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⚖️ Supreme Court to Examine Digital Search Powers of Tax Authorities

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  In a significant development for India’s tax and legal landscape, the Supreme Court of India is set to examine the constitutional validity of expanded digital search and seizure powers granted to tax authorities. A Public Interest Litigation (PIL) has challenged provisions that enable officials to access computers, cloud storage, mobile devices, and other electronic records during search proceedings. At the heart of the challenge lies a fundamental constitutional question: Do these enhanced powers infringe upon the right to privacy guaranteed under Article 21 of the Constitution of India? This case has far-reaching implications for taxpayers, businesses, professionals, and digital data governance in India. Background: Expansion of Digital Search Powers With rapid digitization of commerce, accounting systems, and communication, tax investigations have increasingly shifted from physical files to digital ecosystems. Recognizing this shift, tax authorities were granted expanded powe...
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📊 Taxman Tightens Grip on PE & VC Structures

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  In a significant development for the investment community, the Income Tax Department has reportedly intensified scrutiny of overseas Private Equity (PE) and Venture Capital (VC) fund structures, particularly those routed through jurisdictions such as Mauritius and Singapore. This move follows the landmark Supreme Court ruling in the Tiger Global case and signals a stronger regulatory focus on commercial substance and treaty eligibility. For global investors, fund managers, and cross-border investment vehicles, this is a clear message: structures must withstand substance-based scrutiny, not merely legal formality . Background: Why the Scrutiny Now? India has long been a preferred investment destination for PE and VC funds. Historically, many offshore funds structured investments through treaty jurisdictions like Mauritius and Singapore to avail themselves of favorable tax treaty provisions—particularly concerning capital gains tax. However, over the past decade, India has: Reneg...
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💻 Draft Rules Tighten Tax Framework for Digital Entities

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  The digital economy in India has witnessed exponential growth over the last decade. From e-commerce marketplaces and OTT platforms to SaaS providers and digital advertising networks, technology-driven businesses are reshaping how goods and services are delivered. In response to this rapid expansion, the Government has proposed draft rules aimed at tightening the tax framework for digital entities operating in India . These proposed changes signal a clear intent: strengthen compliance, enhance transparency, and ensure fair taxation of digital transactions involving Indian users. For businesses operating in or targeting the Indian market, understanding these draft provisions is not optional—it is essential. Why the Draft Rules Matter India is one of the fastest-growing digital markets globally. With millions of users transacting daily across platforms, tax authorities are increasingly focused on ensuring that digital revenues attributable to India are properly reported and taxed. T...
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📢 CBDT Clarifies on Refund Delays: What Taxpayers Need to Know

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  Income tax refunds are one of the most anticipated outcomes after filing returns. For many taxpayers, refunds represent excess taxes paid through TDS, advance tax, or self-assessment tax. However, in recent months, concerns have emerged regarding delays in processing refunds, leading to speculation that such delays may be intended to encourage taxpayers to shift to the new tax regime. To address these concerns, the Central Board of Direct Taxes (CBDT) has issued an important clarification: refund delays are not intended to push taxpayers toward the new tax regime. This announcement brings much-needed clarity and reassurance to taxpayers across the country. In this article, we break down the clarification, understand the reasons behind refund pendency, and outline what taxpayers should do to avoid unnecessary delays. Understanding the Concern Around Refund Delays With the introduction of the new tax regime and continued availability of the old regime, taxpayers have had to evalu...
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Draft Income-tax Rules & Forms, 2026 – Feedback Invited

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  A Crucial Step Towards Simplified and Future-Ready Tax Compliance The Indian tax landscape is entering a significant phase of transformation. With the Income-tax Act, 2025 set to come into force from 1 April 2026 , the Central Board of Direct Taxes (CBDT) has released the Draft Income-tax Rules & Forms, 2026 for public consultation. This move signals a major shift towards simplification, consolidation, and modernisation of income-tax compliance in India. Stakeholders—including taxpayers, professionals, businesses, and industry bodies—are invited to carefully review the draft rules and forms and submit their feedback through the income-tax e-filing portal . The intent is clear: reduce compliance burden, eliminate redundancies, and make the tax system more transparent and user-friendly. This blog explains what the Draft Income-tax Rules & Forms, 2026 are, why they matter, key highlights, and how taxpayers and professionals should prepare for the changes ahead. Background...
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Tax Audit Key Provisions – AY 2026–27 (Section 44AB)

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  Tax audits play a critical role in ensuring transparency, accuracy, and compliance in income reporting. For Assessment Year (AY) 2026–27, Section 44AB of the Income-tax Act, 1961, along with allied provisions, continues to be a cornerstone for businesses and professionals. Understanding these provisions well in advance helps taxpayers avoid last-minute stress, notices, and penalties. This blog provides a comprehensive overview of the key tax audit provisions for AY 2026–27 , covering applicability, thresholds, reporting requirements, due dates, and common compliance pitfalls. 1. What is a Tax Audit under Section 44AB? A tax audit is an examination of a taxpayer’s books of accounts by a Chartered Accountant to ensure that income has been correctly reported and tax provisions have been duly complied with. Section 44AB mandates certain taxpayers to get their accounts audited and submit the audit report in the prescribed format. The objective of a tax audit is to: Ensure accuracy of ...
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Banking Reforms Update: High-Level Committee to Review India’s Banking System

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  India’s banking sector is the backbone of the country’s economic growth. From funding infrastructure and supporting MSMEs to enabling digital transactions and financial inclusion, banks play a vital role in shaping the nation’s future. Recognising the need to strengthen this crucial pillar, Finance Minister Nirmala Sitharaman has announced the formation of a high-level committee to comprehensively review India’s banking system. This move signals the government’s intent to build a resilient, efficient, and future-ready banking ecosystem capable of supporting India’s long-term growth ambitions. This blog explores the background of the announcement, the objectives of the committee, key focus areas, and what this reform could mean for banks, businesses, and the overall economy. Background: Why a Review of India’s Banking System Is Needed Over the last decade, India’s banking sector has undergone significant transformation. Reforms such as bank recapitalisation , insolvency and bank...
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