Chief monetary officers (CFOs) throughout sectors have described Finances 2026 as balanced and progressive, with no main damaging surprises. The funds, they mentioned, laid a transparent emphasis on manufacturing-led development, infrastructure build-out, less complicated taxation and decrease compliance friction. Whereas some issues have risen round Minimal Alternate Tax (MAT) turning into a last tax, CFOs say the bigger message from the federal government is about predictability, competitiveness and ease of doing enterprise.
“It is a very balanced Finances. In right now’s atmosphere, if there’s nothing damaging, that itself is a giant constructive. In fact, one might have requested for extra reforms or some rest in long-term capital good points tax, and from a retail perspective, possibly extra measures to enhance consumption. However general, the bulletins are constructive and assist in constructing a extra secure platform for financial development,” mentioned Anand Agarwal, CFO, V-Mart Retail.
CFOs additionally mentioned that the Finances’s push in the direction of manufacturing this yr augurs effectively for job development within the nation. The Union Finance Minister Nirmala Sitharaman introduced devoted proposals to scale up manufacturing in 7 strategic sectors together with biopharma, semiconductors, uncommon earth metals, electrical element manufacturing, capital items, chemical compounds and textiles.
“There’s a clear push in the direction of manufacturing throughout sectors, and at any time when manufacturing will get a push, it robotically creates employment alternatives,” mentioned Ashish Tiwari, CFO, Transport Company of India (TCI).
CFOs highlighted that plenty of structural reforms have already occurred over the past yr whether or not in GST, labour codes or different areas, so this Finances is extra about what comes subsequent.
“When you learn the Financial Survey, there’s a sturdy emphasis on the concept of an ‘entrepreneurial state’, the place the federal government begins considering like an entrepreneur—tips on how to take dangers, tips on how to grow to be aggressive, tips on how to achieve international market share. The clear course is that India should develop not solely via providers but additionally via manufacturing,”mentioned Sanjeev Jha, CFO, PERSOL India.
CFOs reward lengthy overdue customs reforms
The Finances 2026 additionally moved to ease out ache factors of CFOs on the compliance entrance through proposing a single digital window that may host approvals from a number of authorities companies for cargo clearances by the tip of FY26. For items with no compliance necessities, customs will clear cargo instantly after on-line registration and responsibility cost.
Furthermore, the Customs Built-in System (CIS) shall be rolled out over two years as a unified platform for all customs processes. As well as, AI-enabled non-intrusive scanning shall be expanded with the goal of ultimately scanning each container at main ports.
Reforms to the customs course of had been considerably lengthy overdue, mentioned Anand, including that India might want to liberalise this a part of the regulatory framework very quickly particularly within the context of the form of free commerce agreements India is signing. Nevertheless, Anand awaits the high quality print to see how it’s carried out.
“The transfer in the direction of computerized customs clearance, together with computerized scanning of all containers at main ports, use of AI, and an built-in customs system over the subsequent two years is a constructive one. And approval of cargo clearance inside minutes and year-end processing shall be a giant reform for customs,” mentioned Sneha Oberoi, CFO, Suzuki Bikes.
MAT Change raises issues for capital-intensive corporations
One of the essential modifications on the tax entrance for firms was the announcement round Minimal Alternate Tax (MAT), which turns into a last tax from April 1, 2026. This implies corporations paying MAT will not generate any recent MAT credit score going ahead.
The ultimate MAT charge shall be diminished from 15% to 14%. Set-off of brought-forward MAT credit score shall be allowed just for corporations choosing the brand new company tax regime, and solely as much as one-fourth of their tax legal responsibility below that regime. MAT credit score accrued as much as March 31, 2026 will stay out there, topic to this cover.
“Minimal Alternate Tax turning into last, with credit not allowed to be carried ahead, is barely damaging for corporates on the tax entrance. It can enhance tax outflows, particularly for capital-intensive corporations the place investments and depreciation are excessive,” mentioned Aneel Gambhir, CFO, DTDC Categorical.
CFOs mentioned MAT turning into a last tax was inevitable, because it closes a long-standing loophole and alerts a transfer in the direction of a cleaner and leaner tax framework.
“The federal government is clearly making an attempt to maneuver away from a number of exemptions and deductions and in the direction of an easier and extra predictable tax framework,” Tiwari mentioned.
CFOs additionally praised different business measures within the Finances together with the proposed new freight corridors, deepening of the company bond markets and the danger infrastructure fund. Nevertheless, they mentioned loads will rely upon execution.
“We have now seen prior to now that many schemes get introduced, however typically they take time to be carried out or the high quality print doesn’t totally match the intent. From an intent perspective, it’s a step in the correct course, however execution will resolve how useful it truly turns into,” mentioned Anand.
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