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April 3, 2026
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Annual reporting for film production and specified activities under the income-tax framework now requires structured disclosure and TDS linkage.
Form 164 requires persons engaged in cinematograph film production or notified specified activities to furnish an annual statement for each tax year under section 507 of the Income-tax Act, 2025, read with Rule 236. The statement is due within 60 days from the end of the tax year and covers filer particulars, film or activity details, and payment and TDS information, including aggregate payments above the prescribed threshold linked to the relevant film or activity. The revised format uses three parts and standardised digital reporting.
April 3, 2026
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Mandatory annual statement for film production and specified activities covers incomplete projects, threshold payments, TAN, and electronic filing status.
A mandatory annual statement is required under section 507 of the Income-tax Act, 2025 for persons engaged in cinematograph film production or specified activities such as event management, sports events, documentary production, OTT or TV programme production, performing arts, or similar notified activities. The filing obligation applies to every individual, partnership firm, LLP, company or other entity that produced a film or undertook a specified activity during the relevant tax year, including cases where the film or activity was not completed in that year. The statement must be filed within 60 days from the end of the tax year, and TAN is required where the filer is liable to deduct tax at source.
April 3, 2026
Show AI Summary
Personal loan flexibility expands as longer repayment tenure, collateral-free borrowing, and faster disbursal aim to ease EMI burden.
Bajaj Finance has revised its personal loan offering by extending the repayment tenure up to 108 months, replacing the earlier 96-month structure. The longer tenure is intended to reduce monthly EMI burden and give borrowers greater flexibility in managing repayments, while shorter tenures remain available within a range of 12 months to 108 months depending on customer preference. The personal loan product is described as collateral-free and designed for planned and urgent expenses, with loan amounts ranging from Rs. 40,000 to Rs. 55 lakh.
April 3, 2026
Show AI Summary
Indirect transfer reporting under Form 163 requires timely electronic disclosure of share transfers affecting Indian assets and control rights.
Form 163 is the reporting statement for indirect transfers of assets located in India under section 506 of the Income-tax Act, 2025 and Rule 235 of the Income-tax Rules, 2026. It is to be furnished by an Indian concern, or its representative, where a non-resident transfers shares or interests in a foreign company or entity in a manner affecting assets, rights, management or control in relation to the Indian concern. The form is filed electronically within the prescribed timelines and supports computation of income reported in Form 4.
April 3, 2026
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Foreign exchange reserves decline as rupee pressure, RBI dollar sales, and lower gold and currency assets shape weekly movement.
India's foreign exchange reserves declined to USD 688.058 billion for the week ended March 27, driven by lower foreign currency assets and gold reserves. The Reserve Bank of India continued to intervene in the foreign exchange market through dollar sales and related policy measures as the rupee remained under pressure, while Special Drawing Rights rose slightly and the IMF reserve position edged down.
April 3, 2026
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Indirect transfer reporting in Form No. 163 requires timely electronic filing, supporting documents, and a valid PAN.
Reporting of indirect transfers of assets located in India requires an Indian concern, or its representative, to furnish information in Form No. 163 under section 506 of the Income Tax Act, 2025. The form is mandatory and applies where a non-resident transfers shares of, or interest in, an offshore company or entity resulting in an indirect transfer of assets in India. It must be furnished within ninety days from the end of the financial year, or within ninety days of the transaction where management or control rights in relation to the Indian concern are transferred.
April 3, 2026
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Annual statement filing for liaison offices in India requires RBI-linked disclosure, electronic submission, and timely compliance.
Form 162 is an annual statement required under section 505 of the Income Tax Act, 2025, for non-resident entities maintaining a liaison office in India. It must be filed once in each tax year within eight months from the end of the tax year, electronically through the income-tax e-filing portal and digitally signed by the authorised signatory. The form captures head office, liaison office, RBI approval, Annual Activity Certificate, financial, employee, and counterparty details, and may be used for verification, international taxation, and transfer pricing cross-checks.
April 3, 2026
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Annual statement compliance for liaison offices requires electronic filing, certified activity records, valid PAN, and timely submission.
Form 162 is the annual statement required for non-resident entities maintaining a liaison office in India under the Income-tax Act, 2025, to be filed electronically once in each tax year within eight months from the end of the tax year. The filing requires particulars relating to the office's activities, approval details, employees, Indian counterparties, and audited financial information, along with a certified Annual Activity Certificate and valid PAN. The form cannot be submitted offline or edited after acknowledgment, and non-filing or delay may attract penalty, revocation of liaison office permission, and other assessment-related action.
April 3, 2026
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Immunity from penalty and prosecution through Form 161 depends on full payment, no appeal, and timely electronic filing.
Form 161 is the prescribed application under the Income-tax Act, 2025 for immunity from penalty and prosecution where an assessee accepts an assessment or reassessment order, pays the full tax and interest demand within the prescribed time, and does not file an appeal. The application is event-based and must be filed within one month from the end of the month in which the order is received. It requires structured taxpayer identity details, order and payment particulars, and a statutory verification, and is filed electronically with supporting assessment, demand, payment, and PAN documents.
April 3, 2026
Show AI Summary
Immunity from penalty and prosecution through Form 161 requires full payment, no appeal, and online filing.
Form 161 is the prescribed application under section 440(2) of the Income-tax Act, 2025 for seeking immunity from penalty and prosecution after an assessment or reassessment order. It is optional and event-based, must be filed within one month from the end of the month of receipt of the order, and is available only where the taxpayer has paid the full tax and interest demand and has not filed any appeal. The form requires order details, demand details, proof of payment, and PAN, and can be submitted only online through the e-Filing portal.
