Income tax draft rules and simplified smart forms released; public comments invited by Feb 22.
The tax department released draft rules and forms under the new Income Tax Act, 2025, inviting stakeholder comments and aiming to simplify and consolidate the regulatory framework. The draft rules reduce redundancies, standardise common information, and introduce smart forms with prefill and automated reconciliation. Two navigators map old rules/forms to the new drafts. The proposals rationalise perquisite thresholds and revise the definition of Accountant for certification, linking it to experience and revenue criteria, with separate thresholds for entities providing accountancy or valuation services.

Promoters of 32nd Milestone project face plea seeking FIR, asset freeze, forensic audit and travel restrictions.
The petition accuses promoters of cheating, forgery, criminal conspiracy, diversion of funds and statutory noncompliance, alleging failure to remit TDS and GST, circulation of fabricated TDS certificates, cessation of promised lease rentals and possible multiple sales of units; it seeks FIR registration, freezing of bank accounts, asset attachment, a forensic audit, suspension of passports, issuance of look-out circulars and inquiry into promotional expenditures.

Tata Elxsi faced shutdown or merger advice before a leadership-driven shift to service-led design restored profitability.
Tata Elxsi faced near-bankruptcy and suggestions to shut down or merge after failed hardware-centric strategies left it with unused capital equipment and mounting losses; leadership chose to rebuild the brand and shift to service-led design and technology offerings, expanded development capacity, and restored financial health until accumulated losses were eliminated and dividends resumed.

Pan masala advertisement: issuance of a non-bailable warrant stayed while the bailable warrant cancellation is pursued.
The state consumer commission stayed issuance of a non-bailable warrant against the celebrity and restrained the district commission from issuing that warrant until the existing bailable warrant is executed, directing the district commission to expeditiously hear the pending application seeking cancellation of the bailable warrant.

TVK chief Vijay's challenge to a Rs 1.50 crore tax penalty failed on the ground that the penalty was within the limitation period.
The court held that the period of limitation for imposing the penalty is computed from the end of the month in which the appellate order is received, with a six month window; treating receipt of the ITAT order (dated December 22) as the trigger, the six month period expired on 30.06.2022 and the penalty order dated 30.06.2022 therefore fell within the prescribed limitation period.

Vijay's challenge to Rs 1.5 crore income tax penalty dismissed; penalty held time bar valid and appellate remedy available.
Madras High Court held that the Income Tax Department's Rs 1.50 crore penalty for alleged non-disclosure of Rs 15 crore of film income was imposed within the statutory time limit and thus not open to interference; the department's findings were based on documents seized in a 2015 raid, and the petitioner was permitted to challenge the order before the appellate authority.

Individual taxpayers: 88% have opted for the new tax regime; government not planning a sunset clause.
About 88% of individual filers (ITR 1-4) and 97% of presumptive taxpayers have moved to the new tax regime; roughly 60% of corporate income is reported under it. The government is not considering a sunset clause for the old regime. FY27 Budget measures-MAT made final with a reduced old-regime rate and higher STT on futures and options-are expected to further encourage migration and to dissuade aggressive retail trading.

NUDGE campaign prompted 1.11 crore revised returns, generating Rs 8,800 crore and reducing refund claims.
The income-tax administration's NUDGE programme sent non-intrusive communications prompting 1.11 crore revised returns, generating about Rs 8,800 crore and leading to retraction of Rs 1,750 crore in refund claims; deployed in November 2024 and November 2025 to flag undisclosed foreign assets, the programme's post-notification analysis has affected refund timings. Separately, a Budget-introduced one-time declaration window allows small-category taxpayers to disclose overseas income/assets with prescribed payments-30% tax plus 30% additional tax for undisclosed amounts up to Rs 1 crore, and a Rs 1 lakh fee for certain cases up to Rs 5 crore-to secure immunity from penalty and prosecution, with completion targeted in 2026 27.

New income tax law rollout supported by forms, rules, FAQs and decriminalisation measures to ease compliance.
The tax administration will issue new forms, rules and a comprehensive FAQ and presentation for the new income tax law, opening them for stakeholder consultation before commencement; these measures aim to clarify language, reduce multiple interpretations, and assist taxpayers and officials during rollout. Recent budget measures introduce decriminalisation of certain prosecution provisions and immunity from penalty to improve administration, minimize litigation and reduce compliance costs, while some proceedings initiated post-commencement will relate to the prior law, reflecting transitional arrangements.

Death of realtor C J Roy: SIT to record statements and decide action after Unnatural Death Report.
A Special Investigation Team (SIT) is probing the death of C J Roy, will record statements of family members and others, and will decide further action based on its inquiry report. An Unnatural Death Report (UDR) has been registered at Ashok Nagar Police Station. Family allege pressure from Income Tax proceedings conducted at Roy's office, and a request for a judicial inquiry has been made to central authorities, though the state SIT investigation remains the immediate fact-finding mechanism.

