Archive: February 1, 2026

Mandating TReDS for CPSEs to Boost MSME Financing, Liquidity, and Market Transparency

 By Mr. Ketan Gaikwad, MD & CEO, RXIL

”Mandating TReDS as a transaction / settlement platform by CPSEs is a welcome move, as it will not only ensure timely payments and competitive financing rates for MSMEs, but also provide the government with a transparent, system-led view of MSME payment cycles across CPSEs, setting a strong benchmark for other corporates to follow.

The proposed extension of CGTMSE credit guarantee support to invoice discounting on TReDS further deepens the availability of working capital for MSMEs and will enable TReDS platforms to onboard a wider and more diverse MSME base.

Linking the GeM portal with TReDS for sharing information to the financiers will be a major enabler, allowing MSME suppliers access quicker and cheaper financing in a seamless manner, especially when combined with CPSE participation and credit guarantees.

The proposal to introduce trade receivables as asset-backed securities is a forward looking reform that has the potential to unlock additional liquidity by attracting new classes of investors and developing a secondary market for MSME receivables. We look forward to further details on this framework and believe it can meaningfully enhance market depth, liquidity, and settlement efficiency for MSME financing in the years ahead.

By strengthening the digital credit infrastructure and improving capital efficiency across the MSME ecosystem, TReDS emerges as a critical enabler of inclusive growth and a foundational pillar in India’s journey towards Viksit Bharat.”

Budget Puts Tourism at the Core of Job Creation with Strong Push on Skilling and Institutions

By:- Inputs on behalf of Mr. Arush Sachdev, Associate Partner, Transaction Tax & Advisory Estate & Succession Planning, Dewan PN Chopra & Co.

“The Union Budget places tourism at the heart of India’s employment and growth strategy, recognizing its potential to generate jobs, earn foreign exchange and stimulate local economies. The focus on institution-building, including a National Institute of Hospitality, signals a long-term commitment to strengthening sectoral capacity and standards. Grassroots skilling initiatives, such as training thousands of tourist guides, are expected to enhance service quality and livelihood opportunities”

Union Budget 2026 : Comment by Mr. Prerrit Mansingh, Secretary, Aayom Welfare Society

Mr. Prerrit Mansingh, Secretary of Aayom Welfare Society 

“Support for the SMEs, infrastructure investments in Tier-2 and 3 cities, and attention to emerging technologies like AI toward job creation and skill development are strategic and growth-oriented moves. The focus on youth with skill-building, along with provisions for elderly care, animal welfare, and greater access to women to essential services and education are commendable.From a civil society perspective, the real test will be how effectively these initiatives reach to the people on ground. Meaningful partnerships, strong and strategic implementation, and fair access through community-based and grassroots organizations will be essential to ensure that growth translates into lasting impact. This year’s budget laid out a clear push for economic growth along with the importance of inclusion.”

REIT Monetization and Infrastructure Spend Signal Positive Momentum for Real Estate in Budget 2026–27

 By:-  Mr. Amit Chopra, President- NAR India 

“The Union Budget 2026–27 introduces measures relevant to real estate, particularly across asset monetization, infrastructure spending, and transaction ease. The proposal to use REITs for monetizing Central Public Sector Enterprise assets is expected to unlock value from underutilized government land and attract institutional capital. Continued capital expenditure on infrastructure and urban connectivity may support demand in Tier-2 and Tier-3 markets. The removal of the TAN requirement for NRI property sales simplifies compliance, while tourism-focused initiatives could benefit hospitality-led real estate. However, expectations such as higher home loan interest deductions, a revised affordable housing definition, and industry status for real estate remain unaddressed and may require further policy attention.”

Budget 2026 Quote Rajeev Radhakrishnan, CFA, CIO – Fixed Income, SBI Mutual Fund

By Mr. Rajeev Radhakrishnan, CFA, CIO – Fixed Income, SBI Mutual Fund on Budget announcement

The overall gross and net borrowing numbers, along with the lack of any specific measures to address demand for bonds, will clearly weigh on market yields. Effectively, even as broader fiscal consolidation measures and the reduction in the debt-to-GDP ratio are long-term positives, the bond market in the near term will continue to depend on RBI’s open market operations to anchor yields. This remains a challenge and could keep yields elevated relative to underlying macroeconomic numbers.

Union Budget 2026 Reactions on Direct Taxation & Personal Finance

Inputs on behalf of Mr. Dhruv Chopra, Managing Partner, Dewan PN Chopra & Co. 

Direct Taxation:

“In a move aimed at enhancing taxpayer convenience and reducing compliance-related stress, Union Finance Minister Nirmala Sitharaman proposed extending the time limit for revising income tax returns from 31st December to 31st March, subject to payment of a nominal fee. She further announced a staggered approach to return filing timelines to ensure smoother compliance. Under the proposal, individuals filing ITR-1 and ITR-2 will continue to have a deadline of 31st July, while non-audit business cases and trusts will be permitted additional time, with a revised deadline of 31st August. The measures are intended to ease the filing process, improve accuracy, and distribute compliance workload more evenly.”

Simplified TDS process for NRI property sales:

“FM has proposed that TDS on the sale of immovable property by non-residents will now be deducted and deposited through resident buyers using their PAN-based challan, eliminating the need for a TAN (temporary accounting number) and simplifying compliance. Accordingly, the tds will be lower than existing rates of 20%\12.5% depending on different facts. This will bring much relief to NRIs on assets they have inherited in India as ease exit process while protecting revenue and ensuring compliance for the department.”

Inputs on behalf of Ms. Sofiya Syed, Senior Consultant, Direct Tax, Dewan PN Chopra & Co.

“Finance Minister Nirmala Sitharaman announced a five-year income tax exemption for non-residents supplying capital goods and equipment to domestic manufacturers operating in bonded zones. The measure is aimed at attracting global suppliers, strengthening manufacturing capabilities, and boosting investments in high-value industrial infrastructure.”