In her first Budget in 2019, Sitharaman replaced the decades-old leather briefcase with a traditional red ‘bahi-khata’, symbolising a shift in presentation style. Continuing the practice of recent years, the Union Budget 2026–27 will be paperless, marking the fifth consecutive digital Budget. Union Budget 2026: What moment is India in? India heads into Union Budget 2026 at a moment of relative strength—but with limited room for error. The macroeconomic backdrop remains supportive, though increasingly fragile amid global uncertainties. Economic growth is holding firm. The Economic Survey projects real GDP growth of 6.8–7.2 per cent in FY 2026–27, a moderation from the 7.4 per cent estimated for the current year, yet still among the fastest growth rates globally. The government’s fiscal stance remains calibrated. The fiscal deficit stood at 4.8 per cent of GDP in FY25 and is targeted at 4.4 per cent in FY26, even as public investment continues to play a central role in sustaining growth. Capital expenditure remains a key anchor. Budgeted capex for FY26 stands at Rs 11.21 lakh crore, while effective capex—including grants for asset creation—reaches Rs 15.48 lakh crore, reinforcing the government’s infrastructure-led growth strategy. Inflation has eased significantly, averaging 1.7 per cent between April and December 2025, providing policymakers with some headroom. However, external pressures persist, with exports facing global trade frictions, keeping the focus firmly on domestic demand and public investment. While domestic demand remains resilient, global headwinds are intensifying. Rising US tariffs and sluggish global growth have weighed on exports, while private investment continues to remain cautious. As a result, economists expect the government to continue leaning on public spending, particularly in sectors such as roads, ports, energy and defence, even as it remains committed to fiscal consolidation. Capital expenditure is likely to rise further, alongside a gradual lowering of the fiscal deficit target. Here are the key numbers and themes to watch in the Union Budget for FY 2027: Fiscal deficit The budgeted fiscal deficit for the current financial year (FY26: April 2025–March 2026) is estimated at 4.4 per cent of GDP. Having achieved a fiscal consolidation target below 4.5 per cent, markets will look for clarity on the debt-to-GDP reduction roadmap and whether the government provides a specific fiscal deficit target for FY27. Expectations are that the deficit could be pegged at around 4 per cent of GDP. What is capital expenditure and why is it crucial for economic growth? The government’s planned capital expenditure for FY26 stands at Rs 11.2 lakh crore. The upcoming Budget is expected to maintain a strong capex push, with a 10–15 per cent increase likely, even as private sector investment remains cautious. With major pay revisions due only in FY28, the government may have room to raise capex beyond Rs 12 lakh crore. Why do markets closely track the government’s debt-to-GDP roadmap? In the 2024–25 Budget, Sitharaman stated that from FY27 onwards, fiscal policy would aim to place central government debt on a declining path as a percentage of GDP. Markets will closely watch the debt consolidation roadmap and timelines for bringing general government debt-to-GDP down to the 60 per cent target. Currently, the ratio is estimated at over 85 per cent, including around 55 per cent central government debt. What is gross market borrowing and why does the government rely on it? Gross market borrowing for FY26 was budgeted at Rs 14.80 lakh crore. The FY27 borrowing number will be closely tracked as it signals the government’s fiscal position, revenue mobilisation, and overall borrowing needs. Tax revenue The FY26 Budget pegged gross tax revenues at Rs 42.70 lakh crore, an 11 per cent increase over FY25. This includes: Rs 25.20 lakh crore from direct taxes (personal income tax and corporate tax) Rs 17.50 lakh crore from indirect taxes (customs, excise duty and GST) GST Goods and Services Tax (GST) collections in FY26 are estimated to rise 11 per cent to Rs 11.78 lakh crore. FY27 GST projections will be keenly watched, especially as revenue growth is expected to gain momentum following rate rationalisation measures introduced since September 2025. What is the difference between nominal GDP growth and real GDP growth? India’s nominal GDP growth for FY26 was initially estimated at 10.1 per cent, while real GDP growth stood at 7.4 per cent, as per NSO data. However, nominal growth was revised down to around 8 per cent due to lower-than-expected inflation. FY27 nominal GDP projections—expected between 10.5 and 11 per cent—will offer cues on the government’s inflation outlook. How does a higher-than-expected RBI dividend affect fiscal deficit calculations? The government has budgeted Rs 1.50 lakh crore in dividend income, including Rs 1.02 lakh crore from the RBI and financial institutions, and Rs 48,000 crore from CPSEs. With the RBI already paying a higher-than-expected dividend of Rs 2.69 lakh crore in FY26, Budget estimates are likely to be revised upward. Dividend assumptions will be closely scrutinised, given recent tax relief measures. What is the total subsidy allocation? Total subsidy allocation for FY26 stands at Rs 3.83 lakh crore, with food subsidy capped at Rs 2.03 lakh crore. What are the key schemes and sectors? The spotlight will also be on allocations for flagship schemes such as VBG RAM G, along with spending on health, education, and other priority sectors.
