Budget 2026: Deadline for revising income tax returns extended to March 31

Union Finance Minister Nirmala Sitharaman will present the budget for FY 2026-27 in the Lok Sabha on Sunday, February 1. The budget speech is scheduled for 11.00 am, after which detailed budget documents will be made available online. 

This year marks the rare occasion of a Union Budget being presented on a Sunday. This is also the ninth time in a row that FM Nirmala Sitharaman is presenting the budget.

With key states like West Bengal, Assam, Tamil Nadu and Kerala set to go to polls in a few months, there is much interest in what the budget holds for these states. Budget 2025 had seen a slew of proposals for Bihar, as it had been the state’s election year. However, leaders of southern states had slammed Budget 2025, calling it an attack on fiscal federalism. 

The prices of gold and silver on the Multi Commodity Exchange of India (MCX) extended losses ahead of the budget presentation, in a special trading session being conducted on account of Budget 2026, LiveMint reported.

The Union Budget is divided into two parts -- A and B -- with the latter part serving primarily as a shorter segment focused on tax proposals and select updates, while part A of the Budget carries most of the detailed policy announcements.

Finance Minister Nirmala Sitharaman will soon Budget 2026 speech in Lok Sabha.

Kartavya 1: Accelarate and sustain economic growth

Kartavya 2: Fulfil the aspirations of people, build capacity, and make them partners in india's growth

Kartavya 3: Every family and region get access to resources, amenities and opportunities

Presenting Budget 2026, Finance Minister Nirmala Sitharaman says that since the Modi government assumed office, India's economy has been marked by a "state of stability, fiscal discipline, sustained growth and moderate inflation".

The government has kept Atmanirbharta as a north star, which has resulted a high growth rate of 7%, the FM said, adding, “India must remain deeply integrated with the global markets, exporting more and attracting stable long-term investments.”

Scheme for container manufacturing to create globally competitive ecosystem, with budget allocation of Rs 5000 crore

Textile expansion and employment scheme to modernise traditional clusters

Samarth 2.0 to modernise and upgrade textile skilling ecosystem with collaboration with industry and acad institutions

Mahatma Gandhi Gram Swaraj Yojana to promote Khadi handloom and Handicrafts

As part of the first Kartavya (meaning duty) of accelerating and sustain economic growth, intervention in these six areas:

1. Scaling up manufacturing in seven strategic and frontier sectors.

2. Rejuvenating legacy industrial sectors

3. Creating champion MSMEs

4. Delivering a powerful push for infrastructure

5. Ensuring long-term security and stability

6. Developing city-economic regions

Finance Minister Nirmala Sitharaman announced Biopharma Shakti, a new initiative with an outlay of Rs 10,000 crore over five years, aimed at developing India into a biopharma manufacturing hub. Highlighting the government’s plan to scale up manufacturing across seven strategic and frontier sectors, she said the move is critical as India’s disease burden shifts towards non-communicable diseases such as diabetes, requiring stronger domestic biopharmaceutical capabilities.

The Union Budget proposed a series of measures to strengthen cargo transportation, including new dedicated freight corridors connecting the eastern and western regions, development of 20 new national waterways, and creation of a ship repair ecosystem for inland waterways in Varanasi and Patna. The government also announced plans to promote coastal cargo movement to encourage a modal shift from railways to waterways, aiming to reduce logistics costs and improve efficiency.

Building on the first phase of India’s Semiconductor Mission, the Finance Minister announced India Semiconductor Mission (ISM) 2.0, aimed at producing semiconductor equipment and materials, enabling full-stack chip design within the country, and strengthening supply chains. As part of the push to scale up electronics manufacturing, the government also proposed increasing the outlay for the Electronics Components Manufacturing Scheme to Rs 40,000 crore.

