India Tax Due Date - February 2026.

 

Sr No	Due Date	Related to	Compliance to be made
1	11.02.2026	GST	Filing of GSTR 1 for the month of January, 2026

2	13.02.2026	GST	GST ISD for Jan 2026
3	20.02.2026	GST	Payment of GST for the month of January, 2026 Filing of GSTR 3B for the month of January, 2026

4

07.02.2026

TDS/TCS (Income Tax)

· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of January 2026. · Deposit TDS from Salaries deducted during the month of January 2026 • Deposit TCS for collections made under section 206C including sale of scrap during the month of January 2026, if any

Transfer of Right to Receive Flat under Development Agreement Taxable as LTCG

 In a recent ruling, the Kolkata ITAT held that gains arising from the transfer of a right to receive a flat under a development agreement are taxable as long-term capital gains where such right—emanating from the assessee’s pre-existing leasehold rights in land—was held for more than the prescribed period.

“The New Litigation Skill CAs Were Never Trained For: Writing for Algorithms, Not Officers”

 

Introduction

For generations, tax litigation was shaped by human interaction. Arguments were framed for officers, appeals were drafted with persuasion in mind, and representation relied heavily on professional intuition and experience. Chartered Accountants were trained formally and informally to write for people.

Mumbai ITAT holds tax liability can be determined during Insolvency Proceedings even though recovery of tax dues is barred

 Recently, Mumbai ITAT ruling has reaffirmed that while recovery of tax dues is barred during the subsistence of an IBC moratorium of insolvency proceedings, appellate proceedings before the ITAT being in the nature of determination of tax liability, are not prohibited.

The Tiger Global Ruling: A Watershed Moment in India's Treaty Jurisprudence

The recent Supreme Court judgment in the Tiger Global International II Holdings case is not merely another tax ruling. It is a seminal moment that crystallizes India's judicial stance on capital gains taxation, treaty entitlement, and the perennial tension between domestic anti-abuse provisions and international tax obligations. To fully grasp its significance, one must journey through over a century of legal evolution, from the dusty mines of South Africa to the modern corridors of global finance.

GST on Non-Compete Fees: A Key Consideration for Business Transactions

In the complex landscape of India’s Goods and Services Tax (GST), the tax treatment of non-compete fees has emerged as a critical area for businesses during mergers, acquisitions, or even employment contracts. Simply put, a non-compete fee is a payment made by one party to another in exchange for an agreement to refrain from conducting a similar business or profession within a specified geographical area and time period.

Navigating the Nexus: India's Evolving Stance on Permanent Establishment in the Digital Age

The concept of a Permanent Establishment (PE) serves as the cornerstone of international tax law, determining a country's right to tax the business profits of a foreign enterprise. Traditionally rooted in physical presence—an office, a factory, a management place—the PE principle is being stretched and redefined in our globalised, digitised economy. India, as a major market and a capital-importing nation, has been at the forefront of this evolution, aggressively interpreting and expanding PE provisions to protect its tax base. This article examines four critical frontiers in this ongoing recalibration: the advent of the Virtual PE, the nuanced interpretation of Service PE post the landmark Hyatt ruling, the emerging risks associated with the Home Office, and the policy direction suggested by the NITI Aayog report on profit attribution.

No GST on Assignment of Leasehold Rights: Bombay High Court Provides Clarity

 In a significant ruling that provides relief to taxpayers and clarifies the scope of the Goods and Services Tax (GST) law, the Nagpur Bench of the Bombay High Court has held that the assignment of leasehold rights in immovable property does not constitute a "supply of services" and is therefore not liable to GST.

Deemed Dividend value under Income Tax taxable for borrower company only if he is shareholder in the lending entity

 The Delhi Income-tax Appellate Tribunal (‘the Tribunal’) recently held that an unsecured loan received by a company cannot be treated as ‘deemed dividend’ in its hands since the recipient company itself is not a shareholder of the lending company, even though there is a common beneficial shareholder.

Commissioner Income Tax (Appeals) cannot adjudicate issues already deleted by Assessing Officer in rectification order under section 154

 In a recent and noteworthy ruling, the Hon’ble Delhi Income Tax Appellate Tribunal has provided important clarity on the scope of appellate jurisdiction where an addition has already been removed by the Assessing Officer through rectification under section 154 of the Income-tax Act, 1961 (‘the Act’). The Tribunal has categorically held that once an addition no longer survives in the assessment by virtue of a rectification order, the Commissioner (Appeals) cannot adjudicate upon that issue, as there remains no subsisting subject matter for appeal.

