The Union Budget 2026-27, presented by the Hon’ble Finance Minister, underscores sustained economic growth, inclusive development, self-reliance and strategic investments to propel the nation toward Viksit Bharat.

Raising public capital expenditure to INR 12.2 lakh crore, Budget 2026 positions infrastructure as a central driver of growth and long-term transformation. The FM outlined three kartavyas to guide India’s next phase of growth – interventions to accelerate and sustain economic growth,  fulfil aspirations and build capacity and align with the vision of Sabka Sath, Sabka Vikas towards Viksit Bharat. 

Contrary to expectations, the Budget introduced sweeping amendments to direct taxes. Proposals are made to provides tax concessions for foreign companies in new age economies, viz., data centres, electronic goods manufacturing units. Surprise proposals target MAT and buyback provisions. MAT regime is proposed to be rationalised to push companies to adopt the new regime with MAT credit capped at 25% of the tax liability and denial of MAT credit under the old regime. Buy-back consideration proposed to be shifted from dividend income to capital gains taxation, with differential effective rates of 22% for domestic company promoters and 30% for others. 

On Indirect tax front, the Budget rationalizes customs duties and exemptions to boost manufacturing, exports, and competitiveness via targeted tariffs, process reforms, and trade facilitation while ensuring revenue; it introduces a two-year Customs Integrated System (CIS) rollout as a unified platform and a single digital window for cargo clearances by fiscal year-end, plus one-time SEZ-to-DTA concessional clearances to enhance capacity. GST collections remain robust, with reforms removing intermediary provisions, rationalizing refunds, and streamlining credit notes/discounts to reduce compliance and improve taxpayer experience. 

We are pleased to share our publication summarising the highlights of the policy announcements and the tax proposals.