Business
Union Budget 2026: Five changes in rules that could directly affect you
New Delhi: Union Finance Minister Nirmala Sitharaman delivered presented the Budget 2026 on February 1 in Parliament. At first glance, the announcements seemed limited in impact for the average citizen. Closer analysis, however, reveals several changes that could have consequences across investment, property, digital assets and overseas remittances.
The tax slabs were not changed, but multiple announcements received attention for their long-term effects. One of the changes affects Sovereign Gold Bonds. The government removed the capital gains tax exemption on bonds purchased from secondary markets. Investors will now receive tax benefits only if the bonds were bought directly from the Reserve Bank of India during the primary issuance and held until maturity. Bonds purchased on exchanges and held beyond April 1, 2026, will attract tax on gains.
Another major announcement targets derivatives trading. The government increased the Securities Transaction Tax on futures and options. Futures transactions will now attract a 0.05 percent STT instead of 0.02 percent, while options will see the rate rise to 0.15 percent from 0.10 percent. This change increases the cost of each transaction and directly impacts profits on trading.
The budget also eased property purchase procedures for non-resident Indians (NRIs). Indian buyers acquiring property from NRIs no longer need a separate Tax Deduction and Collection Account Number (TAN) for Tax Deducted at Source (TDS) payments. They can use their PAN number, similar to property purchases from domestic sellers. This simplification reduces paperwork and makes transactions smoother.
Cryptocurrency regulations were tightened. From April 1, 2026, failing to provide accurate crypto transaction information will result in a daily penalty of Rs 200. Providing incorrect data without correcting it can attract fines up to Rs 50,000. This move aims to ensure proper reporting and compliance for digital assets.
Overseas education and medical remittances received relief. The Tax Collected at Source (TCS) on funds sent under the Liberalised Remittance Scheme for education and medical needs exceeding Rs 10 lakh has been reduced from 5 percent to 2 percent. This measure lowers costs for students and patients sending funds abroad.
The TCS is collected by banks or authorised dealers when sending money abroad and is adjusted against the total tax liability during income tax filing. Excess payments are refunded. The Liberalised Remittance Scheme allows Indian residents to send up to $2.5 lakh per year for different purposes, including education, medical treatment, travel, gifts or foreign investment.
These five changes in Union Budget 2026 introduce new rules for gold bonds, derivatives, property purchases from NRIs, cryptocurrencies and foreign remittances. Each announcement has the potential to affect citizens and investors in meaningful ways, highlighting the government’s evolving focus on financial regulation, investment and cross-border transactions.
Business
Long-term borrowing costs in UK reach 28-year high amid rising inflation
Britain’s long-term borrowing costs have surged to their highest level since 1998, driven by escalating inflation worries and political uncertainty ahead of this week’s local elections.
On Tuesday afternoon, the yield on 30-year UK government bonds, known as gilts, hit a 28-year peak, climbing 0.14 percentage points to 5.798%.
This increase in yield signifies a drop in bond prices, as the two move inversely. Consequently, the government faces higher expenses when seeking to borrow from financial markets.
The yield on 10-year gilts also rose, lifting by 0.15 percentage points to 5.122%, though this remains below recent highs reported last month.
In contrast, US 10-year treasury notes were flat on Tuesday, despite a steady increase over recent weeks.
Gilt yields have grown amid growing predictions that the conflict in Iran will drive higher inflation due to spiking energy costs, which is then likely to cause the Bank of England to increase interest rates.
City traders currently expect the central bank to vote for at least two interest rate hikes in the coming months, despite the Bank maintaining the current rate of 3.75% last week.
The rise in gilt yields means the Government will face higher debt interest costs, providing more strain on the Chancellor’s spending powers.
It comes amid a backdrop of significant pressure on Prime Minister Sir Keir Starmer in the run-up to the UK local elections.
The pound was broadly flat at 1.353 versus the dollar on Tuesday.
Business
FDA withdrew studies finding Covid, shingles vaccines were safe
The FDA blocked the publication of several studies supporting the safety of vaccines against Covid and shingles in recent months, a Health and Human Services Department spokesperson confirmed on Tuesday.
It’s the latest effort by the Trump administration to challenge safe and effective shots in the U.S. and make them harder to access for some patients. Under Health and Human Services Secretary Robert F. Kennedy Jr., a prominent vaccine skeptic, federal health agencies have softened Covid shot recommendations, cut back research on vaccine development and attempted to overhaul the childhood immunization schedule, among other efforts.
FDA scientists worked with data firms to analyze millions of patient records for the studies, which found side effects of the shots to be rare, the New York Times first reported on Tuesday.
In October, the scientists were directed to withdraw two Covid shot studies that had been accepted for publication in medical journals, the Times reported. In February, top FDA officials did not sign off on submitting study abstracts on Shingrix, a shingles vaccine, to a drug safety conference, the paper added.
The HHS spokesperson told CNBC the recent studies were “withdrawn because the authors drew broad conclusions that were not supported by the underlying data.”
“The FDA acted to protect the integrity of its scientific process and ensure that any work associated with the agency meets its high standards,” they added.
When asked about the shingles vaccine research, the HHS spokesperson said the design of that study “fell outside the agency’s purview.”
Business
Spirit starts monthslong process of dismantling airline after biggest collapse in a generation
Spirit Airlines‘ more than three-decade run ended over the weekend, but on Tuesday it was just starting the monthslong process of dismantling the company after the biggest U.S. airline collapse in a generation.
Spirit and its stakeholders were in bankruptcy court in White Plains, New York, to start that process, which will take months. The hearing included discussions about airport landing fees, aircraft and staffing.
The carrier filed a cumulative wind-down budget of around $217 million, though that number could change.
The budget went out to February 2028. It included more than $52 million in employee costs through July and another more than $52 million for aircraft-related expenses.
The airline had 59 Airbus A320s in service and 63 in storage, as well as 37 of the larger A321s in service, and 13 of them in storage, according to aviation data firm Cirium. More than three-quarters of its fleet was leased.
Spirit shut down operations after years of struggles, most recently from heavy debt loads and a surge in costs.
Spirit’s lawyer, Marshall Huebner of Davis Polk, told a bankruptcy court on Tuesday that the jump in jet fuel prices following the U.S.-Israel attacks on Iran in February left the carrier with no choice but to shut down. That added $100 million in incremental costs for Spirit in March and April, he said.
U.S. bankruptcy court in White Plains, N.Y.
Leslie Josephs/CNBC
Talks for a potential government bailout in the form of a $500 million loan that could have given the government an up to 90% stake in Spirit fell apart late last week, and the carrier officially shut down at 3 a.m. ET on Saturday.
Spirit passengers scrambled to rebook reservations. American Airlines, JetBlue Airways, Southwest Airlines, United Airlines and others said they have flown tens of thousands of Spirit customers who were stranded by the collapse.
Spirit had flown about 50,000 people in the day leading up to its closure. The airline said about 17,000 direct and indirect employees lost their jobs.
“The closing of Spirit Airlines is a sad and unfortunate event that adversely affects many parties, and that’s particularly true for the thousands of folks who are Spirit employees and families who depend on them,” the presiding judge, Sean Lane, said at Tuesday’s hearing.
“The stress level for these employees and affinities is very high, and they likely have many questions,” he continued. “Hopefully there’ll be some information discussed today to provide some answers to some of those questions, or provides information about where to get those answers. Bankruptcy can be a very difficult process, and today is a sad example of that.”
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