The eBRC Revolution: Why Your Export Incentives Are at Risk From January 2026

 At first glance, DGFT Public Notice No. 42/2025-26 appears to be a mundane update—just three new fields to populate on the electronic Bank Realisation Certificate (eBRC): GSTIN, GST Invoice Number, and Date. Many exporters are dismissing it as a simple format tweak. This dismissal is a monumental, and potentially costly, error.

Effective 13 January 2026, this notice fundamentally rewires India’s export compliance machinery. The eBRC is being transformed from a confirmatory document into a live financial control instrument. The core shift is seismic: from Shipping-Bill-Centric to Invoice-Centric tracking of export realisations.

Disallowance of payments to non-residents without TDS capped at 30% under DTAA (non-discrimination clause) and not 100% as per Act

 In a significant and taxpayer-friendly ruling, the Hon’ble ITAT, Delhi Bench has recently delivered an important decision in LinkedIn Technology Information (P.) Ltd. v. PCIT, which provides much-needed clarity on the application of tax treaty protections, particularly the non-discrimination principle, in cases involving payments to foreign entities. The ruling assumes importance for Indian companies making cross-border payments to overseas group entities, vendors, or service providers, especially in situations where TDS disputes arise and consequential disallowances are proposed by the tax authorities.

India–Singapore treaty - Capital Gains Taxable in India for Shell/Conduit Entities

 Under Article 13(4A) of the India–Singapore DTAA, capital gains from the transfer of shares of an Indian company acquired by a Singapore resident before 1 April 2017 are taxable only in Singapore. Article 13(5) similarly provides that capital gains from transfer of any other property not covered specifically under any other Para of the said article, including Compulsorily Convertible Debentures (CCDs), are taxable in the country of residence of the transferor, i.e., Singapore. However, Article 24A denies these treaty benefits to a shell or conduit company that has negligible business operations or lacks real and continuous business activities in Singapore, even if the prescribed expenditure threshold specified therein is satisfied.

Buy-backs Proposed amendments in Budget 2026

 The Government has been revisiting taxation of share buy-backs very frequently - making, unmaking, and remaking the framework - each time introducing a new approach; the latest one being the Budget announcements yesterday which seeks to tax buy-backs through a promoter-based classification.

TAX SAVING OPPURTUNITY FOR SALARIED PEOPLE

 01. The present employer contribution is restricted to  12%.

02. In the proposal the 12% limit removed

03. It means employer contribution can go upto Rs. 7.5 Lakhs

04. The extra payment to PF from employer is not CTC in the hands of employee & reduce the employee tax burden

Key Indirect Tax changes in Union Budget, 2026

 

The Union Budget 2026 echoed the theme of streamlining tariff exemptions, integrating & digitizing customs clearances and a shift towards trust-based ecosystem. Alongside, necessary amendments are made in GST law to implement GST Council’s recommendations. While the Industry expected an Amnesty Scheme in Customs, it was notably absent.

Finance Bill 2026 - Important tax highlights.

01.  No change in Income Tax rates, surcharge & cess.  

02.  Income tax Act 2025 effective from April 1, 2026.  

03.  Old regime tax continues with same tax rates & deductions.

Danish Tax Tribunal Rules on WACC in IP Transfer Valuation, Rejects Lower Discount Rate for Routine Functions

A recent Danish Tax Tribunal case addressed the valuation of intellectual property (IP) transferred from a Danish principal entity to a new group principal during a restructuring. Post-transfer, the Danish entity became a routine service provider.

Taxation of Cross-Border Corporate Guarantees: A Treatise on Treaty Characterization, Transfer Pricing, and GST

Introduction

In the interconnected global corporate ecosystem, corporate guarantees are a pivotal instrument for facilitating group financing, bolstering the creditworthiness of subsidiaries, and securing operational commitments. These guarantees, typically categorized as financial (assuring repayment of loans) or performance (securing contractual obligations), generate fees that have become a significant point of contention in international taxation. The core debates revolve around their correct characterization under Double Taxation Avoidance Agreements (DTAAs), the determination of their Arm's Length Price (ALP) for transfer pricing, and their treatment under Goods and Services Tax (GST). This article synthesizes judicial precedents and regulatory provisions to provide a comprehensive overview of this complex landscape.

SAIC Motor Wins Tax Treaty Case on Offshore Sales and PE Status in India

 Based on the case SAIC Motor Corporation Limited v. ACIT, the Delhi ITAT ruled on several key issues regarding Article 5 (Permanent Establishment) of the India-China Tax Treaty:

FMV of flats received in exchange of surrender of tenancy rights as on date of exchange is Cost Of Acquisition for sale of flats subsequently

 In a recent ruling, the Mumbai Bench of the Income Tax Appellate Tribunal (“ITAT”) held that where a taxpayer acquires ownership flats in exchange for surrendering tenancy rights, the fair market value (FMV) of such flats on the date of acquisition should be treated as the cost of acquisition for computing capital gains.

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