Union Budget Tax Highlights: Capital Gains Overhaul, Standard Deduction & Angel Tax

केंद्रीय बजट कर संशोधन एवं मुख्य घोषणाएं

Comprehensive analytical summary of major tax reforms enacted through the Union Finance Act for the active financial year: restructuring capital gains taxation, elevating the New Regime standard deduction to ₹75,000, Section 80CCD(2) employer NPS expansion, and abolishing Angel Tax under Section 56(2)(viib).

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Capital Gains Rationalization: LTCG on listed equities/equity funds unified at 12.5% with annual exemption increased to ₹1,25,000. STCG on listed equities revised to 20%.

Real Estate Capital Gains: LTCG unified at 12.5% without indexation for property acquired post-July 2024 (optional indexation at 20% retained for resident individuals on pre-July 2024 property).

Standard Deduction Elevation: ₹75,000 standard deduction under the New Tax Regime (Section 115BAC).

Section 56(2)(viib) Angel Tax Abolished: Complete elimination of tax on premium share issuances for all startup and corporate equity investments.

Corporate Tax on Foreign Companies: Base corporate tax rate reduced from 40% to 35%.

Who is Eligible & When Does it Apply?

Applicability #1

All individual, corporate, and foreign taxpayers subject to Indian taxation.

Step-by-Step Procedure & Compliance Roadmap

Review Portfolio Impact

Audit stock and property holdings to align realization dates with the 12.5% LTCG rate.

Recompute Tax Regime Breakeven

Incorporate the ₹75,000 standard deduction when choosing between New and Old Tax Regimes.

Mandatory Documents Checklist

Union Finance Act statutory Gazette, Explanatory Memorandum to the Finance Bill

Common Mistakes & Compliance Risks to Avoid

•Applying old 10% LTCG rate or ₹1 Lakh exemption limit (updated to 12.5% and ₹1.25 Lakh).

Frequently Asked Questions

Is the ₹75,000 standard deduction available in the Old Tax Regime?

No. The enhanced ₹75,000 standard deduction applies exclusively to the New Tax Regime (Section 115BAC). The Old Tax Regime retains the ₹50,000 standard deduction.

Interactive Tax Calculators

Income Tax Calculator Capital Gains Calculator

Related Tax Knowledge

Capital Gains Guide New Tax Regime Guide

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.