Amendment expands tax immunity to cover under reporting that results from misreporting, subject to existing procedural conditions.
Amendment extends the existing immunity from penalty and prosecution to cases where under reporting of income results from misreporting, subject to existing conditions: payment of tax and interest within the demand period, no appeal against the assessment, timely filing of an immunity application within one month, and assessing officer decision on the application within three months.

Cooperative societies: deduction allowed on dividends from other cooperatives in new tax regime; limited federal cooperative relief.
Deduction is extended to dividends received by cooperative societies from other cooperative societies in the new tax regime, limited to amounts distributed to members. Notified federal cooperatives may claim a temporary deduction for dividends from companies for three years, restricted to investments made by the federal cooperative on or before 31.01.2026 and distributed to members. The amendment is effective from 1 April 2026 and applies to the tax year 2026-27 and subsequent years.

Union Budget expands deduction to include cattle feed and cotton seeds under section 149(2)(b) for primary co operative societies.
Amendment expands section 149(2)(b) to permit full deduction of profits and gains of a primary co-operative society where members supply cattle feed and cotton seeds to a federal co-operative society, Government, local authority, Government company, or corporation engaged in the same business, applying from the tax year beginning 1 April 2026.

Inclusion of multi-state co-operative societies in the co-operative society definition for tax purposes from April 2026.
Amendment expands the statutory definition of co-operative society to expressly include societies registered under the Multi-State Cooperative Societies Act, 2002, thereby bringing multi state registered cooperatives within the legal category subject to provisions applicable to co-operative societies under the Act.

Advance pricing agreements now allow associated enterprises to file modified returns within three months for covered tax years.
Where income is modified as a result of an advance pricing agreement entered into with any person, that person or any associated enterprise may furnish a return or modified return limited to the agreement, within three months from the end of the month in which the agreement was entered into, in respect of tax years covered by such agreement entered on or after 1 April 2026 for tax years beginning 1 April 2026 and subsequent tax years.

Exemption for foreign companies on income from procuring data centre services if routed through an Indian reseller.
A foreign company is exempt from Indian tax on income arising from procuring data centre services from a specified data centre, provided services to India users are routed through an Indian reseller; a specified data centre must be set up under an approved scheme notified by the Ministry of Electronics and Information Technology and be owned and operated by an Indian company; the exemption applies from the tax year beginning 1 April 2026 through the tax year ending 31 March 2047.

Prospecting of critical minerals now qualifies for deferred tax deduction over ten years under expanded schedule provisions.
The schedule is amended to add critical minerals so that expenditure on prospecting and exploration of those minerals qualifies for the statutory deferred deduction available to resident taxpayers, with such expenses deductible over ten years from the year of commercial production and covering costs incurred in that year and up to four preceding years.

Exemption for foreign companies' income from supplying capital equipment to contract manufacturers in custom bonded areas.
An exemption is introduced for income of a foreign company from providing capital goods, equipment or tooling to an Indian-resident contract manufacturer located in a custom bonded area that manufactures electronic goods for the foreign company for consideration; the time-limited exemption applies up to the tax year 2030-2031 and takes effect from 1 April 2026, applying to the tax year 2026-27 and subsequent years within the stated period.

Non-resident cruise operations and electronics manufacturing services excluded from MAT when using presumptive taxation.
Amendment excludes certain specified non-resident businesses that opt for presumptive taxation from the scope of Minimum Alternate Tax, adding cruise ship operations and services or technology for establishing electronics manufacturing facilities for resident companies to the excluded categories, with prospective application to subsequent tax years.

Non-resident service providers: five-year exemption for foreign income when rendering services under notified Indian schemes.
An individual who has been a non-resident for five consecutive tax years immediately preceding their first visit to India to render services under a Scheme notified by the Central Government may be exempt, for five consecutive tax years commencing with that first tax year, from tax on income that accrues or arises outside India and is not deemed to accrue or arise in India, subject to prescribed conditions.

IFSC units and OBUs will get a longer 100% deduction period and post-expiry income taxed at 15%.
Proposed amendments extend the 100% deduction under section 147 for IFSC units from 10 consecutive years out of 15 to 20 consecutive years out of 25, and for OBUs from 10 consecutive years to 20 consecutive years; business income from IFSC after the deduction period will be taxed at 15%. The amendments apply from 1 April 2026 to the tax year 2026-27 and subsequent years.

