules (BCD 15% → 10%)
  • • 17 Critical Cancer Drugs (BCD Exempt)
  • • Overseas Tour Packages (TCS flat 2%)
  • • Personal Courier Goods (BCD 20% → 10%)

What gets Costlier

  • • STT hike on F&O Trading
  • • Imported Luxury Watches
  • • Non-Essential Plastic Imports

Budget Impact Simulator

Enter a base value to see the real-world tax savings.

Mobile Parts
10%Was 15%
Estimated Saving: ₹500
Overseas Tour
2%Was 5%
Estimated Saving: ₹300
Personal Imports
10%Was 20%
Estimated Saving: ₹1,000

Budget Pulse Poll

Which 2026 change helps your business most?

GST Legislative Summary

ProvisionOfficial ChangeBusiness Benefit
Section 15 & 34Post-sale discount linkage removed.Simplified credit notes.
Section 5490% Refund for Inverted Duty.Faster cash flow.
IGST Sec 13Intermediary PoS is Recipient location.IT Export relief.

The Feb 2 Action Plan

1
Service Agencies:

Review export contracts—the new 'Intermediary' logic may save you 18% GST.

Open PoS Finder
2
Salaried Professionals:

Slabs are unchanged. Optimize deductions for the new FY starting April.

Compare Regimes

Budget 2026: Frequently Asked Questions

Roadmap to April 2026

Feb 2026

Budget Approval and passage of the Finance Bill 2026.

Oct 2025 - Mar 2026

Drafting rules under the new Income Tax Act 2025.

April 1, 2026

New Acts, GST Amendments, and final Tax Slabs go Live.

Official Primary Resources

Verify all technical points against the official documents published by the Ministry of Finance.

Disclaimer: Informational only. Analysis based on Finance Bill 2026 (Bill No. 12 of 2026). Always rely on official notifications and professional advice for final compliance and tax filing decisions.