Budget 2026 Breaks Tradition With First-Ever Sunday Presentation

89^th Budget of our country was published on 1^st February, 2026 on SUNDAY (holiday). Till now 88 budgets, including interim budgets were presented by different Finance Ministers. First budget was presented on 26th November, 1947 by Shri R. K. Shanmukham Chatty, and Prime Minister was Jawaharlal Nehru.

History says that till now 27 persons become Finance Minister, out of which only 9 persons become the Prime Minister of our country. The finance minister become the Prime Minister during the Government of either Congress, Janata Party, Third Front, United Front, United Progressive but not from National Democratic Alliance. Maximum budgets were presented by Morarji Desai 10 which includes interim budgets also. We can observed that out of 27 finance ministers only 2 were lady minister and that too out of two lady finance minister, current finance minister Smt. Nirmala Sitharaman has presented 9 budget and she will be equal to Morarji Desai next year.

The Government introduced the Income Tax Act, 2025 to replace the old Act, known as Income Tax Act, 1961. After amendment of Income Tax Act, 1922, this is for the first time that after 64 years, the Government replace the old Act. From 1^st April, 2026, Income Tax Act, 2025 will be applicable. We know that under the Income Tax Act, 1961, was amended every year and sections, sub sections, provisions are added and it became lengthy, though one can say there are only 298 sections are there.

Income Tax Act, 2025, aims to simplify the provisions, reduce the words, improve clarity, minimize disputes and make compliance easier, while retaining the core tax policy framework. It will be come in to effect from 1^st April, 2026. There are no new tax rates, No new Tax burden and no new schemes. It is more consolidation, restructuring and simplification and better presentation.

The new Income tax Act, 2025 is not a new tax law. It is a new look tax law, keeping same policy, same rates, better structures, simpler language and faster compliance transitioning from complexity to clarity that’s real reform.

The major synopsis and important points are briefly summarized as under:

Simplification and Restructuring:

• Simplifying the language: There are many obsolete and overlapping provisions of the 1961, Act removed. At many places, the words, ”Notwithstanding anything contained…” is replaced with “Irrespective of….” Keeping same legal strength with better readability. So it becomes easy to read, know and understand.
• Logical restructuring: Related topics, e.g. TDS, compliance procedures, consolidated in to unified chapters. With this near about 1200 provisions removed and around 900 explanation removed and replace with clean, structured sub-section making it easier to read and easier to interpret also to understand.
• Objective: With simple language, it reduce litigation, improve clarity and make the law more accessible to tax payers and professionals.

Introduction of “Tax Year”

Last year finance department announced that they will Replaces “Assessment Year” (A.Y.) and “Previous Year” (P.Y.).

Creates a single, intuitive term for the year of taxation. Sometimes it was complicated and confused about Previous Year and Assessment Year, therefore they have kept only one year that is “TAX YEAR”. Due to this change, for assesse it becomes simplify, compliance and reduces confusion in fillings.

Amendments relating to Direct Taxes:

(1) Exemption of interest on compensation amount awarded by Motor Accident Claims Tribunal

(2) Removable of ambiguity on the application of rate of TDS on account of supply of manpower.

(3) Enabling electronic verification and issuance of certificate for deduction of income-tax at lower rate or no deduction of income-tax.

(4) Enabling filling of declaration for no deduction of tax at source under section 393(6) of the Income tax Act, 2025 to the depository.

(5) Revised or belated return filling date is extended.

(6) Due date of filling return of income for non-auditable business or trust is extended to 31^st August.

(7) Reduction of compliance on sale of immovable property by nonresident to resident individual or HUF.

(8) The due date to deposit employee contribution by the employer to claim deduction is change.

Over and above many other amendments are suggested.