New Delhi, Jan. 23 -- Budget 2026 arrives at a pivotal moment. With the Income Tax Act, 2025, set to take effect from 1 April 2026, this year's Budget should focus less on headline-grabbing tax rate changes and more on ensuring a smooth transition to the new law. The emphasis is likely to be on ease of compliance, digital readiness, and the overall taxpayer experience, so that the law moves seamlessly from statute to practice.

The Budget for FY26 operationalized the principle of "trust first, scrutinise later." Like earlier budgets, Budget 2025 nudged taxpayers towards the new tax regime through rationalised rates and fewer deductions. Filing data suggests the shift is well underway. By 31 July 2024, 72.8 million income tax returns had b...