The Lok Sabha on Wednesday passed the Finance Bill, which is an important step towards implementing the central government’s budget proposals for the financial year 2026-2027. Finance Minister Nirmala Sitharaman had introduced this bill in the House on Monday. The Finance Bill is an important legislative step, which will provide a legal basis to the proposals announced in the Union Budget. The Finance Bill will now implement changes in income tax rates, charges and other levies, which will have a direct impact on the amount of money individuals and businesses deposit into the government treasury. These provisions are expected to impact citizens’ disposable income, savings and investment returns along with other measures. Let us also tell you what are the main proposals of the budget from the government?
What are the main proposals of the budget?
In the main proposals of Budget 2026-27, special emphasis has been laid on accelerating development, creating employment and promoting inclusive growth. This includes capex-based expansion for infra and private investment, employment and skill development initiatives like ‘Yuvashakti’, and support to MSMEs (Small, Medium and Micro Enterprises) through loans and incentives. Manufacturing, industries and agricultural sectors will benefit from production-based schemes, industrial corridors, irrigation and rural infra. Green energy, digital governance, urban development and connectivity have also been given priority in the budget. Besides, emphasis has also been laid on human capital growth in the fields of education, health services and nutrition. Inclusive growth and social security have been strengthened through welfare schemes, Direct Benefit Transfer (DBT) and providing assistance to weaker sections.
What changes took place in taxes?
Earlier, in his Budget 2026 speech on February 1, the Finance Minister had announced several important reforms, while maintaining the same standard deduction and income tax slabs as for FY 2025-26. A new Income Tax Act has been introduced in the budget to be effective from April 1, 2026, in which the rules and forms have been simplified so that compliance can be easy. The rate of TCS (Tax collected at source) on foreign travel packages and remittances made under LRS (Liberalized Remittance Scheme) for education and medical purposes has been reduced to 2 percent. The last date for filing revised income tax returns has been extended to March 31, while there is no change in the income tax slab. No additional age-based benefits are also provided.