Union Finance Minister Nirmala Sitharaman on Sunday proposed a six-month foreign asset disclosure scheme for small taxpayers like students, tech professionals and relocated NRIs as she presented the Union Budget 2026-27.
She said there will be no interest liability on taxpayers on the penalty amount for the period of appeal before the first appellate authority, irrespective of outcome.
The finance minister also proposed exemptions of three years for dividend income received by notified cooperatives on investments made up to January 31, 2026.
On healthcare, she said 50 per cent capacity will be increased in district hospitals by establishing emergency and trauma care centres.
The government will develop ecologically sustainable mountain trails in Himachal Pradesh, Uttarakhand, J&K, Araku Valley of Eastern Ghats and Western Ghats.
The new law simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single “tax year” framework. It also allows taxpayers to claim TDS refund even when income tax refunds are filed after deadlines, without any penal charges.
Also read: Income tax law comes into force from April 1
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