Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending

FM proposes to exempt minimum alternate tax for non-residents paying tax on presumptive basis

FM Sitharaman proposed to exempt Minimum Alternate Tax (MAT) for non-residents who pay tax on presumptive basis.

She said the threshold for availing safe harbour for IT services is being enhanced from Rs 300 crore to Rs 2,000 crore.

Sitharaman added that the tax collected at source rate on liquor, scrap, and mineral has been rationalised to 2 per cent.

The minister also announced to rationalise definition of accountants for safe harbour rules to promote home-grown accounting firms.

She said the government would allow inter-cooperative societies dividend income as deduction under the new tax regime. 

Sitharaman announces 6-month foreign asset disclosure scheme for small taxpayers

FM Sitharaman proposed a six-month foreign asset disclosure scheme for small taxpayers like students, tech professionals and relocated NRIs.

She said there will be no interest liability on taxpayers on the penalty amount for the period of appeal before first appellate authority, irrespective of outcome.

The finance minister also proposed exemptions of three years for dividend income received by notified cooperatives on investments made up to January 31, 2026.

On healthcare, she said 50 per cent capacity will be increased in district hospitals by establishing emergency and trauma care centres.

The government will develop ecologically sustainable mountain trails in Himachal Pradesh , Uttarakhand, J&K, Araku Valley of Eastern Ghats and Western Ghats.

National Destination Digital Knowledge Grid to be set up

The government on Sunday proposed setting up a 'National Destination Digital Knowledge Grid' to digitally document all places of significance across the country, including cultural and spiritual.

FM Sitharaman also proposed development of "ecologically sustainable" mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir and setting up a 'National Institute of Hospitality'.

"Tourism sector has a large role to play in employment generation, forex earnings and expanding the local economy. I propose to set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology," she said.

It will function as a "bridge" between academia, industry and and government, the FM said.

In her speech, the finance minister further proposed to "develop 15 archeological sites", including Lothal, Dholavira, Rakhigarhi, Sarnath, Hastinapur, Leh Palace into "vibrant experiential cultural destinations".

"Excavated landscapes will be opened to the public through curated walkways, immersive storytelling skills and technologies will be introduced to help conservation labs, interpretation centres and guides," she said.

The minister also proposed a "pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites" through a standardised high-quality 12-week training programme in hybrid mode, in collaboration with an Indian Institute of Management.

Restoring glory of sandalwood

Centre to partner with states to restore glory of sandalwood ecosystem: FM Sitharaman

Tax holiday till 2047 to any foreign company that provides cloud services

FM: "Attracting global business and investment. Recognising the need to enable critical infrastructure and boost investment in data centres. I propose provide, I propose to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India. It will, however, need to provide services to Indian customers through an Indian reseller entity. I also propose to provide a safe harbour of 15 per cent on cost in case the company providing data centre services from India is a related entity. Harness the efficiency of just-in-time logistics for electronic manufacturing. I propose to provide a safe harbour to non-residents for component warehousing in a bonded warehouse at a profit margin of 2 per cent of the invoice value."

Rationalising definition of accountants

Budget proposes to rationalise definition of accountants for safe harbour rules to promote home-grown accounting firms: Sitharaman.

Exemption of Minimum Alternate Tax for non-residents

FM proposes to exempt Minimum Alternate Tax for non-residents who pay tax on presumptive basis.

India set to host first-ever Global Big Cat summit: FM

India is set to host the first-ever Global Big Cat Summit where ministers from 95 range countries will deliberate on collective strategies for conservation, FM Sitharaman announced.

Sitharaman said the International Big Cat Alliance was set up last year.

"This year, India is hosting the first-ever Global Big Cat Summit, where heads of governments and ministers from 95 range countries will deliberate on collective strategies for conservation," she said.

Six-month foreign asset disclosure scheme

FM proposes a six-month foreign asset disclosure scheme for small taxpayers like students, tech professionals and relocated NRIs.

Ecologically sustainable mountain trails

Govt to develop ecologically sustainable mountain trails in HP, Uttarakhand, J&K, Araku Valley of Eastern Ghats and Western Ghats, says FM.