{"id":10025,"date":"2026-02-07T19:23:35","date_gmt":"2026-02-07T19:23:35","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10025"},"modified":"2026-02-07T19:38:48","modified_gmt":"2026-02-07T19:38:48","slug":"union-budget-2026-direct-tax-changes-explained","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/","title":{"rendered":"Union Budget 2026 \u2013 Direct Tax Changes Explained"},"content":{"rendered":"<h2 data-start=\"277\" data-end=\"317\"><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69da6d25c798d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69da6d25c798d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Union_Budget_2026%E2%80%94Direct_Tax_Changes_Explained\" title=\"Union Budget 2026\u2014Direct Tax Changes Explained\">Union Budget 2026\u2014Direct Tax Changes Explained<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Capital_Markets_%E2%80%93_STT_Hike_on_F_O\" title=\"Capital Markets \u2013 STT Hike on F&amp;O\">Capital Markets \u2013 STT Hike on F&amp;O<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#What_changed\" title=\"What changed\">What changed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Policy_intent\" title=\"Policy intent\">Policy intent<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Return_Filing_Compliance_%E2%80%93_Timeline_Rationalisation\" title=\"Return Filing &amp; Compliance \u2013 Timeline Rationalisation\">Return Filing &amp; Compliance \u2013 Timeline Rationalisation<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Changes\" title=\"Changes\">Changes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#MAT_Regime_%E2%80%93_Structural_Overhaul_Big_One\" title=\"MAT Regime \u2013 Structural Overhaul (Big One)\">MAT Regime \u2013 Structural Overhaul (Big One)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Whats_new\" title=\"What\u2019s new\">What\u2019s new<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Why_government_did_this\" title=\"Why government did this\">Why government did this<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Buyback_of_Shares_%E2%80%93_Tax_Shift_to_Capital_Gains\" title=\"Buyback of Shares \u2013 Tax Shift to Capital Gains\">Buyback of Shares \u2013 Tax Shift to Capital Gains<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Old_system\" title=\"Old system\">Old system<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#New_system\" title=\"New system\">New system<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Rationale\" title=\"Rationale\">Rationale<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Foreign_Asset_Disclosure_%E2%80%93_One-Time_Compliance_Window_6_Months\" title=\"Foreign Asset Disclosure \u2013 One-Time Compliance Window (6 Months)\">Foreign Asset Disclosure \u2013 One-Time Compliance Window (6 Months)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Category_A_%E2%80%93_Serious_but_Small\" title=\"Category A \u2013 Serious but Small\">Category A \u2013 Serious but Small<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Category_B_%E2%80%93_Reporting_Lapse\" title=\"Category B \u2013 Reporting Lapse\">Category B \u2013 Reporting Lapse<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Big_signal\" title=\"Big signal\">Big signal<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#_Reliefs_Exemptions%E2%80%94Quiet_but_Impactful\" title=\"\u00a0Reliefs &amp; Exemptions\u2014Quiet but Impactful\">\u00a0Reliefs &amp; Exemptions\u2014Quiet but Impactful<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Key_reliefs\" title=\"Key reliefs\">Key reliefs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Impact\" title=\"Impact\">Impact<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#TDS_Procedural_Changes%E2%80%94Compliance_Friendly\" title=\"TDS &amp; Procedural Changes\u2014Compliance Friendly\">TDS &amp; Procedural Changes\u2014Compliance Friendly<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Highlights\" title=\"Highlights\">Highlights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Why_this_matters\" title=\"Why this matters\">Why this matters<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Litigation_Penalty_Reforms%E2%80%94Pro-Taxpayer_Tilt\" title=\"Litigation &amp; Penalty Reforms\u2014Pro-Taxpayer Tilt\">Litigation &amp; Penalty Reforms\u2014Pro-Taxpayer Tilt<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Key_reforms\" title=\"Key reforms\">Key reforms<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Decriminalisation_%E2%80%93_Cultural_Shift\" title=\"Decriminalisation \u2013 Cultural Shift\">Decriminalisation \u2013 Cultural Shift<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Changes-2\" title=\"Changes\">Changes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Sector-Specific_Incentives%E2%80%94Growth_Focused\" title=\"Sector-Specific Incentives\u2014Growth Focused\">Sector-Specific Incentives\u2014Growth Focused<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Major_incentives\" title=\"Major incentives\">Major incentives<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Union_Budget_2026_%E2%80%93_Revised_Due_Dates_for_Filing_of_ITR\" title=\"Union Budget 2026 \u2013 Revised Due Dates for Filing of ITR\">Union Budget 2026 \u2013 Revised Due Dates for