JSA Budget Pulse 2026

Our Partners, Vishnu Sudarsan and Venkatesh Raman Prasad, featured in a Press Trust of India (PTI) video on the Union Budget 2026 proposal to establish dedicated rare earth corridors across mineral‑rich states, including Odisha, Kerala, Tamil Nadu, and Andhra Pradesh. They gave their views on how the proposed corridors—covering mining, processing, research, and downstream manufacturing—form part of the Government’s broader push towards strategic and frontier sectors to strengthen India’s manufacturing ecosystem.

Publication: Press Trust of India

Kumarmanglam Vijay, Partner & Head of Practice – Direct Tax

“The focus is on ease of compliance and reducing the points of friction with the taxpayers. Move towards decriminalising the compliance and imposing fines is welcome. A big change is to provide 15.5% margin for IT and ITES exports upto 3000 crores under safe harbour provisions is likely to give a major boost to the Entrepreneurs wanting to set up IT services and GCCs.” Read more

Publication: ET Legal World

Rupinder Malik, Partner

“Budget 2026 reflects a strategic recognition of AI and data centres as core economic infrastructure. Incentives such as tax holidays, capex-linked subsidies, and customs duty relief are welcome and should help attract long-term capital. The focus now must be on execution – ensuring these measures translate into scalable, energy-efficient, and globally competitive digital ecosystems.” Read more

Publication: The Economic Times

Kumarmanglam Vijay, Partner & Head of Practice – Direct Tax

“Currently, data center operations of foreign hyperscalers in India are considered permanent establishment and the profits arising from these operations are taxed at 35% plus surcharge and cess.” Read more

Publication: CNBC

Vishnu Sudarsan, Partner

Rare-earth corridors get thumbs-up, but experts warn execution needs Centre–State alignment

“Four key areas for legal and policy intervention:

• Monazite and Beach Sand Minerals: These should be removed from the purview of the Atomic Energy Act, while private and joint ventures are allowed to mine and process under strict licensing and radiation controls, with government custody of thorium by-products.
• MMDR Act Updates: A new chapter on “critical and strategic minerals” is needed, offering longer tenures, accelerated allocations, and royalty structures that reward downstream processing over raw extraction.
• CRZ and EIA Reforms: Coastal Regulation Zone and Environmental Impact Assessment rules should recognize rare earth corridors as strategic infrastructure. Controlled coastal mining should be allowed through project-specific approvals, continuous monitoring, and mandatory remediation, balancing environmental protection with strategic security.
• Incentives and Export Policies: SEZ-style incentives, GST and duty rationalisation, and export controls should prioritise domestic processing and magnet manufacturing, discouraging unprocessed mineral exports while promoting value-added products.

He added, “Success hinges on coordinated Centre–State efforts to ensure regulatory and operational alignment. This integrated approach will boost investor confidence, secure project viability, and establish India as a global hub for strategic minerals.” Read more

Publication: Business Today

Sidharrth Shankar, Partner

Union Budget 2026: Certainty Over Cuts, Scale Over Sops

“The launch of Biopharma SHAKTI marks a decisive push to position India as a global hub for biologics and biosimilars, aligning healthcare needs with manufacturing scale, innovation, and global standards. The focus is on building a full-stack biopharma ecosystem from research and education to clinical trials and faster regulatory approvals.” Read more

Publication: ET Legal World

Kumarmanglam Vijay, Partner & Head of Practice – Direct Tax

Budgets IT Tax Framework Overhaul To Reduce Litigation, Boost India’s Global Hub Status

“The 15.5% margin for IT and ITES exports under safe harbour provisions is likely to give a “major boost” to entrepreneurs wanting to set up IT services and GCCs. “With this, the Government has made it clear that it would like India to retain its competitiveness in the world.” Read more

Publication: NDTV Profit

Manvinder Singh, Partner

Share buyback proceeds to be taxed as capital gains

“The Finance Bill, 2026 proposes to restore the taxation of share buybacks into the capital gains framework by correcting an unintended anomaly introduced in October 2024, where even the original investment on shares was taxed as income. This change brings much-needed fairness and once again positions buybacks as a legitimate mechanism for return of capital.”

