Union Budget 2026: Tax Reforms Crucial for M&A Growth Amid Global Uncertainty

• The upcoming Union Budget 2026 is critical for M&A activity, focusing on tax certainty, dispute risk, and execution timelines.
• Clarity is needed post-Supreme Court’s Tiger Global judgment, especially on past cases and GAAR applicability for pre-April 2017 investments.
• Fast-track demergers under Section 233 of the Companies Act require tax neutrality to be commercially viable, aligning with ease-of-doing-business goals.
• Extend carry-forward of losses benefit to service sector mergers, not just manufacturing, to support India's growing service economy.
• Introduce safe harbors and concessional tax regimes for Global Capability Centers (GCCs) in India to address PE concerns and support growth.

Why It Matters: Budget 2026 must provide tax clarity and reforms to boost M&A activity and support India's economic growth.