India's Tax Overhaul: Stricter Oversight and Boost for Long-Term Investments
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India Reshapes Tax Rules: Stricter Scrutiny, Long-Term Investment Push
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CNBC TV18•21-02-2026, 13:07
India Reshapes Tax Rules: Stricter Scrutiny, Long-Term Investment Push
•India is recalibrating its tax landscape with stricter scrutiny and a focus on long-term investment, aiming for a predictable, investment-friendly framework.
•Judiciary, especially the Supreme Court, emphasizes 'substance over form' in tax interpretation, as seen in the Hyatt and Tiger Global rulings.
•Tax policy increasingly intersects with geopolitics, influencing trade agreements (India-EU FTA, India-US trade understanding) and industrial strategy.
•Union Budget 2026 introduces long-horizon structural incentives, including a tax holiday for data centers and reforms to transfer pricing safe harbors.
•Indirect tax reforms aim for GST rationalization with a simplified rate structure and administrative improvements for compliance facilitation.