Here what India Union Budget 2026-27 means specifically for individual taxpayers and NRIs (resident individuals, salaried people, and non-resident Indians) based on the latest announcements from the Budget speech and analysis:

1. Income Tax Slabs — No Change (Individual Residents)

No change in personal income tax slabs** for FY 2026–27 (Assessment Year 2027–28). The structure under the *new tax regime* remains:

0-4 lakh Nil,4- 8 lakh 5%,8- 12 lakh 10%,12- 16 lakh 15%,16- 20 lakh 20% ,20 - 24 lakh 25%, Above 24 lakh 30% (Standard deduction and rebate provisions make 12.75 lakh effectively tax-free under the new regime) continuity with last years reforms.

Old tax regime also continues (with classic slabs and deductions like 80C, HRA, etc.). Taxpayers can opt each year.

There were no headline tax cut changes this year for resident individuals.

Compliance & Filing Ease (All Individuals)

Extended timeline for revised ITR You can now file a revised return till 31 March (previously 31 Dec) with a small fee. More time for original returns** for different categories (staggered deadlines to reduce rush). TDS refund claims allowed even if return is after due date (helps smaller taxpayers).

These changes lower compliance stress and reduce accidental penalties.

Lower TCS on Overseas Payments (Important for Residents & NRIs)

Tax Collected at Source (TCS) affects many individuals making foreign remittances often used by NRIs and resident parents:

TCS on overseas tour packages** — reduced to flat 2% (was 5%/20%). TCS under Liberalised Remittance Scheme (LRS) for education & medical remittances cut to 2% from 5%.

This reduces the upfront tax amount withheld** when students/families send money abroad for studies, treatment, or travel compared with earlier *higher TCS brackets.

Relief for Non-Resident Indians (NRIs)

Several measures directly benefit NRIs:

TCS Reductions on Remittances

As above — lower TCS on LRS remittances helps NRIs sending money abroad or families sending money to NRIs/students.

Property Transaction Simplification

Budget simplified property deal compliance for NRIs — TDS on sale of property can now be deducted using *PAN instead of TAN, reducing paperwork.

One-Time Foreign Asset Disclosure Window

A six-month window to disclose undeclared overseas assets with relatively *light penalties* and *immunity from prosecution* — helpful to NRIs with small foreign holdings.

MAT Exemption for Non-Residents Paying Presumptive Tax

The Budget proposes Minimum Alternate Tax (MAT) exemption** for NRIs under *presumptive tax schemes* (simplifies tax for small non-resident businesses/ventures).

5. Income Recognition & Capital Gains Impacts

Capital gains tax & buyback tax rules** remain broadly unchanged (no major relief or new exemption* announced this year).

NRI property sale compliance changes as noted reduce friction on remittances and filings.

6. New Tax Law Effective from 1 April 2026

A new Income Tax Act, 2025 replaces the 1961 Act from 1 April 2026. This is meant to simplify the law, reduce litigation, clarify statutes, and improve ease of compliance — affecting residents and NRIs moving forward.

Summary What It Means for You

Resident Individuals

No extra burden tax slabs unchanged. Effective tax-free income up to 12.75 lakh under new regime with rebates/deductions. Filing & compliance deadlines eased. Less TCS when sending money abroad for travel, studies or medicals.

Non-Resident Indians (NRIs)

Easier remittance with lower TCS. Simplified property sale TDS compliance. One-time foreign asset disclosure window. Presumptive MAT exemption for certain non-resident businesses.

Important to Note

No new deduction additions like 80C/80D expansions this year — the focus was *procedural ease and compliance relief*, not big rate changes. All major tax rate policies continue to reflect last year's big overhaul.

1. Growth-Focused Economic Strategy

The budget emphasizes **capex-led growth with a record 12.2 lakh crore capital expenditure to strengthen infrastructure and crowd in private investment. Focus remains on fiscal discipline with a projected fiscal deficit of ~4.3% of GDP and continued glide path for debt reduction.

2. Infrastructure Connectivity

7 new high-speed rail corridors announced to connect major cities across India. Expansion of inland waterways and coastal shipping to improve logistics.

3. Manufacturing Industrial Push

Biopharma SHAKTI mission with 10,000 cr outlay to build global biopharma capabilities. India Semiconductor Mission with increased focus on industry-led R&D and training. Rare earth mineral corridors to support processing and manufacturing. Electronics components and chemical park schemes to deepen local value chains.

4. MSMEs & Business Support

Launch of SME Growth Fund to boost small and medium firms. TReDS platform made mandatory for public sector procurement to improve MSME liquidity.

5. Personal Finance & Tax Measures

Income tax reforms** included in the New Income Tax Act, 2025, effective from April 1, 2026, simplifying filing and compliance. TCS on overseas spending reduced to 2% under LRS for tourism, education and medical outflows. Increased ease and window for revised/late tax returns.

6. Rural & Employment Initiatives

Rural employment guarantee schemes adjusted with stronger state role. ([Lemonn][8]) * New support measures under water, logistics and employment missions.

7. Human Capital: Education & Skills

Substantial outlay for education: 1.39 lakh crore. New university townships, animation/VFX labs, and focused creative economy initiatives.

8. Defence & Security

Record 7.84 lakh crore defence allocation**. Emphasis on domestic defence production, R&D, and startups

9. Green & Sustainable Tech

Clean energy push including carbon capture, green hydrogen missions and nuclear R&D funding. Rooftop solar support for 1 crore homes.

10. Traditional & Export Sectors**

Mega textile parks and container manufacturing schemes for exports and value addition. National Fibre Scheme** for self-sufficiency in technical and natural fibres.

11. Macro Indicators & Outlook

Fiscal deficit** aimed at 4.3% of GDPin FY27. Debt-to-GDP at ~55.6%. Net tax receipts projected at ~₹28.7 lakh crore for FY27.

In Summary

Budget 2026 -27 focuses on:

Sustaining infrastructure investment and growth Strengthening manufacturing and technology ecosystems ; Supporting MSMEs and rural employment ; Simplifying tax and compliance ✔ Major allocations to education, defence and energy ✔ Continued fiscal consolidation and macro stability

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