1. Extended Time for Filing Revised and Belated Returns
Taxpayers are now permitted to file or revise their income tax returns up to 31st March following the relevant tax year instead of 31st December. A nominal fee applies for late revisions—₹1,000 for income up to ₹5 lakh and ₹5,000 for income above ₹5 lakh. This helps in correcting genuine mistakes and improving compliance.
2. Staggered Due Dates for Filing Income Tax Returns
The Different due dates have been introduced to reduce last-minute pressure and improve efficiency:
• Salaried individuals (ITR-1 & ITR-2): 31st July
• Non-audit businesses and trusts: 31st August
• International transaction cases: 31st October
3. Tax Holiday for Foreign Companies Using Indian Data Centres
Foreign companies providing services outside India using Indian data centres will receive a tax holiday up to 2047. This promotes India as a global digital and cloud services hub. Services to Indian customers will be taxed through Indian reseller entities.
4. Changes in Corporate Tax and MAT Rules
The MAT rate has been reduced from 15% to 14% and treated as final tax under the new regime.
Limited MAT credit usage will be allowed for domestic companies shifting to the new system, simplifying corporate taxation.
5. Increase in STT on Futures and Options
STT on Futures and Options has been increased to curb excessive speculative trading, improve market stability, and enhance government revenue.
STT rates on derivatives transactions are proposed to be increased to address excessive speculation in the F&O market.
- STT on sale of options increased to 0.15 percent (from 0.10 percent); on option exercise to 0.15 percent (from 0.125 percent).
- STT on sale of futures increased to 0.05 percent (from 0.02 percent).
Reference from – Union Budget 2026–27
