Tax holiday for eligible startups provides a three year corporate rebate within a seven year window to support early growth.
Eligibility requires recent incorporation in India, turnover below the prescribed cap, innovation/IP focus, no business reconstruction, certification by an Inter Ministerial Board, and specified entity forms. Principal tax benefits include a three year tax holiday within a seven year block, long term capital gains exemption for investment in notified funds with a multi year lock in, exemption for investments made above fair market value by certain investors, extension of investment linked long term capital gains exemption to startups with share and asset retention conditions, and relaxation of shareholding continuity rules for carryforward of losses. (AI Summary)

Zero-rated supply to SEZs permits tax relief for inbound supplies but refunds require authorised operations certification, complicating GST compliance.
Supplies to and from SEZs are treated as inter State supplies under GST with Zero-rated supply status for supplies to SEZ developers or units, allowing either supply under bond/letter of undertaking with refund of unutilised input tax credit or supply with tax payment and subsequent refund. Refunds are procedurally regulated and, per administrative view, limited to supplies for authorized operations. Separate GST registration is required for SEZ units, inter unit transfers are rendered taxable, and supplies by SEZs to DTA are treated as akin to imports attracting customs duty and IGST, creating compliance and practical difficulties in billing models and reverse charge scenarios. (AI Summary)

Pension reporting: pensions must be declared in the correct ITR schedules based on source and commutation status.
Pension income must be reported according to source and nature: employer-funded pensions are reported under the salary schedule with pensioner status and employer/fund particulars if tax was withheld; taxable commuted and uncommuted pension are shown as salary while exempt commuted pension is entered under allowances/exempt income. Pensions arising from the individual's own contributions are reported as income from other sources, with commuted exempt amounts shown as exempt income. Family pension is reported under income from other sources or the designated family pension option in the simpler return. (AI Summary)

Input tax credit on motor vehicles may be excluded for rent a cab leasing unless treated as a further supply qualifying for credit.
The statute bars ITC on inward supplies of motor vehicles for transport of persons up to thirteen seats but excepts cases where the vehicles are used for a further supply of such vehicles, transportation of passengers, or imparting training; related services receive ITC only when connected to such excepted uses. An AAR found rent-a-cab leasing to institutions to be renting of motor vehicles (SAC 9966) and disallowed ITC, while the author contends that leasing constitutes a "further supply" under the broad definition of supply and so should qualify for the exception allowing ITC. (AI Summary)

Composition scheme simplifies GST compliance for small taxpayers with flat turnover-based tax but restricts inter-state trade and input credits.
Composition Scheme under GST provides simplified turnover-based taxation for eligible small taxpayers who pay tax at a flat prescribed percentage each quarter; it reduces compliance and tax burden but excludes certain suppliers and goods, disallows input tax credit, prohibits inter state supplies and use of e commerce operators, and links return non-filing to suspension of e way bill generation. (AI Summary)

Commission or brokerage exclusion: trade discounts in principal-to-principal sales are not subject to TDS under tax law.
Section 194H requires TDS on income by way of commission or brokerage, defined to include payments for services in buying or selling goods, but routine commercial discounts that reduce the sale price in principal-to-principal transactions - including bulk-purchase, cash, or prompt-payment discounts recorded by credit note - are not commission and therefore do not attract TDS under section 194H. (AI Summary)

TCS on e commerce operators requires marketplaces to collect and remit supplier transaction tax, with reporting obligations.
E commerce operators must collect TCS on payments received for third party supplies through their platforms, calculated on the monthly net taxable value of supplies (reduced by returns and excluding supplies on which the operator itself pays GST). Operators must deduct the notified TCS rate from amounts payable to suppliers, deposit the tax within the prescribed period, invoice commission to sellers, and file periodic TCS returns; failure to furnish requested transactional details or under reporting may attract penalties and adjustment to the supplier's account. (AI Summary)

Input tax credit transfer: transferee acceptance on the portal enables unutilised credit to be moved after business transfer.
Registration obligations arise for the transferee on transfer; inter-company supplies between the effective date and the order date are includible in turnover. Unutilised input tax credit is transferred via Form GST ITC-02 on the Common Portal with transferee acceptance; demerger apportionment follows asset values. Itemised sales are taxable as supplies under Schedule II, while transfer as a going concern (slump sale) is not treated as supply and is exempt under the stated notification. Securities are outside GST. (AI Summary)