01 February,2026 04:24 PM IST |Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026, announced an allocation of Rs 7.8 lakh crore for the country’s defence sector. This represents a 15 per cent increase over the corresponding figure of Rs 6.81 lakh crore for the previous financial year (2025-26). As reported by news agency IANS, the defence forces have been allocated Rs 2.19 lakh crore for the purchase of military hardware as part of the capital outlay in the Budget. This constitutes a 21.8 per cent increase compared with the Rs 1.80 lakh crore allocated in FY 2025-26. Check LIVE Budget updates here The increased outlay comes against the backdrop of Operation Sindoor and the changing geopolitical landscape. The approach is also in line with the government's push for an 'Aatmanirbhar Bharat', or self-reliant India, by encouraging indigenous research and manufacturing, as per IANS. Custom duty to be waived off on raw materials used for aircrafts Finance Minister Sitharaman during the Union Budget 2026 also proposed the waiving of basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements, which will benefit units in the defence sector. Commenting on the Budget 2026-27, Defence Minister Rajnath Singh emphasises, "This budget, following the historic success of Operation Sindoor, has reinforced our resolve to further strengthen the country's defence system. This budget strengthens the balance between security, development, and self-reliance." Boost to Capex in the Defence Sector The approach of the budget is a continuation of the broader strategic shift to prioritise spending on force modernisation, air defence systems and next-generation platforms. As per IANS, the increase in capex has been driven by higher allocations for fighter jets, warships, missiles, artillery guns and other state-of-the-art defence equipment. The higher allocation for the purchase of defence equipment is expected to benefit both public-sector defence undertakings and their private-sector suppliers, especially as order books across the sector have expanded sharply. HAL and Bharat Dynamics to get a major boost The public sector companies expected to benefit include Hindustan Aeronautics Ltd, which has an order book mainly from the Indian Air Force; Mazagon Dock Shipbuilders, which produces warships for the Indian Navy; and Bharat Electronics Ltd, which produces electronics equipment for the forces. Apart from large-scale companies, smaller private sector companies such as MIDHANI, BEML, Bharat Dynamics and various startups in the drones sector are also expected to benefit after Union Budget 2026. (With inputs from IANS)
01 February,2026 04:23 PM IST | New Delhi | mid-day online correspondentInadequate awareness about tyre care among motorists is a major factor behind serious and fatal road accidents, particularly on highways, said Sanjay Sasane, Principal of the Institute of Driver Training and Research (IDTR), Pune, highlighting tyre safety as a neglected yet crucial aspect of road safety. Sasane said tyres are the only point of contact between a vehicle and the road, bearing the entire weight of the vehicle and playing a critical role in braking, stability and control. “Despite this, tyre health is often ignored by motorists, resulting in preventable and sometimes fatal crashes,” he noted. He added that achieving road safety through awareness and collaboration aligns with the United Nations Sustainable Development Goals, particularly Goal 3.6, which aims to reduce road traffic crashes and fatalities by 50 per cent. On the occasion of Road Safety Month in January 2026, IDTR Pune signed a Memorandum of Understanding (MoU) with the Indian Tyre Technical Advisory Committee (ITTAC) to strengthen technical capacity building and tyre safety awareness among drivers and the general public. The collaboration aims to integrate scientific knowledge of tyre maintenance, defect detection and safety practices into structured driver training programmes, ensuring that tyre-related risks are addressed at the grassroots level of road safety education. The MoU signing ceremony was held in the presence of Sudarshan Singh Gusain, Chairman of the Tyre Safety Awareness Wing of the Automotive Tyre