April 3, 2026
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Refund of wrongly deducted tax through Form 160 requires full transaction details, supporting documents, and timely filing.
Refund of tax deducted at source and deposited to the Central Government is available through Form 160 where tax was not required to be deducted on the relevant income or transaction. The form is filed by the deductor before the Assessing Officer having jurisdiction, within thirty days from payment of tax, and must contain transaction details, deductee details, agreement particulars, and proof of the tax deducted and deposited. Supporting documents and verification enable examination of whether the refund claim is admissible.
April 3, 2026
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Refund of wrongly deducted tax through Form 160 requires proof that no tax was deductible and full TDS disclosure.
Refund of tax deducted at source and paid to the Central Government may be sought through Form 160 where the deductor contends that no tax was deductible on the relevant income or transaction. The form is the prescribed application under the Income-tax law and is to be used only in cases where tax was actually deducted and deposited, but the applicant later claims that the deduction was not required under the Act. It is filed before the TDS Assessing Officer having jurisdiction over the applicant, and the application is supported by the statutory particulars needed to test the claim of non-deductibility.
April 3, 2026
Show AI Summary
Tax Clearance Certificate Form 159 governs clearance for persons leaving India and requires Assessing Officer issuance on Form 158.
Tax Clearance Certificate in Form 159 is issued by the Assessing Officer in response to Form 158 and is prescribed under section 420(5) of the Income-tax Act, 2025 read with Rule 228 of the Income-tax Rules, 2026. The form records the departing person's identity details and travel-linked validity, is issued through ITBA functionality, and has no statutory timeline for issue. Form 158 is the supporting application, and the note states that the taxpayer cannot leave India without the requisite clearance certificate.
April 3, 2026
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Tax Clearance Certificate governs departure-related compliance and is issued by the Assessing Officer on a Form 158 application.
Form 159 is the Tax Clearance Certificate issued by the Assessing Officer in response to Form 158. It is not filed by the taxpayer, but is issued to the specified taxpayer through the ITBA functionality, subject to the requirements of the Income-tax Act, 2025. No statutory time limit is prescribed for issuance, and the certificate is event-based, depending on the travel requirements of the person leaving India.
April 3, 2026
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Tax clearance certificate requirements for persons leaving India are set out through electronic filing of Form 158.
Form 158 is the application for a Tax Clearance Certificate required from a person directed by the Assessing Officer to obtain clearance before leaving India. It is filed each time the requirement applies, captures travel, identification, business, and passport details, and must be supported by documents such as passport or emergency certificate, PAN, and travel booking records. The form is filed electronically through the income-tax portal and digitally signed; on processing, Form 159 is issued as the Tax Clearance Certificate.
April 3, 2026
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Tax Clearance Certificate filing under Form 158 requires mandatory electronic submission before leaving India.
Form 158 is the mandatory electronic application for a Tax Clearance Certificate for domiciled persons required to obtain clearance before leaving India under the Income-tax Act, 2025. It must be filed each time the person leaves India, through the e-filing portal only. PAN is mandatory, while Aadhaar is not required. Supporting documents include passport or emergency certificate details and travel booking documents. The form cannot be edited after submission, and verification may be completed through prescribed electronic modes.
April 3, 2026
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Foreign departure undertaking for persons without PAN or taxable income is proposed as a manual compliance form.
Form 157 is a manual undertaking to be furnished by persons domiciled in India leaving India at the time of departure under section 420(4) of the Income-tax Act, 2025 and Rule 228 of the Income-tax Rules, 2026. It applies only to persons without PAN or without income chargeable to tax. The form requires identity and passport details, an undertaking regarding PAN or taxable income status, and particulars of the foreign visit, supported by passport documents or an emergency certificate where no passport is available.
April 3, 2026
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Form 157 certificate filing rules for domiciled persons leaving India without PAN or taxable income
Form 157 is a proposed new income-tax certificate form for persons domiciled in India leaving India who do not have PAN, do not have income chargeable to tax in India, or are not required to obtain PAN. It is mandatory subject to notified exceptions, must be filed each time the person leaves India, and is to be submitted manually before the jurisdictional Assessing Officer with the prescribed identity documents. The form does not require proof of tax payment, Aadhaar is no longer required in the personal details, and corrections may be made before submission or later through the Assessing Officer.
April 3, 2026
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Form 156 filing requirement for Indian residents leaving India is being split into declaration and undertaking formats.
Persons domiciled in India leaving India must furnish Form 156 at the time of departure as an undertaking under section 420(3) of the Income-tax Act, 2025 read with rule 228 of the Income-tax Rules, 2026, subject to notified exceptions. The form is to be filed electronically through the Income-tax Department e-filing portal and requires personal particulars, travel purpose, duration of stay abroad, passport details, and supporting documents such as passport and PAN, or an emergency certificate where no passport is available. The form structure is being rationalised by splitting the existing manual form into Form 156 and Form 157.
April 3, 2026
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Departure undertaking requirement governs Form 156 filing, with PAN-based e-filing and limited verification options for domiciled persons leaving India.
Form 156 is an undertaking to be furnished by persons domiciled in India leaving India at the time of departure, subject to notified exceptions. It applies only where the person has a valid PAN and income chargeable to tax in India, and is filed each time the person leaves India. The form cannot be edited after submission and acknowledgement. Filing is electronic through the income tax e-filing portal, with verification by electronic verification code or digital signature certificate, and requires passport or emergency certificate details, without proof of tax payment or Aadhaar.