Publication: The Indian Express | Financial Express

Raj Ramachandran, Partner

MSMEs seek package for employing youth as govt proposes liquidity measures in Budget 2026

“Allowing CPSEs to deal with MSMEs through TReDs will help the latter with continuous cash flows. Their main concern was liquidity, as the payment from public sector enterprises would take several days to materialise. Now they will have visibility of the business.” Read more

Publication: The New Indian Express

Kumarmanglam Vijay, Partner & Head of Practice – Direct Tax

Budget resolves long-standing dilemma on TDS for contract work

“The Budget proposes to clarify this and include ‘supply of manpower’ within the definition of the term ‘work’ resulting in TDS at the rate of 1 per cent or 2 per cent depending on the category of payer and payee. This would provide much needed clarity and also resolve unnecessary cash flow issues for the budding manpower supply industry.” Read more

Publication: Business Line

Vishnu Sudarsan, Partner

India’s clean energy, hi-tech defence push hinges on securing critical minerals as rare-earth corridors announced

“Enhancing, securing, and fostering India’s rare earth corridors demands coordinated legal, policy, fiscal, regulatory, and administrative efforts.” He added, “Success hinges on interlocking reforms like removing monazite and beach sand minerals from the Atomic Energy Act’s purview, allowing private and joint-venture mining under strict licensing and radiation controls, with mandatory government custody of thorium by-products. A new chapter in the MMDR Act could create a ‘critical and strategic minerals’ category with longer tenures, accelerated allocation, and royalty structures rewarding downstream processing over raw extraction.” Read more

Publication: Deccan Herald

Soumitra Majumdar, Partner

Budgetary support for data centres to result in multiplier benefits, say industry officials

“Recognising data centres as infrastructure and simplifying regulations regarding data security, privacy and sovereignty, should also push the policy mandate of enhancing India’s renewable energy prowess and penetration.” Read more

Publication: Business Line

Ashish Suman, Partner

Union Budget 2026: Rare-earth corridors get thumbs-up, but experts warn execution needs Centre–State alignment

“The Budget underscores India’s commitment to manufacturing by focusing on productivity, capacity building, and resilience amid global volatility, while advancing the vision of Sabka Saath, Sabka Vikas. Rare earth mineral corridors aim to strengthen India’s global position, boost employment, and attract private investment. A PPP-led market-building approach, rather than just transactional projects, is the right step forward.” Read more

Publication: Business Today

Vishnu Sudarsan, Partner

Union Budget 2026 bets on critical minerals, nuclear energy, advanced science

“Enhancing, securing and fostering India’s rare earths corridor demands coordinated legal, policy, fiscal, regulatory and administrative efforts. Success hinges on four interlocking reforms”. Read more

Publication: Down To Earth

Probir Roy Chowdhury, Partner

Budget 2026: What Is Bharat Vistaar? India Bets Big On Multilingual AI Tool To Transform Agriculture

Probir welcomed the new tool, “This initiative aims to empower farmers, and promote more sustainable and resilient agricultural practices, by enabling data-driven decisions, and enhancing farm productivity,” he said. Read more

Publication: The Free Press Journal

Raj Ramachandran, Partner

Good news: Immunity from penalty or prosecution in income tax under-reporting cases has been expanded in these cases: Budget 2026 announcement

“New Income Tax Act, 2025 will come into effect from April 1, 2026. The rules and forms are to be notified shortly. Steps like de-criminalization of offences, retrospective immunity from prosecution for non-disclosure of non-immovable foreign assets, is certainly welcome. Much like various provisions in the Companies Act, 2013 were decriminalized, this move will provide the necessary comfort and boost investments.” Read more

Publication: Economic Times

Our Partner, Rishabh Gupta, in a live panel discussion with Press Trust of India (PTI), alongside industry experts from Deloitte and GT Bharat, on key announcements in the Union Budget 2026–27.

VIDEO | Finance Minister Nirmala Sitharaman has proposed tax holiday till 2047 for foreign companies that provide cloud services to customers worldwide by using data centres in the country. The tax holiday will be extended to the entities concerned subject to certain conditions.… pic.twitter.com/pxqYgcG11E

— Press Trust of India (@PTI_News) February 1, 2026

Publication: Press Trust of India

Our Partner, Manish Mishra, ahead of Union Budget presentation said “rationalisation in import duty due to US tariffs expected, not much change likely in GST”.

VIDEO | Delhi: “Rationalisation in import duty due to US tariffs expected, not much change likely in GST,” says JSA partner Manish Mishra ahead of Union Budget presentation.

(Full video available on PTI Videos – https://t.co/n147TvrpG7)#Budet2026WithPTI #UnionBudgetWithPTI pic.twitter.com/jdruceIdbA

— Press Trust of India (@PTI_News) February 1, 2026

Publication: Press Trust of India

Kumarmanglam Vijay, Partner and Head Of Practice – Direct Tax, JSA Advocates & Solicitors

“With corporate tax as well as individual taxation already rationalised, it seems that the Government will focus on providing incentives to key manufacturing initiatives that align with its strategic autonomy and global alignment priorities. I see more support, whether by policy initiatives, tax incentives or subsidies coming to energy, defence technology, critical minerals, shipping and import substitution in critical areas.” For more quotes click here – Read more

