Welcome you to the Fifty-ninth edition of DevMantra Times for the month of February 2026. This edition of our newsletter, where we bring you the latest developments shaping India’s dynamic business and regulatory landscape. India’s tax, compliance, and economic policy landscape saw several landmark developments this month. The Union Budget 2026-27 introduced a sweeping overhaul of India’s tax framework, with the Income-tax Act, 2025 set to replace the six-decade-old Income-tax Act, 1961 from 1 April 2026. Buy-back proceeds will now be taxed as capital gains rather than dividend income, the IFSC tax holiday in GIFT City has been extended to 20 consecutive years, and a new voluntary disclosure scheme — FAST-DS 2026 — gives small taxpayers a time-bound opportunity to declare undisclosed foreign assets. On the indirect tax front, GST refund mechanisms for inverted duty structures have been aligned with zero-rated supplies, and customs duty exemptions have been extended across sectors including healthcare, clean energy, and defence.
EDITORIAL NOTE: The Union Budget 2026–27 marks a defining moment in India’s tax administration as the government moves towards implementing an entirely new income-tax legislation. While personal tax slabs and corporate tax rates remain unchanged, targeted reforms aim to simplify compliance and strengthen enforcement. Notably, the Minimum Alternate Tax (MAT) rate has been reduced from 15% to 14%, while new limits on MAT credit utilisation will require careful planning for businesses with accumulated credits. In this edition, we provide a structured overview of these key changes and their potential implications for businesses, professionals, and taxpayers. This issue has been prepared in collaboration with our Knowledge Partner, N. Tatia & Associates.
