15% Minimum Corporate Tax Rule Likely to be Included in Ongoing IT Act Review

India is set to include a 15% minimum corporate tax rule in the ongoing review of the Income Tax Act, 1961, aligning with the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This rule, part of Pillar 2, aims to prevent multinational corporations (MNCs) from shifting profits to low-tax jurisdictions by ensuring a minimum effective tax rate of 15%. The changes are expected in the FY26 Budget, with the Central Board of Direct Taxes (CBDT) to notify relevant rules after stakeholder consultations. This move is anticipated to boost India’s tax revenues and ensure a fairer tax environment.