Published: 13 March 2026PIBEconomy
Union Budget 2026-27: New Income-Tax Act to Come into Force from April 1, 2026
As announced in Union Budget 2026-27 presented on February 1, 2026, the new Income-tax Act, 2025 will come into force from April 1, 2026. The budget retained the existing income tax slab structure but introduced several reforms: the ITR filing due date for ITR-3 and ITR-4 filers extended to August 31; revised ITR deadline extended to March 31 from December 31.
Key fiscal highlights: India's debt-to-GDP ratio estimated to decline to 55.6% in BE 2026-27; fiscal deficit brought below 4.5% threshold; Biopharma SHAKTI initiative of ₹10,000 crore; ISM 2.0 for semiconductor equipment; 5 regional Medical Hubs with private sector; tax holiday till 2047 for foreign companies providing cloud services through Indian data centres.
0Mains angle
Q: Analyse the key fiscal and structural reforms introduced in Union Budget 2026-27, including the new Income-Tax Act 2025 and initiatives like Biopharma SHAKTI and ISM 2.0.
Answer (50 words):
Union Budget 2026-27, presented on February 1, 2026, announced the new Income-tax Act 2025 effective April 1, 2026, retaining existing slabs. Fiscal deficit was brought below 4.5% and debt-to-GDP estimated at 55.6%. Flagship initiatives included Biopharma SHAKTI worth ₹10,000 crore, ISM 2.0 for semiconductors, and five regional Medical Hubs.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB
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Linked questionMedium
How many biotech startups does India have as per IBER 2026, and how many were added in 2025?
Explanation · Correct answer CIndia has 11,855 registered biotech startups with 1,780 new ones added in 2025, as per IBER 2026.
Frequently asked questions
When does the new Income Tax Act announced in Union Budget 2026-27 come into force?
The **new Income-tax Act, 2025** (announced in **Union Budget 2026-27** on February 1, 2026) will come into force from **April 1, 2026**. The existing income tax slab structure was retained but several procedural reforms were introduced.
What are the key changes in the new Income Tax Act 2025 that came into force from April 2026?
The **new Income-tax Act, 2025** (effective **April 1, 2026**) introduced: **ITR-3 and ITR-4 filing due date extended to August 31**, **revised ITR deadline extended to March 31** (from December 31), and simplification of the tax code. Existing income tax slabs were retained.
What is the new ITR filing deadline for ITR-3 and ITR-4 filers under the new Income Tax Act?
Under the **new Income-tax Act, 2025** (effective April 1, 2026), the **ITR filing due date for ITR-3 and ITR-4** filers has been extended to **August 31**. The revised ITR deadline was also extended to **March 31** (from December 31).
What did Union Budget 2026-27 announce about the new Income Tax Act implementation date?
**Union Budget 2026-27** (presented February 1, 2026) announced that the **new Income-tax Act, 2025** will come into force from **April 1, 2026**. Income tax slabs were retained but ITR filing deadlines and procedural rules were reformed.
Was the income tax slab structure changed in the new Income Tax Act 2025?
No — the **new Income-tax Act, 2025** (effective **April 1, 2026**) retained the **existing income tax slab structure**. Key changes were procedural: **ITR-3/ITR-4 deadline extended to August 31** and **revised ITR deadline to March 31**.
