Tax refunds expedited: Government increased income and corporate tax refund disbursements to support taxpayers during the pandemic.
The Central Board of Direct Taxes expedited disbursement of refunds in Financial Year 2020-21, issuing aggregate refunds exceeding Rs. 2.62 lakh crore to over 2.38 crore taxpayers between 1 April 2020 and 31 March 2021, including approximately Rs. 87,749 crore in income tax cases and about Rs. 1,74,576 crore in corporate tax cases as part of pandemic related administrative measures.

Special assistance to states for capital expenditure supports state capital projects after pandemic revenue shortfalls and reform compliance.
Special Assistance to States for Capital Expenditure funds state capital projects across sectors to address pandemic-related revenue shortfalls, premised on capital expenditure's higher multiplier effect. The scheme comprises three parts: targeted allocations for north-eastern and hill States; proportional distribution among other States based on central tax share; and a reform-linked tranche available to States implementing at least three of four specified citizen-centric reforms, with certified compliance leading to enhanced allocations.

Devolution to States increased to reflect revenue buoyancy, additional transfers issued in two instalments strengthening fiscal federalism.
Ministry of Finance authorised an additional devolution of forty five thousand crore to States in FY 2020 21, an 8.2% increase over the Revised Estimates; total devolutions were raised based on initial estimates of the shareable pool to reflect revenue buoyancy. The additional allocation was disbursed in two instalments-one with the fourteenth regular instalment and a second at year end-and accompanied by a state wise schedule showing RE allocations, additional amounts and overall releases.

Tariff value fixation for specified imports establishes authoritative valuation for customs and import duty administration.
The Central Board of Indirect Taxes & Customs amends the principal customs notification by substituting TABLE 1, TABLE 2 and TABLE 3 to prescribe specific dollar denominated tariff values for listed imported goods-including specified edible oils, brass scrap, areca nut, and defined forms of gold and silver-thereby establishing the authoritative tariff valuation schedule for those tariff items to be used in customs valuation and import duty administration.

Make in India investment facilitation: measures to attract and fast-track domestic and foreign investment through policy reforms.
Make in India aims to facilitate investment, innovate, build manufacturing infrastructure, and improve ease of doing business across 27 sectors under Make in India 2.0, coordinated by central departments for manufacturing and services. The programme uses investor outreach, international cooperation, streamlined regulatory processes, public procurement, Phased Manufacturing Programmes, and Production Linked Incentives. Institutional measures include an Empowered Group of Secretaries and Project Development Cells in ministries to fast-track investments and grow a pipeline of investible projects.

Central Government co-contribution under Atal Pension Yojana supports eligible non-taxpaying subscribers for guaranteed pension accrual.
The Central Government has disbursed co-contribution funds under the Atal Pension Yojana and the scheme provides five guaranteed pension slabs payable from age sixty to eligible subscribers aged eighteen to forty with a savings bank account; the same pension continues to the spouse on the subscriber's death and the pension corpus returns to the nominee if both die. Government co-contribution applies to initial joiners who are not members of statutory social security schemes and are non-income-taxpayers. The Government has implemented multiple measures to boost enrolment, including flexible payment periodicity, digital onboarding and apps, paperless onboarding for existing bank customers, outreach campaigns, grievance mechanisms, and bank staff training.

Unaccounted income detection prompts searches revealing use of shell companies and ploughed-back funds into equity and loans.
Searches by the Income Tax Department revealed systematic generation and concealment of unaccounted income by a manufacturing and trading group, with recovery of off book production accounts, digital records of undisclosed sales, seized cash and bullion, and documentation showing use of Kolkata based shell companies to plough back concealed receipts as high premium share capital and unsecured loans; bogus commodity profit entries and facilitators arranging entries were also identified.

Search and seizure operations uncover widespread unaccounted builder receipts, out of books dealer sales, hidden stock, and hawala payments.
Search and seizure operations in Mumbai uncovered digital records, cash and documents showing substantial on money receipts by a builder and systematic out of books sales by mobile accessories dealers, including import under invoicing, hawala payments, secret godowns with unaccounted stock, undisclosed bank accounts and unaccounted property investments; forensic messaging evidence is being used to verify import costs and transactions, and further valuation and investigation are ongoing.

Election-related search and seizure action targets cash handlers and alleged income suppression to curb funds for electoral use.
Income-tax authorities conducted targeted search and seizure operations in Tamil Nadu during election surveillance, searching premises of cash handlers and a business group. The searches uncovered suspected suppression of income via inflated purchases and other overstated expenses, with unaccounted receipts invested in land and business expansion. Substantial cash was seized and significant unaccounted income detected; investigations are continuing to prevent possible diversion of funds for electoral purposes and to enforce tax compliance.

Benami transactions and tax evasion: coordinated frontmen concealed real ownership, triggering investigation and asset restraints.
Searches found a coordinated scheme using persons of no or low means as benami frontmen, prompted by non-compliance with Faceless Assessment Scheme notices. Evidence shows liquor licences and housing allotments in nominees' names, undisclosed cash premiums in an affordable housing project, bogus expense claims, routing of unaccounted funds through a shell company as share capital and unsecured loans, and investments in nominee-held properties; jewellery and bank lockers were found and restrained while further investigation continues.