Manufacturers’ Association (ATMA); Vinay Vijayvargia, Deputy Director, ITTAC; Deepak Salunkhe, Senior Police Inspector, Traffic Branch, Pimpri-Chinchwad; Sourabh Sonawane from Vital Strategies under the Bloomberg Philanthropies road safety initiative; along with officials, trainers and road safety experts. As part of the initiative, ITTAC handed over copies of its Tyre Safety Manual and awareness posters explaining tyre nomenclature, maintenance methods, identification of defects and proper tyre care. These materials have been displayed in the automobile laboratory at IDTR as well as at the driver test track used by licensing authorities in Pune and Pimpri-Chinchwad for conducting confidence tests and driver certification.
01 February,2026 04:17 PM IST | Pune | Archana DahiwalFinance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget and bringing her closer to the record of 10 Budgets presented by former Prime Minister Morarji Desai. In her speech, Sitharaman said the government is choosing the path of reforms over rhetoric and reaffirmed its commitment to steps aimed at making India a 'Viksit Bharat'. Here are the key highlights of Union Budget 2026: Union Budget 2026: 16th Finance Commission Report Finance Minister Nirmala Sitharaman laid the 16th Finance Commission report while presenting Union Budget 2026. The report outlines the formula for tax revenue devolution between the Centre and states for 2026–2031. Cesses and surcharges levied by the Centre are excluded from the divisible pool. Government’s focus on Union Budget 2026 Balancing fiscal consolidation with reform-led growth. Strengthening Centre-state financial coordination. Continuing steps toward sustainable development. Union Budget 2026: Finance Minister proposes 'rare earth corridors' for mineral-rich states The FM proposed 'rare earth corridors' for mineral-rich states, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These corridors aim to promote mining, processing, research, and manufacturing of rare earth elements. She highlighted that the Scheme for Rare Earth Permanent Magnets was launched in November 2025. The scheme has a financial outlay of Rs 7,280 crore and plans to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing, enhancing India’s self-reliance and global market positioning. Biopharma Shakti Programme gets Rs 10,000-crore allocation FM Sitharaman announced the Biopharma Shakti programme to boost India’s biopharma sector, with an allocation of Rs 10,000 crore over five years. The initiative targets non-communicable diseases like diabetes and aims to develop India as a global biopharma manufacturing hub. The programme will focus on building an ecosystem for biopharma and biosimilars, fostering innovation and strategic growth in the sector. Strengthening regional economies, industrial clusters The Finance Minister proposed scaling up manufacturing in strategic and frontier sectors. Emphasis will be placed on developing city economic regions to strengthen regional economies and industrial clusters. Economic outlook and policy direction FM Sitharaman noted that India’s economic trajectory over the past 12 years has been marked by stability, fiscal discipline, sustained growth, and moderate inflation. She stressed the government’s commitment to action over ambivalence, reform over rhetoric, and Atmanirbharta (self-reliance) as a guiding principle. Going forward, India will focus on balancing ambition with inclusion, fostering growth while ensuring equitable development. Municipal bonds FM Nirmala Sitharaman proposed incentives of Rs 100 crore for single bond issuance by municipal corporations with borrowings of more than Rs 1,000 crore. The move aims to strengthen municipal financing and support urban infrastructure development. Public sector financial institutions The Finance Minister announced the restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC). These steps are part of the government’s plan to strengthen public sector financial institutions. Banking for 'Viksit Bharat' Sitharaman proposed the setting up of a high-level committee on ‘Banking for Viksit Bharat’. She highlighted that India’s banking sector has a strong balance sheet and is experiencing a historic high