Failure to deduct tax at source sparks probe into bogus expenses, undisclosed accounts and unaccounted income.
Searches revealed related party inflations of purchases and large trading margins alongside persistent booked losses attributed to significant bogus expenses, non existent payees and unfiled recipients, use of undisclosed bank accounts, and documentary and electronic evidence of unaccounted funds reintroduced as fictitious transactions. Investigators also found alleged illegal payments and cross border currency dealings, and identified substantial failures to deduct tax at source and large provisions for doubtful debts whose admissibility is under scrutiny.

Public Sector Enterprise survey reports operational coverage and consolidated fiscal performance of centrally owned enterprises for 2019-20.
The Department of Public Enterprises released the 60th Public Enterprises Survey 2019-20, a complete enumeration of Central Public Sector Enterprises in which the Government of India holds more than 50% equity, covering 256 operational CPSEs classified across five sectors and 21 cognate groups. The Survey reports aggregate financial and operating indicators for 2019-20, including paid-up capital, financial investments, capital employed, gross revenues, aggregate profit and loss, reserves and net worth, dividend distributions, contributions to the Central Exchequer, and foreign-exchange earnings.

Digital banking adoption rises while bank licensing remains the central bank's prerogative without a separate digital category.
Public sector banks now conduct the majority of transactions through digital channels while the Reserve Bank of India retains sole authority on banking licences and is not considering a separate digital bank category. Under PSB EASE Reforms, mobile and internet banking services, customer features and regional language interfaces have been expanded; end to end automated digital lending and digital retail loan initiation have been enabled in larger PSBs; analytics based credit offers and substantial digital disbursements have been supported. Additional measures include online life certification for pensioners, contactless loan approval via data triangulation, and PSB onboarding onto the TReDS platform for MSME bill discounting.

Post Devolution Revenue Deficit Grant released in monthly instalments to eligible states to address post devolution revenue gaps.
The Post Devolution Revenue Deficit (PDRD) Grant is provided to States under Article 275 and released in monthly instalments as per Fifteenth Finance Commission recommendations to meet the gap in State revenue accounts after accounting for assessed devolution; eligibility and grant quantum were based on the assessed revenue-expenditure gap for the financial year. The fifth monthly instalment was released to the 17 States recommended for PDRD grants, with state-wise allocations and cumulative year-to-date disbursements reported.

ULB grant conditions: half untied for local needs, half tied to drinking water and solid waste, transfer within ten days.
Grants to Non Million Plus Urban Local Bodies under the 15th Finance Commission are split 50% basic (untied) - not for salaries or establishment costs - and 50% tied for drinking water (including rainwater harvesting and recycling) and solid waste management. These grants are additional to funds under Centrally Sponsored Schemes. States must transfer funds to ULBs within 10 working days of receipt from the Union Government; delays require release with interest. The press release lists State wise amounts released in 2021-22.

Dam safety: a risk-based asset management initiative to upgrade guidelines, emergency planning and climate resilience.
The program strengthens safety and performance of existing dams by establishing dam safety guidelines, introducing global practices and innovative technologies, and adopting a risk-based approach to asset management to prioritise resources. Implementation covers approximately 120 dams across ten states and is coordinated through the Central Water Commission, with provision for additional participants. Complementary measures include flood forecasting, integrated reservoir operations, Emergency Action Plans for downstream resilience, and pilots of supplemental revenue schemes such as floating solar.

Extension of e-filing due dates: CBDT extends deadlines for various income-tax Forms and regularises delayed filings.
CBDT issued Circular No.15/2021 extending electronic filing deadlines for specified Income-tax Forms: Form 15CC and Form 1 may be filed by 31st August, 2021; Form 64D by 15th September, 2021; Form 64C by 30th September, 2021. Due to non-availability of e-filing utilities, Pension Fund Form 10BBB and Sovereign Wealth Fund Form II SWF for the quarter ending 30th June, 2021 may be furnished by 30th September, 2021. The circular regularises forms e-filed after prior extended time limits up to the date of issuance of Circular No.15/2021.

Public financial management appointment: new Controller General of Accounts assumes charge, emphasising technical and administrative leadership.
Shri Deepak Das, a 1986-batch Indian Civil Accounts Service officer, has assumed charge as Controller General of Accounts (CGA) in the Department of Expenditure, Ministry of Finance effective August 1, 2021; the release emphasises his 35-year career across ministries, leadership at the Institute of Government Accounts and Finance, prior role as Principal Chief Controller of Accounts at the Central Board of Direct Taxes, and experience with technology-driven initiatives in tax collection, reporting and receipt accounting.

Money laundering through shell companies detected; bogus loans and share premia used to route unaccounted income back into core businesses.
Search operations uncovered a nationwide network of shell companies and related money laundering through bogus advances, loans and share premia; many entities were fronted by dummy directors, with digital and paper evidence and secreted documents under forensic analysis, and multiple bogus bank accounts and cash and gold recoveries identified while investigations continue.

