Union Finance Minister Nirmala Sitharaman addresses a press conference after the presentation of the 'Union Budget 2026-27', in New Delhi on February 1. Photo PTI
Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending
Allocation rises to 11 per cent of GDP as the government focuses on military modernisation
Union Finance Minister Nirmala Sitharaman on Sunday (February 1) presented her ninth straight Budget and said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly.
Earlier on Sunday morning, Sitharaman called on President Droupadi Murmu before presenting Budget 2026-27 in the Lok Sabha.
As per established tradition, the finance minister met the President at the Rashtrapati Bhavan before heading to Parliament.
Before going to the Rashtrapati Bhavan, Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta silk saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six Secretaries in her ministry.
Union Minister for Finance and Corporate Affairs Sitharaman, along with Minister of State for Finance Pankaj Chaudhary and senior officials of the Ministry of Finance, called on the President at Rashtrapati Bhavan before presenting the Union Budget.
Following the meeting, she headed for a Cabinet meeting that formally approved the Budget for 2026-27.
Sitharaman continued with the tradition she set in 2019, carrying the Budget speech in a 'bahi-khata', which she used after dropping the briefcase tradition.
Here is the top, trending news of Sunday, February 1, 2026, including Budget 2026-27, Indian politics, states' politics, geopolitics, federal issues, economics, development issues, sports, entertainment, and so on.
Read updates below.
Live Updates
- 1 Feb 2026 12:13 PM IST
NIMHANS-2 to be set up
FM says NIMHANS-2 (National Institute of Mental Health and Neurosciences) will be set up in north India.
- 1 Feb 2026 12:12 PM IST
Exemptions of 3 years for dividend income
FM proposes exemptions of 3 years for dividend income received by notified cooperatives on investments made up to January 31, 2026.
- 1 Feb 2026 12:12 PM IST
'50 per cent capacity will be increased in district hospitals'
FM Sitharaman: 50 per cent capacity will be increased in district hospitals by establishing emergency and trauma care centres.
- 1 Feb 2026 12:11 PM IST
No tax on interest awarded on motor accident claims tribunal
FM: "I propose that any interest awarded by the motor accident claims tribunal to a natural person will be exempt from income tax and any TDS on this account will be done away with."
- 1 Feb 2026 12:10 PM IST
Revising returns: Time extended with payment of nominal fee
FM: "I propose to extend time available for revising returns from December 31 to up to March 31 with the payment of a nominal fee. I also propose to stagger the timeline for filing of tax returns. Individuals with ITR1 and ITR2 returns will continue to file till July 31 and non-audit business cases or trusts are proposed to be allowed time till August 31."
- 1 Feb 2026 12:09 PM IST
'No interest liability on taxpayer on penalty amount for period of appeal'
No interest liability on taxpayer on penalty amount for period of appeal before 1st appellate authority, irrespective of outcome: FM.
- 1 Feb 2026 12:08 PM IST
Overseas tour packages: TCS reduced
"I propose to reduce TCS rate on the sale of overseas tour programme package from the current 5 per cent and 20 per cent to 2 per cent without any stipulation of amount," says FM.
- 1 Feb 2026 12:06 PM IST
TCS rate for pursuing education and for medical purposes reduced
FM: "I propose to reduce TCS rate for pursuing education and for medical purposes under the liberalised remittance scheme, popularly known as LRS, from 5 per cent to 2 per cent."
- 1 Feb 2026 12:04 PM IST
Fiscal deficit pegged at 4.3 pc of GDP in FY'27
Fiscal deficit pegged at 4.3 pc of GDP in FY'27, lower than 4.4 pc in FY'26: Sitharaman.
- 1 Feb 2026 12:03 PM IST
Rs 1.4 lakh crore as tax devolution to states
Govt provides Rs 1.4 lakh crore as tax devolution to states in FY27: FM.