profitability. Foreign exchange management The Finance Minister proposed a review of foreign exchange management rules related to non-debt instruments. The move is aimed at streamlining regulations and improving the ease of investment. Poverty reduction Sitharaman noted that close to 25 crore people have come out of multidimensional poverty under government initiatives. This reflects progress in inclusive development and social welfare measures, she stated. Seven high-speed rail corridors as growth connectors between cities Mumbai to PunePune to HyderabadHyderabad to BengaluruHyderabad to Chennai Chennai to BengaluruDelhi to VaranasiVaranasi to Siliguri Investment and capital market reforms Individual Persons Resident Outside India (PROIs) will be allowed to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS). Tax on share buybacks will be treated as capital gains for all shareholders, though promoters will pay an additional buyback tax. Exemption from Minimum Alternate Tax (MAT) granted to non-residents paying tax on a presumptive basis. MAT proposed to be made a final tax, simplifying compliance. Set-off of available MAT credit allowed up to one-fourth of tax liability under the new tax regime. Tax reliefs Interest awarded by Motor Accident Claims Tribunals to natural persons will be exempt from Income Tax, with no TDS applicable. Time limit for revising income tax returns extended from December 31 to March 31 on payment of a nominal fee. Individuals filing ITR-1 and ITR-2 can continue filing returns till July 31, while non-audit business cases and trusts get time till August 31. Taxpayers will be allowed to update returns even after reassessment proceedings, with an additional 10 per cent tax over the applicable rate. One-time six-month foreign asset disclosure scheme proposed for small taxpayers with assets below a specified threshold. Immunity from prosecution, with retrospective effect from October 1, 2024, for non-disclosure of non-immovable foreign assets valued below ₹20 lakh. TDS and TCS rationalisation Tax Collected at Source (TCS) on overseas tour packages reduced to 2 per cent, down from 5 per cent and 20 per cent, without any threshold condition. TCS for education and medical expenses under the Liberalised Remittance Scheme (LRS) reduced from 5 per cent to 2 per cent. TDS on supply of manpower services to be levied at either 1 per cent or 2 per cent. TDS on sale of immovable property by non-residents to be deducted and deposited using the resident buyer’s PAN instead of TAN. Rule-based automated system to enable small taxpayers to obtain lower or nil TDS certificates. Depositories to be permitted to accept Form 15G and 15H from taxpayers holding securities across multiple companies. Compliance and decriminalisation measures Non-production of books of account and delays in TDS payments decriminalised. Framework for immunity from penalty and prosecution extended from under-reporting to cases of misreporting. Honest taxpayers opting to settle disputes can close cases by paying an additional amount in lieu of penalties. Customs and trade facilitation Basic Customs Duty (BCD) is exempted on 17 drugs and medicines used in cancer treatment. Single, interconnected digital window to be introduced for cargo clearance approvals. Customs Integrated System (CIS) to be rolled out over the next two years to streamline customs processes. Institutional and accounting reforms A Joint Committee of the Ministry of Corporate Affairs and the Central Board of Direct Taxes (CBDT) to be constituted to align Income Computation and Disclosure Standards (ICDS) with Indian Accounting Standards (IndAS). Education infrastructure push Five University Townships to be developed near major industrial and logistics corridors, aimed at strengthening industry–academia linkages and improving employability. Boost for Girls in STEM Education A girls’ hostel to be set up in higher education STEM institutions in every district to support increased participation of women in science and technology fields. Scientific research and space infrastructure Four Telescope Infrastructure facilities to be set up or upgraded to strengthen India’s capabilities in astronomy and scientific research.