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Indian Financial Markets – Resilience and Resurgence - Keynote Address by Shri Sanjay Malhotra, Governor, Reserve Bank of India at the 25th FIMMDA-PDAI Annual Conference, May 1, 2026, Amsterdam

May 2, 2026

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1. Distinguished participants, it gives me great pleasure in addressing the 25th FIMMDAPDAI2 Annual Conference. The development of India’s fixed income and derivatives markets owes much to such conferences, which provide an opportunity for all stakeholders to get together and deliberate on not only the journey so far but more importantly the way forward. I am confident that this conference will give us many innovative ideas and suggestions for the further development of the markets.

2. We could not have met at a more appropriate city for this conference to deliberate on the challenges and the opportunities that the markets offer today. It was in Amsterdam where merchants started trading shares and bonds of the Dutch East India Company more than four centuries ago. What emerged in the 17th century was one of the earliest examples of a modern financial marketplace: an organised system where investors could pool capital, transfer risk, and finance ambitious commercial ventures across continents. The innovations that took root – tradable securities, secondary markets, and financial intermediation – in many ways, laid the foundations of modern global finance, as we know it today.

I. Challenges for the global economy & financial system

3. The conference could not have been at a more opportune time, when the global financial system is navigating through a period of elevated uncertainty and challenges. These have implications not just for the real sector but also for the financial markets.

4. Geo-economic fragmentation caused by tariffs, trade restrictions, and industrial policies are reshaping not only global supply chains, they are also affecting the free movement of capital and led to fragmentation of financial flows.

5. High levels of public debt in several major economies is another concern. Their continued fiscal expansion has made it difficult for them to return to the path of fiscal consolidation that was expected post the pandemic related stimulus. On the other hand, geopolitical pressures are compelling a significant rise in defence spending – a shift that could pose major challenges for fiscal sustainability.

6. Stretched valuations in certain asset classes, particularly equities including a few tech stocks, could also have implications across markets and geographies.

7. The rapid expansion of private credit markets globally has introduced new areas of opacity and potential systemic risk through increasing interconnectedness with regulated segments.

8. AI is another source of uncertainty. While AI holds promise to enhance productivity, concerns remain about viability of certain business propositions, the level of efficiency gains, the speed of change and its impact on jobs.

