New Delhi [India], January 14 (ANI): The government is not expected to unveil significant direct tax reforms in the upcoming Union Budget for 2026, as most major changes have already been implemented through the new Income Tax Act, said Deloitte India Partner Sumeet Hemkar on Wednesday.
Hemkar told ANI, “I feel the big ticket direct tax reform has already happened, which is in the form of the new Income Tax Act that we have now. That was the big ticket item which the government has already put into effect.” He added that while minor tweaks may be introduced in the Budget, substantial reforms are unlikely.
The Deloitte partner noted that the government is expected to continue supporting the new tax regime, emphasizing tax certainty and stability as a long-standing policy focus. He highlighted ongoing efforts to reduce litigation and improve dispute resolution, stating, “The thresholds for initiating litigation should be rigorously administered to avoid frivolous litigation.”
Hemkar said the old tax regime will remain relevant for a section of taxpayers, even though the new regime appears more beneficial for most. On revenue, he noted that direct tax collections remain stable, citing January 11, 2026, figures, while acknowledging a softening in securities transaction tax receipts due to lower trading volumes.
He also recommended additional incentives for Micro, Small, and Medium Enterprises (MSMEs) and startups, which continue to drive growth in India. Hemkar downplayed expectations of major capital gains tax reforms, stating that the new law coming into effect limits scope for significant changes. He added that individual taxpayers could benefit if minor relaxations are made under the new regime, though raising the Rs 12-lakh exemption threshold would be challenging. (ANI)
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