01 February,2026 04:00 PM IST | New DelhiUnion Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026, highlighted the major relief initiative for victims of road accidents and their families. Sitharaman at Lok Sabha on Sunday announced that the interest accrued on motor accident compensation claims will be fully exempt from income tax, as per IANS. This proposal of exempting income tax aimed at ensuring that victims receive the complete amount of their claim without any deductions. This move will also eliminate Tax Deducted at Source (TDS) on such interest payments. The announcement came as part of broader tax relief initiatives in the budget, presented in Parliament for the ninth consecutive time by Nirmala Sitharaman. Under current provisions, interest components awarded by Motor Accident Claims Tribunals (MACT), often substantial due to delays in claim settlements, are treated as taxable income under the Income Tax Act. This has resulted in victims or their dependents losing a portion of the compensation to tax liabilities, sometimes forcing them to navigate complex refund processes or face reduced financial support for medical care, rehabilitation, and livelihood restoration. Exemption applies to interest awarded to individual claimants. The Finance Minister emphasised that the exemption applies specifically to interest awarded to a “natural person” (individual claimants), recognising the compensatory and humanitarian nature of these awards. Sitharaman further highlighted, "Any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any TDS on this account will be done away with," as per IANS. This change is expected to take effect for the financial year 2026-27, providing immediate relief in ongoing and future cases. Road accidents remain a major public health and economic challenge in India, with thousands of fatalities and injuries annually leading to prolonged legal battles for compensation. The delays in tribunal awards often inflate the interest component, intended to compensate for the time value of money and suffering endured. By removing the tax burden, the government aims to make the compensation more meaningful and victim-centric, aligning with efforts to improve ease of living and support vulnerable sections. Exemption on accident claims welcomed by experts This move has been welcomed by legal experts, victim rights groups, and insurance stakeholders, who argue it addresses a long-standing inequity. It prevents erosion of awards meant for rehabilitation and could encourage faster claim resolutions, as per IANS. The full exemption is poised to benefit lakhs of affected families, ensuring that justice in motor accident cases is not diminished by fiscal deductions. (With inputs from IANS)
01 February,2026 03:59 PM IST | Mumbai | mid-day online correspondentFinance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 in the Parliament on Sunday, February 1, laid out government expenditure and taxation plans that will directly impact the daily lives of the citizens and businesses across India. While the headline of the budget is mostly about the unchanged income tax slab, several announcements by the Finance Minister are set to make an impact on the daily life of students, employees and businesses. Check LIVE Budget Updates here Considering that the income tax slabs remain unchanged to no income tax up to Rs 12 lakh per annum, several indirect taxes on everyday products and services are set to change from April 1, 2026. Smartphones to get cheaper in India Union Finance Minister Nirmala Sitharaman, while presenting her ninth consecutive budget, asserted the government will offer support for electronics manufacturing, with increased funding of around Rs 40,000 crore. Sitharaman also stated that they plan to rationalise taxes on phone components to build India as a tech hub. However, this may help reduce costs of smartphones, tablets and mobile accessories in the long run. Cigarettes and alcohol are getting expensive While the Union Budget 2026 mostly focused on healthcare, energy, electronics and technology, tobacco and alcohol are set to get more expensive from April 1, 2026. The government this year has imposed new excise duties and higher taxes on cigarettes and other tobacco products, effective April 1, 2026. Cigarettes from April will attract higher excise duties on top of GST, ultimately making them expensive. While alcoholic beverages will continue to be taxed by state governments, the central and state excise duty has also been increased, which will make the effective selling price comparatively expensive from the upcoming financial year. Sports equipment to get cheaper With Nirmala Sitharam announcing the ‘Khelo India Mission’ that will focus on encouraging sports infrastructure within the country, the sports equipment in the upcoming financial year may get cheaper. Reductions in customs duties may be one of the reasons that sports goods made outside the country will now be available at a slightly lower price. Futures and options trading to be taxed heavily Nirmala Sitharaman, while speaking about share market trading, asserted the increase in Security Transaction Tax (STT) on Futures and Options (F&O) transactions. The raise in STT by 150 per cent on futures from 0.02 per cent to 0.05 per cent, while the tax on options transactions will be hiked by 50 per cent, making it 0.15 per cent from 0.01 per cent. Expert opinion CA, CFA Sahil Sonawat who works as an analyst at a financial advisory firm emphasizes, "The Union Budget 2026 presents a structural pivot, balancing an aggressive Rs 12.2 lakh crore capex (4.4 per cent of GDP) with a disciplined fiscal deficit glide path to 4.3 per cent." Expressing his views on taxation hike on F&O trades and India's Semiconductor Mission 2.0 he added, "By scaling the India Semiconductor Mission 2.0 and hiking STT on F&O trades, the Finance Bill strategically prioritizes long-term industrial 'Trump-proofing' over speculative retail volatility. For investors, this creates a high-quality 'risk-off' environment, trading short-term derivative liquidity for a more stable, infrastructure-led equity growth story."
