From FY 2026-27, consideration received on buyback of shares will be taxed as capital gains, replacing dividend taxation and introducing higher tax liability for promoters.
The government has amended the capital gains exemption on Sovereign Gold Bonds to apply only when bonds are subscribed at original issue and held till maturity. Effective from AY 2026-27.
Interest expenditure will no longer be allowed as a deduction against dividend and mutual fund income under Section 93 from April 2026.
Amendment to Section 349 of the Income-tax Act, 2025 allows registered NPOs to file belated returns from AY 2026-27, restoring relief available under the old law.
Section 536 of the Income-tax Act, 2025 is proposed to be amended to tax deductions or excluded income allowed under the repealed Income-tax Act, 1961, even without violation of conditions, from AY 2026-27.
TDS and TCS guidelines issued under section 400(2) to be made binding on tax authorities and deductors from 1 April 2026.
Penalty proposed for non-furnishing or inaccurate reporting of crypto-asset transaction statements. Rs 200 per day and Rs 50,000 penalty from April 2026.
Clarification proposed on computation of 60 days for passing TPO orders under section 92CA. Amendment to apply retrospectively from June 2007.
New TCS rates proposed under Section 394 include a flat 2% TCS on overseas tour packages without threshold and reduced rates for education and medical remittances under LRS from April 2026.
Minimum Alternate Tax provisions are rationalised from AY 2026-27 with MAT rate cut to 14%, MAT becoming final tax in old regime and limited credit in new regime.
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