Budget 2026: Experts Urge Focus on Tax Administration, Not New Laws

• With the new Income Tax Act, 2025, coming into force, Budget 2026 should prioritize efficient tax administration over new legislative changes.
• Dinesh Kanabar of Dhruva Advisors India Pvt Ltd emphasizes shifting focus from drafting laws to making the existing system work efficiently on the ground.
• Simplify compliance by rationalizing Tax Deduction at Source (TDS) into fewer, broader rate categories to reduce complexity and litigation.
• Use tax policy strategically to support high-tech manufacturing (semiconductors, AI) with carefully designed R&D incentives.
• Implement a comprehensive dispute resolution framework for direct and indirect taxes to clear the significant backlog of litigation.

Why It Matters: Budget 2026 must prioritize improving tax administration, simplifying compliance, and resolving disputes over new laws.