Income Tax Reforms 2026: Key Changes Effective April 1 Core Reforms Overview The shift to a unified “tax year” aligns assessment years with financial years, reducing confusion in filings. TDS and TCS thresholds rose to Rs 50,000 for certain transactions, while presumptive taxation limits for professionals increased to Rs 75 lakh turnover. These updates prioritize ease for salaried individuals and small businesses navigating AY 2026-27. Expanded HRA Exemptions House Rent Allowance (HRA) relief now covers 50% of basic salary in four more metros—Bengaluru, Pune, Hyderabad, and Ahmedabad— matching Delhi and Mumbai benefits. Renters must still submit proofs like agreements and receipts, but the expansion aids urban employees facing high living costs. Revised ITR Deadlines and Forms New ITR forms for AY 2026-27 extend filing windows: ITR-1 and ITR-4 by July 31, others by September 30, with pre-filled data enhancing accuracy. Taxpayers gain from simplified schedules for capital gains and foreign assets, minimizing manual inputs. Impact on Businesses and Investors Investors benefit from extended Section 80C limits to Rs 2 lakh and rationalized capital gains tax at 12.5% for long-term assets. Businesses see relaxed advance tax rules, with payments due only if liability exceeds Rs 10,000 quarterly. These changes foster investment while curbing evasion through AI-driven audits. How Policy Changes Affect Businesses and Investors Business Growth and Investor Confidence: Key Impacts The Growing Impact on Businesses and Investment Decisions Economic Changes and Their Impact on Businesses & Investors Thank You Staying informed on these reforms ensures smoother filings and optimal tax planning amid India’s evolving fiscal policies. Contact Now 9034263307 www.taxationlegaladvisor.in