Filing of ITR<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Late_Fee_for_BelatedRevised_Returns\" title=\"Late Fee for Belated\/Revised Returns\">Late Fee for Belated\/Revised Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Cash_Transaction_Limit_as_per_New_Income_Tax_Act_2025_to_be_effective_from_1st_April_2026\" title=\"Cash Transaction Limit as per New Income Tax Act, 2025, to be effective from 1st April 2026\">Cash Transaction Limit as per New Income Tax Act, 2025, to be effective from 1st April 2026<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Rationalisation_and_Alignment_of_Select_Provisions\" title=\"Rationalisation and Alignment of Select Provisions\">Rationalisation and Alignment of Select Provisions<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Income_Tax_Act_2025_vis-a-vis_Income_Tax_Act_1961\" title=\"Income Tax Act, 2025, vis-\u00e0-vis Income Tax Act, 1961 :\u00a0\">Income Tax Act, 2025, vis-\u00e0-vis Income Tax Act, 1961 :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Annual_Value_of_Property_Held_as_Stock-in-Trade\" title=\"Annual Value of Property Held as Stock-in-Trade\">Annual Value of Property Held as Stock-in-Trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Practical_impact\" title=\"Practical impact\">Practical impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Deduction_for_Interest_on_Borrowed_Capital_%E2%80%93_Self-Occupied_Property\" title=\"Deduction for Interest on Borrowed Capital \u2013 Self-Occupied Property\">Deduction for Interest on Borrowed Capital \u2013 Self-Occupied Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Practical_impact-2\" title=\"Practical impact\">Practical impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Power_to_Prescribe_PAN_Quoting_Requirements\" title=\"Power to Prescribe PAN Quoting Requirements\">Power to Prescribe PAN Quoting Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Practical_impact-3\" title=\"Practical impact\">Practical impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.caindelhiindia.com\/blog\/union-budget-2026-direct-tax-changes-explained\/#Examples_of_likely_coverage\" title=\"Examples of likely coverage\">Examples of likely coverage<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"277\" data-end=\"317\"><span class=\"ez-toc-section\" id=\"Union_Budget_2026%E2%80%94Direct_Tax_Changes_Explained\"><\/span><span style=\"color: #000080;\">Union Budget 2026\u2014Direct Tax Changes Explained<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2 data-start=\"277\" data-end=\"317\"><span class=\"ez-toc-section\" id=\"Capital_Markets_%E2%80%93_STT_Hike_on_F_O\"><\/span><span style=\"color: #000080;\">Capital Markets \u2013 STT Hike on F&amp;O<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"319\" data-end=\"335\"><span class=\"ez-toc-section\" id=\"What_changed\"><\/span><span style=\"color: #000080;\">What changed<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"TyagGW_tableContainer\">\n<div class=\"group TyagGW_tableWrapper flex flex-col-reverse w-fit\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 220px;\" width=\"1035\" data-start=\"336\" data-end=\"502\">\n<thead data-start=\"336\" data-end=\"370\">\n<tr data-start=\"336\" data-end=\"370\">\n<th class=\"\" data-start=\"336\" data-end=\"349\" data-col-size=\"sm\">Instrument<\/th>\n<th class=\"\" data-start=\"349\" data-end=\"359\" data-col-size=\"sm\">Old STT<\/th>\n<th class=\"\" data-start=\"359\" data-end=\"370\" data-col-size=\"sm\">New STT<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"385\" data-end=\"502\">\n<tr data-start=\"385\" data-end=\"416\">\n<td data-start=\"385\" data-end=\"395\" data-col-size=\"sm\">Futures<\/td>\n<td data-col-size=\"sm\" data-start=\"395\" data-end=\"403\">0.02%<\/td>\n<td data-col-size=\"sm\" data-start=\"403\" data-end=\"416\"><strong data-start=\"405\" data-end=\"414\">0.05%<\/strong><\/td>\n<\/tr>\n<tr data-start=\"417\" data-end=\"458\">\n<td data-start=\"417\" data-end=\"437\" data-col-size=\"sm\">Options (premium)<\/td>\n<td data-col-size=\"sm\" data-start=\"437\" data-end=\"445\">0.10%<\/td>\n<td data-col-size=\"sm\" data-start=\"445\" data-end=\"458\"><strong data-start=\"447\" data-end=\"456\">0.15%<\/strong><\/td>\n<\/tr>\n<tr data-start=\"459\" data-end=\"502\">\n<td data-start=\"459\" data-end=\"480\" data-col-size=\"sm\">Options (exercise)<\/td>\n<td data-col-size=\"sm\" data-start=\"480\" data-end=\"489\">0.125%<\/td>\n<td data-col-size=\"sm\" data-start=\"489\" data-end=\"502\"><strong data-start=\"491\" data-end=\"500\">0.15%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h3 data-start=\"504\" data-end=\"521\"><span class=\"ez-toc-section\" id=\"Policy_intent\"><\/span><span style=\"color: #000080;\">Policy intent<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"522\" data-end=\"675\">\n<li data-start=\"522\" data-end=\"564\">\n<p data-start=\"524\" data-end=\"564\">Discourage excessive speculative trading<\/p>\n<\/li>\n<li data-start=\"565\" data-end=\"628\">\n<p data-start=\"567\" data-end=\"628\">Increase non-distortionary revenue (STT is simple to collect)<\/p>\n<\/li>\n<li data-start=\"629\" data-end=\"675\">\n<p data-start=\"631\" data-end=\"675\">Push traders towards longer-term instruments<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"677\" data-end=\"697\">Practical impact : High-frequency traders &amp; intraday F&amp;O traders<span style=\"font-size: 16px;\"> take a direct hit, <\/span><span style=\"font-size: 16px;\">Algo trading margins shrink materially &amp; <\/span><span style=\"font-size: 16px;\">Retail traders will see higher breakeven costs<\/span><\/p>\n<p data-start=\"859\" data-end=\"874\">CA takeaway : Expect lower volumes, higher churn costs, and more disputes on business vs capital gains classification.