01 February,2026 03:54 PM IST | Mumbai | Tarun VermaThe Union Budget 2026, apart from the fiscal deficit and no changes in income tax, also highlighted an increase in the budget outlay for sports goods manufacturing. The Union Finance Minister, while presenting the budget, proposed to extend the Khelo India Mission for the next 10 years. The extension of ‘Khelo India’ was one of the key takeaways for sports in the Union Budget 2026-27 presented by the Finance Minister at the Parliament on Sunday. These major initiatives taken by the government during the Budget 2026 clearly indicate that the government is trying to change the country's sports ecosystem from funding events and athletic support to creating infrastructure. The continuation and increasing of funds in the sports industry pushes a major boost in developing and nurturing talent and being self-reliant when it comes to equipment and infrastructure. India eyes to bid for Olympics 2036 These moves are aimed at developing the Indian sports ecosystem capable of putting its best foot forward at the 2030 Commonwealth Games and the 2036 Olympics, for which the country has bid, as per IANS. With that in mind, the Finance Minister on Sunday, while presenting the budget, also proposed plans for a major upgrade in infrastructure and for the development of sports at the grassroots level. While highlighting that India could be a global hub for sports manufacturing, she said, “India has the potential to emerge as a global hub for high-quality, affordable sports goods,” Sitharaman said in her budget speech. “I propose a dedicated initiative for sports goods that will promote manufacturing, research, and innovation in equipment design as well as material sciences,” as per IANS. Government to allocate Rs 10,000 crore for sports development Sitharama, while highlighting the major boost to sports development in India, said, "I propose to introduce a dedicated Rs 10,000 crore SME growth fund to create future champions, incentivising enterprises based on select criteria." The government also proposed a long-term Khelo India Mission that will be in force for the next 10 years. She also added, “Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the sports sector over the next decade,” as cited by news agency IANS. The sports development industry could be a major boost to the economy. Finance Minister Sitharaman also noted the sports sector in India has great potential to generate employment, skilling, and job creation within the country. She further added that the sports sector provides multiple means of employment, skilling and job opportunities. Underlining the government’s intent to develop sports as an economic ecosystem, she highlighted the money to be invested in training, coaching, equipment manufacturing, and support services in the upcoming financial year. ‘Khelo India’ budget increased by Rs 200 crore The government has also increased the total budget allocations for the Ministry of Youth Affairs and Sports in this budget. The budget for the 'Khelo India' programme has been increased from Rs 800 crore to Rs 1000 crore, while among the other major hikes, the budget for the Sports Authority of India (SAI) has been increased from Rs 815 crore to Rs 830 crore, while the outlay for incentives to athletes was reduced from 42.65 crore to Rs 37 crore. The National Sports Federations will get more now with the budget increased from Rs 340 crore to Rs 400 crore, while the National Dope Testing Laboratory will get Rs 23 crore instead of the Rs 18.70 crore it was allocated in the last budget, making sure that the regulator keeps a keen eye on athletes using fraudulent ways to enhance their performances. (With inputs from IANS)
01 February,2026 03:53 PM IST | New Delhi | mid-day online correspondentParts of Kashmir received fresh snowfall while rains lashed the plains as the night temperature rose above the freezing point at some places, including Srinagar city, officials said on Sunday. Snowfall was witnessed in higher reaches of Pahalgam in Anantnag district and Qazigund area of Kulgam district while many parts of South Kashmir were hit by rains, the officials said. They said Srinagar city also witnessed early morning rains. The minimum temperature in Srinagar city settled at 2 degrees Celsius on Saturday night, up from the previous night's minus 0.1 degrees Celsius.This was 2.6 degrees above the season's normal. While