Following the Union Budget 2026-27 presentation on February 1, the finance ministry released a detailed set of FAQs through the Income Tax Department to clarify how several Budget proposals will work in practice. These clarifications are part of the Finance Bill, 2026 and assume special importance as India prepares to switch to the new Income-tax Act, 2025 from April 1, 2026. While some of these changes might not have attracted immediate public attention, they will have a significant impact on how taxpayers file returns, disclose income, deal with penalties and prosecution, comply with TDS rules, and respond to tax notices in the upcoming financial year.