Publication: Business Today

Manish Mishra, Partner & Head – Indirect Tax, JSA Advocates & Solicitors, said: “Customs duties exemptions proposed to be removed on items of goods manufactured in India and having negligible imports. This will encourage import substitution and boost local manufacturing. “The time period for export of final products from 6 months to a year for leather and textiles will be a boon for the sector. Exemption on Lithium-ion batteries for BESS projects is expected to cater to a long-standing demand of the sector and reduce the tax burden on this critical sector. Reduction of customs duty on aircraft parts for the MRO is expected to give an impetus to the MRO sector. Goods imported for personal use are proposed to be taxed at 10 per cent instead of 20 percent leading to relief for many. Advance rulings of customs to be binding for 5 years instead of the earlier 3 years, leading to a greater certainty for businesses and reduced litigation. Simplification of procedures for import and export of goods is likely to result in speedier clearances and ease of operation for businesses. While measures have been announced to allow eligible SEZ manufacturers to sell to DTA at concessional duty rates, there is no mention of DESH bill for overhaul of the SEZ act to align it with GST and Customs laws.” Read more

Publication: Business Today

Raj Ramachandran, Partner, JSA Advocates & Solicitors, said, “The budget 2026 has proposed to tax buy-backs for all types of shareholders in the same manner as capital gains. Buy-backs are a preferred method of profit distribution to shareholders, including investors, and clarity on this aspect is certainly welcome. Investment transactions typically include buy-back as one of the options for exit. Various operating companies that have profits for distribution will certainly adopt this path, given the clarity.” Read more

Publication: Deccan Herald

JSA Partner Rishabh Gupta, reacting to the Self-Reliant India Fund and the ₹10,000 crore fund for champion SMEs, says, “I think this is a very key announcement. It will reduce our dependence on imports of PCBs, capacitors and other components. It will also promote initiatives such as Make in India, Atmanirbhar Bharat and the PLI schemes. This will generate significant job creation, help integrate India more deeply into global value chains, and boost AI development in the country. Semiconductors are a critical element for hardware, which from a compute perspective will lead to the development of stronger AI models.” Read more

Publication: Hindustan Times

Rishabh Gupta calls for tax stability for startups, AI-focused procurement. Emphasising the need for policy certainty, he noted that stability in the taxation regime for startups remains a critical expectation from Budget 2026. He also highlighted the importance of government procurement initiatives and the development of robust public platforms around artificial intelligence (AI) to support innovation and scale. Click here to watch the short.

Publication: Press Trust of India

Rajul Bohra, Partner

Budget 2026 Live Updates

“It is expected that the budget will come out with incentives which focus on chip production (rather than just assembly) and strong domestic supply chain for semiconductor industry. There should also be incentive schemes for local components, chip design and manufacturing for sustainable growth. It is also pertinent that the incentives which have been committed are released faster as large fab and OSAT projects are under financial pressure. Parallel reforms under related laws are required to boost the momentum and for the nation to achieve its aim of becoming top chip manufacturing hub by 2032 and attract major financial investment in this sector.”

Publication: CNBC and Times of India

Vivek K Chandy, Joint Managing Partner

GCCs driving growth of India’s tech industry, says Economic Survey 

“The Economic Survey confirms what has already been known for a few years. India has emerged as the most favoured destination for multinational companies seeking to establish Global Capability Centres (“GCCs”).” Read more

Publication: Yourstory

Rupinder Malik, Partner

Reformist, strategic focus likely in Budget

This article highlights how the upcoming Budget is expected to prioritise FDI reforms and targeted support for strategic sectors, including semiconductors and critical minerals, while also strengthening trade through FTAs and updating policies to improve business compliance and enable emerging technologies. Read more

Publication: The Hindu BusinessLine

Sajai Singh, Partner

Budget 2026 Expectations Highlights: Which sectors willNirmala Sitharaman focus on? What experts expect this year 

“Any development in the infrastructure space will help create jobs. Government allocations to develop industrial parks and promote public-private partnerships will be appreciated. If the government is looking for sectors to raise productivity, tourism, agri-processing, horticulture, and floriculture may be sectors they can consider additional allocation in. For rural employment, additional allocations for MGNREGA may be considered.” Read more

Publication: Mint

Rajul Bohra, Partner

Expert outlines key requirements to strengthen India’s semiconductor industry and attract investments

“There should also be incentive schemes for local components, chip design and manufacturing for sustainable growth. It is also pertinent that the incentives which have been committed are released faster as large fab and OSAT projects are under financial pressure.”  Read more

Publication: Mint

Ashish Suman, Partner, Swapnil Singh, Associate, JSA

India’s infrastructure ambitions now depend on smarter PPPs, not bigger budgets 

Investment in infrastructure has consistently proven to be one of the most powerful engines of economic growth in India, delivering a GDP multiplier of nearly 2.5–3.5 times for every rupee spent. It occupies a central position in India’s long-term development strategy and the vision of Viksit Bharat by 2047. As India approaches Budget 2026, infrastructure is no longer merely a fiscal lever, it is a strategic instrument to sustain growth, catalyst for private capital, and manage the limits of public finances. Read more

Publication: Economic Times Infra