Income Tax Budget 2026 Updates: No change in tax slabs; buybacks taxed, TCS cut, ITR revision window extended

What changed: Inter-cooperative society dividend income will be allowed as a deduction under the new tax regime, to the extent distributed to members.

What it means: Avoids double taxation within cooperative structures.

What changed: Tax holiday till 2047 for foreign companies providing cloud services globally through data centres in India, with Indian customers served via Indian resellers.

What it means: A long-term incentive to attract global cloud infrastructure to India.

Who benefits: Global cloud companies; indirectly, India’s data centre ecosystem.

What changed: Government will endeavour to conclude Advance Pricing Agreements (APAs) for IT services within two years.

What it means: Faster tax certainty for multinational IT firms.

What changed:

• IT, ITeS, KPO and contract R&D grouped under one category
• Common safe harbour margin of 15%
• Turnover threshold raised substantially from Rs 300 crore
• Fully automated, rule-driven approval (no tax officer scrutiny)
• Option valid for five years at a stretch

What it means: Major reduction in transfer pricing disputes and compliance friction.

Who benefits: IT and tech services companies.

What changed: Securities Transaction Tax (STT) on futures increased to 0.05%.

What it means: Higher transaction costs for derivatives traders.

Who is impacted: Active traders, especially in index and stock futures.

What changed: Share buybacks will now be taxed as capital gains for all categories of shareholders.

What it means: Aligns buyback taxation with equity income, removing arbitrage between dividends and buybacks.

Who is impacted: Equity investors and listed companies.

What changed: A six-month window to disclose foreign assets, targeted at small taxpayers.

What it means: A clean-up opportunity before stricter enforcement kicks in.

Who benefits: Small taxpayers with past disclosure lapses.

What changed: Non-disclosure of assets other than immovable property, which earlier had no penalty, will now attract penal action.

What it means: Closes a compliance gap, especially around financial and overseas assets.

Who is impacted: Taxpayers holding undisclosed movable or foreign assets.

What changed: Taxpayers will be allowed to update returns even after reassessment proceedings begin; the updated return will be used for proceedings.

What it means: Encourages voluntary compliance and reduces prolonged disputes.

Who benefits: Taxpayers facing reassessment due to omissions or errors.

What changed: Taxpayers can revise returns up to March 31, with a small fee. Filing deadlines for ITR-1 and ITR-2 remain July 31.

What it means: More time to correct genuine mistakes without falling into litigation or reassessment traps.

Who benefits: Salaried taxpayers and individuals with simple returns.

What changed: TCS under the Liberalised Remittance Scheme (LRS) for education and medical purposes has been reduced from 5% to 2%.

What it means: Lower upfront cash outflow for families sending money abroad for studies or treatment. TCS is adjustable against final tax liability, but the cut improves near-term liquidity.

Who benefits: Students and families funding overseas education or medical care. Education loans via financial institutions continue to attract zero TCS.

Union Budget 2026 has cut Tax Collected at Source (TCS) on outward remittances for medical treatment and education under the Liberalised Remittance Scheme (LRS) from 5% to 2%, including self-funded overseas education remittances that earlier attracted 5% TCS beyond Rs 10 lakh a year. Finance Minister Nirmala Sitharaman said in her speech she would reduce the TCS rate for education and medical purposes under LRS to 2%. Kunal Savani, Partner at Cyril Amarchand Mangaldas, called it timely relief that improves liquidity for genuine needs without weakening monitoring of cross-border flows. TCS on overseas education funded via education loans from financial institutions remains at 0%, though some experts argue the relief could have gone further, Pavan Kavad of Prithvi Exchange said removing TCS entirely for debt-funded education would have helped more. Reserve Bank of India data show education remittances eased after a September spike, falling to $120.94 million in November 2025, with outward remittances for overseas studies at about $2.92 billion in FY2024–25. Read more.

The Budget pegs GST revenue for FY27 at Rs 10.19 lakh crore, compared with Rs 10.46 lakh crore estimated for FY26.

The Budget estimates FY27 fertiliser subsidy at Rs 1.7 lakh crore, setting the government’s expected support for fertiliser costs in the coming year. It also projects gross tax revenue at Rs 44.4 lakh crore in FY27, up from Rs 40.78 lakh crore in FY26

The Budget estimates FY27 dividend receipts from the RBI and banks at Rs 3.16 lakh crore, a key non-tax revenue line for the Centre. It also pegs FY27 petroleum subsidy at Rs 12,090 crore, outlining the government’s projected support on the fuel subsidy front for the coming year.

