Employees Provident Fund wage ceiling increased from INR15,000 to INR25,000 per month

The Ministry of Labour and Employment has notified revised wage ceiling of ₹25,000 per month for the purposes of Chapter III (Provident Fund) of the Code on Social Security, 2020 (“COSS”), replacing the earlier wage ceiling of ₹15,000 per month with effect from 17 September 2026. The change is intended to align the social security framework with prevailing wage levels and expand access to Provident Fund savings, pension benefit and insurance protection.

How AI is Rewriting India’s Permanent Establishment (PE) Rulebook: Key Takeaways

• Traditional PE rules are under pressure. Historically, a foreign company became taxable in India only if it had a physical presence such as an office, branch, factory, or employees performing business activities in India.   
• AI challenges the physical presence test. Modern businesses can serve Indian customers through AI-powered platforms, chatbots, cloud infrastructure, and autonomous systems without maintaining any physical footprint in India.   

Cross Border Clarity: No FTC, No Deduction Either

 The Mumbai ITAT, in Tata Communications Transformations Services Ltd. v. DCIT [2026], held that foreign taxes cannot be claimed as a deduction merely because the Foreign Tax Credit (FTC) remains unutilised. The Tribunal clarified that Section 40(a)(ii) disallows foreign taxes that are eligible for relief under Sections 90/91, regardless of whether the credit is actually used. For businesses in loss years, foreign withholding taxes may therefore become a sunk cost, making FTC planning crucial.

5 GST Judgments in 2026 Every Business Should Be Watching

The year 2026 has already delivered several landmark GST decisions that could significantly influence tax compliance, assessments, and litigation strategy. Businesses, tax professionals, and finance leaders should closely track the following developments:

PMS commission allowed as deductible expenses.

 In an important ruling in the case of Ameeta Jagdish Thackersey, the Mumbai ITAT has held that Portfolio Management Service (PMS) fees are deductible while computing capital gains under Section 48 of ITA, 1961. The ITAT noted that Coordinate Benches (Delhi, Mumbai, Pune etc) have taken divergent views on this issue. In the absence of a binding decision from the Jurisdictional High Court or the Supreme Court, the ITAT upheld the view favourable to the assessee. A one pager summary of the ruling is attached below.

The ruling is also a useful reminder that where genuine divergence exists in judicial interpretation, the benefit of a reasonable alternative view cannot ordinarily be denied to the taxpayer merely because the Revenue Authorites prefers the other interpretation.

Safe Harbour vs. Advance Pricing Agreements: Choosing the Right Path to Transfer Pricing Certainty

 While Safe Harbour focuses on standardization, an Advance Pricing Agreement (APA) provides a customized solution.

An APA is a binding agreement between a taxpayer and the tax administration that determines in advance the appropriate transfer pricing methodology, margins, critical assumptions, and pricing parameters for specified international transactions.

𝗗𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗱𝗼𝗲𝘀 𝗻𝗼𝘁 𝗺𝗲𝗮𝗻 𝗱𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻: 𝗜𝗧𝗔𝗧 𝗮𝗹𝗹𝗼𝘄𝘀 𝗱𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗲𝗻𝘁𝗶𝗿𝗲 𝗥𝘀 𝟮𝟲𝟴 𝗖𝗿 𝗜𝗣𝗟 𝗙𝗿𝗮𝗻𝗰𝗵𝗶𝘀𝗲 𝗰𝗼𝘀𝘁

 Mumbai ITAT held that depreciation on Rajasthan Royals franchise rights is allowable on the entire acquisition cost of ₹268 crore, even though only ₹26.8 crore was paid during the year. Acquisition occurs upfront, while payment may be deferred. Any later adjustment in consideration would require corresponding WDV revisions

How Do Investors Choose Between CCPS and CCDs?

 At first glance, the distinction appears straightforward. Compulsorily Convertible Preference Shares (CCPS) are preference shares, while Compulsorily Convertible Debentures (CCDs) are debentures. Each is governed by separate provisions of the Companies Act, though the mechanics of issuance and conversion are largely comparable.

Refund of pre-deposit cannot be withheld merely because litigation continues on the balance demand

 In a significant judgment in IBM India Pvt. Ltd. v. Union of India (2026-VIL-955-BOM), the Bombay High Court has reaffirmed an important principle governing GST appeals and pre-deposits.

Taxability of Stock Option Buy-Backs: Salary or Capital Gains?

 . Introduction

Employee Stock Option Plans (ESOPs) are widely used to attract and retain talent by aligning compensation with performance. The lifecycle of an ESOP traverses five stages: grant, vesting, exercise, allotment, and sale. Each carries distinct tax implications.

S𝐮𝐜𝐜𝐞𝐬𝐬 𝐟𝐞𝐞 𝐩𝐚𝐢𝐝 𝐭𝐨 𝐚 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐚𝐝𝐯𝐢𝐬𝐨𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞 𝐨𝐟 𝐬𝐡𝐚𝐫𝐞𝐬 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐰𝐡𝐢𝐥𝐞 𝐜𝐨𝐦𝐩𝐮𝐭𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬.

 𝐁𝐚𝐧𝐠𝐚𝐥𝐨𝐫𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥in the case of Mohan Rajashekhar  𝐡𝐞𝐥𝐝 𝐭𝐡𝐚𝐭 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐟𝐞𝐞 𝐩𝐚𝐢𝐝 𝐭𝐨 𝐚 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐚𝐝𝐯𝐢𝐬𝐨𝐫 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞 𝐨𝐟 𝐬𝐡𝐚𝐫𝐞𝐬 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐚𝐛𝐥𝐞 𝐰𝐡𝐢𝐥𝐞 𝐜𝐨𝐦𝐩𝐮𝐭𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬. 𝐓𝐡𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥 𝐡𝐞𝐥𝐝 𝐭𝐡𝐚𝐭 𝐰𝐡𝐞𝐫𝐞 𝐚𝐝𝐯𝐢𝐬𝐨𝐫𝐲 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐧𝐞𝐱𝐮𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐞𝐱𝐩𝐞𝐧𝐝𝐢𝐭𝐮𝐫𝐞 𝐢𝐬 𝐢𝐧𝐜𝐮𝐫𝐫𝐞𝐝 𝐰𝐡𝐨𝐥𝐥𝐲 𝐚𝐧𝐝 𝐞𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞𝐥𝐲 𝐢𝐧 𝐜𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐬𝐮𝐜𝐡 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫, 𝐭𝐡𝐞 𝐞𝐱𝐩𝐞𝐧𝐬𝐞 𝐢𝐬 𝐚𝐥𝐥𝐨𝐰𝐞𝐝 𝐚𝐬 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧.

TAX DUE DATE - SEPTEMBER 2026

S. No	Due Date	Related to	Compliance to be made
1	11.09.2026	GST	Filing of GSTR-1 for August 2026.
2	13.09.2026	ISD	Filing for the month of Aug 2026
3	20.09.2026	GST	- Payment & filing of GST return for the Month of August 2026 - Form GSTR 3B

Key Changes in FEMA Export and Import Regulations Effective 1 October 2026

The Reserve Bank of India has introduced a new framework governing export and import transactions under FEMA. These regulations are effective from 1 October 2026 and will apply only to transactions initiated on or after that date. Transactions undertaken up to 30 September 2026 will continue to be governed by the earlier FEMA regulations.