Quarterly TDS reporting for virtual digital assets requires Exchanges to file Form 26QF detailing tax paid and nondeducted transactions.
Where an Exchange has agreed to pay tax as an alternative to buyer deduction under section 194S, it must, from 1 July 2022, furnish a quarterly statement in Form No. 26QF to the Principal Director General of Income tax (Systems) containing transaction level details of tax paid (with challan particulars) and particulars of amounts paid or credited on which tax was not deducted in accordance with guidelines under sub section (6) of section 194S, together with a verification by an authorised official.

International tax jurisdiction allocation expanded to centralise Delhi Chief Commissioner oversight of international and transfer pricing commissioners.
The notification designates a Chief Commissioner of Income-tax (International Taxation), Delhi and inserts a new serial allocating headquarters at Delhi with jurisdiction over specified Commissioner posts: three Commissioners (International Taxation) in Delhi, three Commissioners (Transfer Pricing) in Delhi, and one Commissioner (International Taxation and Transfer Pricing) in Kolkata; the amendment substitutes prior entries in Notification No. 54/2014 and becomes effective on publication in the Official Gazette.

Jurisdiction of Income tax authorities revised: headquarters assignments for Delhi and Mumbai redefined under section 120.
The notification, issued under section 120 of the Income-tax Act, substitutes Schedule-II of Notification No.70/2014 to reallocate Chief Commissioner (Central) headquarters and specify the Principal Commissioner/Commissioner of Income-tax (Central) postings for Delhi and Mumbai. The revised schedule lists the headquarters-to-posting mapping and takes effect from publication in the Official Gazette, with noted corrigenda adjusting specific Mumbai entries.

Arm's length price tolerance treats actual transaction price as ALP where deviation falls within prescribed limits for trading.
Where the difference between the arm's length price under section 92C and the actual transaction price does not exceed prescribed tolerance limits, the actual transaction price shall be deemed to be the arm's length price for the specified assessment period; a narrower tolerance applies to wholesale trading, which is defined by purchase-cost and average-monthly-closing-inventory conditions.

Sovereign wealth fund exemption specified, subject to ownership, reporting, audit and non borrowing compliance conditions.
Specification of Seventy Second Investment Company LLC as a specified person for exemption under the Income tax Act is conditional on ten requirements including continued Government of Abu Dhabi ownership and control, regulation under UAE/Abu Dhabi law, earnings credited to the Abu Dhabi government, prohibition on using loans or borrowings to make investments in India, vesting of assets in that government on dissolution, non participation in investee day to day operations, and compliance with filing, audit, quarterly reporting and segmented account maintenance; breach renders the fund ineligible.

Special Court designation for income-tax and black money offences assigns territorial jurisdiction to specified magistrate courts.
Designation of Special Courts under section 280A of the Income-tax Act, 1961 and section 84 of the Black Money Act assigns specified Chief Judicial Magistrate courts in Uttarakhand to serve as Special Courts, with territorial jurisdiction allocated across listed districts to enable those courts to conduct prosecutions, trials and related proceedings under the two statutes.

Securities Transaction Tax reporting requires electronic filing of prescribed forms and SFTP submission by reporting institutions.
Mandates electronic submission of Securities Transaction Tax returns by the specified classes of persons, introducing Form No. 2A for insurance companies and empowering the DGIT (Systems) to prescribe formats and security standards. Reporting institutions must register (Annexure A), prepare data files per Annexure C specifications (ASCII, pipe-delimited, header and detail records), and submit via SFTP using supplied credentials. Returns must be signed, verified and furnished by the responsible person and filed on or before the 30th June following the financial year; Annexure B contains the Form No. 1, Form No. 2 and Form No. 2A templates.

Virtual digital asset transfers require specified persons to deduct TDS and deposit it electronically within 30 days, with Form 26QE filing.
Specified persons responsible for tax deduction on transfer of virtual digital assets must deduct tax and remit it electronically within thirty days from the end of the month of deduction accompanied by a challan-cum-statement in Form No.26QE, and must furnish Form No.16E to the payee within fifteen days from the due date for filing Form No.26QE; electronic filing, prescribed formats and challan details are mandated for deposit, reporting and crediting to the deductee.

Safe harbour rule extended to an additional assessment year, applying retrospectively from the start of the fiscal year.
Amendment to rule 10TD substitutes sub rule wording to add an additional assessment year to the list covered by the safe harbour provision, extending the period in which eligible taxpayers may rely on prescribed transfer pricing benchmarks. The change is effective from the first day of the fiscal year and the explanatory memorandum certifies no person is adversely affected by its retrospective operation.

No TDS on IFSC aircraft lease rent where lessor furnishes required declaration and lessee reports payments.
No deduction of tax shall be made under section 194-I on lease rent or supplemental lease rent paid to a Unit in an International Financial Services Centre for aircraft leasing, provided the lessor furnishes a verified statement-cum-declaration in Form No. 1 for the declared consecutive assessment years and the lessee, upon receipt, refrains from deducting tax and reports particulars of such payments in the statutory statement; the exemption applies only for the years declared and technical procedures for secure data transmission are to be prescribed by Income-tax Systems authorities.