Budget 2026 pegs defence expenditure for FY27 at Rs 5.94 lakh crore, up from Rs 5.68 lakh crore in FY26.

The Budget pegs the FY27 divestment target at Rs 80,000 crore, a sharp step-up from Rs 33,837 crore in FY26, signalling a renewed push on asset monetisation. It also estimates nominal GDP growth at 10%, setting the macro assumption for revenues and fiscal math in the year ahead.

Rajiv Memani, President of Confederation of Indian Industry (CII), said the Budget’s focus on manufacturing across seven strategic sectors and its emphasis on championing MSMEs is a positive signal. He said there was “a lot of focus” on middle-income Indians and on tax simplification, and added that some of the issues around electronic manufacturing have been addressed. Memani called it a “very positive Budget with fiscal discipline,” and said announcements such as Semiconductor Mission 2.0 and the rare-earth measures provide the relief and incentives the sector has been looking for.

Calling it “timely relief”, Kunal Savani, Partner at Cyril Amarchand Mangaldas, said the government’s decision to cut the TCS rate on outward remittances under the Liberalised Remittance Scheme (LRS) for medical and education purposes from 5% to 2% will ease the financial burden on students and families seeking treatment or education abroad amid rising global costs. He said the move improves liquidity for genuine personal needs while signalling a more taxpayer-friendly approach, without diluting the objective of monitoring cross-border fund flows.

Finance Minister Nirmala Sitharaman said the government will move towards a seamless digital process for cargo clearance across government agencies, aimed at reducing delays and compliance friction at ports. She also announced duty exemptions for farmers on fish catch, offering relief to the fisheries sector. The move comes against the backdrop of shrimp and prawn exports to the US seeing a sharp decline after the imposition of tariffs, underlining the pressure on exporters and the need for cost support at home.

Finance Minister Nirmala Sitharaman announced a fresh set of customs-related measures aimed at easing costs and improving efficiency across sectors. She said Basic Customs Duty (BCD) will be exempted on raw materials imported for maintenance, repair and overhaul (MRO) activities, and on components and parts required for the manufacture of civil training and other aircraft. In a move to support the fisheries sector, the FM said fish catch by Indian vessels in SEZs or on the high seas will be made duty-free. Sitharaman also announced that a Customs Integrated System will be rolled out over the next two years, signalling a push towards faster, technology-led customs processing.

Finance Minister Nirmala Sitharaman announced a series of customs duty changes aimed at boosting domestic manufacturing and easing costs in key sectors. She said Basic Customs Duty (BCD) will be exempted on the import of capital goods required for processing crucial minerals in India, and on specified parts used in the manufacture of microwave ovens. The FM also proposed customs duty exemption on 17 cancer-related drugs, offering targeted relief for critical healthcare needs. In a push for civil aviation manufacturing, BCD on components and parts used in making civilian aircraft will be reduced. Separately, Sitharaman announced a cut in the tariff rate on personal goods imports, lowering it from 20% to 10%.

Finance Minister Nirmala Sitharaman announced a significant change to the Minimum Alternate Tax (MAT) regime, saying the MAT rate will be reduced from 15% to 14%. She also said that MAT will be treated as the final tax, with no further MAT credit allowed from April 1, 2026, marking a clear shift away from the existing credit-offset mechanism.

Finance Minister Nirmala Sitharaman said the Securities Transaction Tax (STT) on futures contracts will be increased, announcing that the rate will be raised to 0.05%, marking a change in transaction costs for derivatives market participants.

Finance Minister Nirmala Sitharaman announced that share buybacks will now be taxed as capital gains for all categories of shareholders, marking a shift in the tax treatment of buybacks and aligning them more closely with other equity income streams.

Finance Minister Nirmala Sitharaman said the threshold for availing safe harbour for IT services will be enhanced substantially from Rs 300 crore, and that approvals will move to an automated, rule-driven process with no need for tax officer examination. She added that once an IT services company opts in, the same safe harbour can be continued for five years at a stretch, at the company’s choice. Separately, Sitharaman proposed a tax holiday till 2047 for any foreign company that provides cloud services to Indian customers.

Finance Minister Nirmala Sitharaman announced tax holidays till 2047 for foreign companies that provide cloud services globally through data centres in India. She said these firms will need to serve Indian customers through an Indian reseller entity. Separately, the FM said the government will work to conclude the advance pricing agreement (APA) process for IT services companies within two years.