the temperature data for several places, including Sonamarg in Ganderbal district, was not available, the ski resort of Gulmarg in Baramulla district was the coldest recorded place in Jammu and Kashmir at minus 7 degrees Celsius. Officials said Pahalgam tourist resort in south Kashmir recorded a low of minus 1.4 degrees Celsius, up from minus 2.6 degrees Celsius the previous night. It was 3.8 degrees higher that seasonal normal. In Qazigund, the minimum temperature settled at 0.4 degrees, while Kokernag recorded zero degree Celsius and Kupwara recorded low of minus 1.7 degrees Celsius. A 20-day 'Chillai Khurd' (small cold) began on Saturday, after the culmination of the 40-day harshest winter period, 'Chillai-Kalan'. Chillai Khurd will be followed by the 10-day 'Chillai Bachha' (baby cold). The meteorological department has said the weather will remain cloudy, and there is a possibility of light to moderate rain or snow, especially in the higher reaches, with thunder or gusty winds at many places on Sunday. Light rain, with snow in the higher reaches, is possible at scattered to many places on February 2-3, officials said. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 03:41 PM IST | Srinagar | PTIFinance Minister Nirmala Sitharaman on Sunday proposed extending the deadline for filing revised income tax returns, offering relief to taxpayers who miss earlier cut-off dates. https://www.mid-day.com/news/india-news/live-blog/union-budget-2026-live-updates-finance-minister-nirmala-sitharaman-full-union-budget-speech-highlights-from-parliament-18331577 Presenting the Union Budget 2026 in the Lok Sabha, Sitharaman said the time limit for submitting revised income tax returns would be extended from December 31 to March 31, subject to the payment of a nominal fee. The move is aimed at providing taxpayers with greater flexibility and reducing compliance-related stress. In another taxpayer-friendly announcement, the Finance Minister proposed a reduction in the Tax Collected at Source (TCS) rate under the Liberalised Remittance Scheme (LRS) for education and medical purposes. The TCS rate for remittances made for pursuing education or medical treatment abroad will be lowered from 5 per cent to 2 per cent. Sitharaman also announced a cut in the TCS rate on overseas tour packages. Under the proposal, the rate will be reduced to 2 per cent from the existing 5 per cent. Notably, the levy on such tour packages had earlier been as high as 20 per cent before being rationalised. As part of efforts to simplify tax administration, the Finance Minister said the government plans to introduce a rule-based automated process for small taxpayers in the 2026–27 financial year. This initiative is intended to minimise discretionary interventions, speed up resolution of cases and enhance transparency in dealings with the tax department. In a significant relief measure, Sitharaman also proposed exempting compensation awarded by the Motor Accident Claims Tribunal from income tax, removing ambiguity over the tax treatment of such awards and providing direct benefit to accident victims and their families. The proposed measures form part of the government’s broader effort to make the tax system more taxpayer-friendly, reduce litigation and improve ease of compliance while maintaining revenue neutrality. Income tax law comes into force from April 1: FM Meanwhile, Finance Minister Nirmala Sitharaman said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly. Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade-old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation. In her Budget speech in the Lok Sabha on Sunday, she said, "This (direct tax code) was completed in record time and the Income Tax Act 2025 will come into effect from first April 2026. The simplified income tax rules and forms will be notified shortly, giving adequate time to taxpayers to acquaint themselves with its requirements." The forms have been redesigned, such that ordinary citizens can comply without difficulty, she added. The 2025 I-T law is revenue neutral with no change in tax rates. It has only made direct tax laws simple to understand, removed ambiguities, thereby reducing scope for litigations. It reduces text volume and sections by about 50 per cent vis-a-vis the 1961 Income Tax Act. 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 ITRs are filed after deadlines, without any penal charges.
