Quick Summary
The Bombay Chartered Accountants' Society (BCAS), in a detailed post-Budget representation to the Finance Ministry, has raised serious concerns over certain tax proposals in the Finance Bill 2026, warning that some amendments could disrupt investors and increase compliance burdens for businesses if implemented without suitable safeguards. Concerns Over Sovereign Gold Bonds (SGBs) One of the key issues flagged by BCAS relates to the proposed change in tax treatment of Sovereign Gold Bonds (SGBs
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FAQ :
BCAS has raised concerns about proposed changes to the tax treatment of Sovereign Gold Bonds (SGBs) purchased on the secondary market, the disallowance of interest deductions against dividend income, and the rationalisation of TDS rates.
BCAS is concerned that the proposed withdrawal of capital gains exemption on SGBs acquired from the secondary market could adversely impact investors who expected tax-free redemption, and they recommend these changes apply only to bonds issued after 1st February 2026.
This proposal could significantly affect sectors like infrastructure, real estate, and financial services, increasing borrowing costs and potentially making long-term projects commercially unviable, as many companies use borrowed funds for investments.
BCAS urges the government to rationalise TDS rates, particularly between professional and technical services, to prevent classification disputes, litigation, and reduce compliance burdens.
BCAS has also recommended easing certain prosecution provisions for procedural tax lapses and addressing drafting anomalies in immunity-related clauses to improve clarity and reduce litigation.
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