CS Rashmi H
Budget 2026 is a growth-oriented and inclusive budget. It focuses on:
- Growth and development of emerging areas such as Pharmaceuticals, Semiconductors, Electronic Components manufacturing, Rare earth permanent magnets, Chemicals manufacturing, Capital goods and Textiles.
- Supporting small businesses and traditional industries.
- Developing infrastructure in smaller cities.
- Encouraging innovation and technology.
- Simplifying and rationalising taxation system in the Country.
1. Boost to the Textile Sector: The textile sector, which provides employment to millions, especially in rural areas, has received special attention:
- The government will set up Mega Textile Parks to create large manufacturing hubs with modern facilities to reduce costs, increase exports, and to create jobs.
- A new Mahatma Gandhi Gram Swaraj Initiative has been introduced to strengthen Khadi, handloom, and handicrafts, supporting traditional artisans and rural livelihoods.
2. Strong Support for MSMEs
Micro, Small and Medium Enterprises (MSMEs) are considered the backbone of the Indian economy, creation of Champion MSMEs is visualised by below ideas:
- Rs. 10,000 crore SME Growth Fund has been announced to help MSMEs expand and modernise.
- An additional Rs. 2,000 crore has been added to the Self-Reliant India Fund to improve access to risk capital.
- Corporate Mitras will be developed in Tier II and Tier III cities to help small businesses meet legal and compliance requirements at affordable costs, with support from professional institutions such as ICAI, ICSI and ICMAI thereby expanding professional growth of the members of the professional institution and SMEs.
3. Infrastructure and Urban Development
- An Infrastructure Risk Guarantee Fund will provide partial guarantees to lenders, encouraging investment during the construction phase of large projects.
- The government will has proposed to invest Rs. 5,000 crore per City Economic Region over five years in Tier II and Tier III cities to develop modern infrastructure and basic facilities.
4. Financial Sector and Investments
A clear roadmap has been laid out for NBFCs to expand credit and adopt technology, supporting financial inclusion.
Persons Resident Outside India (PROI) are allowed to invest under the Portfolio Investment Scheme:
- Up to 10% individually
- With an overall investment of 24% for all individual PROIs.
5. Research, Technology, and Education
- Continued support for Artificial Intelligence, Quantum Technology, and Research & Innovation through national missions.
- A new National Institute of Design will be set up to promote design education in eastern India.
6. Changes in Buyback Taxation: Share buyback will now be taxed as capital gains.
- Corporate promoters: 22% tax
- Non-corporate promoters: 30% tax
7. Increase in the rate of Tax Collected at Source (TCS):
| Goods | TCS Rate |
| Alcoholic liquor, scrap, minerals | 2% |
| Tendu leaves | 5% |
8. Securities Transaction Tax (STT) Increase
STT rates on futures and options have been increased, making market transactions slightly more expensive for traders as detailed below:
| Sl. No. | Particulars | STT Before Budget 2026 | Current Rate |
| 1 | Futures | 0.02% | 0.05% |
| 2 | Options premium | 0.10% | 0.15% |
| 3 | Exercise of options | 0.125% | 0.15% |
9. Other Tax Reliefs
- No tax on compensation received from the Motor Accident Claims Tribunal, including amounts received by family members.
- Immunity from penalty for non-disclosure of non-immovable foreign assets valued below ₹20 lakh.
- Tax holiday till 2047 for foreign companies serving globally using data centre services from India, encouraging growth of India’s digital infrastructure.
- The Income Tax Act, 2025 will come into force from 1st April 2026, aiming to simplify the tax system.
- Filing of Tax returns:
| Sl.no | Tax payer | Due date for filing return |
| 1. | Individual Tax Payer | 31st July |
| 2. | Non audit business cases and trusts | 31st August |
