Budget 2026: PHDCCI...

The reintroduction of the provision “would provide a major incentive for foreign companies to set up subsidiaries in India and invest in manufacturing units”On promoting innovation, PHDCCI urged restoration of weighted tax deduction for research and development expenditure under Section 35 of the Corporate Tax Act, stating that “the corporates should be encouraged to augment research and development expenditure and weighted deduction at the rate of 150 per cent under section 35 should be

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reintroduced to continue indefinitely without any sunset clause.” The Chamber also sought a reduction in personal income tax rates, recommending that the maximum tax rate for income up to Rs 30 lakh be 20 per cent, for income between Rs 30-50 lakh be 25 per cent, and for income above Rs 50 lakh be 30 per cent. It argued that the moderation of tax rates would “increase compliance and