Responsible digital payments: leveraging fintech and digital public infrastructure to expand last mile service delivery and inclusion.
Department of Economic Affairs held a peer exchange with the Better Than Cash Alliance to promote responsible digital payments and fintech solutions for last mile delivery, highlighting use of digital public infrastructure (JAM), Open APIs, account aggregator frameworks, blockchain and machine learning. State case studies and fintech, blockchain and AI policy initiatives were presented. An Inter Ministerial Steering Committee on FinTech was identified as the coordination mechanism to foster public private partnerships, address connectivity and literacy barriers, and expand inclusive digital payments and service delivery to vulnerable populations and micro enterprises.

Search and seizure operations uncover bogus purchases routed through sham entities, revealing confessions and cash withdrawals in group investigation.
The Income Tax Department executed search and seizure operations in Odisha against a steel manufacturing and trading group, uncovering a scheme of bogus purchases recorded in the names of multiple entities; recorded statements show listed proprietors were unaware of such businesses and funds credited to those accounts were withdrawn in cash, with further investigations ongoing.

Unaccounted income and accommodation entries exposed; searches reveal shell-company routing and extensive undocumented cash dealings.
Search and survey operations targeted a coal-trading group for alleged tax-evasion using accommodation entries routed through Kolkata-based shell companies recorded as non-genuine share capital and unsecured loans, coupled with suppression of true net profits. Handwritten diaries and out-of-books records revealed extensive undocumented cash transactions and cash loans not reflected in regular books; a shell entity without statutory records was found, stock discrepancies and cash investments during demonetization lacked explanation, and significant unexplained cash was seized pending further investigation.

Standardization and quality monitoring of AYUSH products urged to boost global market confidence and secure trade support.
Standardization, codification and quality monitoring of AYUSH products and services are identified as primary regulatory priorities to enhance global market confidence and public trust, requiring coordinated action by the Ministry of AYUSH, Ministry of Commerce & Industry and Ministry of Finance to establish and monitor standards. Complementary measures include leveraging Free Trade Agreement provisions to improve market access and pursuing public awareness initiatives to promote AYUSH products and services.

Anti smuggling intelligence and international customs cooperation stressed to strengthen enforcement against organised cross border smuggling.
The DRI emphasised combating organised cross border smuggling and commercial fraud through enhanced anti smuggling intelligence, data analysis and inter agency information sharing; the Finance Minister unveiled the "Smuggling in India Report 2019 20" outlining trends in gold and foreign currency trafficking, narcotics, environmental and security contraventions, and commercial frauds, and international cooperation via the World Customs Organisation and multilateral panels was identified as essential to strengthen enforcement responses.

Policy-based loan strengthens public finance systems and e government interoperability to boost revenue administration and service delivery.
A policy-based loan finances integration and enhancement of an Integrated Financial Management System (IFMS) and interoperable e Government platforms to streamline revenue administration, tax payments, social protection benefit delivery, and project tracking, and supports a centre for fiscal policy and a web-based grievance redress system to build capacity and improve citizen-government interface.

Infrastructure loan supports Meghalaya power distribution modernization and smart meter rollout improving reliability and financial sustainability.
ADB and the Government of India provided financing for the Meghalaya Power Distribution Sector Improvement Project to modernize and strengthen the state distribution network through substation construction and renovation, distribution line upgrades, and deployment of smart meters and online billing systems to reduce aggregate technical and commercial losses, improve reliability, and enhance MePDCL's operational and financial capacity via sector and financial roadmaps and capacity building.

Undisclosed income detection: searches reveal large undeclared assets, bogus expenses and undisclosed capital gains requiring further tax investigation.
Coordinated searches uncovered substantial undeclared assets and corporate tax irregularities: an ex director's accumulation of undisclosed assets; company claims of bogus work in progress, fictitious consultancy fees and inadmissible interest deductions; offshore routed share sales with undisclosed capital gains; and related land and convertible debenture issues. A supplier group showed three tier sales reporting, use of accommodation bills and commission schemes, and unaccounted capital/loan infusions. Quantification is ongoing and aggregate undisclosed income identified to date is substantial.

UDIN validation required for tax audit reports; failure to update UDIN within the allowed period renders submissions invalid.
The Income-tax e-filing portal is integrated with the ICAI portal to validate the Unique Document Identification Number (UDIN) provided by Chartered Accountants for tax audit reports and certificates; UDIN quoting is mandatory for CA-certified documents, and submissions made without a UDIN must be updated within a prescribed period or will be treated as invalid.

Tax search and seizure uncovers alleged bogus accommodation entries and shell company loans, prompting ongoing investigation.
Coordinated search and seizure operations allege the group obtained non genuine unsecured loans as accommodation entries from paper shell companies with dummy directors, constituting unaccounted income; a related chit fund link is said to contravene the Chit Funds Act. Authorities have seized jewellery and cash, identified unaccounted residential investments for valuation, located multiple lockers, and are continuing verification and investigation.