Finance Minister Nirmala Sitharaman proposed a tax holiday till 2047 for foreign companies providing cloud services to Indian customers, signalling a long-term policy push to attract global cloud players and deepen India’s digital infrastructure ecosystem.

Finance Minister Nirmala Sitharaman said India is a global leader in software development services and R&D, and announced a common safe harbour margin of 15% to bring these services under a single umbrella for tax purposes.

Finance Minister Nirmala Sitharaman said IT-enabled services, knowledge process outsourcing (KPO), and services and contract R&D linked to software development will be treated as a single category of Information Technology Services. She said these segments are closely interconnected in nature, and will be covered under a common safe harbour framework, simplifying tax treatment for the sector.

Finance Minister Nirmala Sitharaman said non-disclosure of non-immovable property, which currently does not attract a penalty, will now be penalised. She also proposed allowing inter-cooperative society dividend income as a deduction under the new tax regime, to the extent that the dividend is further distributed to members.

Finance Minister Nirmala Sitharaman said misreporting of income will attract a penalty equal to 100% of the tax amount, signalling a tougher stance on non-compliance under the income-tax framework.

Finance Minister Nirmala Sitharaman said tax will be deducted at source (TDS) on the sale of immovable properties by non-residents. She also announced a six-month foreign asset disclosure scheme aimed at small taxpayers, allowing them a limited window to disclose overseas assets.

Finance Minister Nirmala Sitharaman said the time to revise income-tax returns will be extended till March 31, subject to a small fee. She added that the filing deadline for ITR-1 and ITR-2 will continue to be July 31.

Finance Minister Nirmala Sitharaman said taxpayers will get more time to revise income-tax returns, with the deadline extended till March 31, subject to payment of a small fee. She added that the existing timelines for filing ITR-1 and ITR-2 by July 31 will continue unchanged.

Finance Minister Nirmala Sitharaman said simplified income tax rules will be notified shortly. She also announced that the TCS rate on overseas tour packages will be reduced to 2%, down from the earlier range of 5% to 20%.

Finance Minister Nirmala Sitharaman said net market borrowing is estimated at Rs 11.7 lakh crore, broadly in line with estimates, while gross market borrowing is pegged at Rs 17.2 lakh crore, higher than earlier estimates. She also said FY27 net tax receipts are projected at Rs 28.75 lakh crore.

Finance Minister Nirmala Sitharaman pegged the fiscal deficit for FY27 at 4.3% of GDP, signalling a continued glide path on consolidation. She also said the debt-to-GDP ratio is expected to improve to 55.6% in FY27, from 56.1% in FY26. For FY26, the FM said the fiscal deficit is at 4.4% of GDP, in line with Budget Estimates (BE).

Finance Minister Nirmala Sitharaman said the government has set the debt-to-GDP ratio at 55.6% for FY27 in the Budget, outlining the medium-term fiscal position as it balances public spending needs with fiscal consolidation.

The government has accepted the recommendation to retain a 41% share for states, and announced an allocation of Rs 1.4 lakh crore for states in FY27 as State Finance Commission (SFC) grants, according to the Budget announcement.

Finance Minister Nirmala Sitharaman said the government will introduce She-Marts for women entrepreneurs to improve access to credit-linked products and innovative financial instruments. She also announced plans to set up NIMHANS 2 and establish new mental health institutes in Ranchi and Tezpur.

Finance Minister Nirmala Sitharaman proposed launching Bharat Vista, a multilingual AI tool that will integrate agriculture portals to help reduce risks for farmers through customised advisory support. She also announced measures to support incomes of walnut, almond and pine nut farmers, and to back high-value crops such as coconut and cashew in coastal areas. Sitharaman said the Centre will partner with states to promote sandalwood cultivation, and proposed setting up **She-Marts to help women become owners of enterprises.

Finance Minister Nirmala Sitharaman proposed launching a Khelo India Mission for the sports sector for the next 10 years, signalling a long-term policy push to strengthen sports and grassroots talent. She also said increasing farmers’ incomes remains a key objective under the government’s inclusive development agenda, and announced a credit-linked subsidy programme for animal husbandry to support livelihoods and rural income generation.

