Direct Tax Reforms 2026-27|Central Government completed major direct tax reforms to promote investment
The Central Government has implemented several major direct tax reforms announced in the recent budget with the aim of increasing investment certainty and reducing the burden of compliance (compliance) on taxpayers. Before the Union Budget 2026-27 has been introduced, the Ministry of Finance has given details of the progress of these legislative changes through the social media platform ‘X’.|Direct Tax Reforms 2026-27
Here are the main points of these reforms:
1. Tax clarity for alternative investment fund (AIFs)
- Purpose: Providing "fixion of taxation" for AIFs.
- Changes: The Finance Act, 2025 has amended Section 2(14). Now any security (securities) laid by Category I and II AIFs clearly Capital Assets will be considered.
- Effect: Now on income from transfer of these securities ‘Capital Gains The tax will take place under the ‘Professional Benefit’. The Rules April 1, 2026 (The evaluation will be effective from 2026-27) and will bring Indian AIFs equal to foreign portfolio investors (FPIs).
2. Promote Domestic Startup & Manufacturing (Manufacturing)
- Startup: Time limit for incorporation of eligible startups by amending Section 80-IAC March 31, 2030 Increased
- Electronics: A new projected taxation regime (presumptive taxation regime) has been introduced under section 44BBD to create a global hub of electronics manufacturing to India. Now Gross receipts (gross receipts) on non-residents that provide services or technology to electronics units 25% Estimated Benefits will be taxed on.|Direct Tax Reforms 2026-27
3. Support for infrastructure and financial services
- Ship Queen (Shipping): By amending Section 115VD ‘Tenage Tax Scheme’ Extension of inland vessels (inland vessels). It will be effective from April 1, 2026.
- IFSC: Increased tax concessions for the Treasury Centres of Ship-Leasing Units, Insurance Offices and Global Companies in International Financial Services Centre (IFSC) for five years March 31, 2030 to be done.|Direct Tax Reforms 2026-27
4. Relief for Individual Taxpayers
- NSS: Withdrawals made from National Savings Scheme (NSS) on or after 29th August, 2024 "Fully tax-free" is.
- NPS Features: Under Section 80CCD(1B) ₹Additional deduction up to 50,000 are eligible (this is above the range of section 80C).
- Property Tax: Taxpayer no longer bet Two properties TWO properties) For ‘Zero Annual Value’ Can claim. No need to give proof of staying home free due to employment.|Direct Tax Reforms 2026-27
5. Loss of litigation and ease of compliance
- Three-year block period for transfer pricing assignment has been started.
- Safe Harbour The scope of the rules is extended. Limitation of turnover to avail this ₹Increased by 200 crores ₹300 Cr It has been done, and includes new areas like electric vehicle (EV) components.
- Validity of registration for small charitable trusts (Charitable trusts) by extending from 5 years 10 years has been done.
