Budget 2026: Good news for Nirmala Sitharaman announces new timelines for tax filing. As per the recent announcement, the ITR 1, 2 will be done till July 31st. As per the update, individuals with ITR1 and ITR2 to continue to file till July 31. The Finance Minister has also announced that trusts will be allowed time to file returns to Aug 31. Here are all the details you need to know about the revised Income Tax Return timelines announced by the Finance Minister.
Nirmala Sitharaman announces new timelines for tax filing announces Income Tax Act, 2025 update
To ensure ease of living for taxpayers, the Union Budget 2026-27 on Sunday announced a range of proposals on direct taxes, saying that the Income Tax Act, 2025, is slated to come into effect from April 1, 2026.
The simplified rules and forms will be notified in due course, giving adequate time to taxpayers to acquaint themselves with their requirements. The forms have been redesigned for simpler understanding and compliance for ordinary citizens.
Finance Minister Nirmala Sitharaman also proposed that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from Income Tax, and any TDS on this account will be done away with.
Nirmala Sitharaman presents 9th consecutive Union budget
Union Finance Minister Nirmala Sitharaman is presenting the record ninth consecutive budget today. The historic 9th Union budget will write her name in the golden books of Indian economic history. The budget 2026 can be highlighted from the fact that it is presented amid the ongoing trade related uncertainties across the world.
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The Budget 2026-27 proposes to reduce the TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent without any stipulation of amount.
“Supply of manpower services is proposed to be specifically brought within the ambit of payment to contractors for the purpose of TDS to avoid ambiguity. Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only,” the Budget document said.
