NEW DELHI, Jan. 15 -- The Union Budget for FY27 is unlikely to deliver major changes to income tax law. Instead, the most consequential shifts for taxpayers are expected to come through a new set of income tax rules that will determine how the revamped Income Tax Act, 2025, operates in practice, according to two people aware of the development.

The Finance Bill, 2026, to be tabled in Parliament as part of the FY27 Budget, may carry only essential income-tax proposals such as notifying tax rates for the year and outlining the transition to the new income tax regime from 1 April, the people said.

The contours of the new regime will be defined by rules to be issued shortly by the Central Board of Direct Taxes (CBDT), they added.

These rul...