When Buy-Back Becomes a Restructuring Activity

 Not all share buy-backs are mere return of capital. Under certain conditions, a buy-back can be recharacterised as a restructuring activity – with significant tax and legal implications.

TDS Critical Takeaway from the Pfizer Case

A recent ruling in the Pfizer case has delivered an important lesson for taxpayers deducting TDS on cross-border payments.

Major Shift in LDC Framework: Act Now

A significant change under Section 395(1) of the Income-tax Act, 2025 is reshaping how Lower Deduction Certificates (LDCs) operate via TRACES.

⚠️ Critical Update: Starting April 1, 2026, a Master LDC Certificate will no longer be valid for quoting in TDS returns.

AIF Scheme Eligible for Pass-Through Exemption Despite Separate PAN

 In a recent ruling, the Mumbai Tribunal held that a scheme floated under a SEBI-registered Category II AIF trust can claim pass-through exemption, and such benefit cannot be denied merely because the scheme has a separate PAN while the SEBI registration stands in the name of the parent trust.

Withdrawn IPO Expenses treated as Revenue Expenditure

 The Delhi Bench of the Income-tax Appellate Tribunal ('Tribunal'), in a recent decision, held that expenses incurred on withdrawn IPO are revenue in nature and that income arising from foreign exchange differences and write-back of provisions qualifies for export-linked deductions.

Background

Gujarat HC – Relief for delay in opting concessional tax regime

 Gujarat High Court has granted relief to a taxpayer by allowing condonation of delay in opting for the new tax regime, holding that genuine and bona fide procedural delays may not result in denial of tax benefits.

Background

Indirect Transfer on Liquidation of a Foreign Holding Company

1. Introduction

Cross-border investment structures often employ intermediate holding companies in jurisdictions like the Cayman Islands. A common corporate restructuring step involves liquidating such a holding entity, which results in the upstream shareholder (for example, a Singapore company) acquiring direct ownership of the underlying subsidiaries—including, potentially, an Indian company.

ITAT Delhi – Cross border Buy-back may Qualify as Corporate Reorganisation whereby Capital Gains Not Taxable in India

 Recently, the Delhi Bench of the ITAT has held that a buy-back of shares within a corporate group can qualify as a “corporate reorganisation” under Article 13(5) of the India–Netherlands DTAA, thereby rendering the resultant capital gains taxable only in the Netherlands and not in India.

Recent Policy Changes Impacting Indian Manufacturing and Exports

 In a series of recent policy and regulatory interventions, the Government has introduced a set of measures aimed at strengthening export competitiveness, easing compliance, and enhancing domestic manufacturing resilience. Together, these measures spanning customs facilitation, import policy, sustainability regulation, and trade support reflect a calibrated policy response balancing trade facilitation, cost competitiveness, domestic industry protection, and sustainability alignment.

Deferred Customs Duty for Manufacturers: EMI Scheme Takes Effect from 1 April 2026

 In a significant move to ease working capital pressures for manufacturers, the Central Board of Indirect Taxes and Customs (CBIC), vide Circular No. 08/2026-Customs dated 28.02.2026, has extended the facility of deferred payment of Customs import duty to a new category of importers termed Eligible Manufacturer Importers (EMI), effective from 1^st April 2026. Under this framework, eligible importers can clear goods without upfront payment of Customs duty and instead discharge the duty liability on a consolidated monthly basis, thereby enabling more efficient cash flow management. This reform announced as part of the Union Budget 2026–27, is governed by the Deferred Payment of Import Duty Rules, 2016, is also aimed at expediting Customs clearance of imported goods at ports, airports, and inland container depots.