Neha Nagar Simplifies Budget 2026: Major Tax Reliefs and Market Impacts

Finance influencer Neha Nagar shares her quick and clear breakdown of the Union Budget 2026, simplifying the major announcements made by Finance Minister Nirmala Sitharaman. With several policy changes impacting taxpayers, investors, SMEs, and emerging tech sectors, this year's budget leans heavily toward growth and modernization. Here are the top highlights you need to know.

A Stable Economy With Positive Growth:

The government has reaffirmed India's steady economic performance, projecting GDP growth at around 7%, compared to 6.4% last year. This consistency signals a strong foundation for future expansion across industries.

Tax Changes That Benefit the Middle Class:

One of the biggest announcements is the update to the new tax regime, effective from 2026. Income up to ₹12.75 lakh will now be completely tax‑free, offering substantial relief to salaried individuals.

Revised tax slabs will apply beyond this threshold, and the ITR‑1/ITR‑2 filing deadline remains 31 July.

Dividend income from inter‑cooperative societies will also qualify for deductions, adding another layer of benefit.

Market Moves: STT Hike and Investment Policy Updates:

F&O traders face a setback this year, with STT increased to 0.05% for futures and 0.15% for options, raising overall trading costs.

On the positive side, the government has enabled Foreign Institutional Investors (FIIs) to invest directly through PIS, with increased limits, individual cap rising to 10% and overall to 24%, which may bring more long‑term global funds into Indian markets.

Lower TCS for Overseas Payments:

Foreign travel, education, and medical remittances become cheaper as TCS drops to just 2%, compared to previous rates between 5–20%.

Boost for SMEs, Innovation & Tech

The budget allocates ₹10,000 crore for SME development, ₹2,000 crore toward micro‑enterprises, and ₹10,000 crore for bio‑pharma advancement.

In addition, India Semiconductor Mission 2.0, backed by ₹40,000 crore, aims to strengthen AI and chip manufacturing capabilities.

Infrastructure Push for High‑Speed Rail

Seven new high‑speed rail corridors will connect major cities, supporting both tourism and business mobility.

View this post on Instagram

A post shared by Neha Nagar | Filmy Finance (@iamnehanagar)