Quick Summary
Industry body Federation of Indian Chambers of Commerce Industry (FICCI) has submitted a comprehensive set of recommendations to the government ahead of the Union Budget 2026-27, seeking faster tax dispute resolution, simplified compliance, greater certainty for global manufacturers, and smoother trade facilitation. FICCI said the proposed measures would ease liquidity pressures on businesses, reduce litigation, and strengthen India's position as a preferred global manufacturing and investment
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FAQ :
FICCI is concerned about the significant backlog of over 5.4 lakh income tax appeals, involving nearly Rs 18.16 lakh crore in disputed tax, which remain unresolved.
FICCI suggests expediting appointments for appellate authorities, introducing fast-track and complex-case appeal streams, setting strict timelines for remand reports, and allowing refunds for appeals pending over two years if delays aren't taxpayer-attributed.
FICCI proposes rationalising the current 37+ TDS rates into a few standard ones, exempting GST-linked B2B payments from TDS, and introducing a clear list of non-taxable payments.
FICCI seeks clarity that activities like storing components, just-in-time inventory, and deployment of free equipment by foreign OEMs do not constitute a taxable business connection in India, to encourage technology transfer.
FICCI has recommended setting up Advance Ruling offices outside Delhi and Mumbai, easier extension of advance ruling validity, allowing AEO benefits to new group entities, and creating a centralised, real-time database for customs trade notices.
FICCI suggests real-time system integration between stay orders and the Centralised Processing Centre (CPC), and acceptance of bank guarantees or other securities instead of cash deposits to prevent hardship from automated recovery actions.
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