Government approval for foreign direct investment allocated between Finance Minister and CCEA, with streamlined exceptions for additional investments.
The notification reallocates decision-making on Government-route FDI: FIPB recommendations will be processed by the FIPB Secretariat and submitted either to the Minister of Finance or to the Cabinet Committee on Economic Affairs according to the scale of proposed equity inflow, with CCEA also able to consider referred cases. It further provides that additional foreign investment into the same entity need not obtain fresh Government approval where the activity or sector has moved to the automatic route, where sectoral caps have been relaxed and cumulative limits are respected, or where prior approval was earlier obtained under specific Press Notes and no other approval reason exists.

Higher TDS rate for missing PAN now applies; deductors must withhold higher tax unless PAN furnished.
From 1 April 2010 tax must be deducted at the higher of the prescribed rate or 20% where the deductee's PAN is not quoted; this applies to all deductees including non-residents. Certificates under section 197 and declarations under section 197A are not valid without PAN. Deductors must withhold tax at the higher rate where PAN is not furnished, and deductees are advised to obtain and furnish PAN (including through NSDL or UTIISL online procedures) before tax is deducted.

Refund of Cenvat Credit clarified to cover all admissible inputs and input services, with streamlined certified claim procedures.
Amendments align refund entitlement with CENVAT Credit Rules by inserting "in relation to" and replacing "in" with "for", ensuring refunds cover all goods and input services on which CENVAT is allowable. Deletion of an illustrative appendix provision confirms CENVAT availed in earlier periods is refundable and requires refund calculation by applying the export-to-total turnover ratio to the total Cenvat balance at the quarter/month end. Prospective changes replace Annexure Conditions A and B with a certified table requiring officer or auditor verification to expedite processing.

Trade law enforcement: monitoring of SEZ unit performance triggers regulatory action for non compliance under foreign trade law.
Approval Committees under Development Commissioners, including customs, income tax and state government representatives, must monitor SEZ unit performance by scrutinising Annual Performance Reports and Quarterly Performance Reports and reviewing rent recovery; non compliance or scheme violations subject units to regulatory enforcement under foreign trade law, including action under the Foreign Trade (Development and Regulation) Act, 1992.

Tax administration reform advances: service modernization, simplified filings, automation rollout and expanded settlement scope.
The Budget advances tax administration reforms to improve taxpayer services through expansion of Sevottam, fully operational centralized processing with further centres planned, and notification of SARAL II for salaried individuals. Indirect tax measures stress fiscal consolidation and movement toward GST, with Project ACES rolled out for excise and service tax automation. The scope of the Settlement Commission is proposed to be expanded to admit certain central excise and customs cases previously excluded.

Fiscal consolidation begins with partial rollback of stimulus measures while boosting social, agricultural and infrastructure allocations to support growth.
The budget pursues fiscal consolidation through a partial rollback of stimulus-restoring excise rates and broadening service tax-while mobilising revenue via a disinvestment plan and spectrum auction to reduce fiscal deficits and free funds for private investment. It couples consolidation with higher allocations to agriculture, rural employment and social sectors, increased farm credit and concessional lending, and enhanced state transfers, alongside tax relief for households and commitments to implement the Direct Taxes Code and a national goods-and-services tax.

Fiscal consolidation coupled with tax reform to broaden the base and prioritise infrastructure and social investment.
The Budget for 2010-11 establishes a medium term programme of fiscal consolidation with targets for reducing fiscal and revenue deficits while increasing transfers to States under the 13th Finance Commission. It prioritises capital expenditure for infrastructure, agriculture and social sectors, brings subsidy liabilities into fiscal accounting, and pursues resource mobilisation through tax changes, preparatory steps for the Goods and Services Tax and the Direct Tax Code, disinvestment and spectrum auction receipts.

Direct tax collections growth noted, with corporate receipts leading and advance tax instalment reminder for March compliance.
Direct tax collections rose year on year in the first eleven months of the fiscal year, led by stronger Corporate Tax receipts while Personal Income Tax grew modestly; February showed marked monthly improvement after prior negative growth. The release also highlights higher year on year growth in Securities Transaction Tax and Wealth Tax for April-February and reminds that the final advance tax instalment is due in March, with prescribed proportions required from corporate and non corporate taxpayers.

Service tax on renting of immovable property faces constitutional challenge; retrospective amendment affirms central levy and restricts relief.
The piece analyzes whether the Finance Act taxes letting/renting of immovable property per se or only services provided "in relation to" such renting, focusing on a Delhi High Court challenge to a notification and circular that allegedly expanded the statutory scope. It reviews Supreme Court precedents construing "in relation to" broadly and upholding Parliament's competence to tax services, notes prior retrospective legislative validation of impaired levies, and concludes that retrospective amendments substantially limit successful constitutional challenges, leaving taxpayers to litigate with reduced prospects or comply with the levy.