Taxation of SEZs threatens investor confidence and growth; industry seeks reversal of recent MAT/DDT measures and extension of sunset relief.
Imposition of MAT/DDT on Special Economic Zones has dented investor confidence, slowed SEZ growth and affected exports; industry asked for withdrawal or reduction of MAT, and warned that abolition of direct tax benefits for SEZs not operationalized by April 2017 would further weaken the SEZ scheme. The Ministry of Commerce & Industry is examining the slowdown and has raised the Sunset Clause issue with the Ministry of Finance while also addressing preferential FTA rates and land-use concerns in Non-Processing Areas.

Tax litigation reduction: limit reopenings on audit objections and clarify capital gains treatment for shares, simplifying TDS rules.
The Committee recommends statutory and administrative reforms to reduce tax litigation and simplify compliance: treat shares held beyond twelve months (unless declared stock in trade) as capital assets with gains as capital gains; amend Section 14A to deem economically taxed income (e.g. dividends after DDT and firm profits) part of total income and cap disallowances to claimed expenditure; align Section 50C with sale agreements fixing consideration and delete Section 56(2)(vii)(b)(ii); prohibit reopening or revision solely on audit objections by amending Sections 147 and 263; rationalise TDS thresholds and rates; expand presumptive schemes and defer ICDS; improve refund timelines and provide enhanced interest for delayed refunds.

Investor-State arbitration subject to exhaustion of domestic remedies and strict procedural and remedy limits.
The Model BIT defines covered investments and investors, excludes specified asset classes and pre-investment activities, and applies to admitted investments. It imposes obligations including protection from measures violating customary international law, national treatment in like circumstances, limited physical full protection and security, and detailed expropriation and transfer rules with specified exceptions. The Treaty conditions investor-State arbitration on exhaustion of domestic remedies and other prerequisites, prescribes arbitration rules and strict procedural safeguards, limits awards to monetary compensation, and preserves general and security exceptions and denial-of-benefits provisions.

Quality management certification reinforces tax processing compliance, data security alignment, and prompt refund procedures at CPC Bengaluru
Award of ISO 9001:2008 certification to CPC Bengaluru recognizes a Quality Management System covering all business and enabler services, demonstrating the Centre's ability to consistently provide tax processing services that meet customer and regulatory requirements; this complements prior certifications in information security and records management and is linked to efficient processing and expedited refund issuance.

Tariff value amendment sets revised import valuation benchmarks for specified commodities, affecting customs assessment and compliance.
Amendment substitutes tariff valuation tables in an existing customs notification to prescribe specific tariff values for listed import goods, updating TABLE-1, TABLE-2 and TABLE-3 to set per metric tonne values for vegetable oils, brass scrap and areca nuts, and per unit values for gold and silver when notification benefits are availed, thereby providing revised import valuation benchmarks for customs assessment and compliance.

Foreign exchange data sharing enables secure e BRC transfers to support VAT refund verification and export compliance procedures.
A Memorandum of Understanding between DGFT and Bihar's Commercial Taxes Department implements transmission of electronic Bank Realization Certificate (e BRC) data from banks to a secured DGFT server and onward to authorized government recipients. The e BRC system centralizes transaction level foreign exchange realization records, replacing manual physical BRC processes and enabling state tax authorities and central agencies to access verified export realization information to facilitate VAT refund processing, compliance verification, and administrative data analysis.

Appeal monetary limits revised to curb tax litigation, enabling systematic withdrawal of appeals on settled issues.
Revision of appeal monetary limits and direction to a collegium to consider withdrawal of Departmental appeals where appeals are below the revised threshold, raise no question of law, are settled by the Department, or are rendered irrelevant by legislative amendment. Additionally, circulars withdraw or advise not pressing appeals on specified settled technical issues to reduce disputes and provide taxpayer relief.

Sovereign Gold Bonds issuance establishes investor eligibility, tenure, pricing and tradability rules, with fixed interest and tax treatment.
Issuance of Sovereign Gold Bonds sets the issuance framework, investor eligibility and subscription limits, denomination in grams, eight year tenor with exit from year five, pricing and redemption based on IBJA weekly average for 999 purity gold, fixed semi annual interest on initial value, conversion to demat and tradability from a notified date, use as collateral with RBI aligned LTV, KYC as for physical gold, and tax treatment equivalent to physical gold.

Fiscal consolidation central to budget strategy, backed by indirect tax-led revenue growth and deficit management recommendations.
The document stresses Fiscal consolidation as the central budgetary principle while reporting significant growth in gross tax revenues driven by indirect taxes and improved fiscal deficit performance relative to prior-year benchmarks; it also records the Government's completion of enhanced tax devolution to States.

Bank governance reforms introduce a Bank Board Bureau with generic Key Performance Indicators to streamline public sector bank appointments.
The Government attributes substantial growth in Basic Savings Bank Deposit Accounts to the Pradhan Mantri Jan Dhan Yojana and proposes Public Sector Bank governance reforms by establishing a Bank Board Bureau to replace the Appointment Board and by adopting generic Key Performance Indicators in lieu of bank-specific Statements of Intent to streamline appointments and target-setting.

