01/02/2026
Budget Analysis
All Income Tax Changes
➡️STT increased on futures & options
🔸Futures - 0.02% to 0.05%
🔸Option premiums - 0.10% to 0.15%
🔸Option exercise - 0.125% to 0.15%.
➡️ITR filing timelines staggered
🔸ITR-1 & ITR-2: 31 July
🔸Non-audit business / trusts: 31 August
➡️Revised return deadline extended up to 31 March
➡️MAT to become final tax from 1 April 2026
🔸Rate reduced from 15% → 14%
🔸Existing MAT credit allowed in limited manner
➡️MAT credit usable only under new tax regime
➡️MAT exemption for non-residents taxed on presumptive basis
➡️Buyback taxation shifted to Capital Gains for all shareholders
🔸Additional tax for promoters (22% corporate /
30% non-corporate)
➡️One-time 6-month foreign asset disclosure scheme:
🔸Category A (undisclosed income/asset ≤ ₹1 Cr):
✅Pay 30% tax + 30% additional tax →
immunity prosecution
🔸Category B (asset disclosed but not reported ≤
₹5 Cr = Pay ₹1 lakh fee → full immunity
➡️MACT interest fully tax-exempt; no TDS
➡️TCS on overseas tour reduced to 2% (from 5%)
➡️TCS - LRS for education & medical reduced to 2%
➡️TCS on liquor, scrap, minerals & tendu leaves reduced to 2%
➡️Manpower services (as contractor → TDS @ 1% / 2%
➡️No TAN for TDS on NRI property purchase
➡️Single combined order for assessment + penalty
➡️No interest on penalty amount during appeal
➡️Pre-deposit reduced from 20% to 10%
➡️Updated return allowed even after reassessment, with extra 10% tax
➡️Immunity framework extended to misreporting (with 100% additional tax)
➡️Decriminalisation of minor offences (books not produced, TDS in kind, etc.)
➡️Max imprisonment reduced to 2 years, courts can levy fine instead
➡️Retrospective immunity for small undisclosed foreign assets (< ₹20 lakh)
➡️Tax holiday till 2047 for foreign cloud companies
➡️Automated lower / nil TDS certificate for small taxpayers
➡️15G / 15H submitted once for multiple 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% for related-party data centre services
➡️2% profit margin safe harbour for bonded warehouse component storage
➡️5-year tax exemption for non-residents supplying tools to toll manufacturers
➡️5-year exemption on foreign income of non-resident experts
