Overview
- Parliament’s lower house approved the Finance Bill by voice vote on Wednesday after two days of debate, adopting government changes and moving the budget measure to the Rajya Sabha.
- The government’s fiscal plan targets total spending of ₹53.47 lakh crore in FY27 with ₹12.2 lakh crore for capital projects, gross tax revenue of ₹44.04 lakh crore, gross borrowing of ₹17.2 lakh crore, and a deficit of 4.3% of GDP.
- A new Income Tax Act is slated to take effect from April 1, 2026, and the Tax Collected at Source on overseas tour packages and certain education and medical remittances drops to 2%.
- The bill backs a trust‑based tax system and promises relief for MSMEs, farmers, and cooperatives, and it proposes customs changes that aim to speed up trade and cut paperwork for businesses.
- Recent amendments reported by multiple outlets include broader powers to reopen past assessments tied to court findings, clearer timelines for tax notices, added protections for officials, extended SEZ and IFSC tax benefits, and a change that could bring more scrutiny for some taxpayers.