This Tax Alert summarizes a recent ruling of the Gujarat High Court (HC)1 on the taxability of corporate guarantee provided by the Petitioners on behalf of their related party located in India and the constitutional validity of Rule 28(2) of the Central Goods and Services Tax Rules, 2017 (CGST Rules).
The key observations of the HC are:
This Tax Alert summarizes the recent Notification notifying “The Foreign Assets of Small Taxpayers - Disclosure Scheme Rules 2026” (Rules) issued by the Central Government and 50 Frequently Asked Questions (FAQs) issued by Central Board of Direct Taxes[2] (CBDT), pertaining to “The Foreign Assets of Small Taxpayers – Disclosure Scheme 2026” (Scheme) which was introduced vide Finance Act (FA) 2026[3].
The Finance Act, 2022 introduced India's first dedicated tax regime for Virtual Digital Assets (VDAs) through Sections 2(47A), 115BBH and 194S of the Income-tax Act, 1961. The framework was designed to tax income arising from the transfer of cryptocurrencies, NFTs and similar digital assets.
However, the growing popularity of crypto futures and options traded on offshore exchanges has created an interpretational challenge. Unlike spot crypto transactions, many derivative contracts are cash-settled, meaning parties pay or receive only the price difference without acquiring, delivering or transferring the underlying cryptocurrency.
This raises a crucial question: should profits from cash-settled crypto derivatives be taxed under the special VDA regime of Section 115BBH, or under the ordinary provisions relating to business income and speculative transactions? The answer has significant tax implications because the two regimes operate differently.
Taxation is one of the most significant financial obligations for any business. Alongside managing operations, growth, and profitability, companies must carefully plan their tax affairs to ensure compliance while optimizing cash flows. Effective tax planning begins well before the financial year-end and typically involves using the deductions, exemptions, and incentives provided under the Income-tax Act, 1961.
Comparison table highlighting how India’s treaty policy differs from the OECD Model Tax Convention, especially on key articles such as Permanent Establishment (Article 5), Business Profits (Article 7), Royalties (Article 12) and Capital Gains (Article 13).
In DCIT v. Coca Cola India Inc., the Delhi ITAT held that a Working Capital Adjustment cannot be made merely because receivables from an AE remain outstanding for an extended period. The Tribunal observed that such adjustments under TNMM are intended to improve comparability and must be supported by evidence of actual financing cost or economic disadvantage. Since the assessee had no external borrowings, incurred no interest cost, and was fully funded by its US Head Office, the Revenue failed to establish any real financial burden arising from delayed receivables. Accordingly, the TP adjustment was deleted.
The Lok Sabha has passed the Taxation & Other Laws (Amendment) Bill, 2026 (‘Amendment Bill’). The said Amendment Bill replaces the Income-tax (Amendment) Ordinance, 2026 which was earlier passed on 5 June 2026 and also proposes other amendments to the Income-tax Act, 2025 (‘the Act’), the most notable amendment being in respect of taxation of unitholders and SPVs of business trusts.
This Tax Alert summarizes a recent judgement of the Supreme Court (SC)[1] dealing with the effect of omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) on any proceedings pending disposal on the date of such omission.
Rule 96(10) inter alia
restricted any person from claiming refund of integrated tax paid on export of
goods or services if benefit of specified exemption notifications was availed.
The said rule was omitted w.e.f. 8 October 2024[2].
Subsequently, the Gujarat High Court (HC)[3] held that such omission
will be applicable to all proceedings/cases which are pending for final
adjudication either before courts or adjudicating authorities. Revenue filed an
appeal before SC.
The key observations of the SC are:
This Tax Alert summarizes a recent ruling of the Delhi High Court (HC)[1] on whether the newly introduced pre-deposit requirement for filing an appeal against penalty-only order applies where the show cause notice (SCN) was issued before 1 October 2025, while the adjudication order was passed thereafter.
The key observations of the HC are:
This Tax Alert summarizes a recent ruling of the Karnataka High Court (HC) [1] on the constitutional validity of Health Security se National Security Cess Act, 2025 (HSNS Cess Act), the Health Security se National Security Cess Rules, 2026 (HSNS Cess Rules) and the notifications issued thereunder.
The key observations of the HC are:
This Tax Alert summarizes the recent advisory1 issued by Goods and Services Tax Network (GSTN) keeping the proposed enhancements to the e-Way Bill system on hold until further notice.
The key observations of the HC are:
|
Sl. No |
Due
Date |
Related
to |
Compliance
to be made |
|
1 |
11.08.2026 |
GST |
Filing
of GSTR – 1 for the month of July 2026 |
|
2 |
31.08.2026 |
Income
Tax |
Filing
of Form 10 of Charitable Trust |
|
3 |
13.08.2026 |
ISD |
Filing
for the month of July 2026 |
|
4 |
20.08.2026 |
GST |
Payment
& filing of GST return for the Month of July 2026 - Form GSTR 3B |
|
5 |
07.08.2026 |
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 July 2026. · Deposit TDS from Salaries deducted during the
month of July 2026 Deposit TCS for collections made under section 394 including sale of
scrap during the month of June 2026 if any Deliver a copy of Form 121(15G/15H), if any to
CCIT or CIT for declarations received in the month of June 2026, if any |
-Sakshi Agarwal
Let’s start with a small story in this regard. Client B runs a highly successful, medium-sized manufacturing firm that produces industrial packaging. Because he spent most of his time on the factory floor and pitching to new clients, he entrusted his entire back-office operations to Mr. A, a loyal senior accountant who had been with the company for over a decade. Mr. A was considered part of the family; he rarely took vacations, worked late on weekends, and single-handedly managed vendor payments, payroll, and bank reconciliations.
Kentucky has introduced several important sales and use tax developments that take effect August 1, 2026. If your business sells products or services into Kentucky—especially digital offerings or through remote sales channels—now is a good time to review your compliance obligations.
Here are the key updates:
Recent judicial pronouncements have provided significant clarity on the rights of taxpayers and the limitations of tax authorities under Indian tax law. Three important rulings—from the Supreme Court on GST input tax credit, the Chennai ITAT on income tax penalties, and the Mumbai ITAT on demergers—offer crucial guidance for businesses navigating complex tax disputes. Each decision reinforces the principle that tax authorities must act within statutory boundaries and cannot penalize taxpayers arbitrarily.
