FDI in e-commerce limited to marketplace model; inventory-based operations barred and marketplace control over seller inventory restricted.
Press Note No. 2 (2018) permits foreign investment in the marketplace model under the automatic route and prohibits FDI in the inventory model. Marketplace entities must not exercise ownership or control over vendor inventory and may provide support services only at arm's length and in a fair, non discriminatory manner. Platforms must not influence sale prices, cannot require seller exclusivity, must disclose seller contact details, and remain subject to payment, warranty, delivery and auditor certification obligations to confirm compliance.

Chit fund nomenclature reform enables distinction between registered chit funds and banned prize chits, clarifying terminology.
Amendments to the Chit Funds Act, 1982 introduce alternative names (Fraternity Funds and ROSCA) to distinguish registered chit funds from illegal prize chits and substitute "chit amount" with gross chit amount and "prize amount" with net chit amount to remove terminological confusion and support orderly sector growth.

Public debt issuance rose with longer maturities and softer government securities yields due to fiscal and liquidity developments.
Central Government issuance increased with additional Cash Management Bills, maintained a weighted average maturity near sixteen years and a lower weighted average yield; total liabilities rose with public debt comprising the majority, notable residual short maturities under five years, and concentrated holdings in banks and insurers. Secondary market yields softened, including on the ten year benchmark, driven by fiscal target revision, domestic and international monetary easing, benign inflation, higher central bank surplus transfers, and surplus liquidity, while dated securities dominated outright trading volumes.

Search and survey operations uncover derivative trade reversal schemes creating artificial profits and losses, prompting tax inquiries.
Search and survey operations targeted share brokers and traders using rapid reversal trades in illiquid stock options and currency derivatives to manufacture artificial profits and losses; the probe uncovered manipulated long term capital gains in certain penny stocks, resulted in seizure of unaccounted cash, recovery of incriminating evidence, and ongoing efforts to identify beneficiaries and quantify possible direct tax contraventions.

Personal income tax rationalisation under consideration to stimulate consumption and simplify taxation, alongside faceless assessments.
Government is considering personal income tax rationalisation to boost consumption alongside prior corporate tax cuts and recent public sector bank credit disbursements. Concurrent tax-administration reforms aim to simplify the system by removing exemptions, reducing subjective interpretation, and expanding faceless assessment for direct taxes with plans for similar indirect tax processes. The GST Council retains authority over rate structure, while the administration seeks rate rationalisation and improved data credibility by addressing inappropriate methodologies.

SEZ approval validity extension allows developers to seek Board of Approval extensions for implementation delays under prescribed conditions.
The letter of approval for an SEZ developer is valid for three years and may be extended by the Board of Approval on application and recommendation for causes such as adverse business conditions, delays in statutory approvals or environmental clearances; SEZs receive fiscal benefits including zero rated supplies under the IGST framework, income tax exemption, and duty free procurement.

Fund manager remuneration rules set prescribed calculation methods and require certified reporting by the fund manager.
The rules prescribe calculation methods for minimum remuneration payable by an offshore fund to an India based fund manager: 0.1% of assets under management for specified Category I FPIs; otherwise 0.30% of assets under management, or 10% of profits above a specified hurdle where remuneration is performance linked, or 50% of the management fee net of operational and distribution expenses. Funds may seek Board approval for a lower amount. Key terms are defined and the fund manager must furnish an accountant's report in Form No. 3CEJA with prescribed annexure; Form 3CEK is amended accordingly.

FDI policy for e commerce restricts inventory models, mandates marketplace compliance reporting and prohibits control over vendor inventory.
The note explains that 100% FDI under the automatic route is permitted only for marketplace models while FDI is barred for inventory based e commerce; marketplace entities must not control vendor inventory or influence sale prices, must disclose seller details, and must furnish an annual statutory auditor's report confirming compliance. Tax measures summarised include concessional tax options for domestic companies, a distinct Equalisation Levy on certain nonresident digital services, and multiple startup incentives such as income tax exemptions, capital gains relief for investments into startups, relaxation of loss carry forward restrictions, and relief from deeming of income on share premium subject to declaration requirements.

Industrial incentive schemes expand capital, interest, insurance and transport incentives for units in designated backward districts to boost investment.
Central schemes for designated backward districts provide combined incentives-capital investment support, interest support, insurance premium reimbursement, income tax and GST reimbursement, employment contribution support, and transport subsidies-applicable to manufacturing and services with specified per-unit benefit ceilings and time-limited operative periods, while complementary transport subsidy arrangements and a state-level Rajasthan Investment Promotion Scheme add targeted state tax, duty and infrastructure supports under defined eligibility conditions.

Use of technology to combat smuggling: data sharing and non-intrusive tools promoted to disrupt cross-border trafficking networks.
Emphasis on deploying information sharing, data analytics and non-intrusive technologies to detect and disrupt new-age smuggling networks, adapting DRI capabilities to emerging commercial frauds and transnational trafficking. The summary highlights DRI's mandate against organised smuggling of contraband, the utility of Customs Mutual Assistance Agreements and international cooperation, and the role of regional forums to enhance information exchange, coordinated investigations and capacity-building against trade-based money laundering and cross-border trafficking.

