A Glimpse of Budget 2026

Income Tax

• No change in Income Tax Rates
• New and simpler Income Tax Law to take effect from 01.04.2026
• TCS on overseas payments for:
  • Tourism
  • Education & medical purposes
    Reduced from 5% to 2%
• ITR filing due date for non-audit business taxpayers and trusts extended to 31st August
• ITRs can now be revised up to 31st March (earlier 31st December)
• No TAN required for paying TDS on purchase of immovable property from Non-Residents
• Pre-deposit for filing appeal reduced to 10% of tax demand
• Lower / No TDS deduction certificate can now be applied online, reducing manual interface
• Buyback of shares:
  • Taxed as capital income for shareholders
  • Promoters to pay additional tax
• MAT credit now partially allowed under the New Regime
• MAT treated as final tax for companies at 14%

Indirect Tax

• 90% provisional refund allowed on Inverted Duty Structure refund claims
• Place of Supply (POS) for intermediary services shifted:
  • From location of supplier
  • To location of recipient
    Enabling service providers to claim refund on exports
• GST reduction on post-sale discounts:
  • Linking credit notes with specific invoices removed
  • No prior agreement required to establish the discount
• GST refunds below ₹1,000 can now be claimed for:
  • Exports with payment of tax
    Benefiting small exporters, especially via couriers

Financial Markets

• STT increased:
  • Futures: from 0.02% → 0.05%
  • Option premium: from 0.10% → 0.15%
  • Option exercise: from 0.125% → 0.15%