<\/p>\n<h2 data-start=\"993\" data-end=\"1053\"><span class=\"ez-toc-section\" id=\"Return_Filing_Compliance_%E2%80%93_Timeline_Rationalisation\"><\/span><span style=\"color: #000080;\">Return Filing &amp; Compliance \u2013 Timeline Rationalisation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"1055\" data-end=\"1066\"><span class=\"ez-toc-section\" id=\"Changes\"><\/span><span style=\"color: #000080;\">Changes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1067\" data-end=\"1284\">\n<li data-start=\"1067\" data-end=\"1172\">\n<p data-start=\"1069\" data-end=\"1092\">Staggered due dates<\/p>\n<ul data-start=\"1095\" data-end=\"1172\">\n<li data-start=\"1095\" data-end=\"1124\">\n<p data-start=\"1097\" data-end=\"1124\">ITR-1 &amp; ITR-2 \u2192 31 July<\/p>\n<\/li>\n<li data-start=\"1127\" data-end=\"1172\">\n<p data-start=\"1129\" data-end=\"1172\">Non-audit business &amp; trusts \u2192 31 August<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"1173\" data-end=\"1215\">\n<p data-start=\"1175\" data-end=\"1215\">Revised return allowed till 31 March<\/p>\n<\/li>\n<li data-start=\"1216\" data-end=\"1284\">\n<p data-start=\"1218\" data-end=\"1284\">Updated return allowed even after reassessment (with +10% tax)<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1286\" data-end=\"1306\">Why this matters: <span style=\"font-size: 16px;\">Portal load management, <\/span><span style=\"font-size: 16px;\">More realistic compliance windows &amp; <\/span><span style=\"font-size: 16px;\">Encourages voluntary correction instead of litigation<\/span><\/p>\n<p data-start=\"1425\" data-end=\"1447\">Hidden implication : <span style=\"font-size: 16px;\">Updated return is now a <\/span>post-assessment escape route<span style=\"font-size: 16px;\">, but <\/span>costlier<\/p>\n<p data-start=\"1526\" data-end=\"1542\">Action point : Advisable to revise early rather than rely on updated return (tax cost escalates).<\/p>\n<h3 data-start=\"1543\" data-end=\"1632\"><span class=\"ez-toc-section\" id=\"MAT_Regime_%E2%80%93_Structural_Overhaul_Big_One\"><\/span><span style=\"color: #000080;\">MAT Regime \u2013 Structural Overhaul (Big One)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 data-start=\"1690\" data-end=\"1704\"><span class=\"ez-toc-section\" id=\"Whats_new\"><\/span><span style=\"color: #000080;\">What\u2019s new<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1705\" data-end=\"1921\">\n<li data-start=\"1705\" data-end=\"1754\">\n<p data-start=\"1707\" data-end=\"1754\">MAT becomes final tax from 1 April 2026<\/p>\n<\/li>\n<li data-start=\"1755\" data-end=\"1784\">\n<p data-start=\"1757\" data-end=\"1784\">Rate reduced: 15% \u2192 14%<\/p>\n<\/li>\n<li data-start=\"1785\" data-end=\"1858\">\n<p data-start=\"1787\" data-end=\"1798\">MAT credit: Restricted &amp; Usable only under new tax regime<\/p>\n<\/li>\n<li data-start=\"1859\" data-end=\"1921\">\n<p data-start=\"1861\" data-end=\"1921\">Non-residents under presumptive taxation exempt from MAT<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1923\" data-end=\"1950\"><span class=\"ez-toc-section\" id=\"Why_government_did_this\"><\/span><span style=\"color: #000080;\">Why government did this<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1951\" data-end=\"2064\">\n<li data-start=\"1951\" data-end=\"2007\">\n<p data-start=\"1953\" data-end=\"2007\">MAT was meant as a backstop, not a parallel tax system<\/p>\n<\/li>\n<li data-start=\"2008\" data-end=\"2064\">\n<p data-start=\"2010\" data-end=\"2064\">Huge MAT credit balances were distorting tax certainty<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2066\" data-end=\"2078\">Who wins : New-regime companies &amp; Foreign presumptive taxpayers<\/p>\n<p data-start=\"2141\" data-end=\"2154\">Who loses : Companies sitting on large MAT credit &amp; Old-regime corporates<\/p>\n<p data-start=\"2224\" data-end=\"2239\">CA strategy : \u00a0Recompute long-term effective tax rate now &amp; MAT credit planning becomes critical before FY 2026-27<\/p>\n<h2 data-start=\"2356\" data-end=\"2409\"><span class=\"ez-toc-section\" id=\"Buyback_of_Shares_%E2%80%93_Tax_Shift_to_Capital_Gains\"><\/span><span style=\"color: #000080;\">Buyback of Shares \u2013 Tax Shift to Capital Gains<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"2411\" data-end=\"2425\"><span class=\"ez-toc-section\" id=\"Old_system\"><\/span>Old system<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"2426\" data-end=\"2474\">\n<li data-start=\"2426\" data-end=\"2452\">\n<p data-start=\"2428\" data-end=\"2452\">Company paid buyback tax<\/p>\n<\/li>\n<li data-start=\"2453\" data-end=\"2474\">\n<p data-start=\"2455\" data-end=\"2474\">Shareholders