Extension of ITR V filing deadline allows later submission and alternative posting where acknowledgement is not received.
Taxpayers who filed electronic income tax returns without digital signature may send duly signed ITR V by ordinary post up to the later of 31 March 2010 or 120 days from upload; if no email acknowledgement is received from the processing centre, taxpayers may resend a duly signed ITR V by speed post. This measure relaxes the prior 30 day submission requirement as a one time procedural accommodation and preserves the designated postal submission route.

High value refund verification: enhanced cross verification and stronger system controls to prevent refund generation fraud.
Unauthorised refund generation was detected after fraudulent use of officers' user IDs and passwords; investigators traced credited bank accounts and beneficiaries, employed stop payment orders and searches, notified law enforcement, and announced cross verification of all high value refunds plus replacement of the high value refund handling system with a more robust control framework.

PAN requirement: higher TDS applies when deductee's PAN is not furnished, and section197 certificates are invalid.
Tax must be withheld at the higher of the prescribed rate or twenty percent where the deductee's PAN is not furnished, effective 1 April 2010; this applies to all TDS liable payments including those to non residents. Section 197 certificates or declarations for lower or nil deduction are invalid without the deductee's PAN. Deductors must ensure PAN is quoted in all documents and notify deductees to obtain and furnish PAN to avoid higher withholding. PAN applications may be filed via Form 49A through designated agencies, local missions for non residents, or specified online portals.

Withholding tax reductions boost cross-border investment under revised DTAA with expanded information exchange and limitation of benefits clause enhances treaty integrity.
The revised bilateral tax agreement reduces withholding taxes on distributions and payments to encourage investment and technology transfer, harmonizes withholding treatment for royalties and technical service fees, and strengthens information exchange by preventing refusal of requests solely for lack of domestic interest or because information is held by banks. It adds a Limitation of Benefits clause to prevent treaty misuse, expands permanent establishment rules to include service PE, extends the time test for independent personal services, broadens the Mutual Agreement Procedure for relief from double taxation, and introduces assistance in collection of taxes, subject to each State's internal completion procedures.

Widening tax base through non-intrusive reforms and stronger cross-border information exchange to boost compliance.
Expansion of tax base and enhanced information exchange is proposed through a reform roadmap to broaden taxpayer coverage and improve taxpayer services. Seven specialist committees will draft a Vision document to identify non-intrusive measures to increase direct tax collections, prioritising monitoring cross-border transactions and capital inflows, enhancing exchange of information under treaty obligations, and addressing money laundering risks to support compliance and enforcement.

Withholding tax reduction enhances cross-border investment and technology transfer, adds information exchange and anti-abuse measures under the revised DTAA.
Revised DTAA reduces withholding taxes on dividends, royalties and technical service fees to a lower uniform rate; expands the Exchange of Information to permit effective sharing including bank held information and where no domestic interest exists; adds a Limitation of Benefits clause to prevent misuse; includes Service PE in the PE rules; broadens relief mechanisms via Mutual Agreement Procedure; introduces assistance in tax collection; and extends the independent personal services time test to a longer 12 month period. Entry into force follows internal procedures in both States.

Export incentives expanded under multiple schemes, extending product coverage and new target markets for export benefits.
Export incentive coverage is expanded across FPS, MLFPS, VKGUY and FMS through addition of new eight digit products and new markets, with specified sectors gaining differential benefit rates. MAI support is allocated for a warehouse project in Latin America. Proposed finance measures to the Ministry of Finance and RBI seek reduced margins on dollar credit, continuation and extension of a 2% interest subvention to additional sectors, and lengthening the non crystallisation period for overdue export proceeds for selected labour intensive sectors.

TDS enhancement and cross-border scrutiny urged to meet revised direct tax target and curb tax avoidance.
Income tax administration is directed to intensify TDS efforts and expand revenue sources by identifying new collection areas, enhancing scrutiny of cross-border transactions, coordinating regularly with departments responsible for TDS deduction, monitoring TDS at district level where major public expenditure occurs, and sharing information among Commissionerates to build a common database aimed at accelerating TDS contribution to net direct tax receipts.

Direct tax collections show corporate tax growth while personal income tax fell due to increased refunds.
The release reports overall growth in net direct tax collections driven mainly by substantial corporate tax increases while Personal Income Tax collections declined, a contraction attributed largely to a significant rise in PIT refunds; it also notes modest STT growth and stronger proportional wealth tax growth, underscoring shifts in revenue composition between corporate and individual tax streams.

Tax refund phishing alerts: taxpayers warned that refund emails requesting card details are fraudulent and should be ignored.
Electronic communications claiming to notify recipients of income-tax refunds and requesting credit card details are fraudulent; the Income Tax Department does not send emails about refunds nor seek taxpayers' credit card information. Taxpayers are cautioned not to respond to such emails and any disclosure of sensitive information is at their own risk and responsibility.