Market-based real estate policy urged to enable affordable housing through easier land access and streamlined governance.
Real estate policy should prioritise market mechanisms over subsidisation, with industry viability rooted in a market economy rather than reliance on subsidies. Easier access to land through procedural simplification is identified as central to delivering affordable housing. Supportive macroeconomic measures-monetary easing and bank recapitalisation-are expected to improve lending. Developers are invited to engage with the committee reviewing the Income Tax Act, while administrative transparency and e-governance are promoted to foster a hassle-free business environment and encourage a shift toward affordable housing.

Sovereign Gold Bond issuance: resident-only gold-denominated bonds with fixed interest, tradability, and price-linked redemption.
Sovereign Gold Bond issuance creates a government-backed gold-denominated bond issued by the Reserve Bank on behalf of the Government, sold through banks and designated post offices to resident Indian entities, denominated in gram multiples with an eight-year tenor and exit from year five. Issue and redemption prices are set in rupees using the previous week's IBJA simple average for 999 purity gold; bonds carry a fixed semi-annual interest rate, are tradable/demat-eligible, may be used as collateral with LTV aligned to ordinary gold loans, and remain subject to existing tax treatment for interest and capital gains.

Tariff valuation update: customs notification substitutes prescribed tariff values for specified imported goods under statutory power.
Amendment under section 14(2) of the Customs Act, 1962 substitutes TABLE 1, TABLE 2 and TABLE 3 of Notification No. 36/2001 Customs (N.T.), establishing prescribed tariff valuation figures in US dollars for specified imported goods including vegetable oils (various palm oil and palmolein items, crude soyabean oil), brass scrap, poppy seeds, areca nuts, and specified forms of gold and silver when particular notification benefits are availed.

Withholding tax on interest from offshore rupee bonds treated as final, with capital gains exemption for rupee appreciation announced.
Interest income to non-resident investors from offshore rupee denominated bonds will attract a withholding tax at the rate of 5 percent treated as a final tax, mirroring the treatment for offshore dollar bonds. Capital gains resulting from rupee appreciation between issue and redemption, measured against the investor's foreign currency, are proposed to be exempted from capital gains tax by amendment in the Finance Bill, 2016.

Electronic mismatch resolution enables online closure of income tax return discrepancies without taxpayers' physical presence.
The Income tax Department's pilot e-Sahyog provides an online mechanism to resolve income tax return mismatches for cases selected for scrutiny: taxpayers receive SMS and e mail notices, view mismatch details on the e filing portal, submit online responses, and, if responses meet automated closure rules, the issue is treated as closed with status accessible via the portal.

Simplification of Income Tax Act provisions: committee to propose consultative recommendations to improve predictability in tax law.
A committee is charged with simplifying the Income Tax Act, 1961 by identifying provisions causing litigation or impeding ease of doing business, reviewing jurisprudence for areas suitable for simplification, and proposing modifications to enhance predictability and certainty without materially affecting the tax base or revenue. The committee may form sub groups, publish draft recommendations for public consultation, finalise proposals after stakeholder input, and submit recommendations in batches within its one year term.

Tax exemption for mere display of uncut diamonds in Special Notified Zone clarifies non-taxability and legislative amendment follows.
The government declares that mere display of uncut diamond (without sorting or sale) inside a Special Notified Zone shall not be taxable under the Income-tax Act for displays carried out on or after 1st April, 2015, and that a legislative amendment to formalise this treatment will be introduced through the Finance Bill 2016.

Government securities auction: re-issue offered via multiple-price bidding with non-competitive allotment and when-issued trading eligibility.
Re-issue auctions for four Central Government stocks will be conducted by the Reserve Bank of India, Mumbai, using a multiple-price method; competitive and non-competitive bids must be submitted electronically via the RBI Core Banking Solution (E-Kuber), with up to five percent of each notified issue reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility, and the stocks eligible for When-Issued trading under RBI guidelines.

Revised monetary thresholds for arrest and prosecution narrow enforcement against small and medium businesses, with specified procedural safeguards and exceptions.
CBEC has consolidated and rescinded prior circulars to raise monetary thresholds for considering arrest and prosecution in tax and customs offences-covering central excise, service tax, wrongful input tax credit use, customs evasion by wrongful exemptions or drawback and valuation issues-and increased value limits for smuggling and baggage mis-declaration. The instructions impose procedural requirements and safeguards, directing that arrests and prosecutions be undertaken only for serious cases above the revised thresholds with strong prima facie evidence, while retaining no lower limit for specified grave offences such as counterfeit currency, arms, explosives and endangered species smuggling.

Mere transfer of title in immovable property excluded from service tax when sale completes after occupancy certificate issuance.
Where the entire consideration for sale of a flat or dwelling is received only after issuance of an occupancy certificate, the transaction is a mere transfer of title in immovable property and falls outside the definition of Service, and therefore is not taxable as service tax.

