All eyes on customs overhaul, tax tweaks in Budget 2026-27
FM likely to outline debt-reduction roadmap; industry seeks TDS rationalisation and customs amnesty
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New Delhi: Finance Minister Nirmala Sitharaman will present her ninth consecutive Budget on February 1 in the Lok Sabha amid expectations of overhaul of Customs duty regime, much on the lines of GST structure rationalisation, and more reform measures to boost economy in the wake of hightened geo-political uncertainty.
Budget is also likely to outline the path of targeting of debt-to-GDP ratio as India’s fiscal management focus shifts from managing deficit to lowering of debt. For individuals, who last year got a big relief in terms of Income Tax exemption limit hike to Rs 12 lakh and later GST rate cuts, are still hoping for some relief in standard deduction.
With the new and simplified Income Tax Act, 2025, coming into effect from April 1, the industry expects the Budget to outline transition provisions, rules and FAQ for better understanding. Some incentives, like hike in standard deduction, to further encourage individuals to shift to new income tax regime which offers low tax rates but no exemptions, from the old regime with plethora of exemptions and deductions.
