Budget 2026: Industry Demands Tax Incentives, Simpler Compliance, KPMG Survey Reveals

• KPMG's Pre-Budget Survey 2026 highlights industry's call for targeted tax incentives, simpler income-tax laws, and improved dispute resolution ahead of the Union Budget and New Income Tax Act.
• 34% of respondents seek a lower tax rate for manufacturing, while 50% prefer sector-specific incentives over broad tax benefits.
• Key areas for rationalisation include TDS/TCS compliance, assessment/litigation processes, and capital gains tax regime.
• The survey also calls for clarity for International Financial Services Centre (IFSC) structures, with 51% advocating for safe harbour provisions.
• Personal taxation reforms, including a significant increase in standard deduction for salaried individuals (73% support), and a revamp of dispute resolution mechanisms and transfer pricing safe harbour rules are also key demands.

Why It Matters: Industry seeks targeted tax incentives, simplified compliance, and robust dispute resolution in Budget 2026.