exempt<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"2476\" data-end=\"2490\"><span class=\"ez-toc-section\" id=\"New_system\"><\/span>New system<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"2491\" data-end=\"2629\">\n<li data-start=\"2491\" data-end=\"2550\">\n<p data-start=\"2493\" data-end=\"2550\">Buyback taxed as capital gains in shareholders\u2019 hands<\/p>\n<\/li>\n<li data-start=\"2551\" data-end=\"2629\">\n<p data-start=\"2553\" data-end=\"2585\">Additional tax on promoters:<\/p>\n<ul data-start=\"2588\" data-end=\"2629\">\n<li data-start=\"2588\" data-end=\"2605\">\n<p data-start=\"2590\" data-end=\"2605\">22% (corporate)<\/p>\n<\/li>\n<li data-start=\"2608\" data-end=\"2629\">\n<p data-start=\"2610\" data-end=\"2629\">30% (non-corporate)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"2631\" data-end=\"2644\"><span class=\"ez-toc-section\" id=\"Rationale\"><\/span>Rationale<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"2645\" data-end=\"2729\">\n<li data-start=\"2645\" data-end=\"2682\">\n<p data-start=\"2647\" data-end=\"2682\">Prevent tax-free exit for promoters<\/p>\n<\/li>\n<li data-start=\"2683\" data-end=\"2729\">\n<p data-start=\"2685\" data-end=\"2729\">Align with dividend \/ capital gains symmetry<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2731\" data-end=\"2746\">Real impact : <span style=\"font-size: 16px;\">Promoter-led buybacks become <\/span>expensive, <span style=\"font-size: 16px;\">Listed companies may prefer <\/span>dividends<span style=\"font-size: 16px;\"> over buybacks<\/span><\/p>\n<p data-start=\"2851\" data-end=\"2868\">Advisory note : \u00a0Revisit capital structure &amp; exit planning, especially PE-backed entities.<\/p>\n<h2 data-start=\"2956\" data-end=\"3027\"><span class=\"ez-toc-section\" id=\"Foreign_Asset_Disclosure_%E2%80%93_One-Time_Compliance_Window_6_Months\"><\/span><span style=\"color: #000080;\">Foreign Asset Disclosure \u2013 One-Time Compliance Window (6 Months)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One-time 6-month Foreign Asset Disclosure Scheme (for small taxpayers like students, young pros, NRIs)<br \/>\n\ud83d\udd38 Category A (undisclosed income\/assets \u2264 \u20b91 Cr): Pay 30% tax + 30% penalty \u2192 full immunity from prosecution<br \/>\n\ud83d\udd38 Category B (disclosed but not reported \u2264 \u20b95 Cr): Flat \u20b91 lakh fee \u2192 full immunity<br \/>\n\ud83d\udd38 Retrospective immunity for small undisclosed foreign assets (&lt; \u20b920 lakh)<\/p>\n<h3 data-start=\"3029\" data-end=\"3063\"><span class=\"ez-toc-section\" id=\"Category_A_%E2%80%93_Serious_but_Small\"><\/span><span style=\"color: #000080;\">Category A \u2013 Serious but Small<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3064\" data-end=\"3162\">\n<li data-start=\"3064\" data-end=\"3098\">\n<p data-start=\"3066\" data-end=\"3098\">Undisclosed asset\/income \u2264 \u20b91 Cr<\/p>\n<\/li>\n<li data-start=\"3099\" data-end=\"3130\">\n<p data-start=\"3101\" data-end=\"3130\">Tax: 30% + 30% additional tax<\/p>\n<\/li>\n<li data-start=\"3131\" data-end=\"3162\">\n<p data-start=\"3133\" data-end=\"3162\">Immunity from prosecution<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"3164\" data-end=\"3196\"><span class=\"ez-toc-section\" id=\"Category_B_%E2%80%93_Reporting_Lapse\"><\/span><span style=\"color: #000080;\">Category B \u2013 Reporting Lapse<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3197\" data-end=\"3277\">\n<li data-start=\"3197\" data-end=\"3239\">\n<p data-start=\"3199\" data-end=\"3239\">Asset disclosed but not reported \u2264 \u20b95 Cr<\/p>\n<\/li>\n<li data-start=\"3240\" data-end=\"3257\">\n<p data-start=\"3242\" data-end=\"3257\">Pay \u20b91 lakh<\/p>\n<\/li>\n<li data-start=\"3258\" data-end=\"3277\">\n<p data-start=\"3260\" data-end=\"3277\">Full immunity<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"3279\" data-end=\"3293\"><span class=\"ez-toc-section\" id=\"Big_signal\"><\/span><span style=\"color: #000080;\">Big signal<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3294\" data-end=\"3388\">\n<li data-start=\"3294\" data-end=\"3341\">\n<p data-start=\"3296\" data-end=\"3341\">The government wants clean-up, not punishment<\/p>\n<\/li>\n<li data-start=\"3342\" data-end=\"3388\">\n<p data-start=\"3344\" data-end=\"3388\">Last opportunity before stricter enforcement<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"3390\" data-end=\"3411\">CA responsibility : \u00a0Strong due diligence for NRI\/HNI clients; miss\u00a0this window \u2192 criminal exposure later<\/p>\n<h2 data-start=\"3516\" data-end=\"3565\"><span class=\"ez-toc-section\" id=\"_Reliefs_Exemptions%E2%80%94Quiet_but_Impactful\"><\/span>\u00a0<span style=\"color: #000080;\">Reliefs &amp; Exemptions\u2014Quiet but Impactful<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"3567\" data-end=\"3582\"><span class=\"ez-toc-section\" id=\"Key_reliefs\"><\/span>Key reliefs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3583\" data-end=\"3765\">\n<li data-start=\"3583\" data-end=\"3623\">\n<p data-start=\"3585\" data-end=\"3623\">MACT interest fully exempt, no TDS<\/p>\n<\/li>\n<li data-start=\"3624\" data-end=\"3765\">\n<p data-start=\"3626\" data-end=\"3643\">TCS