Tax
Finance Bill, 2026 Proposes Enabling GST Appellate Tribunal To Hear Advance Ruling Appeals
The Finance Bill, 2026, proposes a change in the GST appellate framework that will allow the Goods and Services Tax Appellate Tribunal to hear a limited category of advance ruling appeals. GSTAT will continue to function as the appellate forum for regular GST disputes such as classification, valuation, and input tax credit. The proposed change does not alter this role. Under the GST law, advance rulings are issued by state-level Authorities for Advance Rulings. Appeals lie before the...
Finance Bill 2026 Proposes GST Relief For Intermediaries By Treating Services To Overseas Clients As Exports
The Finance Bill, 2026, proposes a key change in the GST treatment of certain cross-border services, especially those provided by Indian intermediaries to overseas clients. Under the current GST regime, the place of supply for cross-border services is governed by Section 13 of the Integrated Goods and Services Tax (IGST) Act, 2017. This section applies when either the supplier or the recipient of a service is located outside India. At present, Section 13(8)(b) of the IGST Act lays down a...
Budget 2026: No Prosecution For Non-Disclosure Of Foreign Assets Up To ₹20 Lakh Under Black Money Law
The Union Government has proposed easing prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in cases involving non-disclosure of foreign assets, other than immovable property, with an aggregate value of up to ₹20 lakh. Clause 144 of the Finance Bill, 2026, proposes amendments to the provisos of Sections 49 and 50 of the Black Money Act to provide further that the prosecution provisions “shall not apply in respect of an asset or...
Budget 2026-27: No TAN Needed For Resident Buyers To Deduct TDS On Property Purchases From NRIs
As per a proposal in the Union Budget 2026 tabled by Finance Minister Nirmala Sitharaman today, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from a non-resident (NRI) will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) for the purpose of deducting tax at source. Instead, the tax deducted can be deposited using the Permanent Account Number (PAN) of the buyer.The proposal sought to amend Section 397(1)(c) of the Income...
BREAKING | Any Delay In Income Tax Audit Report May Attract ₹75,000 Late Fee, Proposes Finance Bill 2026
A single day's delay in furnishing a tax audit report may attract a fee of ₹75,000 under the proposed Income-tax Act, 2025, as per the scheme set out in the Finance Bill, 2026.The Finance Bill, 2026 was presented in Parliament by Finance Minister Nirmala Sitharaman on Sunday.Under the existing law, failure to comply with tax audit requirements attracted a penalty linked to turnover, capped at ₹1.5 lakh, and the penalty could be waived if the taxpayer showed a reasonable explanation for the...
Union Budget 2026: FM Proposes Rollout Of Customs Integrated System (CIS) In 2 Years
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the rollout of a new Customs Integrated System to overhaul customs processes.“I propose that a Customs Integrated System will be rolled out in two years as a single, integrated and scalable platform for all customs processes,” Sitharaman said. The Finance Minister also announced expanded use of technology for cargo examination. “Utilisation of non-intrusive scanning with advanced imaging and AI technology for risk...
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...