Insights · Direct Tax

Brief · Budget 2026 direct-tax highlights

A quick summary of the Finance Bill 2026 provisions most relevant to individuals, MSMEs and closely-held companies.

Published: 05 February 2026
Last reviewed: 25 July 2026
Law as at: 01 February 2026
Reading time: 3 min
Author: ATPM And Co
Technical reviewer: Partner, ATPM And Co

The new personal-tax regime continues to be the default; the older regime remains available on election, subject to specified conditions.

For MSMEs, the enhanced presumptive-taxation thresholds have been retained with conditions on the mode of receipts.

For closely-held companies, provisions around loans to shareholders and unexplained credits have been tightened - a review of related-party balances is advisable before year-end.

This brief is a factual summary and is not tax advice. Positions should be assessed on facts.

Official source

Union Budget 2026-27 — Government of India

Disclaimer

This note is a general summary written for professional colleagues and clients of ATPM And Co. It reflects the position of law as at the date shown and is not a substitute for professional advice on the specific facts of any matter. Readers should consult the firm before acting on any point covered here.

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