Top 5 tax announcements in Union Budget 2026

February 2, 2026

Images: Shutterstock, PTI

Finance Minister Nirmala Sitharaman made many important tax-related announcements in the Budget 2026. Let’s look at the top 5. 

Securities Transaction Tax (STT) on futures has been raised to 0.05% from 0.02%, while STT on options premium and exercised options has been raised to 0.15% from 0.1% and 0.125%.

FM Sitharaman proposed reducing the TCS rate to 2% for education and medical purposes under LRS, bringing it down from the current 5%.

Any interest on the compensation amount awarded to victims of motor vehicle accidents by the Motor Accident Claims Tribunal will no longer attract tax.

Taxpayers can now file revised returns until March 31 after the tax year, instead of December 31 However, a fee will be applicable on revised returns after December 31. 

TCS on the sale of alcoholic liquor for human consumption, minerals (coal, lignite or iron ore), and scrap has been increased to 2% from 1% earlier.

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