Finance Minister Nirmala Sitharaman said the tourism sector has a significant role in creating employment, and outlined a series of measures to strengthen it. She announced a pilot scheme to train 10,000 tourist guides across 20 major tourism destinations, along with plans to develop 15 archaeological sites into cultural destinations. Sitharaman also proposed setting up and upgrading four telescope facilities for astrophysics and astronomy, and said a National Destination Digital Knowledge Grid will be created to support a jobs-focused tourism ecosystem.

The FM proposed setting up a new National Institute of Design in the Northeast, expanding formal design education infrastructure in the region.

In a broad social infrastructure push, the FM announced that one girls’ hostel will be established in every district.

The FM said the Centre will support states to set up five university townships near industrial corridors, linking education ecosystems more closely with manufacturing hubs.

The FM proposed loan-linked subsidy support for veterinary colleges, signalling targeted backing for capacity and training in the sector.

The FM said 1.5 lakh caregivers will be created for geriatric care, with training aligned to NSQF programmes.

Finance Minister Nirmala Sitharaman announced a plan to create 1 lakh allied health professionals (AHPs) across 10 disciplines, including optometry, radiology and anaesthesia, over the next five years.

Finance Minister Nirmala Sitharaman said the government will set up a panel to recommend steps to boost the services sector, including assessing the impact of emerging technologies and AI on jobs. She also announced plans to upgrade allied health institutes for professionals and develop NQSF-aligned programmes for multi-skilled caregivers. Sitharaman added that five regional hubs will be set up to promote medical tourism.

Finance Minister Nirmala Sitharaman proposed an outlay of Rs 5,000 crore for a City Economic Regions scheme. She also said residents living outside India can invest in equities through a portfolio route, and proposed raising the individual investment limit for PROIs to 10% from 5%. The finance minister also proposed increasing the overall investment limit for PROIs to 24% from 10%.

Finance Minister Nirmala Sitharaman said the government will restructure Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). She also announced plans to set up a market-making framework for the corporate bond market to improve liquidity and depth. In another key move, Sitharaman said individual residents living outside India will be allowed to invest in Indian equities.

Finance Minister Nirmala Sitharaman said carbon capture, utilisation and storage (CCUS) technologies will be taken to higher readiness and end-use applications across five industrial sectors, power, steel, cement, refineries and chemicals, with an outlay of Rs 20,000 crore proposed over the next five years. She also proposed developing seven high-speed rail corridors, naming routes including Mumbai–Pune, Pune–Hyderabad, Hyderabad–Chennai, Delhi–Varanasi and Varanasi–Siliguri. Sitharaman added that the government will offer incentives for indigenised manufacturing of seaplanes, and said a seaplane viability gap funding (VGF) scheme will be introduced to support operations.

Finance Minister Nirmala Sitharaman said public capital expenditure has risen sharply from Rs 2 lakh crore in 2014–15 to an allocation of Rs 11.2 lakh crore in Budget Estimates for 2025–26. She added that the Budget for 2026–27 proposes to raise public capex further to Rs 12.2 lakh crore to keep the momentum going.

Finance Minister Nirmala Sitharaman proposed a National Fibre Scheme for the textile sector and outlined a broader textile expansion plan, including capital support for machinery to modernise the industry and a new initiative to strengthen textile skilling systems. She said micro enterprises will be supported through a Rs 2,000 crore fund, alongside a proposed Rs 10,000 crore SME Growth Fund. To ease liquidity stress for MSMEs, Sitharaman said the Trade Receivables Discounting System (TReDS) will serve as a pricing benchmark for corporates and will be mandated as a settlement platform to support MSME liquidity.

Finance Minister Nirmala Sitharaman proposed a three-pronged approach to help MSMEs scale up, with equity support through an MSME Growth Fund at its centre. She announced a Rs 10,000 crore SME Growth Fund aimed at creating “champions” among MSMEs, and said the government will also top up the Self Reliant India Fund with an additional Rs 2,000 crore.

Sitharaman announced plans to strengthen the Central Drugs Standard Control Organisation, indicating a focus on regulatory capacity in the pharmaceuticals sector.

The finance minister said the government is planning rare-earth magnet corridors, underlining the strategic focus on critical minerals and components. Centre will support Odisha and Kerala for rare-earth corridors as part of the proposed plan. Andhra Pradesh and Tamil Nadu will also be supported under the rare-earth corridor initiative.

The finance minister said the Component Production-Linked Incentive (PLI) scheme will be expanded, with the proposed outlay raised to Rs 40,000 crore.

