Let’s start with a small story in this regard...
Client B runs a mid-sized manufacturing unit. Every month, his finance team proudly informs CA X that their Input Tax Credit (ITC) reconciliation is “fully automated.” They use a cloud-based tool that pulls GSTR-2B data, matches invoices, and generates exception reports.
Given below the TDS rate for FY 2026-27 under Income Tax act 2025.
1. TDS Rate
A.
Section
392: Salary & Employee balances TDS on Payment of salary
Sec 392 (1) For Computation of TDS on salary slab rate is in
force remain as in old act Section 192 TDS on Accumulated PF Balance due on
Employee
Sec 392 (7) Rate of 10 % remain same For Computation of TDS on Accumulated Balance PF
For Non-Resident Indians (NRIs) planning to move back home, the relocation is only half the journey. The other half is understanding how their tax liability in India will shift the moment their residential status changes. With the financial year ending soon, now is the time to plan.
The newly enacted Income Tax Act, 2025, marks a significant step toward simplification by consolidating multiple presumptive taxation schemes into a single, streamlined framework. Section 58 of the new Act merges the provisions previously found in sections 44AD, 44ADA, and 44AE of the 1961 Act, creating a uniform regime for small businesses, professionals, and transport operators.
The landscape of international taxation in India is set for a significant shift with the introduction of the Income Tax Act, 2025, effective from April 1, 2026. The new framework, along with the Draft Income Tax Rules, 2026, brings greater clarity and structure to the mechanism of claiming Foreign Tax Credit (FTC). This article breaks down the key provisions governing FTC under the new regime.
The new Act bifurcates the relief mechanism into two distinct categories: relief under tax treaties (Section 159) and unilateral relief (Section 160). The procedural backbone for these claims is detailed in Rule 76 of the Draft Rules.
The Calcutta High Court upheld the Tribunal’s disallowance of payments made by the taxpayer that were labelled as reimbursements but were pre-decided irrespective of actual expenditure. The Court held that since the payments were fixed percentages of net sales and not linked to actual costs, they were in substance contractual payments for services and attracted tax deduction at source. As the taxpayer did not deduct tax at source, the disallowance was sustained. Typically, no tax is required to be deducted on genuine reimbursements made on the basis of actual expenses.
This Tax Alert summarizes a recent Notification issued by Directorate General of Foreign Trade (DGFT) rationalizing rebate rates notified under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
Recently, the Hon’ble Income-tax Appellate Tribunal, Hyderabad (‘ITAT’) in the case of Deputy Commissioner of Income-tax v. Corteva Agriscience Services India (P.) Ltd. has held that a company cannot claim deduction under section 43B of the Income-tax Act, 1961 (‘the Act’) on the basis of a notional or deemed payment merely because employee related liabilities such as leave encashment and bonus were transferred to another company pursuant to a slump sale. The ITAT clarified that section 43B permits deduction only upon actual payment of the specified liabilities within the prescribed time and that a mere transfer of obligation to another entity does not satisfy this requirement.
This Tax Alert summarizes a Press Release dated 23 February 2026 issued by the Ministry of Finance (MoF) announcing amendments to the India-France Double Taxation Avoidance Agreement (DTAA or tax treaty) vide an Amending Protocol signed by India and France.
In a significant move impacting family offices and group investment / holding structures, the Reserve Bank of India (“RBI”) has introduced draft amendments to the regulatory framework governing Non-Banking Financial Companies (“NBFCs”).
This Tax Alert summarizes a recent ruling of the Goods and Services Tax Appellate Tribunal (GSTAT) [1] on jurisdiction of the Appellate Authority to re-adjudicate proceedings where original proceedings initiated under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) are held unsustainable due to the absence of any fraud or intent to evade tax on the part of the taxpayer.
The Reserve Bank of India (“RBI”) has notified the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, marking a significant overhaul of India’s External Commercial Borrowing (“ECB”) framework.
The Central Board of Direct Taxes (‘CBDT’) has released the Draft Income-tax Rules, 2026, along with accompanying Draft Forms, to operationalize the Income-tax Act, 2025, which is scheduled to come into force on April 1, 2026. These draft rules are currently in the public domain for feedback until February 22, 2026. The new framework aims to simplify compliance by reducing the number of rules from 511 to 333 and forms from 399 to 190. A comprehensive overview of key proposed changes, featuring combined common rules and forms, is tabulated below:
As per Income Tax Law, the total income of a non-resident includes income from any source that is received or deemed to be received in India during the relevant previous year.
Recently, the Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) in the case of Monica Bibbly Sood, has ruled that for the purposes of Section 50C of the Income-tax Act (dealing with deemed valuation of immovable property), the “appointed date” for determining stamp duty valuation shall be the date of agreement to sell, and not the date of registration of the sale deed, where part consideration has been received through banking channels in accordance with the provisions of Section 50C.
Chennai Tribunal held that where a trust has been retrospectively amended to eliminate the possibility of adding non-relatives as beneficiaries, contribution of shares by the settlor to the trust would not attract the gift tax provisions.