9. Overlaying these challenges is the recent escalation of geopolitical tensions in West Asia. Energy prices have risen sharply amidst damages to energy infrastructure and disruptions in supply chains. It has already affected economic activity. If the crisis persists longer, it may also translate into second order inflationary pressures.

II. India’s Economic Resilience Amid Global Turbulence

10. Against this challenging global backdrop, the Indian economy has shown remarkable resilience. In view of this, the theme of this conference, “Indian Financial Markets – Resilience and Resurgence,” is most apt and timely.

11. Since the pandemic, India has consistently been among the fastest-growing major economies in the world. This performance reflects a combination of strong macroeconomic fundamentals, structural reforms, and prudent macroeconomic management.

12. Growth impulses in the economy have remained robust. Domestic demand continues to be supported by strong consumption and public investment. The government’s emphasis on capital expenditure has helped crowd-in private investment and improve productive capacity. Resultantly, we have recorded an average growth of 8.2 per cent during 2021-25. In 2025-26, the economy is estimated to have grown by 7.6 per cent. Growth in 2026-27 is projected at 6.9 per cent.

13. Inflation, although vulnerable to periodic supply shocks, has broadly remained within the tolerance band of the monetary policy framework. The flexible inflation targeting (FIT) regime has provided a credible anchor for managing inflation expectations, and reducing average inflation and volatility post its adoption. In the recent period, headline inflation has remained below the inflation target of 4 per cent. We have projected an average CPI inflation of 4.6 per cent for FY 27.

14. India is firmly on a path of fiscal consolidation. On the revenue side, adoption of GST and other sweeping tax reforms have helped improve tax buoyancy. On the expenditure side, targeted government spending has improved the quality of expenditure, while reducing revenue expenditure as a percentage of GDP.

15. India’s banking and NBFC sectors have undergone a remarkable transformation in recent years. Their balance sheets have been strengthened significantly, with improvements in capital adequacy, asset quality and profitability.

16. Corporate balance sheets have also improved, supported by stronger earnings. The fund mobilisation by Indian corporates through public markets, especially corporate bond markets, has remained strong over the last two financial years, pointing to a steady broadening of financing channels beyond traditional bank credit.

17. On the external front,

  1. Our foreign exchange reserves remain comfortable, with 11 months of import cover.

  2. The current account deficit (CAD) is sustainable; while elevated energy prices will exert upward pressure on the deficit, the recently concluded trade agreements should offset some of the impact.

  3. On the capital account, gross FDI has been encouraging3. This will remain robust with the recent spree of greenfield FDI announcements especially in the finance and tech sectors.

  4. With recent correction in financial asset valuations, we expect repatriations to moderate, improving the net capital account position going forward.

18. To sum up, India’s strong macro-economic and macro-financial fundamentals remain strong, supported by continued focus on policy certainty, price stability, financial stability, and thrust on reforms, ease of doing business and inclusive growth.

III. Indian Financial Markets – Measures undertaken for development

19. Moving from the broader economy to financial markets, I must acknowledge that our financial markets have matured considerably over the past few years. This is an outcome of conscious policy choices over the years.

Money Market

20. Starting with money markets, which serve as the primary channel for monetary policy transmission, we have moved towards a more agile liquidity management framework to ensure adequate liquidity in the financial system.

Government Securities Market

21. Government securities markets continue to be deep and liquid, but our efforts are to broaden the investor base, especially by encouraging retail and non-resident participation. The benchmark issuance strategy which has helped build a credible sovereign yield curve and improve price discovery in fixed-income markets, is now being extended to State Development Loans from FY27.

Derivatives Markets

22. The regulatory framework for derivatives markets too has evolved to facilitate ease-of-doing business, wider participation, and innovation.

23. We are facilitating greater product diversity through introduction of total returns swaps on corporate bonds and derivatives on corporate bond indices. These are intended for supporting a well-developed corporate bond market by management of credit risk.

24. We have also introduced forward contracts on government securities. It has been heartening to see long term investors especially insurance companies utilising this product instead of relying on synthetic financial constructs to manage their long-term interest rate risks.

Efficient Financial Market ecosystem

25. While taking measures for the development of various market segments, we have focussed on strengthening market infrastructure; enhancing transparency and ease of Investments for foreign investors across market segments.

Strengthening market infrastructure

26. I would like to highlight three recent initiatives for strengthening market infrastructure.

  • First, Electronic trading platforms have been introduced for new products such as forex options and Modified MIFOR based derivatives for enhancing efficiency and transparency. Central clearing and settlement have also been expanded for these products.