rationalized:<\/p>\n<ul data-start=\"3646\" data-end=\"3765\">\n<li data-start=\"3646\" data-end=\"3675\">\n<p data-start=\"3648\" data-end=\"3675\">Overseas tour \u2192 5% \u2192 2%<\/p>\n<\/li>\n<li data-start=\"3678\" data-end=\"3714\">\n<p data-start=\"3680\" data-end=\"3714\">Education &amp; medical (LRS) \u2192 2%<\/p>\n<\/li>\n<li data-start=\"3717\" data-end=\"3765\">\n<p data-start=\"3719\" data-end=\"3765\">Liquor, scrap, minerals, tendu leaves \u2192 2%<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"3767\" data-end=\"3777\"><span class=\"ez-toc-section\" id=\"Impact\"><\/span><span style=\"color: #000080;\">Impact<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3778\" data-end=\"3834\">\n<li data-start=\"3778\" data-end=\"3806\">\n<p data-start=\"3780\" data-end=\"3806\">Reduces cash-flow blockage<\/p>\n<\/li>\n<li data-start=\"3807\" data-end=\"3834\">\n<p data-start=\"3809\" data-end=\"3834\">Simplifies reconciliation<\/p>\n<\/li>\n<\/ul>\n<h2 data-start=\"3841\" data-end=\"3894\"><span class=\"ez-toc-section\" id=\"TDS_Procedural_Changes%E2%80%94Compliance_Friendly\"><\/span><span style=\"color: #000080;\">TDS &amp; Procedural Changes\u2014Compliance Friendly<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"3896\" data-end=\"3910\"><span class=\"ez-toc-section\" id=\"Highlights\"><\/span><span style=\"color: #000080;\">Highlights<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"3911\" data-end=\"4146\">\n<li data-start=\"3911\" data-end=\"3977\">\n<p data-start=\"3913\" data-end=\"3955\">Manpower services treated as contract: TDS @ <strong data-start=\"3966\" data-end=\"3977\">1% \/ 2%<\/strong><\/p>\n<\/li>\n<li data-start=\"3978\" data-end=\"4032\">\n<p data-start=\"3980\" data-end=\"4032\">No TAN required for TDS on NRI property purchase<\/p>\n<\/li>\n<li data-start=\"4033\" data-end=\"4095\">\n<p data-start=\"4035\" data-end=\"4095\">Automated lower\/nil TDS certificates for small taxpayers<\/p>\n<\/li>\n<li data-start=\"4096\" data-end=\"4146\">\n<p data-start=\"4098\" data-end=\"4146\">Single Form 15G \/ 15H for multiple companies<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"4148\" data-end=\"4168\"><span class=\"ez-toc-section\" id=\"Why_this_matters\"><\/span><span style=\"color: #000080;\">Why this matters<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4169\" data-end=\"4264\">\n<li data-start=\"4169\" data-end=\"4214\">\n<p data-start=\"4171\" data-end=\"4214\">Removes long-standing practical pain points<\/p>\n<\/li>\n<li data-start=\"4215\" data-end=\"4264\">\n<p data-start=\"4217\" data-end=\"4264\">Huge relief for individuals buying NRI property<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4266\" data-end=\"4279\"><span style=\"color: #000080;\"><strong>CA impact : \u00a0Less paperwork, faster onboarding, fewer defaults<\/strong><\/span><\/p>\n<h2 data-start=\"4339\" data-end=\"4394\"><span class=\"ez-toc-section\" id=\"Litigation_Penalty_Reforms%E2%80%94Pro-Taxpayer_Tilt\"><\/span><span style=\"color: #000080;\">Litigation &amp; Penalty Reforms\u2014Pro-Taxpayer Tilt<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"4396\" data-end=\"4411\"><span class=\"ez-toc-section\" id=\"Key_reforms\"><\/span><span style=\"color: #000080;\">Key reforms<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4412\" data-end=\"4612\">\n<li data-start=\"4412\" data-end=\"4464\">\n<p data-start=\"4414\" data-end=\"4464\">Single combined order for assessment + penalty<\/p>\n<\/li>\n<li data-start=\"4465\" data-end=\"4507\">\n<p data-start=\"4467\" data-end=\"4507\">No interest on penalty during appeal<\/p>\n<\/li>\n<li data-start=\"4508\" data-end=\"4549\">\n<p data-start=\"4510\" data-end=\"4549\">Pre-deposit for appeal \u2192 20% to 10%<\/p>\n<\/li>\n<li data-start=\"4550\" data-end=\"4612\">\n<p data-start=\"4552\" data-end=\"4612\">Immunity extended to misreporting (with 100% additional tax)<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4614\" data-end=\"4628\">Net effect: <span style=\"font-size: 16px;\">Faster closure, <\/span><span style=\"font-size: 16px;\">Lower litigation pressure &amp; <\/span><span style=\"font-size: 16px;\">More predictable outcomes<\/span><\/p>\n<h2 data-start=\"4708\" data-end=\"4749\"><span class=\"ez-toc-section\" id=\"Decriminalisation_%E2%80%93_Cultural_Shift\"><\/span><span style=\"color: #000080;\">Decriminalisation \u2013 Cultural Shift<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"4751\" data-end=\"4762\"><span class=\"ez-toc-section\" id=\"Changes-2\"><\/span>Changes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4763\" data-end=\"4978\">\n<li data-start=\"4763\" data-end=\"4839\">\n<p data-start=\"4765\" data-end=\"4795\">Minor offences decriminalised:<\/p>\n<ul data-start=\"4798\" data-end=\"4839\">\n<li data-start=\"4798\" data-end=\"4823\">\n<p data-start=\"4800\" data-end=\"4823\">Non-production of books<\/p>\n<\/li>\n<li data-start=\"4826\" data-end=\"4839\">\n<p data-start=\"4828\" data-end=\"4839\">TDS in kind<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"4840\" data-end=\"4880\">\n<p data-start=\"4842\" data-end=\"4880\">Max imprisonment capped at 2 years<\/p>\n<\/li>\n<li data-start=\"4881\" data-end=\"4911\">\n<p data-start=\"4883\" data-end=\"4911\">Courts