Budget 2026: EY Urges Stability Over Tax Cuts, Focus on Tech & Reforms

• EY emphasizes tax certainty and predictability as crucial for India's fiscal strategy and private sector growth.
• Key recommendation: Expand Production-Linked Incentive (PLI) scheme to futuristic tech sectors like AI, Space, and Robotics.
• Calls for seamless transition to New Income Tax Act 2025 with detailed guidelines and FAQs.
• Proposes rationalizing TDS framework to 3-4 rates and increasing employee cost limit for tax incentives to Rs 1,00,000.
• Supports decriminalization of tax offenses and a one-time settlement scheme for customs disputes.

Why It Matters: EY advises Budget 2026 to prioritize fiscal stability, targeted tech incentives, and tax reforms for growth.