What the Budget means for your money.
Every 1 February we add the new Budget’s rules to Zarth’s tax tools, usually within a day, so you know exactly what changes for your salary and savings.
What changed for FY 2026-27
Budget 2026, the new Income-tax Act and the rules that came with them, for 1 April 2026 to 31 March 2027.
Tax slabs unchanged
Budget 2026 kept last year’s new-regime slabs, the ₹60,000 rebate and the ₹75,000 standard deduction. Salaries up to ₹12.75 lakh stay tax-free.
See the toolNew Income-tax Act in force
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Section numbers changed; the rules you use day to day didn’t.
See the toolHRA: 8 cities at 50%
Under the Income-tax Rules, 2026, Bengaluru, Hyderabad, Pune and Ahmedabad joined the 50%-of-basic HRA limit (old regime).
See the toolNPS exits loosened
Since December 2025 (PFRDA rules, not the Budget), most non-government subscribers can take up to 80% of their NPS as a lump sum.
See the toolMore time to fix a return
A revised return can now be filed up to 31 March, with a fee after 31 December. Returns with business income that need no audit (ITR-3 and ITR-4) are due on 31 August; ITR-1 and ITR-2 stay at 31 July.
See the toolBuybacks taxed as capital gains
From 1 April 2026, money you get when a company buys back your shares is taxed as a capital gain, not as a dividend at your slab rate.
See the toolGold bonds: tax-free only from issue
Sovereign gold bonds stay tax-free at maturity only if you bought them at issue and held them to the end. Bonds bought on the exchange, or redeemed early, are taxed as capital gains.
See the toolHow much did the last two Budgets save you?
The big change came in Budget 2025 and still applies: the tax-free limit rose from ₹7.75 lakh to ₹12.75 lakh of salary.
That’s ₹2,708 more in your pocket every month. New regime, salaried, ₹75,000 standard deduction, before surcharge.
Updated on Budget day
Bookmark this page. On 1 February 2027 we add the FY 2027-28 rules (they apply from 1 April 2027) to these tools, and this page lists every change in plain words.