Union Budget 2026–27: Key Highlights

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Union Budget 2026–27: Key Highlights 

Theme of the Budget

Yuva Shakti–Driven Budget inspired by 3 Kartavyas:
1️⃣ Accelerate & sustain economic growth
2️⃣ Fulfil aspirations & build capacity
3️⃣ Sabka Saath, Sabka Vikas

💼 Direct Tax Highlights

✅ New Income Tax Act, 2025 effective from April 2026
✅ Simplified Income Tax Rules & Forms (to be notified)
✅ TCS on foreign tour packages reduced to 2%
✅ TCS on LRS (education & medical) reduced to 2%
✅ Manpower supply services covered under TDS @ 1% / 2%
✅ Time limit to revise return extended till 31st March
✅ Penalty & assessment proceedings to be merged
✅ Pre-deposit reduced from 20% to 10% (core tax only)
✅ Immunity from penalty & prosecution extended even to misreporting cases

🖥️ IT & Start-up Boost

🚀 All IT & ITES services clubbed under one category
🚀 Safe Harbour margin fixed at 15.5%
🚀 Threshold increased from ₹300 Cr to ₹2,000 Cr
🚀 Automated & 5-year continuity of Safe Harbour
🚀 Faster APA for IT services (2 years target)

🌍 Global Business & Investment

🌐 Foreign cloud service providers using Indian data centres get tax holiday till 2047
🌐 MAT exemption for all non-residents paying tax on presumptive basis
🌐 5-year tax exemption for non-resident experts on global income

🏗️ Infrastructure & Growth

🏗️ Public Capex increased to ₹12.2 lakh crore
🚄 7 High-Speed Rail Corridors announced
🚢 20 new National Waterways
🏭 ₹10,000 Cr SME Growth Fund
🧪 Biopharma SHAKTI – ₹10,000 Cr outlay

📦 Customs & Indirect Tax Highlights

📉 Customs duty on personal imports reduced from 20% to 10%
💊 BCD exemption on 17 drugs/medicines
⚡ BCD exemption for Lithium-ion battery manufacturing
🏭 Warehousing to shift to operator-centric, risk-based audit system
📦 Single digital window for cargo clearance

📌 Market & Securities

📈 STT on Futures increased to 0.05%
📈 STT on Options raised to 0.15%
📉 MAT rate reduced to 14%, MAT to become final tax from April 2026

✨ One-Line Caption

“Union Budget 2026–27 focuses on growth, simplification & youth power — major tax, IT & compliance reforms ahead!”

GSTJIT Advisory
📧 gstjitadvisory@gmail.com
🌐 gstjitadvisory.blogspot.com
📷 instagram.com/gstjitadvisory

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