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The Union Budget 2026 has introduced multiple initiatives which will help create a streamlined experience for citizens and businesses and investors.

The government has implemented these initiatives to improve both business operations and citizen daily activities.

NRIs now have better access to Indian company investments through the Portfolio Investment Scheme (PIS) which the government established as a key regulatory improvement.

International investors can participate in India's development through this initiative. Motor accident claim tribunals will now provide tax-exempt interest payments to claimants, which lessens their financial obligations.

The government has decreased the Tax Collected at Source (TCS) rate for various functions. The previous TCS rate of 5 per cent to 20 per cent range has been lowered to 2 per cent which now applies to overseas tour packages.

The Liberalized Remittance Scheme now charges 2 per cent TCS for educational and medical expenses instead of the previous 5 per cent rate.

The implementation of TDS at 1 per cent or 2 per cent rates will help manpower service providers ease their compliance obligations.

Taxpayers will benefit from simplified processes as well. Investors who hold securities in multiple companies can now submit Form 15G or 15H to depositories, which will eliminate the need for duplicate submissions and decrease the chance of mistakes.

The tax return correction period now extends until 31st March, which provides more time for error correction. ITR 1 and ITR 2 users have until 31st July to submit their returns, while non-audit business cases and trusts have until 31st August to complete their submissions.

The budget establishes regulations for overseas assets and real estate holdings. Non-resident sellers of real estate will face TDS deductions based on the buyer's PAN instead of the previous TAN requirement.

Small taxpayers receive a six-month foreign asset disclosure window which decreases their compliance requirements. Taxpayers now have the ability to update their returns after reassessments by paying a 10 per cent additional tax.

The government has made certain tax provisions noncriminal because it wants to increase transparency and make tax rules simpler. Non-production of books or TDS payment defaults are now handled as fee-based compliance, and immunity from prosecution is extended in cases of underreporting or misreporting.

Non-disclosure of foreign assets below Rs 20 lakh threshold will receive retroactive protection according to the law.

The new corporate tax regulations have been simplified for businesses to follow. The Minimum Alternate Tax (MAT) will now apply to non-residents on a presumptive basis, with set-off of available MAT credit allowed up to 25 per cent of tax liability.

Promoters will have to make extra tax payments because of buyback transactions, but all other shareholders will receive tax exemptions for their buybacks.

The government has implemented measures to improve trade and logistics operations. A single digital window will handle all cargo clearance operations and the Customs Integrated System (CIS) will be implemented in two years.

Honest taxpayers who resolve their disputes can now close their cases by making a small additional payment instead of penalties.

The Union Budget 2026 brings forward fundamental tax compliance improvements which decrease legal disputes while promoting investment and making daily financial operations more efficient.

The proposed measures will boost India economic growth while delivering better daily service to taxpayers and businesses.