Union Budget 2026 proposals by Finance Minister Nirmala Sitharaman include exempting non residents paying tax under presumptive schemes from Minimum Alternate Tax. The safe harbour threshold for IT services will rise to Rs 2,000 crore, while TCS on liquor, scrap and minerals is cut to 2 percent. Safe harbour rules will also streamline accountant definitions.
For AY 2026-27, NRIs choosing the presumptive income scheme will need to make an extra disclosure in the new ITR forms: separate reporting of gross receipts and presumptive income. The update targets presumptive taxation provisions under Sections 44B, 44BB, 44BBA, 44BBC, and 44BBD, aiming to improve transparency and enable better matching with tax data.
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