Union Budget 2026

Mutual Fund / Income Tax / GST | 0 comments

Business & Economy Reforms – Union Budget 2026

1. New Income Tax Act, 2025 (Effective April 1)

The proposed Income Tax Act, 2025 focuses on simplification, transparency, and reduced litigation for taxpayers.

  • Clear and simplified tax provisions
  • Lower compliance burden for businesses
  • Faster dispute resolution
Benefit: Easier tax compliance and improved ease of doing business.

2. SME Growth Fund – ₹10,000 Crore

A new SME Growth Fund has been introduced to support MSMEs with long-term capital and expansion opportunities.

  • Access to structured funding
  • Encouragement for innovation and scaling
  • Job creation across sectors
Who benefits: Small & medium business owners and startups.

3. Corporate & Municipal Bond Market Reforms

The budget proposes reforms to deepen corporate and municipal bond markets as alternative financing sources.

  • Reduced reliance on bank loans
  • Support for infrastructure and urban projects
  • Improved long-term capital availability
Impact: Stronger capital markets and urban development.

4. STT Increase in Futures & Options

Securities Transaction Tax (STT) has been increased on futures and options trading to curb excessive speculation.

  • Higher trading costs for derivative traders
  • Discourages short-term speculative trades
  • Minimal impact on long-term investors
Market effect: Better market stability over time.

5. TCS (Tax Collected at Source) – Key Update

The budget introduces rationalisation measures in TCS provisions to improve cash flow for businesses and individuals.

  • Reduced working capital blockage
  • Better liquidity for exporters and traders
  • Simplified compliance structure
Benefit: Improved cash flow management for businesses.

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