Anuradha Shukla

India has amended its tax treaty with Sri Lanka to introduce a Principal Purpose Test (PPT), allowing authorities to deny treaty benefits where tax advantage is a key objective of an arrangement. Effective for income from FY28, the change targets treaty shopping and aligns the DTAA with global anti-tax avoidance standards.

The proposal seeks to address a longstanding industry demand by examining whether businesses operating across multiple states can be administered by a single central GST authority instead of dealing with multiple field formations for different GST registrations.

NaBFID will issue zero-coupon bonds valued at twenty thousand crore rupees. This move supports the institution's long-term capital mobilization for infrastructure projects. Investors will receive the full redemption amount after a ten-year maturity period. The Central Board of Direct Taxes approved the necessary tax framework for this issuance. NaBFID can issue these bonds until March thirty-first, twenty twenty-eight.

Punjab National Bank will enter acquisition finance in the third quarter of this financial year. The bank has already mobilized USD 425 million in FCNR(B) deposits.

India's income-tax department has received over thirty-three million income-tax returns for assessment year 2026-27. Nearly twenty million of these returns have already been processed by the department. A significant number of new taxpayers are filing returns after a successful nudge campaign. The department anticipates a sharp rise in filings during the final week. Taxpayers can expect smooth portal operations and 24/7 assistance from the department.

A key GST panel will consider industry suggestions for transferring unutilised input tax credit. Exempting intra-group corporate guarantees from tax levies is also under review. These recommendations will then go before the GST Council for its next meeting. Industry seeks efficient credit utilisation and improved corporate cash flow management. The proposed changes aim to boost ease of doing business and reduce compliance costs.

The Central Board of Indirect Taxes and Customs is preparing a new framework that will streamline departmental appeals involving multiple states. Field formations will gain clarity on filing appeals before the GST Appellate Tribunal. Jurisdictional commissioners will independently decide on appeals for each taxpayer. A formal circular will soon be issued to implement these changes.

The Taxation and Other Laws Amendment Bill, 2026 proposes extending electronics tax incentives until 2041, easing rules for foreign investors and fund managers, while raising surcharge on certain SPVs under the new tax regime.

The government is set to unveil a sweeping tax policy reset, extending incentives for manufacturing and relaxing rules for foreign investment funds through the proposed Taxation and Other Laws (Amendment) Bill, 2026.

The government is set to introduce the Taxation and Other Laws (Amendment) Bill, 2026, extending tax incentives for electronics manufacturing, easing rules for foreign investment funds, and offering relief for REITs, InvITs, data centres and sovereign debt investors. The proposed changes aim to boost investment, strengthen supply chains and make India's tax regime more business-friendly.