Demerger and Earn-Out Complexities
Corporate India presses Finance Minister Sitharaman for explicit tax neutrality on demergers, earn-outs exceeding 3 years, and indefinite loss carry-forwards to facilitate 500+ M&A deals projected for 2026. Current ambiguities deter 60% of transactions valued above Rs 1,000 crore, particularly in pharma and IT services where IP restructuring predominates.
MSME-Specific Relief Packages
Micro enterprises demand presumptive taxation thresholds hiked to Rs 3 crore turnover, GST composition extended to Rs 1.5 crore, and TReDS mandates for all listed buyers to recover Rs 50,000 crore in delayed payments annually.
Investment Revival Catalysts
Angel tax abolition for DPIIT startups and ESOP deferrals to five years could channel Rs 2 lakh crore domestic capital into 10,000 high-growth MSMEs. Valuation certainty via DCF guidelines promises 3x funding velocity.
