The Union Finance Minister Nirmala Sitharaman delivered her document ninth-consecutive Union Budget 2026-27 within the parliament on Sunday. Presenting the Budget, Sitharaman stated that India right this moment faces an exterior setting during which commerce and multilateralism are imperilled and entry to assets and provide chains are disrupted. She added that new applied sciences are remodeling manufacturing programs whereas sharply rising calls for on water, power and important minerals.
“India will proceed to take assured steps in direction of Viksit Bharat, balancing ambition with inclusion. As a rising economic system with increasing commerce and capital wants, India should additionally stay deeply built-in with world markets, exporting extra and attracting steady long-term funding,” Sitharaman stated.
Throughout her presentation, the FM unveiled a set of measures spanning company taxation, capital markets, clear applied sciences, infrastructure threat mitigation, logistics, superior manufacturing and MSME financing—areas that immediately form company monetary planning and capital allocation.
Under are the important thing Budget announcements related for CFOs.
MAT to Develop into Last Tax; Restricted Set-Off of Introduced-Ahead MAT Credit score
The Finance Minister stated the federal government had “reformed the taxation panorama for corporates in 2019 by offering them a simplified regime with decrease tax price in order that they may productively deal with enterprise relatively than on declare of deductions and exemptions.”
To encourage migration to the brand new regime, set-off of brought-forward MAT credit score will now be allowed solely for corporations opting for the brand new tax regime, and solely as much as one-fourth of the tax legal responsibility underneath that regime.
Importantly, the Budget proposes to make MAT a remaining tax.
“MAT is proposed to be made remaining tax. So, there might be no additional credit score accumulation from 1st April 2026,” Sitharaman stated.
In keeping with this, the ultimate MAT price might be diminished to 14 per cent from the present 15 per cent. MAT credit score gathered as much as March 31, 2026 will stay accessible for set-off, topic to the one-fourth cap.
New Revenue Tax Act, 2025 from April 1, 2026
The Finance Minister introduced that the Revenue Tax Act, 2025 might be carried out from April 1, 2026, with guidelines and tax return kinds to be notified shortly. The transfer is geared toward simplifying and modernising the direct tax framework.
Eases Compliance, Rationalises Penalties and Prosecutions for Taxpayers
Sitharaman in her Budget speech proposed important modifications to simplify penalties and prosecution underneath the Revenue Tax Act, geared toward lowering litigation and easing compliance for companies. “Multiplicity of proceedings are a hindrance to the convenience of doing enterprise. I suggest to combine evaluation and penalty proceedings by means of a standard order for each,” she stated. The pre-payment requirement for submitting appeals has been lower from 20% to 10% of core tax, and taxpayers can replace returns even after reassessment by paying a further 10% tax.
Immunity from penalty, earlier accessible for underreporting, will now lengthen to misreporting, topic to 100% extra tax. Technical defaults like failure to audit accounts or submit switch pricing reviews might be handled as charges, whereas minor offences will appeal to fines solely, and prosecutions capped at two years.
₹20,000 Crore for Carbon Seize Applied sciences
Aligning with the CCUS roadmap launched in December 2025, the federal government will help large-scale deployment of Carbon Seize, Utilisation and Storage (CCUS) applied sciences, the FM annaounced.
“CCUS applied sciences at scale will obtain greater readiness ranges in end-use purposes across 5 industrial sectors, together with energy, metal, cement, refineries and chemical substances,” the Finance Minister stated.
An outlay of ₹20,000 crore over the subsequent 5 years has been proposed.
Company Bond Market: Market Making and Complete Return Swaps
The Budget proposed measures to deepen the company bond market. “I suggest to introduce a market making framework with appropriate entry to funds and derivatives on company bond indices. I additionally suggest to introduce whole return swaps on company bonds,” Sitharaman stated.
Infrastructure Threat Assure Fund
To handle early-stage venture dangers, the federal government will set up an Infrastructure Threat Assure Fund.
“To strengthen the boldness of personal builders concerning dangers throughout infrastructure improvement and building section, I suggest to arrange an Infrastructure Threat Assure Fund to offer prudently calibrated partial credit score ensures to lenders,” the Finance Minister stated.
Joint MCA–CBDT Committee to Align ICDS with Ind AS
The Finance Minister introduced {that a} Joint Committee of the Ministry of Company Affairs (MCA) and the Central Board of Direct Taxes (CBDT) might be constituted to include the necessities of Revenue Computation and Disclosure Requirements (ICDS) into Indian Accounting Requirements (Ind AS). Separate accounting necessities based mostly on ICDS might be performed away with from tax 12 months 2027–28.
Uncommon Earth Hall in 4 States
A devoted Uncommon Earth Hall might be arrange across Odisha, Kerala, Andhra Pradesh and Tamil Nadu, specializing in uncommon earth everlasting magnets important for high-tech manufacturing, clear power and strategic purposes.
ISM 2.0 and Electronics Ecosystem Enlargement
Constructing on Semiconductor Mission 1.0, the federal government will launch India Semiconductor Mission (ISM) 2.0, specializing in manufacturing of apparatus and supplies, improvement of full-stack Indian IP, and strengthening semiconductor and electronics provide chains.
₹10,000 Crore SME Progress Fund
Recognising MSMEs as a progress engine, the Finance Minister stated the federal government will undertake a three-pronged strategy to create “Champion SMEs”.
“I suggest to introduce a devoted ₹10,000 crore SME Progress Fund, to create future Champions, incentivising enterprises based mostly on choose standards,” she stated.
₹2,000 Crore Prime-Up for Self-Reliant India Fund
“I additionally suggest to high up the Self-Reliant India Fund arrange in 2021, with ₹2,000 crore to proceed help to micro enterprises and keep their entry to threat capital,” Sitharaman stated.
New Freight Hall and Waterways Push
To advertise environmentally sustainable cargo motion, the Finance Minister introduced:
“I suggest to ascertain new Devoted Freight Corridors connecting Dankuni within the East to Surat within the West.”
The Budget additionally proposes to operationalise 20 new Nationwide Waterways over the subsequent 5 years, beginning with NW-5 in Odisha, connecting mineral-rich Talcher and Angul with Kalinga Nagar and the ports of Paradeep and Dhamra.
Rejuvenation of Legacy Industrial Clusters
The FM additionally proposed to introduce a Scheme to revive 200 legacy industrial clusters to enhance their price competitiveness and effectivity throughinfrastructure and know-how upgradation.
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