can levy fine instead<\/p>\n<\/li>\n<li data-start=\"4912\" data-end=\"4978\">\n<p data-start=\"4914\" data-end=\"4978\">Retrospective immunity for small foreign assets (&lt; \u20b920 lakh)<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4980\" data-end=\"4990\">Signal : \u00a0Compliance &gt; Criminalisation<\/p>\n<h2 data-start=\"5033\" data-end=\"5082\"><span class=\"ez-toc-section\" id=\"Sector-Specific_Incentives%E2%80%94Growth_Focused\"><\/span><span style=\"color: #000080;\">Sector-Specific Incentives\u2014Growth Focused<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"5084\" data-end=\"5104\"><span class=\"ez-toc-section\" id=\"Major_incentives\"><\/span>Major incentives<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"5105\" data-end=\"5522\">\n<li data-start=\"5105\" data-end=\"5160\">\n<p data-start=\"5107\" data-end=\"5160\">Tax holiday till <strong data-start=\"5124\" data-end=\"5132\">2047<\/strong> for foreign cloud companies<\/p>\n<\/li>\n<li data-start=\"5161\" data-end=\"5202\">\n<p data-start=\"5163\" data-end=\"5202\">Deduction for cattle feed &amp; cotton seed<\/p>\n<\/li>\n<li data-start=\"5203\" data-end=\"5264\">\n<p data-start=\"5205\" data-end=\"5264\">Inter-cooperative dividends deductible if passed to members<\/p>\n<\/li>\n<li data-start=\"5265\" data-end=\"5321\">\n<p data-start=\"5267\" data-end=\"5321\">3-year dividend exemption for notified national co-ops<\/p>\n<\/li>\n<li data-start=\"5322\" data-end=\"5418\">\n<p data-start=\"5324\" data-end=\"5345\">Safe harbour margins:<\/p>\n<ul data-start=\"5348\" data-end=\"5418\">\n<li data-start=\"5348\" data-end=\"5380\">\n<p data-start=\"5350\" data-end=\"5380\">Data centre services \u2192 <strong data-start=\"5373\" data-end=\"5380\">15%<\/strong><\/p>\n<\/li>\n<li data-start=\"5383\" data-end=\"5418\">\n<p data-start=\"5385\" data-end=\"5418\">Bonded warehouse storage \u2192 <strong data-start=\"5412\" data-end=\"5418\">2%<\/strong><\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"5419\" data-end=\"5522\">\n<p data-start=\"5421\" data-end=\"5438\">5-year exemption:<\/p>\n<ul data-start=\"5441\" data-end=\"5522\">\n<li data-start=\"5441\" data-end=\"5479\">\n<p data-start=\"5443\" data-end=\"5479\">Tools supplied to toll manufacturers<\/p>\n<\/li>\n<li data-start=\"5482\" data-end=\"5522\">\n<p data-start=\"5484\" data-end=\"5522\">Foreign income of non-resident experts<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p data-start=\"5524\" data-end=\"5540\">Macro intent: <span style=\"font-size: 16px;\">Push <\/span>manufacturing, infra, agri, and digital infrastructure<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Union_Budget_2026_%E2%80%93_Revised_Due_Dates_for_Filing_of_ITR\"><\/span><span style=\"color: #000080;\">Union Budget 2026 \u2013 Revised Due Dates for Filing of ITR<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>Category-wise compliance calendar for AY 2026\u201327: \u00a0ITR Due Dates \u2013 Category Wise<\/strong><\/span><\/p>\n<ul>\n<li>Individuals (ITR-1 &amp; ITR-2) : \u00a031 July 2026<\/li>\n<li>Non-audit business cases &amp; Trusts : 31 August 2026<\/li>\n<li>Businesses requiring a tax audit: 31 October 2026<\/li>\n<li>Cases requiring a transfer pricing report: 30 November 2026<\/li>\n<li>Belated \/ Revised \/ Updated Returns : \u00a0Revised \/ Belated Return : \u00a031 March 2026 (subject to nominal late fee)<\/li>\n<li>Updated Return (ITR-U) : \u00a031 March 2031<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Late_Fee_for_BelatedRevised_Returns\"><\/span><span style=\"color: #000080;\">Late Fee for Belated\/Revised Returns<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Total Income up to \u20b95,00,000 : \u00a0\u20b91,000<\/li>\n<li>Total Income exceeding \u20b95,00,000 : \u00a0\u20b95,000<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Transaction_Limit_as_per_New_Income_Tax_Act_2025_to_be_effective_from_1st_April_2026\"><\/span><span style=\"color: #000080;\"><strong>Cash Transaction Limit as per New Income Tax Act, 2025, to be effective from 1st April 2026<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10026\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/02\/Cash-Transaction-Limit.jpg\" alt=\"Cash Transaction Limit\" width=\"1123\" height=\"779\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/02\/Cash-Transaction-Limit.jpg 915w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/02\/Cash-Transaction-Limit-300x208.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/02\/Cash-Transaction-Limit-768x533.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/02\/Cash-Transaction-Limit-800x555.jpg 800w\" sizes=\"(max-width: 1123px) 100vw, 1123px\" \/><\/p>\n<h2 data-start=\"315\" data-end=\"369\"><span class=\"ez-toc-section\" id=\"Rationalisation_and_Alignment_of_Select_Provisions\"><\/span><span style=\"color: #000080;\">Rationalisation and Alignment of Select Provisions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"370\" data-end=\"425\"><span class=\"ez-toc-section\" id=\"Income_Tax_Act_2025_vis-a-vis_Income_Tax_Act_1961\"><\/span><span style=\"color: #000080;\"><strong data-start=\"370\" data-end=\"425\">Income Tax Act, 2025, vis-\u00e0-vis Income Tax Act, 1961 :\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"370\" data-end=\"425\">The proposed amendments aim to remove drafting ambiguities, prevent interpretational disputes, and ensure continuity with settled law under the 1961 Act. None of these changes introduce a new levy; they clarify the scope and mechanics of existing provisions.