This morning, Finance Minister Nirmala Sitharaman made history at the newly inaugurated Kartavya Bhawan, presenting her record ninth consecutive Union Budget.

This year’s fiscal roadmap is anchored by three “Guiding Kartavyas” (Duties), Economic Growth, Fulfilling Aspirations of Citizens, Inclusive Access, Sabka Saath, Sabka Vikas   that define the government’s vision for a resilient and inclusive India.

With the landmark Income Tax Act, 2025 set to take effect this April, here is the essential breakdown of the key tax updates you need to know:

1) Increase in STT for futures & options

Securities Transaction Tax (STT) has been increased for futures and options.

2) Changes in Buyback Taxation

In Budget 2026, the government has revised the tax treatment on buyback proceeds. Now, profits from share buybacks will be taxed as capital gains for all shareholders , aligning them with the tax treatment of other capital gains. 

Buyback of listed equity & unlisted equity will be taxed at old rates:

However, to disincentivize misuse of tax arbitrage, promoters will pay an additional buyback tax. This will make effective tax 22% for corporate promoters. For non-corporate promoters the effective tax will be 30%.

3) ITR Deadline Changes 

The government has also made adjustments to ITR filing deadlines for businesses and professionals. Here are the deadline changes to keep in mind

3) Foreign Asset Disclosure Scheme

A new one-time six-month foreign asset disclosure scheme has been proposed, targeting small taxpayers like students, young professionals, tech employees, and NRIs. The scheme will apply to two categories of taxpayers:

Category A: Taxpayers who did not disclose overseas income or assets.

• Limit of undisclosed income/assets proposed to be ₹1 crore.
• Tax will be payable at 30% of the fair market value of assets or undisclosed income.
• Immunity from prosecution will be provided for those who participate in the scheme.

Category B: Taxpayers who disclosed overseas income and paid due tax but did not declare the acquired asset. The scheme includes:

• Asset Value is proposed to be up to 5 crore rupees
• Immunity from both penalty and prosecution will be provided on payment of ₹1 lakh.

Other Key Changes

No Change in Income Tax Slabs

In Budget 2026, the income tax slabs remain unchanged, offering taxpayers stability and predictability in their tax liabilities for the year ahead.