1.Capital Markets
STT increased on Futures & Options
- Futures: 0.02% → 0.05%
- Option premium: 0.10% → 0.15%
- Option exercise: 0.125% → 0.15%
2.Return Filing & Compliance
ITR filing timelines staggered:
- ITR-1 & ITR-2 – 31 July
- Non-audit business & trusts – 31 August
- Revised return deadline extended up to 31 March
- Updated return permitted even after reassessment with additional 10% tax
3.MAT Regime
MAT to become final tax from 1 April 2026
- MAT rate reduced from 15% to 14%
- Existing MAT credit allowed in a restricted manner
- MAT credit usable only under new tax regime
- MAT exemption for non-residents taxed on presumptive basis
4.Buyback of Shares
Buyback taxation shifted to Capital Gains for all shareholders
- Additional tax on promoters:
- 22% (corporate)
- 30% (non-corporate)
5.Foreign Asset Disclosure – One-Time Window (6 Months)
Category A: Undisclosed income/asset ≤ ₹1 Cr
- Tax @ 30% + additional tax @ 30%
- Immunity from prosecution
Category B: Asset disclosed but not reported ≤ ₹5 Cr
- Pay ₹1 lakh fee
- Full immunity
6.Reliefs & Exemptions
- MACT interest fully tax-exempt, no TDS
- TCS on overseas tour reduced from 5% to 2%
- TCS under LRS for education & medical – 2%
- TCS on liquor, scrap, minerals & tendu leaves – 2%
7.TDS & Procedural Changes
- Manpower services treated as contractor:
- TDS @ 1% / 2%
- No TAN required for TDS on NRI property purchase
- Automated lower / nil TDS certificates for small taxpayers
- Form 15G / 15H once for multiple companies
8.Litigation & Penalty Reforms
- Single combined order for assessment + penalty
- No interest on penalty amount during appeal
- Pre-deposit for appeal reduced from 20% to 10%
- Immunity framework extended to misreporting (100% additional tax)
9.Decriminalisation
- Minor offences decriminalised (non-production of books, TDS in kind, etc.)
- Maximum imprisonment reduced to 2 years; courts may levy fine
- Retrospective immunity for small undisclosed foreign assets (< ₹20 lakh)
10.Sector-Specific Incentives
- Tax holiday till 2047 for foreign cloud companies
- Deduction extended to cattle feed & cotton seed
- Inter-cooperative dividends deductible if passed to members
- 3-year dividend exemption for notified national cooperative federations
- Safe harbour:
- 15% margin for related-party data centre services
- 2% margin for bonded warehouse component storage
- 5-year tax exemption for:
- Non-residents supplying tools to toll manufacturers
- Foreign income of non-resident experts
For detailed discussion on the above, please feel free to connect at Devadhaantu@devadhaantu.in
