Tax

India’s capital markets are actively seeking tax relief and policy incentives in the upcoming Budget 2026-27 to boost investor participation and market liquidity. Industry associations and stakeholders are advocating for measures such as reduced capital gains tax, enhanced exemptions for long-term investments, and incentives for mutual funds and startups. Analysts note that targeted tax reforms could stimulate retail and institutional investment, strengthen market depth, and enhance India’s attractiveness as a global investment destination.

The Associated Chambers of Commerce and Industry of India (Assocham) has urged the government to introduce a comprehensive set of tax reforms in the upcoming Union Budget 2025, focusing on easing compliance, broadening the tax base, and stimulating private investment. The chamber emphasized the need to rationalize personal income tax slabs, reduce corporate tax complexities, and streamline GST structures to enhance competitiveness and investor confidence.

India’s direct tax revenue has witnessed a robust 9% growth, reaching Rs 10.82 lakh crore in the current fiscal, reflecting strong compliance and economic resilience. Analysts attribute the increase to higher corporate profits, improved tax administration, and effective policy measures encouraging voluntary compliance. The rise in collections underscores the government’s capacity to fund development initiatives while sustaining fiscal stability. Sector-wise, IT, manufacturing, and financial services contributed significantly to the surge.

The Income Tax Department has officially clarified that September 15 will remain the deadline for filing income tax returns (ITRs) for specific categories of taxpayers. This confirmation brings clarity amid speculation of potential extensions, ensuring individuals, professionals, and businesses prepare accordingly. The department’s communication underscores the government’s intent to enforce compliance while streamlining the tax administration system.