Union Budget 2025-26--Corporate Tax Wishlist

CA (Dr.) Suresh Surana

As the Union Budget 2025-26 approaches, the corporate sector is keenly watching for announcements that could drive economic growth, attract investments, and simplify taxation. With businesses navigating an increasingly competitive and dynamic global environment, there is a strong demand for reforms that reduce compliance burdens, enhance clarity in tax laws, and provide fiscal incentives to encourage innovation and expansion.

This year, the spotlight is on the potential introduction of the reforms aimed at revamping India's direct tax framework expected to simplify corporate tax laws by addressing ambiguities, rationalizing tax rates, and introducing a more streamlined and transparent structure. As corporate India eagerly awaits the budgetary proposals, there is hope that the government will focus on aligning tax policies with the needs of a resilient and forward-looking economy along with incentivising the businesses.

Some of the significant expectations vide Union Budget 2025-26 pertaining to corporate tax landscape in India are listed below:

1. Deduction of expenditure incurred on Corporate Social Responsibility (CSR) required under section 135 of the Companies Act