Business Loss allowable even when major transactions being intra-group : Tax dept. cannot Second-Guess Commercial Decisions

 In a recent ruling, the Bangalore Tribunal held that business losses, including those arising from inter-group transactions, are allowable where the expenditure is incurred wholly and exclusively for business purposes, and cannot be disallowed based on the Revenue’s subjective assessment of business expediency.

ITAT denies deemed valuation of land during return processing stage

 In a recent ruling, the Delhi Bench of the Income Tax Appellate Tribunal (“ITAT”) held that no adjustment under section 50C of the Income-tax Act (dealing with deemed valuation of immovable property) can be made at the stage of initial processing of return. The ITAT categorically ruled that invoking the deeming fiction of section 50C while issuing an intimation under section 143(1) is beyond the limited scope of prima facie adjustments permitted under the Act.

Supreme Court of India rules on tax treaty eligibility and taxation of an indirect transfer of shares of an Indian company by a Mauritius based investment fund

 This Tax Alert discusses the recent landmark Supreme Court (SC) ruling in the case of Tiger Global International Holdings ^[1] (Taxpayer) upholding rejection of advance ruling sought by the Taxpayer seeking treaty exemption for indirect transfer. The rejection was on the ground that the application relates to a transaction or issue designed prima facie for the avoidance of income-tax.

The core fact involved was that the Taxpayer, being a Mauritian company and holding a valid Tax Residency Certificate (TRC), sold shares held in a Singapore company which derived substantial value from shares of an Indian company during the tax year 2018-19. The shares of Singapore Company were acquired prior to 1 April 2017.

The Taxpayer claimed exemption from indirect transfer source rule under Income tax Act, 1961 (ITA) on the basis of Article 13(4) of India-Mauritius Double Tax Avoidance Agreement (I-M treaty or I-M DTAA). Upon denial of nil withholding certificate by the Indian Tax Authority, the Taxpayer sought an advance ruling from the Authority for Advance Ruling (AAR) by relying upon, inter alia, the TRC issued by Mauritian Authority, Circular No. 789 dated 13 April 2000 issued by Central Board of Direct Taxes (CBDT) and earlier SC rulings upholding the significance of TRC for treaty eligibility.

However, after examining the facts regarding business operations of the Taxpayer, the AAR rejected the application at threshold on the ground of prima facie tax avoidance. But on Taxpayer’s writ petition, the Delhi High Court reversed the AAR ruling. The Tax Authority appealed further to the SC.

The SC ruled in Tax Authority’s favor and held that the AAR had correctly rejected the application. The SC examined the legal background of I-M Treaty, various Circulars issued from time to time, ratio of earlier SC rulings and legislative developments post such rulings like introduction of indirect transfer source rule, General Anti-Avoidance Rules (GAAR) including grandfathering provisions and its treaty override effect, statutory requirement to furnish TRC and other documents/information as also amendments in I-M treaty expanding source taxing rights of India. On a thread bare analysis of such developments, the SC held that Circular No. 789 is statutorily superseded and, hence, TRC alone is not sufficient to avail treaty benefits. The Tax Authority is now empowered to investigate the actual residential status of taxpayers by investigating the center of their management and deny treaty benefits to residents of third countries by invoking GAAR or Judicial Anti-Avoidance Rules (JAAR).

In the facts of the present case, the SC held that the Tax Authority had proved that the transaction was prima facie an impermissible tax avoidance arrangement; it was not protected by GAAR grandfathering provision; hence, the Taxpayer was not entitled to treaty benefit and the AAR had rightly rejected the advance ruling at threshold.

M&A – Few Important Concepts Every Deal Maker Must Understand

Mergers and Acquisitions (M&A) are no longer confined to large conglomerates. Mid-market deals, family-owned businesses, PE-backed exits and strategic acquisitions have become common. While valuation and synergies dominate boardroom discussions, many deals fail to deliver expected value due to weak structuring, tax leakages and poor post-deal integration. This article highlights a few important concepts that deserve close attention in any M&A transaction.

Are You Ready for a Tax Investigation? A Strategic Guide for Businesses

A tax investigation is one of the most stressful events a company can face. It disrupts operations, consumes resources, and carries significant financial and reputational risk. While the prospect is daunting, being prepared transforms a potential crisis into a manageable, controlled process. This article provides a strategic roadmap for handling a tax investigation, from the first knock on the door to its final resolution.