Auction of government securities: re-issue using multiple-price method with non-competitive allocation and electronic bidding windows.
Re-issue auctions for four central government stocks will be conducted using the multiple price method on the scheduled auction date. Both competitive and non-competitive bids must be submitted electronically on the central bank's core banking system within prescribed time windows; up to 5% of each notified amount is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Auction results and payment dates are fixed, and the stocks are eligible for When Issued trading under the central bank's guidelines.

Inflation-linked bond repurchase announced via reverse auction; multiple-price electronic bids to be submitted on E-Kuber.
Announcement of a government repurchase of 1.44 per cent Inflation Indexed Government Stock 2023 by reverse auction as an ad hoc early redemption to utilise surplus cash balances. The auction is price based using the multiple price method; bids must be submitted electronically through the Reserve Bank core banking system within the prescribed bidding window, and results will be declared the same day.

Performance accountability in tax assessments introduced to measure assessment quality, disposal pace and efforts to widen the tax base.
The APAR has been revised to include metrics measuring the quality of assessments, pace of disposal, and efforts to widen the tax base, thereby holding assessing officers accountable for the reasonableness of assessment orders and encouraging judicious application of tax law as part of administrative measures to promote a non-adversarial tax regime.

Online pension account registration enables remote KYC validation and PRAN activation after initial net-banking contribution.
PFRDA has launched the eNPS platform enabling online NPS registration and contributions: subscribers submit name and PAN for tax validation, select a bank for KYC, upload photograph and signature, and make an initial net-banking contribution that triggers online issuance of a PRAN. Subscriber details are sent via the CRA to the chosen bank for KYC verification; once the bank verifies and the subscriber submits the printed signed form to the CRA within the specified period, the PRAN is activated. Subsequent contributions may be made online and are credited to PRAN on a T+2 basis.

Place of Effective Management rules proposed for deferral to avoid industrial growth hurdles, while GST and SEZ tax relief urged.
Stakeholders urged deferral and narrower application of Place of Effective Management (POEM) rules to avoid impeding industrial growth, early implementation of Goods and Services Tax (GST), simplification of tax procedures and online harmonisation of duties to ease business. They recommended extending tax benefits for Special Economic Zone activities by delaying a sunset provision, reducing Minimum Alternate Tax (MAT) and increasing the MAT utilisation period, corporate tax reductions, and incentives to revive mobile manufacturing and support pollution free industries.

Infrastructure investment urged to revive private sector financing and complement public spending through targeted reforms.
The Finance Minister urged increased private investment in infrastructure to complement continued public spending despite fiscal pressures. Key policy recommendations included disinvestment to raise revenue, targeted direct subsidy transfers, expansion of the tax base with calibrated withdrawal of Minimum Alternate Tax, rationalisation of exemptions and early GST implementation, and procedural tax-administration reforms to reduce discretion. To revive infrastructure and private financing, proposals included creating a national infrastructure investment vehicle, using infrastructure finance companies, replacing bank guarantees with bid or surety bonds, and bank recapitalisation to address non-performing assets.

One time compliance window requires declaration of undisclosed foreign assets and payment of tax and matching penalty.
The Act established a time limited disclosure window permitting taxpayers to declare undisclosed foreign income and assets and discharge specified tax and penalty liabilities on the value of assets declared. Collections were made under that levy, while shortfalls in receipts were linked to prior information received under international tax cooperation instruments and to payments received after the prescribed collection cut off.

Ethical tax administration urged for revenue officers to maintain integrity, professional competence and ensure fair, non-painful tax collection.
The Finance Minister urged IRS (Customs & Central Excise) Officer Trainees to uphold ethical conduct and integrity, combining these standards with professional competence and a judicious, fair approach to tax collection. He emphasized that taxation should not be burdensome, using a honeybee analogy for minimal, sustainable extraction, and linked responsible tax administration to funding infrastructure and social obligations. Training-comprising classroom instruction in taxation and related laws, on the job field postings, border security exposure, and short international leadership attachments-was identified as the mechanism to achieve these goals.

TDS on payments to non-residents: failure to furnish PAN triggers mandatory higher-rate deduction and default consequences.
Where the income received by a non-resident is taxable in India, tax must be deducted under Chapter XVII; if the recipient fails to furnish a Permanent Account Number, the PAN-related provision requires deduction at the higher rate notwithstanding other provisions, and absence of PAN mandates deduction at that rate, leading to the payer being treated as an assessee in default.

Place of Effective Management consultation period extended; stakeholders may submit comments by the new deadline via email or post.
The consultation period for draft Guiding Principles for determination of Place of Effective Management (PoEM) was extended by one week to allow stakeholders and the public additional time to submit comments; the draft is available on the Finance Ministry and Income tax Department websites and comments are to be sent by email or post with the prescribed labeling.