- Time limit for revising the income tax return has been extended to 12 months from 9 months but there will be a fee if it is filed after 9 months.
- Rs. 5000 if the total income exceeds Rs. 500,000
- Rs. 1000 if the total income does not exceed Rs. 500,000
- Penalty shall not be levied if the additional tax and interest thereon is paid within the period mentioned in demand notice in cases of under reporting and mis reporting of income.
- Gains from the buyback of shares will now be considered as Capital gains (earlier considered as dividend)
- Company promoters - effectively taxed @ 22%
- Non-company promoters - effectively taxed @ 30%
- Others - based on short term / long term capital gains classification.
- In case of Sovereign Gold Bonds (SGB), gains are exempted only for the persons who are initial subscribers to the issue by RBI and held till maturity. (Earlier, exemption was also allowed for the buyers in secondary market, if held till maturity).
- No deduction of interest expenditure incurred for earning dividend income or income from mutual fund units. (Earlier, interest expenditure up to 20% of gross dividend and mutual fund income was allowed as deduction.
- Tax rate of Minimum Alternate Tax (MAT) has been reduced to 14% from 15% and it is final tax in old regime, and no further credit is allowed.
- For domestic companies in new regime, set off of MAT credit is allowed up to 25% of tax liability.
- For foreign companies, set off is allowed to the extent of the difference between tax on total income and MAT in the year in which regular tax is more than MAT.
- An updated income tax return (ITR-U) can also be filed now to reduce the early declared loss.
- Tax to be collected at source (TCS) @ 2% on below (different rates earlier)
- sale of alcoholic liquor for human consumption
- sale of tendu leaves
- sale of scrap
- sale of minerals being coal or lignite or iron ore
- remittances under RBI LRS for the purpose of education or medical treatment
- sale of overseas tour travel package irrespective of the amount.
- Exemption of income to foreign company arising by way of procuring data centre services from a specified data centre till the tax year ending on 31 Mar 2047.
- Application for lower or no deduction of tax can also be filed electronically with the prescribed authority.
- Resident individual or HUF need not obtain TAN to deduct tax at source in relation to the consideration for the purchase of immovable property from a non-resident.
- No TDS on interest on the compensation amount awarded by Motor Accidents Claims Tribunal.
- Declarations (15G / 15H) for non-deduction of tax at source of incomes like interest from securities, dividend and income from mutual fund units can now be filed with depository instead of filing separate declarations with multiple entities. Paying entity can check with depository for declaration and then deduct tax as applicable.
- Periodicity of furnishing the details of above declarations by paying entities has been changed from monthly basis to quarterly basis.
- Exemption on pension received by disabled person employed out of army service due to disability. Exemption is applicable to both the service and disability components. It is also applicable for Paramilitary forces.
- Jurisdiction of the Customs Act is extended beyond territorial waters for the purpose of fishing and fishing related activities.
- Validity of advance ruling under Customs Act has been extended to 5 years from 3 years. In case of advance rulings already in force on the date on which Finance bill 2026 receives assent of the President, the authority can extend the validity to 5 years from the date of ruling on request by the applicant.
- Special provisions are proposed for fishing and fishing related activities by an Indian flagged fishing vessel beyond territorial waters of India.
- No prior permission is required for removal of goods from one custom bonded warehouse to another.
- Basic customs duty on imported goods for personal use has been reduced to 10 % from 20 %.
- No need of linking post sales discount to prior agreements and to issuance of credit notes for the purpose of GST.
- Section 54(6) of CGST Act, 2017 governing the provisional refund will also apply to refunds arising out of inverted duty structure.
- Threshold limit (Rs. 1000) is not applicable for refund claims in case of goods exported out of India with payment of tax.
- Place of supply in case of intermediary services will be the location of recipient of services.
- Securities transaction tax (STT) rates on futures & options are changed as below
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