LIVE | Union Budget 2026: FM proposes to increase time limit for filing revised IT returns from Dec 31 to Mar 31

To help MSMEs, the government will create a cadre of “corporate mitras” in Tier-II and Tier-III cities to provide affordable compliance support, FM Nirmala Sitharaman said in the Union Budget 2026-27. Professional bodies will design short-term courses to train them, and a new standing committee will focus on services-sector reforms.

- Union Finance Minister Nirmala Sitharaman proposed extending the deadline for revising tax returns from December 31 to March 31 on payment of a nominal fee, and staggering filing timelines, with ITR-1 and ITR-2 due by July 31 and non-audit business cases and trusts by August 31.

- The government also proposed reduction in TCS rate for pursuing education and medical education under liberalised remittance scheme from 5 per cent to 2 per cent.

- Tax Collected at Source (TCS) rate on sale of overseas tour packages was announced to cut to 2 per cent from 5 per cent. The rate was 20 per cent earlier.

- She also proposed a rule-based automated process for small taxpayers in FY27 Budget.

- In her Budget speech, Sitharaman announced a proposal to exempt award given by Motor Accident Claims Tribunal from income tax.

Union FM Nirmala Sitharaman says, "I propose 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."

The fiscal deficit refers to the difference between the government's total expenditure and its total revenue (excluding money from borrowings).

The debt-to-GDP ratio is the ratio of a country's accumulation of government debt to its gross domestic product (GDP) (measured in units of currency per year).

1. Mega textile parks to be set up with focus on value addition in technical textiles

2. Integrated textile programme announced with five sub-parts

3. Push to position India as a global hub for high-quality, affordable sports goods

4. Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom

5. Scheme proposed to revive 200 legacy textile and industrial clusters

1. Electronics manufacturing outlay raised to ₹40,000 crore in FY27

2. Two high-tech tool rooms to be set up to boost capital goods manufacturing

3. New scheme proposed for container manufacturing to build a globally competitive ecosystem

4. Three dedicated chemical parks to be established to cut imports and raise domestic output

1. To promote environmentally sustainable passenger transport, the government will develop seven high-speed rail corridors linking Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri.

2. New dedicated freight corridor proposed between Dankuni (West Bengal) and Surat (Gujarat)

3. Move aimed at promoting environmentally sustainable cargo movement

4. Mumbai–Ahmedabad high-speed rail corridor currently under construction

5. Eastern and Western dedicated freight corridors already operational

"...To develop India as a global bio-pharma manufacturing hub, I propose Bio Pharma Shakti with an outlay of Rs 10,000 crores over the next 5 years. This will build an ecosystem for domestic productions of biologics and biosimilars."

We will ensure that dividends of growth reach every farmer, scheduled caste, scheduled tribe, and youth: Sitharaman.

The Union Cabinet headed by Prime Minister Narendra Modi on Sunday approved the Union Budget 2026-27.

Following the approval, Finance Minister Nirmala Sitharaman will present her ninth record Budget in the Lok Sabha that comes in the backdrop of global uncertainties and slowdown in exports.

This is the third Budget of the BJP-led NDA government in its third term in office.

* Survey calls for a 'National Input Cost Reduction' strategy

* Pitches for progressing from ‘Swadeshi’ to 'strategic indispensability' so that the world moves from "thinking about buying Indian" to "buying Indian without thinking".

* Prices of precious metals, both gold and silver, are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties.

* Revamp the RTI Act 2005, to exempt confidential reports; align legislation with global best practices.

1. FM Nirmala Sitharaman to present her ninth Union Budget on Feb 1, the first Sunday Budget in India’s history.

2. Government under pressure to boost consumption, create jobs and raise capex while keeping fiscal deficit in check.

3. FY27 Budget framed amid global uncertainty, volatile commodities and uneven monetary easing by major economies.

4. Recent income tax and GST cuts have hit revenues, limiting room for fresh fiscal support measures.

5. Economists expect capital expenditure to remain the Budget’s backbone, with a steady but measured rise in FY27.

6. Railways, renewables, defence, power transmission and urban transport seen as priority capex sectors.

7. Major tax changes unlikely, with focus on stability, predictability and incremental relief for middle class.

8. Job creation expected via incentives for labour-intensive manufacturing, skilling and apprenticeships.

9. MSMEs may get enhanced credit support as they face high input costs and tight credit conditions.

10. Budget likely to prioritise continuity over surprise as markets seek reassurance on growth and stability.

Union Finance Minister Nirmala Sitharaman met President Droupadi Murmu at the Rashtrapati Bhawan with the Budget tablet ahead of her 9th Union Budget speech on Sunday, 1 February 2026.

Before going to the Rashtrapati Bhavan, Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta silk saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six Secretaries in her ministry.

Sitharaman continues with the tradition she set in 2019, carrying the budget speech in a 'bahi-khata', which she used after dropping the briefcase tradition.