Daily Current Affairs – 02-02-2026

National News

New Income Tax Act 2025 to Come into Force from April 1

The New Income Tax Act 2025 with simplified rules will be implemented from April 1, as announced in the Union Budget by Union Finance Minister Nirmala Sitharaman; under this Act, submission of false accounts in income tax returns will attract a 100% penalty, and minor tax-related offences will be dealt with through monetary penalties only, with no imprisonment provision.

Union Budget 2026–27 Presented for the Ninth Time by Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament, marking her 9th Budget presentation, with the budget framed around three pillars: stable economic growth, fulfilling people’s aspirations, and inclusive development; for income tax, filing timelines for business persons and professionals have been extended up to August 31, minor tax-related offences will attract only monetary penalties without imprisonment, and under the Liberalised Remittance Scheme (LRS), Tax Collected at Source (TCS) on foreign education and medical expenses has been reduced to 2%; a one-time six-month foreign asset disclosure scheme has been introduced for low tax-paying students and technical workers, tax exemption up to 2047 has been announced for global service companies setting up liquid hubs in India, Securities Transaction Tax (STT) has been increased by up to 150%, customs duty on imports for individual consumers has been reduced from 20% to 10%, life-saving drugs and foods for 7 rare diseases have been given customs duty exemption, and the fiscal deficit for 2026–27 is estimated at 4.3% of GDP.

Union Budget 2026–27 Valued at ₹53.47 Lakh Crore

Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2026–27 with a total outlay of ₹53.47 lakh crore, which is 7.7% higher than the 2025–26 budget estimate of ₹49.64 lakh crore, while the 2024–25 budget stood at ₹46.52 lakh crore; for 2026–27, non-debt receipts are estimated at ₹36.5 lakh crore and net tax revenue of the Central Government at ₹28.7 lakh crore, with capital expenditure for public infrastructure increased to ₹12.2 lakh crore, up from ₹2 lakh crore in 2014 and ₹11.2 lakh crore in the previous year; to finance a fiscal deficit of ₹17.2 lakh crore, total market borrowings are estimated at ₹17.2 lakh crore, including ₹11.7 lakh crore through long-term bonds, supplemented by small savings and other sources, while the fiscal deficit is targeted at 4.4% of GDP in the current financial year and estimated at 4.3% of GDP for 2026–27, with India’s GDP projected at ₹393 lakh crore in 2026–27, about 10% higher than the advance estimate of ₹357 lakh crore for the current year.

Customs Duty Exemption Extended up to 2035

The Union Government, through the Union Budget presented by Union Finance Minister Nirmala Sitharaman, has extended the basic customs duty exemption on the import of materials required for nuclear power generation projects up to the year 2035, applicable to all nuclear power generation stations; the import of capital goods required for handling critical minerals has also been exempted from basic customs duty, and a similar exemption has been provided for equipment and components used in the manufacture of civil, training, and other aircraft, covering both the civil and defence aviation sectors, while the earlier customs duty exemption on the import of animals and birds for zoological parks has been withdrawn and a 30% customs duty will now be levied on such imports.

Record Allocation of ₹2.77 Lakh Crore for Railway Sector

In the Union Budget, the Railway sector has received a record capital expenditure allocation of ₹2,77,380 crore, which is 10.25% higher than the ₹2,52,000 crore allocated in the previous year; the Railways’ total revenue is estimated at ₹3,85,733.33 crore, with expenditure of ₹3,82,186.01 crore and a surplus of ₹3,547.32 crore for the current financial year, while out of the total allocation, ₹36,721.55 crore has been earmarked for new track laying, ₹4,600 crore for track doubling works, and ₹37,750 crore for construction of second railway lines and procurement of engines and coaches; the budget has also announced 7 high-speed rail corridors, including Chennai–Bengaluru, Pune–Mysuru, Visakhapatnam–Pune, Visakhapatnam–Chennai, Delhi–Varanasi, and Varanasi–Siliguri, along with projects aimed at improving freight transportation.

Union Budget 2026–27 Presented on a Sunday for the First Time

Union Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2026–27 in Parliament at New Delhi on February 1, delivering a budget speech lasting 85 minutes; this marked her 9th consecutive Budget presentation, and it was the first time in independent India that the Union Budget was presented on a Sunday.

NRIs Allowed to Invest in Indian Stock Markets

In the Union Budget presented on February 1, the Union Government announced that Non-Resident Indians (NRIs) residing abroad will be permitted to invest directly in Indian stock markets under the Portfolio Investment Scheme, enabling investment in Indian companies; under this scheme, the individual investment limit has been increased from 5% to 10%, and the overall investment ceiling across various categories has been raised from 10% to 24%, while such investments can be made by opening accounts in banks authorised by the Reserve Bank of India (RBI).

Economy News

GST Collection in January 2026 Increases to ₹1.93 Lakh Crore

The Goods and Services Tax (GST) collection in January 2026 stood at ₹1.93 lakh crore, recording a 6.2% increase compared to January 2025, when the collection was ₹1.82 lakh crore; as per Central Government data, domestic transactions contributed ₹1.41 lakh crore, showing a 4.8% growth, while GST revenue from imports of goods amounted to ₹52,253 crore, registering a 10.1% increase; the net GST revenue for January rose by 7.6% to ₹1.71 lakh crore, refunds declined by 3.1% to ₹22,665 crore, and cess revenue fell from ₹13,009 crore in January last year to ₹5,786 crore in January 2026.