Finance Minister Nirmala Sitharaman said the outlay for the Electronic Components Manufacturing Scheme will be increased to Rs 40,000 crore, signalling a stronger push for domestic electronics manufacturing.

Finance Minister Nirmala Sitharaman said sustaining the momentum of structural reforms is the “first requirement” for the economy, describing the reform push as continuous, adaptive and forward-looking. She said cutting-edge technologies, including AI, can serve as growth multipliers, and added that over 350 reforms have been rolled out, with the “reform express” well on its way. Sitharaman said the government’s reforms aim to create employment, boost productivity and accelerate growth, calling this a “yuva shakti-driven” Budget.

Finance Minister Nirmala Sitharaman said the Prime Minister Narendra Modi has inspired many of the proposals, calling this a “unique… Shakti-driven” Budget. She said India faces a challenging external environment but will continue to take confident steps, including measures to enhance productivity to sustain economic growth. Sitharaman said the Budget is guided by three “kartavya”: to accelerate and sustain economic growth, to fulfil people’s aspirations and build capacity, and to ensure every family, community and region has access to resources.

Finance Minister Nirmala Sitharaman said new technologies are boosting production but also sharply increasing demand for water and energy. She said the government has built domestic manufacturing capacity and strengthened energy security, cutting critical import dependency, and that government steps have delivered a high growth rate of around 7%. Sitharaman added that India has maintained fiscal prudence and monetary stability while keeping a strong thrust on public investment, and said India must stay deeply integrated with global markets by exporting more and attracting foreign investment as trade and capital needs rise. She said India will continue taking confident steps towards “viksit bharat,” balancing ambition with inclusion.

Finance Minister Nirmala Sitharaman said India’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. She added that Prime Minister Narendra Modi has 'chosen reform over rhetoric', and argued that far-reaching structural reforms and policy decisions have helped ensure strong macroeconomic stability.

Finance Minister Nirmala Sitharaman rises to present her ninth consecutive Union Budget, a record run that places her in the history books. The bigger question for taxpayers, though, is straightforward: will this Budget lower income tax, and if yes, how?

As the speech unfolds, we’ll be closely watching for any signals on exemption limits, slab changes, rebates and deductions that could alter tax calculations for FY27.

The Budget speech is minutes away, and all eyes are on the second part of Finance Minister Nirmala Sitharaman’s address, where income-tax proposals are traditionally announced.

A cleaner tax system reduces ambiguity, litigation and compliance headaches. That’s one reason the government keeps sweetening the new regime instead of reviving the old one.

Crossing the rebate threshold can trigger a sharp jump in tax payable. This 'tax cliff' is why even a small slab tweak or rebate change in today’s Budget matters a lot.

Teena Jain Kaushal, Editor, Personal Finance (AG), Moneycontrol: "For Budget 2026, expectations are simple. Taxpayers are looking for clarity and stability. Over the last few years, Finance Minister Nirmala Sitharaman has been steadily pushing the new tax regime, with fewer exemptions, wider slabs and simpler rules. With around 70% of taxpayers already having moved to the new tax regime, Budget announcements are expected to continue in the same direction."

Those charts don’t mean tax kicks in at Rs 4 lakh for everyone. They simply show slab structures; rebates can still wipe out your tax liability up to a much higher income.

You may hear that the basic exemption limit is Rs 12 lakh, but slab charts often start at much lower income levels. That’s because rebates and deductions, not slabs alone, determine when your final tax bill becomes zero.

From foreign remittances to education loans, last year’s Budget quietly removed several tax irritants. These smaller tweaks often matter more in daily financial planning than headline slab changes.

The last Budget didn’t just focus on income tax. It also rationalised Goods and Services Tax rates, easing pressure on both direct and indirect taxes, a rare double relief for households and businesses.

Budget 2025–26 rewired the new tax regime. Slab rates were cut, and when you added the standard deduction, many salaried individuals effectively paid zero tax up to Rs 12.75 lakh in taxable income.

Forget the long vision statements, it’s Part B that decides income tax slabs, deductions, TDS rules and capital gains. That’s why salaried taxpayers and investors alike are listening extra carefully today.

Beyond slabs, Budget changes to TDS thresholds, filing timelines and refund processes often affect taxpayers more than rate cuts. Faster refunds and fewer mismatch notices can improve cash flow without changing tax rates at all.

