Union Budget 2026–27 Explained: Key Highlights, Announcements & Impact
The Union Budget 2026–27 has finally been unveiled by Finance Minister Nirmala Sitharaman, marking a historic moment as the first budget presented in the new ‘Kartavya Bhavan.’ For entrepreneurs, taxpayers, and the general public, this budget sets a clear roadmap for a “Viksit Bharat” by 2047. In this detailed guide, Startup Portal Business Services breaks down the complex announcements into simple insights. Whether you are looking for the union budget 2026 date, tax slab changes, or new schemes for small businesses, our experts Nikhil Rajarshi and Govind S. Jethani have analyzed every aspect to help you navigate the financial year ahead.
The Union Budget 2026 was presented on February 1, 2026, which notably fell on a Sunday. This year’s introduction of budget session was centered around three ‘Kartavyas’ (duties): sustaining economic growth, building people’s capabilities, and ensuring inclusive participation.
The budget is not just a statement of accounts but a strategic vision to make India a $5 trillion economy. With a focus on stability and ease of doing business, Startup Portal Business Services views this budget as a bridge between traditional industries and the high-tech future.
Key Highlights of Budget 2026–27:
If you are looking for the key points budget 2026 offers, here are the top takeaways at a glance:
- New Income Tax Act, 2026: A complete overhaul of the old 1961 Act, set to start on April 1, 2026.
- Record Capex: Public capital expenditure increased to ₹12.2 Lakh Crore to boost infrastructure.
- Fiscal Deficit: Targeted at 4.3% of GDP, showing the government’s commitment to financial discipline.
- MSME Power-up: A new ₹10,000 Crore SME Growth Fund to provide equity support.
- Tax Compliance: Staggered ITR filing dates and a major reduction in pre-deposit for appeals.
Major Announcements in Budget 2026–27:
The 2026 budget introduced several path-breaking initiatives:
- Biopharma SHAKTI: A ₹10,000 Crore outlay to make India a global hub for domestic biologics production.
- Semiconductor Mission 2.0: Expanding India’s chip-making capabilities from design to fabrication.
- University Townships: Building five new townships near industrial corridors to link education with employment.
- Data Center Exemption: Foreign cloud companies using Indian data centers will get tax exemptions until 2047.
Income Tax Changes & Taxpayer Impact:
One of the most discussed key highlights is the tax structure. While many expected a change in slabs, the government chose stability.
The New Income Tax Act, 2026:
The biggest news is the introduction of budget reforms that replace the decades-old tax law. The new Act aims to simplify language, reduce litigation, and offer redesigned forms for easier filing.
- No Slab Changes: For FY 2026-27, the tax slabs remain the same as the previous year.
- Standard Deduction: Remains at ₹75,000 for salaried employees.
- Rebate Power: Under the New Tax Regime, income up to ₹12 Lakhs remains tax-free due to the ₹60,000 rebate.
Impact on Middle Class & Salaried Individuals:
The middle class might not have seen a slab cut, but they gained through “Compliance Relief.”
- ITR Deadline Extension: For non-audit cases (like small freelancers or professionals), the deadline is moved from July 31 to August 31.
- Revised Returns: You can now file a revised return until March 31 of the assessment year.
- TCS Relief: Tax on overseas tour packages and foreign education/medical remittances has been slashed from 5% to 2%.
- Ease of Appeal: If you have a tax dispute, the mandatory pre-payment for filing an appeal is reduced from 20% to 10%.
Impact on Businesses, MSMEs & Startups:
As a leading Startup Portal Business Services, we are excited about the “Champion MSME” vision.
- SME Growth Fund: A ₹10,000 Crore fund will provide equity support to high-growth small businesses.
- TReDS Mandatory: All Central Public Sector Enterprises (CPSEs) must now use TReDS for MSME purchases, ensuring faster payments.
- Startup Funding: The “Fund of Funds” for startups continues to receive strong support to fuel innovation in AI and DeepTech.
- Buyback Tax: Share buybacks will now be taxed in the hands of shareholders as capital gains, a major shift for startup founders.
Our tax expert team at Startup Portal Business Services can help you understand how these changes affect your specific business model.
Sector-Wise Impact: Budget 2026–27:
Healthcare
The government has allocated over ₹1 Lakh Crore to this sector. A major key highlights point is the customs duty cut on essential cancer and rare disease drugs, making life-saving treatment more affordable.
Education
With ₹1.39 Lakh Crore allocated, the focus is on the future. The budget prioritizes AI-integrated learning in schools and aims to skill 1 lakh allied health professionals to meet global demand.
Infrastructure
The 2026 budget sets a record with ₹12.2 Lakh Crore Capex. This includes massive projects like 20 new waterways and 7 high-speed rail corridors to make transport faster across India.
Manufacturing
A dedicated ₹40,000 Crore fund has been set for electronics component manufacturing. This move is designed to reduce our import dependency and turn India into a global export hub.
Government Schemes & New Initiatives:
- SHE-Marts: Community-owned retail outlets to support women-led enterprises.
- Infrastructure Risk Guarantee Fund: A new fund to de-risk private investments in construction.
- Container Manufacturing Scheme: ₹10,000 Crore over 5 years to build a global ecosystem for shipping containers.
Winners and Losers of Budget 2026–27:
- Winners: MSMEs, Electronics Manufacturers, Healthcare startups, and Infrastructure companies.
- Losers: Foreign tour operators (procedural changes), luxury goods importers, and those relying on the old tax regime (as the government continues to nudge everyone toward the New Regime).
Overall Economic Impact & Growth Outlook:
The 2026 budget date will be remembered for its “Stability over Surprises” approach. By focusing on a declining debt-to-GDP ratio (55.6%) and keeping inflation in check, the government is creating a predictable environment for investors. Startup Portal Business Services believes this will lead to a steady 7% GDP growth.
Conclusion: What Budget 2026–27 Means for India:
The Union Budget 2026–27 is a “no-nonsense” budget. It avoids populist giveaways and focuses on long-term structural reforms like the New Income Tax Act. For the common man, it offers a simpler tax life; for the entrepreneur, it offers better liquidity and growth capital.
How Can We Help?
Navigating new tax laws and GST regulations can be overwhelming. As a trusted GST Filing Expert, our team at Startup Portal Business Services is ready to assist you. Whether you need help transitioning to the new tax law or managing your company’s compliance, we are your go-to partner.
Don’t wait for the deadlines to approach!
Contact Startup Portal Business Services Today for a Free Consultation with our Tax Experts!