The Bombay Chambers of Commerce and Industry (BCCI) has recommended that in case of any industry specific issues or any other common contentious issues, a guidance note/circular shall be provided by the Income Tax Department just like the circular on FBT, the Handbook on negative service tax regime, etc. which clarifies most of the doubts of the assesses. This will bring clarity and certainty in respect of various issues and reduce the litigation and save time for both the assessee as well as the Department.

According to CA Dr Suresh Surana, there is a double taxation of income in case of companies with respect to dividends: Firstly, the companies are required to pay corporate tax, and then the shareholders pay tax on the dividends. In case of resident individual shareholders, the tax on dividends can be as high as 35.88%. On the other hand, non-residents are liable to tax on dividends @ 20% (plus surcharge and cess) which may further be lowered by Double Tax Avoidance Agreements to 5%-15%.

He suggests that Budget 2026 should fix the maximum tax on dividends distributed by domestic companies in case of resident shareholders to 20% (plus surcharge and cess). This will help reduce "the cascading effect of double taxation".

Ahead of Union Budget, we talked to multiple industry experts about that the Middle Class can expect from the Government in this Budget. They have suggested at least eight expectations that the Middle Class can have. Here are four of those expectations:

1. Relief from rising prices

2. Tax relief for salaried and pension earners

3. Employment and income security

4. Affordable healthcare and education

"Therefore, it would be appropriate to align the deduction limit under section 80TTB be enhanced to Rs. 100,000 to provide relief to senior citizens."

• Tax treatment for interest on deposits should be at par with LTCG and STCG

• Lock-in period for Tax savings FD may be made equal to ELSS of Mutual funds (3 years) to encourage deposit mobilization into banks

• No TDS on Savings Bank Deposits interest

• In line with NPS deduction under 80CCD(1B), a separate deduction for Term/Health insurance in the new/Old tax Regime, say ₹25,000/50,000 Else, include 80D deduction in new tax regime

• Mandatory NPS deductions for private sector employers above certain thresholds like 100/200 employees

• An increase in deduction limit for NPS Vatsalya under Section 80CCD(1B) for NPS contributions

• Interoperability of EPFO and NPS subscribers