  • Second, FX forwards up to 36 months tenor are now being centrally cleared; earlier, forwards up to 13 months tenor only were centrally cleared.

  • Third, the regulations for initial margin for non-centrally cleared derivatives have come into force. CCIL has put in place the necessary infrastructure for exchange of initial margin. I note that market participants are making use of the system by CCIL.

Enhancing transparency

27. To enhance transparency, we now have the reporting of:

  • OTC Rupee foreign exchange and interest rate derivative contracts undertaken by the related parties of market-makers; and

  • Cash, tom and spot trades in the foreign exchange market and OTC gold derivative transactions undertaken by banks and by residents.

Ease of Investments for foreign investors

28. Last, but definitely not the least, we have endeavoured to facilitate ease-of-investment for foreign investors:

  • We have eased the macroprudential norms applicable for FPI investment in corporate bonds;

  • We have expanded the space for investments under the Voluntary Retention Route and provided greater operational flexibility;

  • Balances in Special Rupee Vostro Accounts have been permitted to be invested in corporate debt securities and government securities;

  • Non-residents have been permitted to open Rupee accounts in their own geographical region and with the overseas branches of Authorised Dealers;

  • Another important measure is to connect NDS-OM with global bond trading platforms for deepening secondary market in G-secs.

IV. Areas of improvement

29. While we have made considerable progress in deepening and strengthening our financial markets, more needs to be done. I am mentioning five areas of improvement for you to deliberate on:

  1. Although our central government securities market is liquid by most standards, there is scope to improve liquidity across all tenors and securities.

  2. OTC derivatives markets, especially interest rate derivatives, remain concentrated in just one or two few products. It needs to improve if efficient interest rate hedging options have to be made available to stakeholders.

  3. Indian banks are dealing only with offshore market-makers rather than with end-users. If the global INR market has to be on-shored, Indian banks will need to evolve as market-makers globally.

  4. Usage of the FX Retail platform remains limited. All banks should facilitate this as a priority, so that retail users get a fair deal.

  5. The development of credit derivatives is yet to take off in any meaningful way. This is largely an underutilised area.

30. At the same time, market participants must acknowledge that while a privilege bestows some benefits, it also entails responsibilities. For example, banks and primary dealers in G-Sec market have exclusive access to our liquidity facilities and to short term money markets. They are market-makers in the OTC derivative markets implying that every entity can only transact with you for hedging. Similarly, users must approach them to meet their market needs. These privileges accord immense market power to the PDs and banks, which is beneficial for their growth.

31. But there are corresponding responsibilities-

  1. Responsibilities to ensure that every user has easy access to financial markets;

  2. Responsibilities to ensure that every user can transact on fair and transparent terms, irrespective of size and sophistication;

  3. Responsibilities to ensure that broader regulatory objectives are met in letter and spirit even as organisational interests are pursued;

  4. And responsibilities to protect, promote and sustain market integrity.

32. I am sure you will discharge your responsibilities to the best of your abilities.

Conclusion

33. Let me conclude now.

34. This year marks the 250th anniversary of magnum opus - The Wealth of Nations by Adam Smith. The insight and wisdom of Smith, especially about the importance of markets, remain profoundly relevant in current tumultuous times.

35. Our priorities at RBI, therefore, remain clear. We will continue to deepen financial markets, broaden participation, and further strengthen institutional frameworks. We will continue to strive for efficiency, consumer protection, fairness, transparency, and ethical conduct. In this pursuit, we will continue to assess and meet the emerging market needs. We will also stand prepared to deploy appropriate policy measures, as warranted, to mitigate spillovers and ensure orderly market conditions.

36. But we cannot do it alone. Strengthening financial resilience is a collective and shared responsibility. Institutions such as trade repositories will have to improve data quality and availability to support risk assessment and effective policymaking. FIMMDA and PDAI will have to play a vital role in strengthening market conventions, standardisation, and discipline.

37. I am confident that with continued collaboration among all of us, Indian financial markets will mature further. I am sanguine they will become deeper, more efficient, and more dynamic in the years ahead.

38. With these words, I thank you all for your patience and wish this conference a great success. I look forward for your valuable suggestions and policy inputs.

Thank you.

----

1 FIMMDA- Fixed Income Money Market and Derivatives Association

2 PDAI - Primary Dealers’ Association of India

3 Gross FDI grew from about USD 71 bn to more than USD 80 bn during 2024-25 and expected to have increased further to about 90 bn USD in 2025-26.

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