New Delhi, Feb. 1 -- A series of direct tax reforms were announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026-27.

A key highlight is the introduction of the Income Tax Act, 2025, which will come into effect from 1st April 2026. Simplified rules and redesigned forms will be issued soon to make tax compliance more straightforward for ordinary citizens.

Several measures have been proposed to ease compliance and enhance taxpayer convenience. Interest awarded by the Motor Accident Claims Tribunal will be tax-exempt with no Tax Deducted at Source (TDS).

Tax Collected at Source (TCS) rates on overseas tour packages and education/medical remittances under the Liberalised Remittance Scheme (LRS) are reduced from 5-20 per ce...