High Level Committee on tax law to recommend clarifications, triggering a mandated prompt government response.
A High Level Committee will engage with trade and industry to identify tax law ambiguities and recommend clarifications to the tax boards; it will be chaired part time with two part time members, supported by two senior Nodal Officers recommended by the Boards and approved by the Revenue Secretary, may consult external experts and government officers, and its recommendations must be acted upon by issuance of circulars or instructions within a specified administrative response period. The Committee will set its own procedures, receive per day sitting fees subject to a monthly cap, serve an initial term subject to extension, and submit half yearly reports to the Finance Minister.

Service tax exemption for PMJDY account services excludes business facilitator and correspondent account opening, deposits, withdrawals and Aadhaar seeding.
Service tax exemption applies to services by a business facilitator or business correspondent to a banking company for Basic Savings Bank Deposit Accounts under the Pradhan Mantri Jan Dhan Yojana in rural branches, covering account opening, cash deposits, cash withdrawals, e-life certificates and Aadhaar seeding; intermediary services to such facilitators or correspondents are likewise exempt.

Range concept in transfer pricing accepts transactions within a defined comparable price band and allows multi year comparability.
Amended transfer pricing rules determine Arm's Length Price by introducing a Range Concept-beginning at the 35th percentile and ending at the 65th percentile-so that transactional prices within this band are accepted without adjustment, and by permitting the use of multiple year data for comparability analysis to average out yearly variations.

Exemption for wind turbine parts confirmed, clarifying eligibility for central excise relief and reducing litigation risk.
Exemption for parts of Wind Operated Electricity Generators (WOEG) clarified: guidance confirms that constituent parts of wind turbines - including tower, nacelle, rotor, blades and wind turbine controller - are eligible for exemption from central excise duty under the governing notification, aiming to reduce litigation and improve ease of doing business in the non conventional energy sector.

Ease of doing business in financial markets promoted through consultations with FPIs and domestic participants on market reforms.
The Ministry of Finance is holding consultations with FPIs and domestic market participants, attended by financial and revenue regulators, to promote ease of doing business in financial markets. The FPI agenda covers simplification of registration procedures and documentation, development of the fund management industry, and FPI investment in the corporate bond market. The domestic agenda addresses market integration, increasing retail participation, and deepening the corporate bond market, with stakeholders invited to raise issues for consideration.

Tax exemption for display of uncut diamonds: display activity in Special Notified Zone declared not taxable; amendment via Finance Bill.
Income from the mere display of uncut (rough) diamonds inside a Special Notified Zone on or after 1 April 2015 will not be taxable under the Income-tax Act, 1961; a legislative amendment to that effect will be carried out through the Finance Bill, 2016. The non-taxable treatment applies only to display and excludes sorting or sale, and is intended to facilitate participation in the Special Notified Zone at the Bharat Diamond Bourse.

CEO selection for NIIF Investment Management Company establishes market-linked compensation and governance limits on government shareholding.
A Search-cum-Selection Committee chaired by the Secretary, Department of Economic Affairs, will select a market-calibre CEO for the Investment Management Company that manages NIIF investments; the CEO and investment team will receive market-linked compensation and be held to rigorous performance targets. NIIF will be established as a Trust or other legal entity to attract domestic and international capital for commercially viable infrastructure projects, with a Governing Council of government and expert representatives overseeing activities and a government shareholding cap limiting the State's equity participation.

Medical deduction certification relaxed: specialist certificates from outside government hospitals now accepted for tax deduction claims.
The tax authority amended the implementing rule to allow prescriptions and certificates from any listed specialist, removing the mandatory requirement that the certificate be issued by a specialist working in a government hospital, thereby broadening eligible medical practitioners for treatment-related tax deduction claims.

Special Banking Arrangement enabled government loan to settle outstanding fertilizer subsidy bills, with interest capped and repaid from budget.
A Special Banking Arrangement was ex post facto approved to provide a government loan via two public sector bank consortiums led by SBI and PNB to settle outstanding indigenous urea subsidy claims for 2014-15; the funds were raised and disbursed to fertilizer companies, government interest liability was limited to the G Sec rate, and the loan with interest was repaid from the Budget Estimates for 2015-16 within the sanctioned budget under the vote on account.

Economic indicators show strengthening industrial production and moderate inflation, indicating improved domestic demand and nascent recovery.
Index of Industrial Production and CPI data for late 2015 show manufacturing-led industrial growth, with strong increases in capital goods and consumer durables signaling improved investment and consumption demand, while year on year CPI inflation remained moderate and below prior-year levels, indicating low inflation alongside a domestic-demand-led recovery.