Quick Summary
THE INCOME TAX ACT,2025 TO COME INTO EFFECT FROM 1ST APRIL, 2026 TCS RATE FOR SCRAP AND MINERALS RATIONALIZED TO 2% TCS FOR REMITTANCE UNDER LIBERALISED REMITTANCE SCHEME REDUCED FROM 5% TO 2% FOR EDUCATION AND MEDICAL TREATMENT SHARES BUYBACK TO BE TAXED AS CAPITAL GAINS FOR ALL TYPES OF SHAREHOLD
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FAQ :
The Income Tax Act 2025 is scheduled to come into effect from 1st April 2026.
Share buybacks will be taxed as Capital Gains for all types of shareholders. Promoters will face an additional buyback tax, making the effective tax 22% for corporate promoters and 30% for non-corporate promoters.
The TCS rate for scrap and minerals will be rationalised to 2%. For remittances under the Liberalised Remittance Scheme exceeding ten lakh rupees, the TCS rate will be 2% for education or medical treatment and 20% for other purposes.
From 1st April 2026, MAT will become the final tax for companies, with the rate reduced to 14%. Brought forward MAT credit accumulated until 31st March 2026 can still be set off against future tax liabilities.
Yes, the STT on Futures is proposed to be raised to 0.05%. STT on options premium and the exercise of options will also be increased to 0.15%.
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