The Union Budget proposed the development of five high-speed rail corridors to improve inter-city connectivity:

• Mumbai–Pune

• Pune–Hyderabad

• Hyderabad–Bengaluru

• Hyderabad-Chennai

• Chennai–Bengaluru

• Delhi–Varanasi

• Varanasi–Siliguri

25 crore individuals have come out of multi dimensional poverty through a decade of our govt's sustained efforts: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman announced an integrated programme for the labour-intensive textile sector, including the National Fibre Scheme to promote self-reliance in natural, manmade and new-age fibres, a textile expansion and employment scheme, National Handloom and Handicraft Scheme, Tex-Eco initiative, and Samarth 2.0. She also proposed setting up mega textile parks in challenge mode and announced the Mahatma Gandhi Gram Swaraj Initiative to strengthen Khadi, handloom and handicrafts across the country.

Noting that Ayurveda has gained global recognition, the Union Budget announced the setting up of three new All India Institutes of Ayurveda, along with plans to upgrade AYUSH pharmacies across the country. The government also proposed strengthening the WHO Global Centre for Traditional Medicine in Jamnagar, aimed at enhancing research, education and global collaboration in traditional medicine.

The Union Budget projected the Animation, Visual Effects, Gaming, and Comic (ABGC) sector to grow to 2 million professionals by 2030. To support skill development, the government plans to set up ABGC content creation labs in 15,000 schools and 500 colleges, aiming to nurture creative talent in India’s rapidly expanding orange economy.

The Union Budget announced several initiatives to boost tourism, including the upgradation of the National Hotel Management and Catering Institute into a National Institute of Hospitality and a pilot scheme to train guides in 20 iconic destinations. A National Destination Digital Knowledge Grid will be set up to create jobs for local researchers, historians, and content creators. The government also plans economically sustainable mountain trails in Himachal Pradesh, Araku Valley, Uttarakhand, and J&K, along with turtle trails along the coasts of Odisha, Karnataka, and Kerala.

The Union Budget proposed developing 15 archaeological sites into experiential cultural destinations, allowing the public to explore them through curated walks. The initiative aims to promote heritage tourism while creating opportunities for local guides, historians, and content creators.

The Union Budget unveiled the Khelo India Mission, a decade-long initiative to strengthen India’s sports ecosystem. The plan includes an integrated talent development pathway with training centres, development of coaches and support staff, integration of sports science and technology, promotion of competitions and leagues, and enhancement of sports infrastructure for both training and competitive events.

The Union Budget announced the establishment of NIMHANS 2 in North India to expand access to advanced mental health care. In addition, the government plans to upgrade National Mental Health Institutes in Ranchi and Tezpur, aiming to strengthen mental health infrastructure and services across the country.

The Finance Minister proposed a scheme to develop Buddhist tourism circuits across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. The initiative also aims to preserve monasteries and temples, promoting cultural heritage while boosting tourism in the northeastern region.

The Union Budget announced that the vertical share of tax devolution to states will be retained at 41%, in line with the recommendations of the 16th Finance Commission. Additionally, Rs 1.4 lakh crore has been allocated to states as Finance Commission grants for 2026-27 to support development and welfare initiatives.

I have fulfilled my commitment made in 2021-22 to reduce fiscal deficit below 4.5% of GDP by 2025-26: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman announced the launch of Bharat Vistar – Virtually Integrated System, a multilingual AI platform designed to integrate agri-stack portals and the ICAR package on agricultural practices. The initiative aims to provide farmers with AI-powered insights, improve access to information, and strengthen the digital agriculture ecosystem.

The Union Budget announced that the time available for revising income tax returns has been extended from December 31 to March 31, giving taxpayers additional time to correct errors and make necessary adjustments before filing.

The Union Budget announced that from April 1, 2026, any compensation received from a Motor Accident Claims Tribunal—whether for injury or death—will be exempt from income tax. This ensures that the entire amount goes directly to the victim or their family without any deduction, providing full financial relief to affected individuals.

The Finance Minister proposed a tax holiday until 2047 for any foreign company providing cloud services to global clients using Indian data centres, provided the company serves Indian customers through an Indian reseller entity. Additionally, IT services companies are encouraged to conclude advance pricing agreements within two years, streamlining cross-border transactions and compliance.