The government has notified the Finance Act 2026. Due to which the way has been cleared for making changes in tax provisions. A gazette notification issued by the Ministry of Law and Justice on March 30 said the Act gives effect to the financial proposals of the central government for 2026-27. It said that the following Act of Parliament has received the assent of the President on March 30, 2026 and is being published for general information.
Last week, Parliament approved the Finance Bill 2026; The Rajya Sabha sent it back to the Lok Sabha by voice vote, completing the budgetary process for the next financial year starting from April 1. The Lok Sabha had passed this bill with 32 amendments on March 25.
What is the country’s budget?
Rajya Sabha sent the bill back after a brief discussion, and Finance Minister Nirmala Sitharaman answered questions raised by members. The total expenditure in the Union Budget 2026-27 is estimated at Rs 53.47 lakh crore, which is 7.7 percent more than the current financial year ending on March 31. The total capital expenditure proposed for the next financial year is Rs 12.2 lakh crore. There is a proposal for gross tax revenue collection of Rs 44.04 lakh crore and gross borrowing of Rs 17.2 lakh crore. Fiscal deficit for FY27 is estimated at 4.3 percent of GDP, which is lower than 4.4 percent in the current fiscal year.
Which new rules will be applicable?
As per the provisions of the Finance Act, from April 1, a flat surcharge of 12 per cent will be imposed on capital gains earned by individual or corporate shareholders by selling shares in buyback offers of companies. For individual taxpayers, imposing a flat surcharge of 12 per cent on capital gains arising from buyback will significantly increase their effective tax cost, as a lower surcharge structure was in place earlier.
Currently, no surcharge is levied on taxable income up to Rs 50 lakh, while taxable income between Rs 50 lakh and Rs 1 crore attracts a surcharge of 10 per cent on capital gains arising from buyback.