The new regime allows limited deductions for employer contributions to NPS. Expanding NPS benefits, or aligning withdrawal rules with policy intent, could strengthen retirement savings without reopening multiple exemptions.

Capital gains tax applies to profits from shares, mutual funds and property. Long-term gains on equities are taxed only beyond a threshold, while short-term gains attract higher rates. Even small tweaks can move markets and change investment behaviour.

Currently, income above Rs 24 lakh is taxed at 30 percent under the new regime. Many argue this threshold hasn’t kept pace with rising salaries and costs. Any upward shift here, even without rate cuts, would significantly increase disposable income for senior professionals.

House Rent Allowance exemption exists only in the old regime and is capped at 50 percent of basic salary in metros and 40 percent in non-metros. With rents in Tier-2 cities catching up, Budget tweaks to HRA rules could meaningfully ease the tax burden for salaried tenants.

Under the old regime, interest paid on a self-occupied home loan is deductible up to Rs 2 lakh. The new regime doesn’t allow this, one reason many homeowners hesitate to switch. If Budget 2026 brings this benefit into the new regime, it would be a major structural shift.

The new regime offers lower rates but fewer deductions; the old regime offers deductions like HRA, home loan interest and 80C but higher rates. The old regime only works if your deductions are large. Budget 2026 signals will tell us whether the government plans to strengthen the new regime further or slowly sideline the old one.

Section 87A is why income up to Rs 12 lakh pays zero tax under the new regime. It’s not about slabs alone, the rebate wipes out the tax payable after calculation, with marginal relief preventing a sudden jump just above the threshold. Any change here quietly reshapes who pays tax and who doesn’t.

Standard deduction is a flat reduction from salary income before tax is calculated, no bills, no proof. Currently, it’s Rs 75,000 under the new regime and Rs 50,000 under the old. If Budget 2026 raises this to Rs 1 lakh, it would be the cleanest way to boost net income for salaried taxpayers.

Income tax slabs decide how much tax you pay at different income levels, with higher income taxed at higher rates. Under the new tax regime, slabs start at nil up to Rs 4 lakh and rise gradually to 30 percent above Rs 24 lakh, while the old regime has fewer slabs but sharper jumps. Any slab tweak in Budget 2026, especially around the 30 percent bracket, directly changes take-home pay.

Union Finance Minister Nirmala Sitharaman calls on President Droupadi Murmu before presenting her ninth consecutive Union Budget

Any upward shift in the 30 percent slab limit, whether to Rs 40 lakh or beyond, could meaningfully increase disposable income for senior professionals and dual-income households, potentially supporting consumption without altering tax rates.

The most persistent demand from taxpayers is a revision of the 30 percent tax slab, which currently kicks in above Rs 24 lakh, with many arguing that rising incomes and living costs justify pushing this threshold much higher to protect take-home pay.

Instead of abolishing the old system, the government is expected to gradually strengthen the new regime with modest upgrades, such as a higher standard deduction and limited deductions for health insurance and retirement savings.

Salaried employees are watching closely for changes in HRA rules, as the current metro (50%) and non-metro (40%) exemption structure no longer reflects rental realities in many Tier-2 cities where housing costs now rival metros.

There is also hope that home loan interest deduction could finally be extended to the new tax regime for self-occupied homes, a change that would remove one of the biggest deterrents for salaried taxpayers considering a shift away from the old system.

One of the most watched expectations is a possible hike in the Section 24(b) home loan interest deduction from Rs 2 lakh to Rs 3 lakh, a move that could immediately reduce taxable income for millions of homeowners and ease monthly financial pressure.

Indian benchmarks opened slightly in the red on February 1 as traders turned cautious ahead of the Union Budget announcement. The BSE Sensex slipped 64.34 points, or 0.08 percent, to 82,205.44, while the Nifty 50 fell 46.05 points, or 0.18 percent, to 25,274.60.

Market breadth was mildly positive: 1,346 shares advanced, 1,118 declined, and 191 were unchanged.

On the Nifty 50, Sun Pharma, Bajaj Auto, Bharat Electronics, HDFC Bank, and Axis Bank led the gains, while metal names weighed on sentiment with Hindalco, Tata Steel, JSW Steel, Coal India, and Adani Enterprises among the top laggards.

Despite tighter fiscal arithmetic, Morgan Stanley’s report suggests the Finance Minister may still opt for targeted relief rather than sweeping cuts, focusing on middle-class households and salaried taxpayers who feel the squeeze of high living costs even as inflation cools.