Not all payments made by Company on behalf of the promoter shareholder to be treated as 'deemed dividend' under Income Tax Act

 The Ahmedabad Bench of ITAT has ruled that a payment made by a closely-held company on behalf of a shareholder, by debiting his existing credit balance in a deposit account maintained with the company, does not constitute “deemed dividend”, as no money flowed from the company to the shareholder.

 

TAX DUE DATE - MARCH 2026.

Sr No	Due Date	Related to	Compliance to be made
1	11.03.2026	GST	Filing of GSTR 1 for the month of February, 2026

2

20.03.2026

GST

Payment of GST for the month of February, 2026 Filing of GSTR 3B for the month of February, 2026

3	07.03.2026	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 February 2026 · Deposit TDS from Salaries deducted during the month of February 2026 • Deposit TCS for collections made under section 206C including sale of scrap during the month of February 2026, if any
4	15.03.2026	Income Tax	Payment of Advance Tax
5	31.03.2026	GST LUT	Filing of LUT for the FY 25-26

Appellate Authority allows payment of incremental tax liability without interest w.r.t issuance of debit notes due to price escalation

 This Tax Alert summarizes a recent order passed by the Commissioner CGST (Appeals) , being the First Appellate Authority, regarding the applicability of interest on differential tax pursuant to issuance of debit notes for upward revision of price.

The key observations of the Commissioner (Appeals) are:

ITC on Autopilot? The Hidden Risks of Real-Time GST Reconciliation

 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.

TDS RATE FOR FY 2026-27.

 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

Returning to India: A Guide to Tax Residency and Global Income Compliance

 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.

Section 58 of the Income Tax Act, 2025: A Unified Presumptive Taxation Regime for Small Taxpayers

 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.

Decoding the New Foreign Tax Credit Regime: Income Tax Act, 2025 & Draft Rules, 2026

 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.

Calcutta HC confirms disallowance of payments to group's central company made on pre-determined basis treating them as Contractual Payments and not Reimbursements

 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.

 

DGFT restricts RoDTEP benefits to 50% of notified rates and value caps on exported products

 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.

Under the scheme, eligible exporters receive a rebate at notified rates on exports made by them, either as a percentage of free-on-board (FOB) value with a value cap per unit of the exported product wherever required, or a fixed rebate amount per unit.

Vide Notification dated 23 February 2026 (supra), the RoDTEP rates on all products notified in Appendix 4R and 4RE to the FTP, other than those falling under ITC HS Chapter 1 to 24, is capped at 50% of the existing rates and where applicable, 50% of the notified value caps.

This change may affect exporters availing benefits under the scheme, potentially altering export costing, pricing, and cash flow projections.

Transfer of employee-related liabilities under slump sale not sufficient for deduction under section 43B - Actual payment mandatory to claim benefit

 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.

Press Release on Amending Protocol to India-France tax treaty

 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.

RBI Proposes Key Reforms to NBFC Registration & Exemption Framework (2026 Draft Directions)

 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”).

GSTAT holds re-adjudication under Section 73 can be done only by the proper officer where Section 74 proceedings held unsustainable in appeal

 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.

ECB Regulations revamped by RBI - Effective 9 February 2026

 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.