Concessional tax rate on FPI interest under section 194LD remains applicable despite amendment to section 115AD.
Clarification confirms that the proviso preserving a concessional tax rate for interest income of Foreign Portfolio Investors payable under the Act remains in force, and that legislative amendments did not withdraw that concessional treatment for interest characterized under the specified withholding provision.

Tax evasion and money laundering uncovered after searches: fabricated invoices, sham foreign transactions and undisclosed assets exposed.
Searches by the Income Tax Department in Tamil Nadu uncovered indicators of tax evasion and money laundering: fabricated invoices and false commodity trading to justify large cash deposits; sham foreign debenture inflows diverted to personal accounts; over-invoicing of imports to route funds abroad; undeclared immovable property acquisitions and undisclosed foreign accounts; and significant unaccounted assets seized while investigations under the Black Money law continue.

Faceless income tax assessment: increases transparency and efficiency with limited exceptions for central and international charges.
Faceless income-tax assessments have been instituted to assess total income or loss, removing direct officer-assessee interface to enhance efficiency, transparency and accountability, while employing team-based assessment and dynamic jurisdiction. The scheme excludes assessment orders assigned to central charges and to international tax charges. An independent evaluation of assessees' experiences has been commissioned, and no move to adopt faceless scrutiny for GST (which operates through electronic filing on a common portal) is currently under consideration.

Tariff value fixation updated for specified edible oils, brass scrap, areca nut, and defined forms of gold and silver under customs valuation.
Amendment to the customs valuation framework substitutes updated TABLE-1, TABLE-2 and TABLE-3 in Notification No. 36/2001-Customs (N.T.), fixing revised tariff values in US dollars for specified edible oils, brass scrap and areca nut per metric tonne and for specified forms of gold and silver per prescribed weight units, with explanatory notes delineating scope for precious metals and jewellery components.

Infrastructure investment reforms enable foreign portfolio and sovereign funds increased access to Indian infrastructure financing and tax relief.
Legislative and fiscal reforms in the Finance Bill expand financing avenues for infrastructure by allowing debt financing of InvITs and REITs by Foreign Portfolio Investors and permitting Infrastructure Debt Funds to issue zero coupon bonds. Tax reliefs granting conditional exemption to foreign Sovereign Wealth Funds and pension funds have been widened to cover investments through NBFC IFC, NBFC IDF, qualifying domestic companies and Category I/II AIFs investing in InvITs. These measures are coupled with extended viability gap funding for PPPs, health sector budget allocations, NIIF equity infusion, and continued use of strategic and minority disinvestment to support infrastructure financing.

Tax relief measures expanded compliance deadlines and reduced withholding and interest burdens to ease COVID-19 industry impact.
The Government implemented COVID-19 tax relief by extending compliance deadlines, reducing TDS/TCS rates and interest on delayed tax payments, issuing corporate tax refunds, and extending investment and dispute-resolution windows. The Finance Bill 2021 proposed raising safe harbour margins for primary residential sales, extending affordable and rental housing deductions and start-up deduction eligibility, and increasing the audit threshold for digitally transacting businesses. A time-limited customs duty exemption for specified medical imports and labour ministry control rooms for worker grievance redressal were also instituted.

Search and seizure uncovers substantial unaccounted cash linked to cash-handling agents; investigations and enforcement proceedings continue.
A search and seizure operation targeted two persons handling others' cash on commission following intelligence, resulting in seizure of unaccounted cash and continuation of investigations into source, custodianship and tax compliance implications.

One Nation One Ration Card portability enables interstate access to entitlements and unlocks additional state borrowing incentives.
Seventeen States have operationalised the One Nation One Ration Card system, allowing NFSA and welfare beneficiaries to obtain entitled foodgrains from any e-PoS enabled Fair Price Shop nationwide; States completing Aadhaar seeding of all ration cards and automation of all FPSs are permitted an additional borrowing of 0.25 percent of GSDP as an incentive linked to citizen-centric reform.

Search and seizure uncover alleged cross-border trade manipulation and unaccounted transactions leading to cash and electronic evidence seizures.
Search and seizure operations in Kolkata uncovered use of multiple bank accounts to square trade accounts with Chinese exporters, alleged non-arm's-length import pricing to reduce customs duty impact, unaccounted domestic sales, and a clandestine mechanism converting cash into foreign exchange routed to foreign exporter accounts; electronic devices and substantial unaccounted cash were seized and investigations continue.

Startup recognition enables expedited IP relief, finance access through a Fund of Funds, procurement relaxations and tax benefits.
Startup India creates a recognition-based framework allowing eligible private companies, partnerships or LLPs to obtain DPIIT recognition and receive benefits including expedited and subsidised IP processing, access to a government-managed Fund of Funds via SIDBI and SEBI-registered venture funds, self-certification under specified labour and environmental laws, limited-period income tax deduction subject to Inter Ministerial Board certification, exemption for share subscriptions above fair market value upon prescribed filing, procurement relaxations, and faster corporate wind-up through fast-track procedures.