Loan agreement expands urban water and sewerage infrastructure and builds municipal capacity for inclusive service delivery in Tamil Nadu.
A loan agreement between the Asian Development Bank and the Government of India provides financing as the second tranche of a multi tranche programme to develop water supply, sewerage and drainage infrastructure in selected Tamil Nadu cities, including construction and rehabilitation of sewage treatment plants, sewer networks and water mains; connecting households including below poverty line households to sewerage and metered water supply; promoting wastewater reuse for industry; and strengthening the Commissionerate of Municipal Administration for project development, monitoring and service quality benchmarking across urban local bodies.

Strategic disinvestment enables transfer of majority government stake and management control to private investors for market-driven efficiency.
In-principle approval has been granted for strategic disinvestment of 33 CPSEs involving sale of majority government stake and transfer of management control; approvals span completed, in-process and recent categories and include entities such as Hindustan Petroleum, Air India and Bharat Petroleum. The policy aims to transfer enterprises from government where competitive markets have matured so investors can provide capital, technology and management expertise.

Circulation of high-denomination banknotes: decline in seizure share and no government proposal to withdraw notes.
Tax authority analysis shows a declining trend in seizures of unaccounted cash in Rs. 2,000 denomination notes-67.91%, 65.93% and 43.22% over three financial years. The Government has stated it has no proposal to stop circulation of Rs. 2,000 notes and cites central bank data that those notes comprised 31.18% of the value of notes in circulation as of the reported date.

Search and seizure operations uncover extensive undisclosed income prompting tax assessment, compliance measures and asset seizures.
A coordinated search and seizure operation on a group in infrastructure, mining and real estate in the National Capital Region recovered cash, ledgers and incriminating documents, seized unaccounted assets and sealed multiple bank lockers. Cash ledgers documenting large unrecorded receipts and admissions of substantial undisclosed income were identified, and the tax authority reported unpaid tax liabilities linked to property transactions as the basis for assessment and compliance action.

Appointment of Controller General of Accounts formalizes leadership for accounting, financial reporting and public financial management reforms.
Appointment of Controller General of Accounts: Smt. Soma Roy Burman assumed charge as Controller General of Accounts, Ministry of Finance, Department of Expenditure, effective December 1, 2019, charged with oversight of government accounting, financial reporting, accounting rules and policy, cash and budget management, and formulation of reforms to strengthen Public Financial Management.

Loan agreement enabling transmission infrastructure and renewable integration to strengthen power supply for industrial development.
ADB and the Government of India executed a loan agreement to finance an extra-high-voltage transmission link in the Chennai-Kanyakumari Industrial Corridor to transfer generation, including renewables, to northern industrial hubs. The project includes institutional strengthening of TANTRANSCO via a financial restructuring plan, workforce and facility improvements, and enhanced social and environmental monitoring, supported by a complementary technical assistance grant.

Customs duty exemption on open cell imports supports domestic TV panel manufacturing and input exemptions to boost local production.
Removal of Basic Customs Duty on open cell imports and exemption on key inputs (chip on film, PCBA, cell substrates) were introduced to promote domestic manufacture of LCD and LED TV panels, complemented by fiscal relief on capital goods, relaxed import rules for used machinery, corporate tax concessions for new manufacturers, mandatory product testing and registration, and support for R&D and incubators to strengthen the electronics manufacturing ecosystem under Make in India.

Double taxation avoidance treaty incorporating BEPS standards to allocate taxing rights and curb cross-border tax abuse.
Approval for a bilateral tax treaty framework between India and Chile establishes a Double Taxation Avoidance Agreement and Protocol to allocate taxing rights, fix source-State tax rates on interest, royalties and fees for technical services, and provides for implementation formalities and monitoring; the instruments incorporate BEPS minimum standards including a Principal Purpose Test, a general anti-abuse provision and a Simplified Limitation of Benefits clause to curb tax planning and prevent fiscal evasion.

Corporate governance reforms tighten credit rating agency and listed entity oversight while easing small company compliance burdens.
Ministry measures ease compliance for small private companies and OPCs by amending the Companies Act framework and excluding certain private schools and hospitals from CARO, 2016 reporting. NFRA board composition includes ICAI representation while executive functions under section 132 are delegated to NFRA's executive body to avoid conflict of interest. SEBI has mandated strengthened governance for CRAs and listed entities, including segregation of non rating activities, dedicated Chief Ratings Officer reporting, specified board and committee structures, enhanced disclosure and audit obligations, and tighter related party and promoter requirements.

Automatic Exchange of Information portal consolidates CRS guidance and notifications to aid financial institutions' reporting compliance.
Creation of an Automatic Exchange of Information (AEOI) portal consolidates the domestic implementing framework and Guidance Note for the Common Reporting Standard (CRS), collecting CBDT policy and technical circulars, regulator notifications, and links to international materials to assist financial institutions and tax authorities in meeting CRS reporting obligations.