Keep calm and carry on
Like every Union Budget, this year’s budget brings a mix of gains and pains for different sections of the economy. Finance minister Nirmala Sitharaman on Sunday presented a budget aimed at balancing growth, stability and reform.While the budget offers several compliance-friendly measures and targeted tax tweaks, it also tightens the screws in select areas to shore up revenues.
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For taxpayers, the government has focused on easing procedures rather than announcing sweeping rate cuts. Steps such as extending the time to revise income tax returns, rationalising penalties and decriminalising certain offences are meant to reduce stress and improve trust. At the same time, some long-standing benefits, like the ability to accumulate MAT credit, are being curtailed, signalling a gradual push towards the new tax regime. 
Investors, especially overseas ones, get a clearer and more liberal framework, with higher investment limits and simpler tax requirements. However, higher transaction taxes on derivatives and tighter rules on deductions mean market participants will feel both comfort and caution.Consumers see relief through duty cuts on several life-saving drugs and essential medical items, though the absence of concessions on some everyday and digital goods may disappoint. For businesses, simplified customs procedures and extended incentives for export-oriented sectors offer support, even as certain duty exemptions begin to phase out.Also read: Amnesty on hidden foreign assets in Budget 2026
Here are the major gains and pains from Union Budget 2026
For Taxpayers
Gains
Finance minister Nirmala Sitharaman announced several relief measures for taxpayers. The deadline to revise income tax returns can now be extended by three months — from December 31 to March 31 — on payment of a nominal fee.To ease overseas spending, the government reduced the Tax Collected at Source (TCS) rate under the Liberalised Remittance Scheme. TCS on foreign education, medical treatment and overseas tour packages has been cut to 2% from 5%.Small taxpayers will benefit from a rule-based automated process for online issuance of lower or nil tax deduction certificates. A six-month window has also been introduced for voluntary disclosure of undisclosed foreign assets or income, mainly targeting students, professionals and returning NRIs, without interest during the appeal period.The Minimum Alternate Tax (MAT) rate has been reduced to 14% from 15% and will now be treated as a final tax. The Budget also proposed decriminalisation and rationalisation of penalties under the Income Tax Act, with minor offences attracting fines instead of prosecution.
Pains
The finance minister clarified that no new MAT credit will accumulate from April 1, 2026, and existing credits can only be set off under the new tax regime. Tax exemption on disability pension has also been restricted to service personnel who were forced to retire early due to disability.
For investors
Gains
The Budget raises foreign portfolio investment limits in listed Indian equities, with the individual cap increased from 5% to 10% and the overall limit from 10% to 24%. To ease compliance, buyers of property from non-residents will no longer need a TAN for tax deduction.The government has also revamped the taxation of share buybacks, with proceeds now to be taxed as capital gains for all shareholders, a move aimed at protecting minority investors and preventing tax arbitrage. In addition, tax deductions for units in IFSCs and Offshore Banking Units have been extended from 10 to 20 consecutive years within a 25-year period to boost ship ownership and offshore banking.
Pains
To curb speculation, the government has raised STT on derivatives from April 1, 2026, with futures taxed at 0.05% (up from 0.02%) and options at 0.15%, increasing trading costs.No deduction on interest expenses for income from dividend or mutual funds.Capital gains exemption on sovereign gold bonds only for original subscriber who holds on till maturity.
For consumers
Gains
No basic customs duty on 17 life‑saving drugs , including for cancer No BCD on drugs, medicines, spl food for 7 rare diseases.Duty on some microwave parts cut.
Pains
No duty sops on materials for e-reader, adult diapers, video games.10% BCD on CD-ROMs of educational books, journals, mags, newspapers.
For business people
Gains
It announced a series of measures for Customs and central excise aimed at simplifying the tariff structure, boosting domestic manufacturing, and improving export competitiveness amid global trade tensions.Validity of customs advance ruling extended to 5 years.Customs duty exemptions extended to various capital goods and parts.Measures to promote exports of marine, leather and textile products.
Pain
Nil customs duty set to lapse on ATMs and its parts, TV equipment, cameras , other filmmaking equipment.