Treasury centre dividend exclusion limited to cross border group loans in notified jurisdictions with parent listed abroad.
Amendment restricts the dividend exclusion for inter group advances or loans involving a Finance company or Finance unit by requiring the other group entity to be located in a notified jurisdiction outside India and the group's parent or principal entity to be listed abroad; the Central Government will notify eligible jurisdictions. It also defines "group entity" by reference to the IFSCA (Payment Services) Regulations, 2024, and defines "parent/principal entity" by voting power and board control tests; the changes apply from 1 April 2026 for tax year 2026 27 onward.

Minimum Alternate Tax: MAT rate cut to 14% and treated as final in the old regime with limited credit set off.
MAT in the old corporate tax regime will be treated as final tax and no new MAT credit will be allowed; the MAT rate is reduced to 14%. Existing MAT credit set off is limited: domestic companies may set off MAT credit only in the new regime up to 25% of annual tax liability, while foreign companies may set off to the extent normal tax exceeds MAT in the relevant year. These amendments apply from 1 April 2026 for tax year 2026 27 and subsequent years.

TCS rates on select receipts revised, including LRS and overseas tour packages, effective April 1, 2026.
Proposed rationalisation of TCS rates sets uniform rates and adjusts specific receipts: alcoholic liquor, scrap, and certain minerals rise from 1% to 2%; tendu leaves fall from 5% to 2%. Under the Liberalised Remittance Scheme, TCS for education or medical remittances over the prior threshold is reduced from 5% to 2% (20% unchanged for other purposes). TCS on sale of an overseas tour programme package is set at a flat 2% with the threshold removed. The amendment is effective 1 April 2026.

Reassessment notices will be issued by Assessing Officers, not NaFAC, clarifying the pre-assessment role and scope.
The amendment clarifies that the pre-assessment enquiry and the decision to issue a reassessment notice are carried out by the Assessing Officer and that the National Faceless Assessment Centre or its assessment units shall not be deemed to be the Assessing Officer for issuance of reassessment notices or related pre-assessment steps; corresponding amendments align the new income-tax statute and the clarification is made retrospective to 1 April 2021 while the new Act's amendment is effective 1 April 2026.

Computer-generated Document Identification Number: assessments not invalidated for DIN quoting mistakes if referenced in any manner.
Assessments and related proceedings under the Income-tax Act, 1961 shall not be invalid for mistakes, defects or omissions in quoting a computer-generated Document Identification Number (DIN) provided the assessment order or proceeding references that DIN in any manner; a reference to the DIN is sufficient compliance even if notices or summons contain minor defects.

Clarifying time-limit: section 144C timelines govern assessment finalisation; sections 153/153B govern draft order stage.
Timelines for finalisation of assessments under section 144C govern completion of assessment notwithstanding the time limits in section 153 and section 153B. Acceptance of a draft order requires completion within one month from the end of the month in which acceptance is received or the 30 day objection period expires; where objections go to the DRP, the DRP must direct within nine months and assessment must be completed within one month from the end of the month in which directions are received. Amendments will clarify this in the 1961 Act (with retrospective dates) and in the Income-tax Act, 2025.

Transfer Pricing order timeframe clarified to include the final limitation date and apply retrospectively to past cases
Clarifies that when computing the sixty-day timeframe for the Transfer Pricing Officer to pass an arm's length price order, the final limitation date is included in that sixty-day calculation; the amendment operates notwithstanding judicial decisions and is framed to apply retrospectively in the existing law and prospectively in the new tax code to ensure uniform interpretation and reduce litigation.

Tonnage tax scheme extended to inland vessels with registration, training, and tonnage computation changes effective April 2026.
Amendments to Chapter XIII-G clarify that tonnage computation uses a "valid certificate" and, for inland vessels, the "certificate of registration" under the Inland Vessels Act, 2021; extend core activity coverage to include inland vessel passenger activities; require compliance with minimum training guidelines issued by the Inland Waterways Authority of India where applicable and adjust the compliance-certificate requirement to refer to the designated authority for inland vessels; add IWAI consultation for average net tonnage computation; and provide a definition of IWAI. Amendments take effect 1 April 2026 and apply to tax year 2026-27 and subsequent years.

Crypto-asset transaction reporting now attracts Rs.200/day for non-filing and Rs.50,000 for inaccurate or uncorrected statements.
Prescribed reporting entities must furnish statements on crypto asset transactions; the Finance Bill introduces a penalty of Rs. 200 per day for non furnishing and a penalty of Rs. 50,000 for furnishing inaccurate particulars and failing to correct them by amending the statute governing penalty provisions.