Tax evasion allegations prompt searches revealing undisclosed cash, shell-company funded bogus capital, dummy directors and property undervaluation.
Coordinated searches uncovered systemic tax evasion by a construction and real estate group involving outside-the-books cash receipts, routing of funds into business through bogus share capital and unsecured loans from multiple shell companies, use of dummy directors and front companies, seizure of incriminating documents and cash, and undervaluation and fraudulent registration of large land parcels including forest land.

Digital banking facilitation expanded through PSB reforms and platforms enabling broader digital transactions and doorstep services.
Measures expand digital access and automated lending across public sector banks: digital loan initiation via PSBloansin59minutes.com with data triangulation; online bill discounting for MSMEs through PSB onboarding to the Trade Receivables Discounting System; enhanced mobile and internet banking features and regional interfaces; end to end automated digital lending and digital retail loan request initiation in larger PSBs; analytics based credit offers; and PSB Alliance doorstep banking services. No government proposal exists for a Digital Banking Infrastructure Corporation, though PSBs have discussed a joint platform.

Black Money Act enforcement expands assessment, penalties and prosecution for undisclosed foreign income and assets.
The Government's legal framework, led by The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, authorises assessments, enhanced penalties and makes willful tax evasion regarding undisclosed foreign assets a scheduled offence under the Prevention of Money Laundering Act; the Income Tax Department has used these powers alongside prosecutions and penalties in cases arising from HSBC disclosures, ICIJ and other information sources.

Tax evasion and money laundering uncovered through shell companies and bogus transactions, prompting coordinated search-and-seizure action.
Income-tax authorities conducted coordinated search-and-seizure operations that uncovered evidence of extensive unaccounted income across mining, liquor, hospitality, media and real estate activities, with cash and documentary seizures. The probe indicates use of non-existent and paper companies to launder receipts via inflated share premia, fabricated loans and bogus trade payables, entities lacking economic substance, cash payments breaching statutory limits, and routing through a group trust; one branch voluntarily disclosed undisclosed income when confronted. Further investigation is ongoing.

Search operations under section 132 reveal systematic use of nominee companies to mask income and route funds.
Authorities conducted a search under section 132 on a diversified group and found companies held in employees' or relatives' names used to book bogus expenses, siphon profits, and route funds into related concerns; evidence includes admissions, fictitious vendor payments, circular trading, undisclosed cash sales in real estate, operated lockers, and documents indicating potential breaches of S.2(76)(vi), Clause 49 and possible applicability of the Benami Transaction Prohibition Act, with further forensic and tax quantifications in progress.

Tax administration reform promoting digital processes and voluntary compliance through faceless assessment and taxpayers' protections.
The Income Tax Department emphasises post 2014 reforms to enhance transparency and taxpayer service by shifting compliance and interactions to online platforms, promoting voluntary compliance, and implementing Honoring the Honest, Faceless Regime and the Taxpayers' Charter as core governance mechanisms to make assessment and taxpayer engagement more objective and taxpayer friendly.

Central Bank Digital Currency legal tender: digital sovereign currency could reduce settlement risk and reshape payments.
CBDC is sovereign fiat currency in digital form, issued by the central bank and exchangeable one to one with existing currency; its design choices (retail/wholesale use, ledger type, validation method, distribution architecture and anonymity) determine operational effects. CBDC can reduce settlement risk and payment costs and provide a public alternative to private virtual currencies, but raises legal and financial stability issues-possible bank disintermediation, implications for monetary policy if interest features are introduced, and cybersecurity and inclusivity concerns-requiring a technology neutral enabling statute and phased implementation.

Electronic filing requirement relaxation permits manual submission to authorised dealers with later portal upload for identification.
CBDT permits manual submission of Income tax Forms 15CA and 15CB to authorised dealers due to e filing portal difficulties; authorised dealers must accept physical submissions for foreign remittances. A facility on the new e filing portal will allow later uploading of these forms for electronic record keeping and generation of a Document Identification Number.

Digital banking adoption expands PSB remote transactions, automated lending and doorstep services, enhancing consumer access and credit channels.
Operational measures shifted PSB activity to remote channels through contactless digital lending via PSBloansin59minutes, PSB onboarding to TReDS for online MSME bill discounting, Jeevan Pramaan for online pension life certificates, expanded mobile and internet banking features, introduction of automated digital lending and digital retail loan initiation in large PSBs, analytics-based credit offers, and PSB Alliance doorstep banking; no government proposal exists for a Digital Banking Infrastructure Corporation despite bank-level discussions.

Income tax exemption for COVID-19 medical and ex-gratia payments; employer disbursements fully exempt while others face capped relief.
Income tax exemption is provided for amounts received for COVID-19 medical treatment from an employer or any other person for FY 2019-20 and subsequent years, and ex-gratia payments to family members of those who died from COVID-19 are exempt-unlimited when from an employer and subject to an aggregate cap when from other persons; cash transaction limits remain unchanged and certain tax compliance deadlines have been extended.

Deduction under 80JJAA scrutinised after survey found exclusion of emoluments and payroll misstatements, triggering investigation.
Survey identified systemic wrongful claims of the employment-linked deduction under 80JJAA by excluding salary components to meet the emoluments eligibility ceiling and by claiming the deduction for persons no longer on payroll, resulting in detection of substantial concealment of income and ongoing investigations to quantify and address the misstatements.