Budget 2026: CBDT Guidelines on TDS/TCS Now Mandatory, Aims to Cut Tax Disputes

• Budget 2026 mandates adherence to CBDT guidelines for TDS/TCS, impacting companies, businesses, and taxpayers.
• The amendment to Section 400(2) ensures uniform implementation of tax rules across the country, effective April 1, 2026.
• Previously, CBDT guidelines were not legally binding on income tax officers or tax deductors/collectors, leading to disputes.
• Tax experts like CA Gopal Bohra and Taxmann view this as a positive step to prevent unnecessary legal battles and ensure clarity.
• The change aligns the new law with the 1961 Income-tax Act, making CBDT interpretations legally binding and promoting uniformity.