Union Budget 2026 advances tax simplification, NBFC reform, an SME Growth Fund and incentives for data centre investment.
The budget implements a New Income Tax Act effective April 2026 with simplified TDS/TCS and extended return revision timelines to reduce compliance friction and litigation, proposes a High Level Committee on Banking and the restructuring of public sector NBFCs to improve scale and long term infrastructure financing, and establishes a ?10,000 crore SME Growth Fund alongside additional allocations to support microenterprise capital and professional led Corporate Mitras; it also offers tax holidays for foreign cloud providers using Indian data centres and rationalises safe harbour norms with automated IT approvals.

Death during Income Tax search prompts state leader to demand judicial inquiry and probe of search procedures.
The chief minister urged a judicial inquiry by a Commission of Inquiry led by a former constitutional court judge into the death of a businessman during an Income Tax search, citing serious procedural lapses, allegations of harassment despite the searched person's cooperation, and stressing that premises under search must be controlled by officials to ensure the safe conduct of searches and respect for the rights of the searched person.

Gross tax revenues are projected to rise 8% to Rs 44.04 lakh crore in FY27 amid higher direct and indirect tax estimates.
Projected gross tax revenues for FY27 are estimated to rise 8% to Rs 44.04 lakh crore. Personal income tax is forecast at Rs 14.66 lakh crore and corporate tax at Rs 12.31 lakh crore, producing total direct taxes of Rs 26.97 lakh crore and a reported direct tax buoyancy of 1.14. Indirect tax estimates include Customs Rs 2.71 lakh crore, excise duty Rs 3.89 lakh crore and GST Rs 10.19 lakh crore. The Budget assumes a nominal GDP growth of 10% and attributes expected revenue performance to tax reforms and buoyancy assumptions.

Share buybacks now taxed as capital gains for all shareholders, with higher additional tax rates applied to promoters.
The Budget 2026-27 taxes buyback proceeds as capital gains for all shareholders, with non promoters taxed at applicable capital gains rates (long term 12.5%, short term listed 20%, short term unlisted at applicable rate), and promoters subject to an additional buyback tax producing effective rates of 22% for domestic corporate promoters and 30% for non corporate/non domestic promoters to deter tax arbitrage.

Union Budget introduces a 20-year tax holiday for global data centres plus a 15% safe harbour for related-party costs.
Budget FY27 introduces a 20-year tax holiday for overseas global data centre providers and a 15% safe harbour on related-entity costs; increases Securities Transaction Tax on futures and options and treats buyback proceeds as capital gains; implements the new Income Tax Act, 2025 from April 1 with simplified rules; rationalises customs exemptions and duty rates (including waivers on select drugs and reduced duty on personal imports); and advances capital expenditure and targeted incentives for manufacturing, biopharma, electronics and SMEs alongside fiscal consolidation targets.

Union Budget boosts SME capital via growth and self reliant funds and simplifies income tax and TDS/TCS compliance.
Union Budget enlarges the SME Growth Fund and uses the Self Reliant India Fund to supply equity and risk capital to micro enterprises, with Credit Guarantee and Infrastructure Risk Guarantee Fund mechanisms to mobilise private investment and integrate MSMEs into large projects. The Budget proposes a new Income Tax Act and simplification of TDS/TCS to reduce compliance burdens on small industries.

Cooperative societies gain deductions for cattle feed and cotton seed supplies and dividend relief when distributed to members.
Primary cooperative societies may now deduct profit and gains on supplies of cattle feed and cotton seed produced by their members. Inter cooperative dividend income will be deductible under the new tax regime to the extent it is further distributed to members, and a three year exemption applies to dividends received by a notified national cooperative federation on specified investments, provided those dividends are further distributed to member cooperatives. Cooperative tax slab rates remain unchanged.

TCS rates cut to 2% for education and medical LRS remittances and select goods and tour package sales.
Under the Liberalised Remittance Scheme, remittances exceeding Rs 10 lakh for education or medical treatment will attract TCS at two per cent (down from five per cent), while non-education/medical remittances remain subject to a higher TCS rate. Separately, TCS on overseas tour programme packages is fixed at two per cent without an amount threshold; TCS on tendu leaves is reduced to two per cent; and TCS for sellers of alcoholic liquor, scrap and minerals is rationalised to two per cent.

Income Tax Act 2025 starts April 1, simplifies rules, adopts a single tax year and allows TDS refunds on late returns.
The Income Tax Act, 2025 takes effect April 1 with rules and redesigned return forms to be notified; it is revenue neutral with no rate changes, halves the text and sections of prior law, adopts a single tax year framework in place of assessment/previous year distinctions, and permits TDS refund claims on late-filed returns without penal charges.

Income tax: revised return deadline extended to March 31; certain TCS rates reduced; MACT awards exempted.
Extension of the revised income tax return filing deadline from December 31 to March 31 on payment of a nominal fee; introduction of a rule-based automated compliance process for small taxpayers in FY27; reduction of TCS to 2% for education and medical remittances under the Liberalised Remittance Scheme and to 2% on sale of overseas tour packages (down from 5%); and exemption of Motor Accident Claims Tribunal awards from income tax.