Infrastructure financing enables high speed regional rapid transit with advanced rolling stock and train control for sustainable urban mobility.
A loan agreement was signed for the Delhi Ghaziabad Meerut Regional Rapid Transit System under which NDB will finance rolling stock and advanced signalling, telecommunications and train control equipment (including automatic train operation, protection and supervision and platform screen doors) to deliver a high speed, energy efficient corridor that reduces congestion and emissions; the project's financing is syndicated among multilateral lenders and other sources, and NDB's contribution is a long tenor loan with an extended grace period to support procurement and implementation.

Safe harbour threshold for circle rate raised to ease tax deeming in primary residential transactions for lower-value sales.
For the period from 12 November 2020 to 30 June 2021, the safe harbour for deeming circle rate as sale or purchase consideration is increased for primary sales of lower-value residential units so that circle rate is treated as consideration only where the variation between agreement value and circle rate exceeds the expanded tolerance; this relief applies symmetrically to developers and buyers and aims to facilitate liquidation of unsold inventory.

Public consultation: online portal opened to collect citizens' ideas for the annual budget, submissions reviewed by ministries.
Public consultation established to solicit ideas for the Annual Budget via a dedicated email and a micro site; individuals must register to submit proposals, which will be examined by concerned Ministries/Departments and may prompt follow up contact using the registration email or mobile number.

Employment subsidy scheme to reimburse provident fund contributions and expanded credit guarantees to spur job creation and revival.
A twelve measure stimulus package includes a two year employment subsidy scheme reimbursing EPF contributions for eligible new and reinstated employees in EPFO registered establishments, extended credit guarantee support including a targeted ECLGS 2.0 for stressed sectors and healthcare with additional term credit and moratorium, a multi year Production Linked Incentive program for ten manufacturing sectors, procurement security relaxations for government tenders, temporary income tax relief for certain primary residential sales, and targeted fiscal outlays for housing, fertilizers, rural employment, project exports, infrastructure debt financing and vaccine R&D.

Searches and tax detection: unaccounted bullion stock identified and forensic analysis underway to quantify undisclosed business income.
Searches of a wholesale bullion and gold jewellery group uncovered significant unaccounted stock and system data showing income omitted from books; business stock was identified but not seized due to seizure limitations, and forensic tools are being used to extract multi year data. Investigations revealed use of concealment software and provisional invoices destroyed on delivery; extracted data will quantify unaccounted income, trace related undisclosed transactions, and support inquiries into non business investments and accommodation entries.

Tax transparency reforms expand faceless assessment and automatic acceptance of returns, reducing compliance burdens and restoring trust.
Shift from adversarial enforcement toward tax transparency is advanced by largely trusting filed returns through initial acceptance, expanding faceless assessment and appeal mechanisms, digitising hearings, accelerating refunds, and raising monetary thresholds for appeal to reduce disputes and protect the dignity of honest taxpayers.

Viability Gap Funding scheme continuation expands funding caps and introduces two sub schemes to promote PPPs in social infrastructure.
Cabinet approval continues and revamps the Viability Gap Funding (VGF) Scheme to 2024 25, introducing two sub schemes for social infrastructure: Sub scheme 1 requires 100% operational cost recovery and allows Central VGF up to 30% of Total Project Cost with additional State/sponsoring support up to 30%; Sub scheme 2 supports pilot social projects with 50% operational cost recovery where Central and State support may cover up to 80% of capital expenditure and up to 50% of O&M for five years, with Central support up to 40% of TPC and up to 25% of operational costs in the initial five years.

Undisclosed foreign investment and tax suppression prompt investigation, Black Money and benami probes and tax additions likely.
Searches uncovered undisclosed foreign share subscription generating undeclared taxable benefit, triggering Black Money Act proceedings; use of shell companies to siphon funds abroad and effect related-party share purchases with partial disclosure by the assessee; manipulation of preference share accounting to inflate capital; diversion of interest-bearing loans interest-free causing interest disallowance; purchase of land via shell entities under benami scrutiny; and share transfers below fair market value subject to valuation additions and capital gains adjustments, with further investigations ongoing.

Search and seizure into alleged diversion of tax-exempt donations into unaccounted cash and real estate transactions.
Income-tax authorities carried out coordinated search and seizure operations into a religious group and its network of trusts after information that foreign donations and tax-exempt receipts were being diverted into unaccounted cash flows. Investigations revealed use of paper trusts to route funds, systematic inflation of expenses, and domestic hawala-like channels to transfer cash to functionaries; seized materials include sale agreements, electronic data and cash, and further forensic examination is ongoing.

Search and seizure operations uncover sham share investments and unaccounted cash, prompting ongoing fiscal investigation.
Search and seizure operations uncovered documents showing bogus investments in unquoted equity and sale transactions treated as sham transactions, admissions by the assessee in a recorded statement, numerous incriminating documents evidencing cash generation from coal, sand and sponge iron trading and unaccounted facilitation expenses, and seizure of unaccounted cash and bullion; further investigations are ongoing.