Tax
Budget Proposes 14% Minimum Alternate Tax Final Levy For Companies Opting New Regime From April 2026
The Union Budget 2026–27 on Sunday proposed changes to the Minimum Alternate Tax (MAT) regime applicable to companies, to take effect from April 1, 2026, alongside the implementation of the Income Tax Act, 2025.Presenting the budget, Finance Minister Nirmala Sitharaman said, “I propose to make Minimum Alternate Tax a final tax for companies opting for the new tax regime.”She further announced a reduction in the rate, stating, “The MAT rate is proposed to be reduced to 14 per cent.”The proposal...
Budget 2026-27: Centre Proposes MCA–CBDT Panel To Integrate ICDS Into IndAS
The Union Budget of 2026 has proposed the constitution of a Joint Committee of the Ministry of Corporate Affairs and the Central Board of Direct Taxes (CBDT) to incorporate the requirements of the Income Computation and Disclosure Standards (ICDS) into the Indian Accounting Standards (IndAS)Presently, ICDS governs the computation of taxable income under the Income-tax Act, while IndAS applies to financial reporting by companies. The coexistence of two parallel frameworks has often resulted in...
Budget Proposes Hike In Securities Transaction Tax On Futures And Options
The Union Budget 2026–27 on Sunday proposed an increase in Securities Transaction Tax (STT) on futures and options trades.Presenting the Budget, Finance Minister Nirmala Sitharaman announced higher STT rates for derivative transactions. “I propose to raise the STT on Futures to 0.05 per cent from the present 0.02 per cent,” she said. The Finance Minister also proposed a hike in STT on options. “STT on options premium and exercise of options are both proposed to be raised to 0.15 per cent from...
Budget 2026-27 Proposes Cuts On Customs Duty On Personal Imports, Exempts Cancer Drugs And Rare Disease Medicines
The Union Budget 2026–27 presented on Sunday proposed customs duty relief for personal imports and medicines used in the treatment of serious illnesses.Finance Minister Nirmala Sitharaman said, “To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent.” She also announced healthcare-specific exemptions. “To provide relief to patients, particularly those...
Union Budget 2026–27: Buyback Proceeds To Be Taxed As Capital Gains, Promoters Face Additional Levy
The Union Budget 2026–27 has introduced a significant reform in the taxation of share buybacks by shifting the tax incidence to shareholders and aligning buyback income with the capital gains framework.Under the new proposal, proceeds received by all categories of shareholders, including retail investors, institutional investors, and foreign shareholders from share buybacks will be taxed as capital gains, instead of being subject to a separate buyback distribution tax at the company level. This...
Breaking: Budget 2026–27 Keeps Income Tax Slabs And Standard Deduction Unchanged
Finance Minister Nirmala Sitharaman on Sunday presented her ninth Union Budget since taking charge in 2019, keeping income tax slabs under the new tax regime unchanged from changes made last year The income tax slabs under the new tax regime remain as follows: Income up to ₹4 lakh – Nil ₹4 lakh to ₹8 lakh – 5% ₹8 lakh to ₹12 lakh – 10% ₹12 lakh to ₹16 lakh – 15% ₹16 lakh to ₹20 lakh – 20% ₹20 lakh to ₹24 lakh – 25% Above ₹24 lakh – 30%, plus applicable cess. The standard deduction...
Budget 2026-27 Proposes Penalty Relief, Decriminalisation And Litigation Reduction In Income Tax Law
The Union Budget 2026–27 on Sunday proposed wide-ranging changes to the income tax penalty and prosecution framework, including immunity schemes, decriminalisation of certain offences and procedural measures to reduce litigation.Presenting her direct tax proposals, Finance Minister Nirmala Sitharaman said, “Multiplicity of proceedings are a hindrance to the ease of doing business.” She proposed to “integrate assessment and penalty proceedings by way of a common order for both.” The Finance...
Budget 2026-27 Proposes Sharp Cuts In TCS On Overseas Travel, Education And Medical Remittances
The Union Budget 2026–27 on Sunday also proposed significant reductions in tax collection at source (TCS) rates on overseas travel and certain foreign remittances. Presenting the direct tax proposals, Finance Minister Nirmala Sitharaman announced a cut in TCS on foreign tour packages. “I propose to reduce TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent, without any stipulation of amount,” she said. The Finance Minister also...
Breaking: Interest On Motor Accident Compensation To Be Tax-Free Under Budget Proposal
Interest received on compensation awarded by Motor Accident Claims Tribunals may soon be taken out of the income-tax net. While presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a proposal to exempt such interest from tax and remove the requirement of tax deduction at source. “I propose that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any TDS on this account will be done away with,”...
Customs Duty On Vessels Fixed On Import Date, Not On Foreign To Coastal Run Conversion: Madras High Court
The Madras High Court recently held that customs duty on a vessel is fixed on the date of its import and cannot be reopened later merely because the vessel is converted from foreign-going to coastal run. The court said a later change in how the vessel is operated does not create a fresh tax liability. A bench of Justice Anita Sumanth and Justice Mummineni Sudheer Kumar said the date of import is the only point that matters for determining liability under the customs law. “The critical event in...
Supreme Court Slaps Rs 5 Lakh Costs On Union Govt For Stalling IRS Officer's ITAT Appointment
The Supreme Court on Friday allowed a petition filed by Captain Pramod Kumar Bajaj, a former Indian Revenue Service officer and ex-Army personnel, holding that he was subjected to sustained institutional bias, mala fide conduct and deliberate obstruction by departmental authorities in relation to his appointment as Member (Accountant) of the Income Tax Appellate Tribunal. It also imposed costs of Rs 5 lakh on the Union Government for rank procrastination and deliberate obstruction in his...