Finance Bill 2026 Cleared, ITR Filing Deadline for Non-Audit Businesses Extended

Parliament has successfully approved the Finance Bill 2026, completing the budgetary process for the financial year commencing April 1. This significant development, with the Rajya Sabha returning the Bill to the Lok Sabha, sets the stage for the government's fiscal plans for the upcoming year.

Key Tax-Related Proposals

Among the crucial proposals outlined in the Finance Bill 2026, several points are particularly relevant for taxpayers:

• No Changes to Income Tax System: The government has confirmed that there will be no alterations to the existing income tax system.
• ITR Deadline Extension: A notable proposal includes extending the due date for filing Income Tax Returns (ITR) for non-audit businesses by one month, moving it to August 31. This provides additional time for a significant segment of taxpayers to comply with their filing obligations.
• Increased Securities Transaction Tax (STT): The Bill proposes an increase in the Securities Transaction Tax (STT) on futures, from 0.02% to 0.05%, and on options premium, from 0.10% to 0.15%.
• No Changes to Capital Gains Tax: Importantly, no changes were announced regarding short-term or long-term capital gains taxes.

Finance Minister Nirmala Sitharaman emphasized the government's commitment to improving trust-based tax administration and continuing efforts towards ease of living and ease of doing business.