Tax reforms recalibrate capital gains rules and tighten indirect tax compliance, altering credit and appeal procedures.
Direct tax measures recalibrate capital gains treatment by reclassifying portfolio income as capital gains and increasing the long term holding period for equity mutual fund units with a higher tax rate; they introduce a range concept in transfer pricing, broaden MSME definition, impose disallowance where taxes are not deducted on resident payments, and provide targeted investment allowances. Indirect tax changes adjust customs and excise rates and exemptions for inputs, renewable energy and export manufacture, revise service tax exemptions and reverse charge timing, and tighten CENVAT credit timing and procedural compliance. (AI Summary)