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Shri Arvind Shrivastava, I.A.S.
Revenue Secretary
Department of Revenue
Ministry of Finance
Government of India
Room No.128-B, North Block
New Delhi – 110 001
Sir,
Post-Budget Memorandum 2026-27 of Bombay Chamber [Direct Tax]
The Bombay Chamber heartily congratulates the Hon’ble Finance Minister for presenting a record setting 9th consecutive budget on 1st February 2026. The Bombay Chamber deeply appreciates the policy framework laid out in the Budget around Health and Education, Employment, Emerging Technologies like AI, Agriculture, Investment, Infrastructure, Manufacturing, Tourism, MSMEs and Other Reforms (including Tax Reforms). These measures will put India firmly on the growth path to achieve the vision of Sabka Sath, Sabka Vikas towards a Viksit Bharat by 2047.
From a tax policy perspective, the Bombay Chamber welcomes and appreciates the long term vision and policy for exemption proposed to be granted in relation to procurement of data centre services from Indian data centres up to tax year 2046-47 as it will boost investment in data centres and promote AI data centre framework in India. The Chamber also welcomes the extension of tax holiday in IFSC to 20 years which will give boost to economic activity in IFSC and help to develop GIFT City as worldclass financial centre. The Chamber further welcomes the proposals for relaxation of penalty and prosecution provisions, rationalisation of TCS rates, allowance of set off of accumulated Minimum Alternate Tax (MAT) credits under new regime and MAT exclusion for presumptive businesses of non-residents, protection under The Foreign Assets of Small Taxpayers Disclosure Scheme 2026. These measures provide relief and certainty to the taxpayers.
However, certain direct tax proposals in the Budget like restrictions on MAT carry forward, interest deduction prohibition against dividend income etc. require reconsideration. Certain proposals like immunity from penalty and prosecution and grant of protection under The Foreign Assets of Small Taxpayers Disclosure Scheme 2026 require change in language to effectuate true intent of the Government and avoid any litigation.
On the basis of the responses received from our Members, a Memorandum containing suggestions of Bombay Chamber [Direct Tax] on the issues related to the Finance Bill 2026 is attached for your kind consideration. This includes request to clarify the prospective effect to certain amendments, scope of exemption in relation to procuring data centre services, reducing mandatory fees in lieu of penalty for tax audit default, removing bar from seeking immunity on initiation of prosecution proceedings and other provisions in Finance Bill 2026.
Our representatives would deem it a privilege to participate in the meetings organised by the Department of Revenue for post-budget discussions and provide any further clarifications, if required, with regard to our suggestions.
Thanking you,
Yours faithfully,
Sandeep Khosla
Director General
