Budget 2026: Union Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget in the Lok Sabha on Sunday, February 1. With this, she has become the longest-serving finance minister to hold the post continuously. Giving taxpayers a big relief, FM Sitharaman proposed extending the deadline for filing revised income tax returns to March 31. This ITR filing will include a nominal fee, replacing the earlier cut-off of December 31. She further informed that people filing ITR-1 and ITR-2 can file the forms till 31st July. On the other hand, non-audit business cases and trusts can file their returns till 31st August. The Income Tax Act, 2025, will come into effect from 1st April this year.
“Non-audit business cases and trusts will be allowed to file returns till August 31,” she said.
The FM further stated that the central government will launch Mahatma Gandhi Khadi Swaraj Scheme for handicrafts.
The FM has placed the spotlight on India’s textile sector and announced the central government will create mega textile parks to drive manufacturing growth and employment. The initiative focuses on strengthening khadi, handlooms and handicrafts by boosting production capacity and building world market linkages.
After the presentation of the Budget 2026 in the Lower House, a copy of the Budget will be tabled in the Upper House. After receiving significant relief in 2025 middle-class and salaried taxpayers are hoping for more income tax cuts in Budget 2026.
Union Budget 2026: Top Highlights From FM Sitharaman’s Speech
- During her Budget 2026 speech, the FM proposed interventions in six key sectors, including ramping up manufacturing in seven strategic and frontier sectors, reviving industrial sectors, motivating and creating champion MSMEs, giving a major push to infrastructure, ensuring long-term security and stability and promoting the development of city-based economic regions.
- The Mahatma Gandhi Gram Swaraj scheme was proposed in order to strengthen the Khadi handloom. “I propose to set up mega textile parks in challenge mode. I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom,” FM said.
- FM Sitharaman, during her budget scheme, proposed a National Fiber Scheme for self-sufficiency in the space.
- Sitharaman proposed adding Rs 4,000 crore to Self Reliant India Fund in FY27 in order to support MSMEs.
- The center will continue developing infrastructure in Tier 2 and Tier 3 cities. It is also planning to establish a high-level banking committee for Viksit Bharat. This will align the sector with India’s next phase of growth.
- Sitharaman proposed seven high-speed corridors between major cities, terming them as growth connectors. The corridors will be made between Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bangalore, Hyderabad-Chennai, Chennai-Bangalore, Delhi-Varanasi and Varanasi-Siliguri.
- 25 crore citizens have come out of multi-dimensional poverty
- Centre proposes three new All India institute of Ayuveda.
- The FM proposed a Rs 20,000 crore outlay over the next five years for Carbon Capture Utilisation and Storage (CCUS) technologies. This will support scaling up and wider end-use adoption.
- She also announced the upgradation of AYUSH pharmacies and drug testing laboratories.
- She also proposed support to 5 university townships in major industrial logistics centres.
- Central government is planning to upgrade skills of 10,000 guides at 20 major tourist sites. FM proposed to develop ecologically sustainable trails in hilly states such as Himachal Pradesh, Utttarakhand and Jammu and Kashmir.
- Centre has proposed setting up girls hostel in every district.
- Centre has proposed setting up of Self-Help Entrepreneur (SHE) Marts in order to support women entrepreneurship.
- To improve access to mental healthcare in North India, FM proposed setting up of NIMHANS-2. She has also proposed to upgrade institutes in Ranchi and Tezpur.
- Public capital expenditure has been raised to Rs 12.2 lakh crore for financial year 2026–27, up from Rs 11.2 lakh crore this year. This will help in infrastructure development.
- Exemption of custom duty on 17 drugs and medicines.
Centre Proposed Khelo India Mission To Transform The Sports Sector:
• Integrated talent development pathway.
• Development of coaches and support staff so that athletes will get better coaching.
• Encourage competitions and leagues for healthy competition.
In the Union Budget 2025, the central government gave significant benefits to taxpayers by cutting income tax on earnings up to Rs 12 lakh per year. For salaried taxpayers, this went up to Rs 12.75 lakh after the standard deduction of Rs 75,000. Income tax has always been a centre point of the budget announcement, where the middle class, specially salaried people, expect benefits from the central government to reduce their taxes.
(Note: This is a developing story and further details will be added.)
