TAX DUE DATE - MAY 2026.

 

Sr No	Due Date	Related to	Compliance to be made
1.	11.05.2026	GST	Filing of GSTR1 for the month of April 2026
2.	13.05.2026	GST	ISD Return

3.	20.05.2026	GST	Payment of GST for the month of April 2026 Filing of GSTR 3B for the month of April 2026
4.	7.05.2026	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 April 2026. · Deposit TDS from Salaries deducted during the month of April 2026 • Deposit TCS for collections made under section 206C including sale of scrap during the month of April 2026, if any
5	31.05.2026	TDS/TCS (Income Tax)	Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended Jan-March 2026 in Form 24Q / 26Q / 27Q / 27EQ.
6	31.05.2026	Income Tax	Filing of Annual Information Return u/s 285BA(Old Act).

Income from Other Sources – Assessing Section 56(2)(x) to Off-Market Transfers of Quoted Shares

1. Introduction

The taxation of gifts under the Gift Tax Act, 1958 was abolished in 1998. To prevent routing of unaccounted money through bogus gifts, the Finance Act, 2004 introduced provisions that eventually consolidated into Section 56(2)(x) of the Income Tax Act, 1961 via the Finance Act, 2017. This section taxes receipt of money or property without consideration, or for inadequate consideration below Fair Market Value (FMV), where the excess exceeds ₹50,000. FMV is determined under Rule 11U and 11UA.

The provision is an anti-abuse measure, as confirmed by CBDT Circulars and the Finance Minister’s speech. However, it operates as a deeming fiction – taxing notional income. A critical question arises: does Section 56(2)(x) apply where listed shares are transferred off‑market at a price below the exchange‑listed value?

When a Subsidiary Becomes a Permanent Establishment of Its Foreign Parent

 A subsidiary company is not automatically a Permanent Establishment (PE) of its foreign parent under tax treaties. However, depending on the functions it performs, it can cross the threshold and become a PE under Article 5 of the OECD/UN Model Convention.

India Overhauls Corporate Compliance: Key Amendments to Companies Act & LLP Act

 In a landmark move following the Deloitte Haskins & Sells LLP v. Union of India (Feb 2025) case, the National Financial Reporting Authority (NFRA) has been granted corporate status and significantly expanded enforcement powers. The Delhi High Court’s validation of NFRA’s authority to investigate and penalize auditors for misconduct has been codified. NFRA can now issue advisories, censure, mandate additional training, and refer matters for further action. Professional misconduct now explicitly includes contravention of the CA 2013 provisions, with penalties ranging from fines and imprisonment to debarment.

Calcutta High Court clarifies inclusion of electricity duty in valuation of captive power for tax deduction purposes

 Recently, the Hon’ble Calcutta High Court in Graphite India Ltd. v. Commissioner of Income-tax ruled in favour of the taxpayer and put to rest the controversy regarding valuation of captively consumed electricity for tax deduction purposes. The Hon’ble Court clarified that while electricity duty may not be separately payable on power consumed internally, the same would nevertheless form part of the market value of power when computing the eligible deduction on captive power undertakings.

Bombay HC allows filing of refund application for a period already covered under an earlier application

This Tax Alert summarizes a recent judgement of the Bombay High Court (HC) ^[1] on the validity of multiple refund applications filed by the taxpayer under section 54(1) of the Central Goods and Services Tax Act, 2017 (CGST Act) for the same tax period.

Assessee filed a refund application for the tax period of August 2022 which was rejected by the Revenue on the ground that assessee had earlier filed and obtained refund through a consolidated application covering the period July 2022 to September 2022. The petitioner contended that the August 2022 invoice had been inadvertently omitted from the earlier application. The rejection was thus challenged before the HC.

The key observations of the HC are:

India-New Zealand FTA signed in April 2026, enabling zero-duty access for Indian exports to New Zealand

India and New Zealand have signed a landmark India–New Zealand Free Trade Agreement (IN–NZ FTA) on 27 April 2026 in New Delhi. The FTA aims to boost exports, MSMEs, investment flows, skills mobility and broader economic cooperation.

Defining features of the FTA are:

SEBI Applies Substance-over-Form Test While Granting Exemption Under Takeover Code for Share Transfers to Private Trusts

 Succession planning for promoter families has emerged as a critical priority for business-owning families. It necessitates a structured evaluation of legal and regulatory considerations, including compliance with the SEBI framework, particularly the takeover regulations when transferring control of a listed company to the next generation.

The SEBI Takeover Regulations trigger an open offer obligation where an acquisition of shares or control entitles an acquirer to exercise 25% or more of the voting rights in a listed company. This applies to both direct and indirect acquisitions, including transfers of shares in holding entities. While certain bona fide transactions such as inter-se promoter transfers, transfers among immediate relatives, and succession-related transfers are exempt, no blanket exemption is available for transfers to family trusts. However, SEBI Master Circular permits case-specific exemptions upon application to SEBI, subject to conditions, including that the settlor must have been disclosed as a promoter for at least three years.

In the exemption application filed by Tega Industries Limited, the promoter family proposed to transfer shares of NFSPL, which held 49.71% in the company. During its review, SEBI observed that one of the settlors had not been formally disclosed as a promoter of Tega Industries Limited. However, she had held shares in NFSPL since 2006, and NFSPL itself had been disclosed as a promoter of Tega Industries Limited since its listing in 2021. Based on these facts, SEBI concluded that the requirement of being “disclosed as a promoter for three years” was substantively met and accordingly granted the exemption.

NCLT clarifies IBC applicability: Commercial profit-sharing not a trigger for CIRP

 In a recent ruling, the NCLT, Mumbai Bench (‘Tribunal’) held that a claim arising from a revenue or profit-sharing arrangement under film rights and co-production agreements does not qualify as 'operational debt' within the meaning of Section 5(12) of the IBC. The Tribunal held that the petitioner, being a commercial partner, sharing profits from the exploitation of cinematographic rights, could not be treated as a supplier of goods or services so as to invoke the corporate insolvency resolution process.

Tax Implications of Offshore Liquidation Structures Involving Indian Subsidiaries: A Practical Analysis

Global corporate structures often evolve over time, and simplification through liquidation of intermediate holding entities is a common strategic move. However, when such structures involve Indian subsidiaries, the Indian Income-tax Act introduces complex tax implications—particularly through the indirect transfer provisions. This article examines the tax consequences of liquidating an intermediate holding entity within a multi-tier structure and outlines the associated risks, responsibilities, and litigation considerations.