01 February,2026 03:40 PM IST | New Delhi | mid-day online correspondentLaying out an ambitious infrastructure and mobility roadmap in the Union Budget 2026, Finance Minister Nirmala Sitharaman on Sunday announced plans to develop seven high-speed rail corridors, create new dedicated freight links and operationalise 20 national waterways over the next five years, with a strong emphasis on sustainability and economic connectivity. https://www.mid-day.com/news/india-news/live-blog/union-budget-2026-live-updates-finance-minister-nirmala-sitharaman-full-union-budget-speech-highlights-from-parliament-18331577 Transport reforms anchored in 'Yuvashakti' and three kartavyas Presenting the Union Budget 2026 in Parliament, Sitharaman said the proposals are driven by "Yuvashakti" and anchored in what she described as the government’s "three kartavyas", aimed at accelerating growth while maintaining reform momentum. She underlined that transport and logistics reforms would play a central role in supporting long-term economic expansion. Seven high-speed rail corridors to link major economic hubs As part of efforts to promote environmentally sustainable passenger transport, the Union Budget 2026 proposes the development of seven high-speed rail corridors connecting major urban, industrial and economic hubs. These corridors are expected to significantly reduce travel time, lower carbon emissions and act as growth enablers for regions they pass through. The proposed high-speed rail routes include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri. Together, these links will connect financial centres, technology hubs, manufacturing clusters and emerging cities through faster and cleaner mobility networks. New freight corridors, national waterways to boost logistics efficiency In addition to passenger transport, the Budget outlined a major push for freight movement. Sitharaman announced plans to establish new dedicated freight corridors, including a key east–west link connecting Dangkuni in West Bengal with Surat in Gujarat. The move is aimed at improving logistics efficiency, cutting costs and boosting industrial competitiveness, particularly for export-oriented sectors. The Finance Minister also said the government will operationalise 20 new national waterways over the next five years to promote environmentally sustainable cargo transport. Shifting freight to inland waterways, she noted, would help reduce dependence on road and rail while offering a more energy-efficient and cost-effective logistics alternative. Eco-tourism, MSMEs and manufacturing part of broader growth strategy The Budget further highlighted eco-tourism and nature-based travel as emerging growth areas. Sitharaman said India has the potential to offer world-class trekking and hiking experiences, with plans to develop sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, as well as in Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats. Special wildlife trails, including turtle nesting trails in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake, were also announced. While outlining the broader economic strategy, Sitharaman said the government has identified six key areas for targeted intervention to accelerate and sustain growth. These include scaling up manufacturing in seven strategic and frontier sectors, rejuvenating legacy industries, creating globally competitive MSMEs, delivering a strong infrastructure push, ensuring long-term economic stability, and developing city economic regions. "The reform express is running on its way and will maintain its momentum to help us fulfil our Kartavya," the Finance Minister said, adding that the combined measures reflect the government’s commitment to sustained reforms and inclusive development.
01 February,2026 03:40 PM IST | New Delhi | mid-day online correspondentFinance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 on Saturday, proposed the setting up of a girls’ hostel in every district to improve access to education for female students, particularly those from rural and underserved areas. Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions To strengthen industry–academia collaboration, she also proposed establishing five university townships or academic zones next to major industrial hubs. The Finance Minister further announced the setting up of 50,000 Atal Tinkering Labs in government schools over the next five years to promote innovation, scientific temper and hands-on learning among students. Union Budget 2026: ‘Bhartiya Bhasha Pustak’ scheme, 10,000 new medical seats announced She also proposed the ‘Bhartiya Bhasha Pustak’ scheme, under which digitised textbooks in Indian languages will be made available for primary and secondary school students to improve learning outcomes and access to quality educational material. In a boost to medical education, Sitharaman said 10,000 new undergraduate and postgraduate seats will be added in government medical colleges and hospitals in the next year. This is part of a broader plan to add 75,000 medical seats over the next five years, she added.
01 February,2026 03:39 PM IST | Mumbai | Aditi AlurkarADVERTISEMENT
