Overview
- The window to file an updated return extends to 48 months with additional tax rising from 25% to 70%, or up to 80% if filed after a reassessment notice, and updated returns can now be used to reduce earlier claimed losses.
- Many penalties convert to fixed, automatic fees, including Rs 75,000 for a tax-audit delay up to one month and Rs 1,50,000 thereafter, and the revised-return deadline moves to 12 months with late filings after nine months attracting Rs 1,000 or Rs 5,000 based on income.
- TCS is rationalised with a uniform 2% on overseas tour packages and a 2% rate for LRS education and medical remittances while 20% continues for other LRS amounts above Rs 10 lakh, and interest on Motor Accident Claims Tribunal awards becomes tax‑free with no TDS from April 1, 2026.
- Customs shifts toward entity-based compliance with preferential treatment for Accredited Economic Operators and an integrated cargo-clearance portal slated to start operations by April 2026 with full onboarding through FY27.
- Investment-certainty measures include a 20-year tax holiday for foreign cloud providers using Indian data centres, a unified 15.5% transfer-pricing safe harbour with a higher Rs 2,000 crore threshold, and extended concessions for GIFT IFSC.