<\/p>\n<h3 data-start=\"704\" data-end=\"760\"><span class=\"ez-toc-section\" id=\"Annual_Value_of_Property_Held_as_Stock-in-Trade\"><\/span><span style=\"color: #000080;\">Annual Value of Property Held as Stock-in-Trade<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"761\" data-end=\"778\">Section 21(5):\u00a0Existing position under IT Act, 2025 : <span style=\"font-size: 16px;\">Section 21(5) provides relief for <\/span>unsold property held as stock-in-trade<span style=\"font-size: 16px;\"> by real estate developers. <\/span><span style=\"font-size: 16px;\">However, the provision does <\/span>not clearly specify the starting point<span style=\"font-size: 16px;\"> of the period for which annual value shall be taken as nil.<\/span><\/p>\n<p data-start=\"1061\" data-end=\"1092\">Position under IT Act, 1961 : <span style=\"font-size: 16px;\">Section 23(5) of the 1961 Act clearly provides that: Annual value shall be taken as <\/span>nil for two years from the end of the financial year in which the completion certificate is obtained<span style=\"font-size: 16px;\">. This clarity has avoided litigation and ensured uniform application.<\/span><\/p>\n<p data-start=\"1360\" data-end=\"1382\">Proposed amendment : <span style=\"font-size: 16px;\">Section 21(5) is proposed to be amended to <\/span>explicitly state<span style=\"font-size: 16px;\"> that <\/span><span style=\"font-size: 16px;\">The annual value of property held as stock-in-trade shall be taken as <\/span>nil for a period of two years from the end of the financial year<span style=\"font-size: 16px;\"> in which the certificate of completion of construction is obtained from the competent authority.<\/span><\/p>\n<h3 data-start=\"1696\" data-end=\"1716\"><span class=\"ez-toc-section\" id=\"Practical_impact\"><\/span><span style=\"color: #000080;\">Practical impact<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"1717\" data-end=\"1884\">Removes ambiguity on the commencement of the two-year period<\/li>\n<li data-start=\"1717\" data-end=\"1884\">Prevents premature taxation of notional rental income<\/li>\n<li data-start=\"1717\" data-end=\"1884\">Aligns treatment across both Acts<\/li>\n<\/ul>\n<p data-start=\"1903\" data-end=\"2015\">This is a clarificatory amendment, reinforcing the legislative intent already recognised under the 1961 Act.<\/p>\n<h3 data-start=\"2022\" data-end=\"2098\"><span class=\"ez-toc-section\" id=\"Deduction_for_Interest_on_Borrowed_Capital_%E2%80%93_Self-Occupied_Property\"><\/span><span style=\"color: #000080;\">Deduction for Interest on Borrowed Capital \u2013 Self-Occupied Property<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"2099\" data-end=\"2116\">Section 22(2) :\u00a0Existing position under IT Act, 2025 : <span style=\"font-size: 16px;\">Section 22(2) allows a deduction of <\/span>interest on borrowed capital<span style=\"font-size: 16px;\">, subject to a ceiling of <\/span>\u20b92,00,000<span style=\"font-size: 16px;\"> for self-occupied property. and <\/span><span style=\"font-size: 16px;\">The provision, however, does <\/span>not expressly state<span style=\"font-size: 16px;\"> whether <\/span>Pre-construction \/ prior-period interest<span style=\"font-size: 16px;\"> is included within this ceiling.<\/span><\/li>\n<li data-start=\"2444\" data-end=\"2475\">Position under IT Act, 1961 : <span style=\"font-size: 16px;\">Section 24(b) of the 1961 Act clearly provides that Prior-period interest (aggregated and spread over five years) <\/span>forms part of the overall \u20b92 lakh limit<span style=\"font-size: 16px;\">. This position is well-settled through circulars and judicial interpretation.<\/span><\/li>\n<li data-start=\"2721\" data-end=\"2743\">Proposed amendment : <span style=\"font-size: 16px;\">Section 22(2) is proposed to be amended to <\/span>clarify<span style=\"font-size: 16px;\"> that: The aggregate deduction for interest on borrowed capital shall be <\/span>inclusive of prior-period interest payable<span style=\"font-size: 16px;\">.<\/span><\/li>\n<\/ul>\n<h3 data-start=\"2926\" data-end=\"2946\"><span class=\"ez-toc-section\" id=\"Practical_impact-2\"><\/span><span style=\"color: #000080;\">Practical impact<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"2947\" data-end=\"3086\">Removes scope for dual interpretation<\/li>\n<li data-start=\"2947\" data-end=\"3086\">Prevents excessive claims beyond \u20b92 lakh<\/li>\n<li data-start=\"2947\" data-end=\"3086\">Aligns computation mechanics with settled law<\/li>\n<\/ul>\n<p data-start=\"3105\" data-end=\"3223\">The amendment does not reduce the deduction\u2014it merely codifies the existing interpretation under the 1961 Act.