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The proposed Draft Income Tax Rules 2026 introduce one of the most significant structural changes to India’s tax compliance framework in recent years — a comprehensive renumbering and consolidation of Income Tax forms across multiple categories, including audits, TDS, TCS, transfer pricing, and reporting requirements. While the underlying compliance obligations may largely remain the same, the renumbering of forms can create confusion, increase the risk of filing errors, and disrupt established compliance systems if not handled carefully. For taxpayers, professionals, and businesses, understanding the old vs. new form numbers is not merely procedural — it is essential for ensuring smooth compliance. 📌 Why Is Form Renumbering Important? Tax compliance in India relies heavily on form-based reporting. Each form corresponds to a specific obligation under the Income-tax Act and Rules — whether it relates to tax audit, TDS returns, international transactions, or specific disclosures. When f...

  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...

  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...

  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...

  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...