Ernst & Young has presented ambitious recommendations for Budget 2026, proposing a comprehensive restructuring of India's tax deducted at source (TDS) framework to enhance ease of doing business and reduce compliance burdens on corporations.

Current TDS Framework Challenges

The existing Income Tax Act contains nearly 37 different TDS provisions for payments made to residents, each featuring distinct rates and thresholds. According to EY, this complex structure creates significant operational challenges for businesses, particularly those with extensive vendor and employee networks. The firm highlights that the current system leads to frequent disputes, interpretational challenges, and elevated compliance costs across various business sectors.

Proposed Consolidation Structure

EY's recommendations center on streamlining the existing framework into a simplified structure. The proposed consolidation would establish three to four broad TDS categories designed to cover all payment scenarios while maintaining revenue collection efficiency.

This rationalized approach aims to reduce ambiguity in payment classification, lower litigation risks, and simplify compliance procedures without compromising government revenue collection objectives.

Elimination of Low-Rate TDS

The consulting firm has specifically targeted the removal of 0.1% TDS applicable to certain transactions, arguing that this provision has exceeded its original utility. EY contends that the low-rate TDS was initially introduced as a reporting and tracking mechanism rather than a revenue-generation tool, and its continued application creates unnecessary administrative overhead.

The firm emphasizes that transactions under the Goods and Services Tax regime benefit from comprehensive tracking through multiple mechanisms:

• Digital invoice systems
• GST return filings
• Real-time reporting frameworks

EY argues that maintaining TDS requirements on GST-covered transactions results in duplicated compliance obligations and increased administrative costs for businesses.

Digital Integration and Oversight

With the government's expanded digital monitoring capabilities across direct and indirect tax systems, EY believes GST data can effectively fulfill the tracking objectives originally served by the 0.1% TDS provision. The firm notes that reconciliation between GST and direct tax streams is already operational in several cases, supporting the feasibility of eliminating redundant TDS requirements.

Strengthened real-time integration between GST and direct tax systems would further support this transition, enabling comprehensive oversight without imposing additional compliance burdens on businesses.

Broader Tax Simplification Initiative

EY's TDS rationalization recommendations form part of a comprehensive approach to tax law simplification ahead of Budget 2026. The proposals align with broader objectives to reduce business friction, improve tax certainty, and enhance overall compliance efficiency across India's tax ecosystem. These recommendations reflect ongoing efforts to modernize India's tax framework while maintaining robust revenue collection and oversight mechanisms.

eYantra ventures Limited has formally notified the BSE about its upcoming Board meeting scheduled for February 10, 2026. The meeting will focus on reviewing and approving the company's quarterly financial performance for the third quarter of fiscal year 2026.

Board Meeting Details

The Board of Directors will convene to consider and approve both standalone and consolidated unaudited financial results for specific reporting periods. The meeting represents a crucial milestone in the company's quarterly reporting cycle, ensuring compliance with regulatory requirements.

Trading Window Restrictions

In accordance with regulatory protocols, eYantra Ventures Limited has implemented trading window restrictions to maintain market integrity during the financial results announcement period. The company previously communicated these measures through its December 29, 2025 correspondence.

Regulatory Compliance

The announcement follows Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to provide advance notice of Board meetings where financial results will be considered. The company's proactive communication demonstrates its commitment to maintaining transparency with stakeholders and regulatory bodies.

Company Secretary and Compliance Officer Priyanka Gattani signed the official communication on January 29, 2026, ensuring all procedural requirements were met within the prescribed timeframe.