The Chartered Accountant Student Vol. 29 No. 10 March 2026 

Abstract

The Union Budget 2026-27 lays considerable emphasis on enhancing ease of living, reinforcing the IT sector as a pivotal driver of India’s economic growth, and fostering a conducive environment for global business and investment. In line with these objectives, the proposals focus on rationalisation of penal provisions, rationalisation of tax deduction at source (TDS), Tax Collection at Source (TCS), other tax provisions along with decriminalisation of prosecution provisions rather than introducing significant changes in tax rates. As you are aware, the new Income-tax Act, 2025 is set to come into force from 1st April 2026. The Finance Bill, 2026 largelycontains the proposals with respect to the new Act, 2025. Accordingly, the following are the significant direct tax proposals in relation to the Income-tax Act, 2025: