Income Tax Budget 2026: No Change in Slabs, New Tax Law from April 1 — Legal, Constitutional and Policy Analysis
Introduction: Budget 2026 and the Stability Signal The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman—her ninth consecutive Budget —has sent a clear policy message: tax stability over populism . While expectations of slab rationalisation ran high, the government chose continuity, announcing no change in income tax slabs , while confirming that the New Income Tax Act, 2025 will come into force from 1 April 2026 , replacing the six-decade-old Income Tax Act, 1961. This Budget marks a significant moment in India’s fiscal evolution, prioritising simplification, procedural reform, and targeted relief , rather than rate cuts. Constitutional Framework Governing Taxation Article 265: No Tax Without Authority of Law Article 265 of the Constitution mandates that “no tax shall be levied or collected except by authority of law.” The proposed implementation of the New Income Tax Act, 2025 directly flows from this constitutional requirement, reaffirming Parliament’s exclus...