Specified fund compliance: non resident unit income exempt only if fund maintains records and files prescribed annual statements.
Exemption for income attributable to units held by non residents in a specified fund is conditioned on the fund maintaining specified unit holder records, certifying compliance and furnishing an annual statement of exempt income in Form No.10 IG. Concessional tax treatment and exemption for eligible investment divisions are additionally conditioned on filing specified annual statements and audit reports in Forms No.10 IH, 10 IK and 10 IL, and the rules prescribe annexures for allocating income to non resident unit holders.

Transfer of capital asset exemption under section 47(viiaf): NTPC Limited to NTPC Green Energy notified following approved plan.
Notification invokes the transfer of a capital asset between public sector companies under clause (viiaf) of section 47: NTPC Limited as transferor transferred a capital asset to NTPC Green Energy Limited pursuant to a Central Government-approved restructuring plan, with effect from publication in the Official Gazette.

Cost Inflation Index revised, altering indexed capital gains computation and applying to the corresponding assessment year going forward.
The Central Government, under the Explanation to section 48 of the Income-tax Act, inserts the Cost Inflation Index for the financial year 2022-23 into the notification table, thereby updating the indexation basis used for computing indexed cost of acquisition and capital gains. The notification is effective from 1 April and applies to the corresponding assessment year and subsequent years as an amendment to the principal notification.

Faceless Assessment: specified income tax units authorised to exercise Assessing Officer powers concurrently for nationwide faceless proceedings.
Notification directs specified Income tax Authorities of Units, listed in the Schedule by unit and headquarters, to exercise the powers and functions of Assessing Officers concurrently to facilitate faceless assessment proceedings nationwide, subject to exclusions for persons, incomes or cases covered by earlier exclusionary notifications; it supersedes the 2021 notification and is deemed effective from 6 June 2022.

Control of income-tax authorities: notification prescribes hierarchical subordination and reallocation of assessment and technical units.
Directs an administrative hierarchy among income-tax authorities by prescribing subordination relationships between Principal Chief Commissioners, Chief Commissioners, Principal Commissioners and Income-tax Authorities of Units via a First Schedule (and a Second Schedule), including assignment of assessment, verification, review and technical units and identifying specified Principal Commissioners subordinate to the National Faceless Assessment Centre. The notification is effective retrospectively from a stated date to implement reversion, deployment and re-designation of existing posts and includes recorded amendments and corrections to the Schedules.

Higher TDS/TCS on specified persons: portal-based compliance check verifies PAN status and Aadhaar linkage for withholding agents.
Higher withholding applies to specified persons who have not filed the relevant return and meet the tax-deduction/collection threshold; CBDT authorised the Director General of Income-tax (Systems) to provide identification through a Reporting Portal functionality "Compliance Check for Section 206AB & 206CCA." Registered tax deductors/collectors using TAN-linked e-filing credentials and a designated principal officer can perform PAN Search or Bulk Search to obtain masked name, PAN allotment date, PAN-Aadhaar link status, specified person status and determination date, with supporting guidance and time-limited CSV outputs for bulk queries.

Eligible investment fund conditions relaxed: monitoring and director appointments not treated as day-to-day participation.
The Central Government relaxes specified compliance conditions for an eligible investment fund under section 9A(8A), excluding certain clauses and clarifying that monitoring mechanisms, including the right to appoint directors or an executive director, do not constitute participation in day-to-day operations; it also permits an eligible fund manager to be registered as a portfolio manager or investment advisor under the IFSCA (Capital Market Intermediaries) Regulation, 2021 or other IFSCA regulations, effective on publication in the Official Gazette.

Tax exemption under section 10(46): National Biodiversity Authority's specified income exempt subject to non commercial and filing conditions.
Central Government notifies National Biodiversity Authority as exempt under section 10(46) for specified income: grant in aid, benefit sharing fee and royalty, application fees, and interest on those receipts, subject to conditions that the Authority shall not engage in commercial activity, its activities and the nature of specified income remain unchanged, and it files returns as required by clause (g) of sub section (4C) of section 139; notification effective for 2021-2022 and applicable through 2025-2026.

Appeal to the High Court: appeals against Board for Advance Rulings must follow jurisdictional High Court filing procedure.
A new rule 44FA prescribes that appeals to the High Court against rulings or orders of the Board for Advance Rulings, brought by the assessee or by the Assessing Officer on directions of the Principal Commissioner or Commissioner, must be filed in the same form and manner as provided in the applicable procedure of the jurisdictional High Court.

Authority for issuance of income-tax notices designated to Assistant/Deputy Commissioner (International Taxation), enabling prescribed-authority powers.
The Central Board of Direct Taxes authorises the Assistant Commissioner of Income Tax/Deputy Commissioner of Income Tax (International Taxation), Circle -1(1)(1), Delhi as the Prescribed Income-tax Authority for issuing notices under sub-section (2) of section 143 read with Rule 12E, superseding the earlier notification; effect is upon publication in the Official Gazette.