Why no big announcements in Budget understand from experts:Gold Bond tax exemption now after 8 years; what changed for taxpayers

An 85-minute-long Budget speech by the Finance Minister and an account of ₹53.5 lakh crore. For the common man, understanding this is no easy task. So, Bhaskar spoke to three experts to decode 8 key nuances of the Budget that will impact your life and are important to know. 1. A balanced Budget due to a stable economy Every year, there is an expectation of big announcements or new schemes in the Budget, but this time, nothing major was announced.
The reason is that when the economy is stable, the government generally avoids big-ticket announcements.
India’s economy is growing at over 7% and remains stable. Last year, income up to ₹12 lakh was made tax-free, benefiting the middle class and salaried individuals.
Despite no major announcements, the size of the Budget has increased. With a 7.1% rise compared to last year, the total Budget stands at ₹53.47 lakh crore.
The government’s focus has been on maintaining economic stability, managing public expectations, and improving people’s spending capacity. 2. Why no relief for taxpayers? The defence budget has been increased, and several schemes were announced, but there was no major relief for taxpayers. The government may not have sufficient fiscal space to offer tax concessions at this stage.
The government has said that tax-related rules will be simplified from April 2026. This has disappointed the middle class and retired individuals who were hoping for immediate relief.
There were also expectations of a reduction in tax on interest earned from fixed deposits (FDs), but no such announcement was made.
FD investments are already declining because interest income is taxed at over 30% for many taxpayers. As a result, people are shifting more towards mutual funds and equities.
Many expected changes on this front, but the issue was not addressed. 3. More time to file and revise tax returns There have been some changes in income tax return (ITR) deadlines.
Taxpayers filing ITR-1 and ITR-2 can continue to file returns by 31 July, as earlier. For ITR-3 and ITR-4 filers, the deadline has been extended to 31 August.
The deadline to revise an income tax return has been extended from 31 December to 31 March. However, revising after 31 December will attract an additional fee.
If income is below ₹5 lakh, the fee will be ₹1,000; if income exceeds ₹5 lakh, the fee will be ₹5,000.
This change gives taxpayers more time to correct mistakes.
Honest taxpayers have also been given an easier route to settle tax disputes. Instead of penalties, disputes can be closed by paying an additional amount, offering relief from long legal battles. 4. Tax exemption on Gold Bonds only after 8 years, not 5 Another change relates to Sovereign Gold Bonds (SGBs), which are digital bonds issued by the Government of India and can be redeemed for cash when required.
Earlier, investors could redeem gold bonds with the Reserve Bank of India (RBI) after 5 years without paying capital gains tax.
Now, tax exemption will be available only after completing the full 8-year maturity period.
This exemption will apply only to investors who directly subscribed to the bonds, not to those who purchased them from the secondary market. 5. Market falls after hike in Securities Transaction Tax Securities Transaction Tax (STT) is levied on derivative trading. The Budget has increased STT.
Around 90% of derivative traders incur losses. To curb excessive speculation, STT on futures contracts has been raised from 0.02% to 0.05%, while STT on options premiums has been increased from 0.10% to 0.15%.
This will increase trading costs and negatively impact short-term and frequent traders.
During the Budget announcement, the stock market reacted sharply. On 1 February, the Sensex fell by 1,546 points (nearly 2%), while the Nifty dropped by 495 points. 6. Semiconductor and rare earth corridors: a step towards self-reliance Capital expenditure has increased by ₹1 lakh crore compared to last year.
For 2026–27, capital expenditure will be ₹12.25 lakh crore, accounting for 22.8% of the total Budget. The Centre has consistently increased capital spending over the past five years.
Capital expenditure helps build infrastructure such as roads, highways and assets, creating new employment and business opportunities.
A new ₹40,000 crore scheme has been announced for electronic manufacturing, including the semiconductor project ISM 2.0. Currently, around 90% of global semiconductor production is concentrated in Taiwan.
Rare earth mineral corridors have also been announced in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. At present, the world is heavily dependent on China for rare earth elements.
The Budget clearly signals India’s intent to reduce dependence on Taiwan and China and move towards self-reliance in semiconductors and rare earth minerals. 7. Increased foreign investment to stabilise markets Persons Resident Outside India (PROI) will now be allowed to invest in Indian listed companies through the approved route.
This could lead to higher foreign investment in Indian stock markets, improving liquidity and creating a more stable and positive environment for long-term equity investors. 8. Cancer treatment to become cheaper Basic customs duty has been removed on 17 cancer medicines. This is expected to make several essential cancer drugs cheaper and reduce the overall cost of cancer treatment. Other important points Compensation awarded by Motor Accident Claims Tribunals includes interest, which will now be exempt from income tax. No TDS will be deducted, ensuring accident victims and their families receive the full interest amount. Tax Collected at Source (TCS) on overseas tour packages and remittances under the Liberalised Remittance Scheme (LSR) for education and medical treatment has been reduced to 2%. This will ease cash blockage and reduce dependence on claiming refunds through ITR. Share buybacks will now be taxed as capital gains instead of dividend income. Promoters will face additional buyback tax. Earlier, the entire buyback amount was taxed as per income tax slabs, which was unfavourable for retail investors. Bhaskar Expert Panel Jayant Krishna – Economist and Senior Fellow at US think tank CSIS; former CEO of the National Skill Development Corporation.
Swati Kumari – Founder of personal finance platform Bwealthy; former business journalist with several media houses.
Balwant Jain – Tax, personal finance and investment expert; Chartered Accountant with over 40 years of experience.