US-India Tax Forum Pushes Bold Reforms Ahead of India's 2025-26 Union Budget
The US-India Tax Forum has unveiled comprehensive tax policy recommendations aimed at enhancing India's global competitiveness. Key proposals include simplifying tax structures, introducing targeted incentives, and rationalizing TDS rates. The Forum's measures are designed to attract investments and foster India's economic growth, aligning with global tax standards.

- Country:
- India
As India prepares for its Union Budget 2025-26, the US-India Tax Forum has set forth a series of bold recommendations to fortify the nation's economic position on the world stage. This specialized arm of the US-India Strategic Partnership Forum, comprising around 200 member companies, acts as a vital conduit for conversations on tax policy between Indian policymakers, global tax experts, and the business community.
Responding to the Ministry of Finance's call for proposals, the Tax Forum has offered its recommendations through multiple consultations. These are aimed at encouraging new investments, streamlining tax structures, and positioning India as a leader in global economic growth. Tarun Bajaj, Chairperson of the Tax Forum and ex-Revenue Secretary, emphasized the timeliness of these recommendations, given the global economic uncertainty.
The Forum's suggestions include simplifying the Tax Deduction at Source (TDS) to two or three rates and aligning foreign bank branch tax rates with domestic counterparts. The focus on creating a predictable tax environment through measures like expanding Safe Harbor Regulations and improving the Advance Pricing Agreement process is pivotal for encouraging sectoral growth.
(With inputs from agencies.)