<\/p>\n<h3 data-start=\"3230\" data-end=\"3282\"><span class=\"ez-toc-section\" id=\"Power_to_Prescribe_PAN_Quoting_Requirements\"><\/span><span style=\"color: #000080;\">Power to Prescribe PAN Quoting Requirements<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3283\" data-end=\"3305\">Section 262(10)(c) :\u00a0Existing position under IT Act, 2025 : <span style=\"font-size: 16px;\">Section 262(10)(c) empowers the CBDT to prescribe PAN quoting for <\/span><span style=\"font-size: 16px;\">Documents pertaining to <\/span>business or profession only<span style=\"font-size: 16px;\">. <\/span><span style=\"font-size: 16px;\">This creates a <\/span>narrow and artificial restriction<span style=\"font-size: 16px;\">.<\/span><\/p>\n<p data-start=\"3535\" data-end=\"3566\"><span style=\"color: #000080;\">Position under IT Act, 1961 : <\/span><span style=\"font-size: 16px;\">Section 139A(5)(c) empowers the CBDT to prescribe PAN quoting for Any transaction or document, as may be specified in the interest of revenue.\u00a0The power is transaction-based, not activity-based.<\/span><\/p>\n<p>Proposed amendment : <span style=\"font-size: 16px;\">Section 262(10)(c) is proposed to be amended to Enable the CBDT to prescribe PAN quoting requirements for documents relating to <\/span>transactions not connected with business or profession<span style=\"font-size: 16px;\">.<\/span><\/p>\n<h3 data-start=\"4003\" data-end=\"4023\"><span class=\"ez-toc-section\" id=\"Practical_impact-3\"><\/span><span style=\"color: #000080;\">Practical impact<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li data-start=\"4024\" data-end=\"4199\">Enables PAN reporting for high-value personal transactions<\/li>\n<li data-start=\"4024\" data-end=\"4199\">Strengthens information trail and data analytics<\/li>\n<li data-start=\"4024\" data-end=\"4199\">Prevents revenue leakage outside business activities<\/li>\n<\/ul>\n<h3 data-start=\"4201\" data-end=\"4232\"><span class=\"ez-toc-section\" id=\"Examples_of_likely_coverage\"><\/span><span style=\"color: #000080;\">Examples of likely coverage<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"4233\" data-end=\"4371\">\n<li data-start=\"4233\" data-end=\"4281\">\n<p data-start=\"4235\" data-end=\"4281\">High-value property purchases by individuals<\/p>\n<\/li>\n<li data-start=\"4282\" data-end=\"4311\">\n<p data-start=\"4284\" data-end=\"4311\">Luxury asset transactions<\/p>\n<\/li>\n<li data-start=\"4312\" data-end=\"4371\">\n<p data-start=\"4314\" data-end=\"4371\">Certain financial instruments held in personal capacity<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"4390\" data-end=\"4510\"><span style=\"color: #000080;\">This amendment expands regulatory reach, not tax liability\u2014aimed purely at information reporting and compliance.<\/span><\/p>\n<div class=\"TyagGW_tableContainer\">\n<div class=\"group TyagGW_tableWrapper flex flex-col-reverse w-fit\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 273px;\" width=\"1092\" data-start=\"4551\" data-end=\"4733\">\n<thead data-start=\"4551\" data-end=\"4570\">\n<tr data-start=\"4551\" data-end=\"4570\">\n<th class=\"\" data-start=\"4551\" data-end=\"4560\" data-col-size=\"sm\">Aspect<\/th>\n<th class=\"\" data-start=\"4560\" data-end=\"4570\" data-col-size=\"sm\">Nature<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"4581\" data-end=\"4733\">\n<tr data-start=\"4581\" data-end=\"4637\">\n<td data-start=\"4581\" data-end=\"4602\" data-col-size=\"sm\">Type of amendments<\/td>\n<td data-start=\"4602\" data-end=\"4637\" data-col-size=\"sm\">Clarificatory &amp; alignment-based<\/td>\n<\/tr>\n<tr data-start=\"4638\" data-end=\"4666\">\n<td data-start=\"4638\" data-end=\"4655\" data-col-size=\"sm\">Revenue impact<\/td>\n<td data-start=\"4655\" data-end=\"4666\" data-col-size=\"sm\">Neutral<\/td>\n<\/tr>\n<tr data-start=\"4667\" data-end=\"4696\">\n<td data-start=\"4667\" data-end=\"4685\" data-col-size=\"sm\">Litigation risk<\/td>\n<td data-start=\"4685\" data-end=\"4696\" data-col-size=\"sm\">Reduced<\/td>\n<\/tr>\n<tr data-start=\"4697\" data-end=\"4733\">\n<td data-start=\"4697\" data-end=\"4720\" data-col-size=\"sm\">Compliance certainty<\/td>\n<td data-start=\"4720\" data-end=\"4733\" data-col-size=\"sm\">Increased<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p data-start=\"4774\" data-end=\"4924\">These amendments signal that the Income-tax Act, 2025 is not meant to reinvent settled law but\u00a0to carry forward judicially tested principles.\u00a0 The approach reduces interpretational gaps during the transition phase and preempts avoidable disputes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Union Budget 2026\u2014Direct Tax Changes Explained Capital Markets \u2013 STT Hike on F&amp;O What changed Instrument Old STT New STT Futures 0.02% 0.05% Options (premium) 0.10% 0.15% Options (exercise) 0.125% 0.15% Policy intent Discourage excessive speculative trading Increase non-distortionary revenue (STT is simple to collect) Push traders towards longer-term instruments Practical impact : High-frequency traders &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[161],"tags":[1274],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10025"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10025"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10025\/revisions"}],"predecessor-version":[{"id":10028,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10025\/revisions\/10028"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}