Finance Act 2026 changes tax deductions and exemptions for FY27
In short
The Finance Act, 2026 changes income tax deductions and exemptions for Tax Year 2026-27. It gives non-residents an exemption on foreign-source income for five tax years, narrows disability pension relief, and makes compulsory land acquisition income tax-free.
These rules matter for taxpayers and people affected by land acquisition. The reporting does not say how much tax revenue may change or how many people will benefit.
What the reporting says
The Finance Act, 2026 introduces changes to income tax deductions and exemptions for Tax Year 2026-27, including relief for non-resident foreign-source income for five tax years, narrower exemption rules for disability pensions, and tax relief for compulsory land acquisition income. The reporting says the law clarifies earlier ambiguity on some exemptions. What taxpayers will claim in practice and any revenue impact were not stated.
Why it matters
The Finance Act, 2026 changes income tax deductions and exemptions for Tax Year 2026-27. Reported changes include a five-year exemption on foreign-source income for non-resident individuals, a narrower exemption for disability pensions tied to service-related invalidation, and tax exemption for compulsory land acquisition income. The rules affect taxpayers and some landowners, but the reporting does not state the fiscal impact or implementation details.