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TaxCorp Daily Digest
Your Authoritative Source for Indian Tax, Corporate & Regulatory Intelligence
Edition: March 26, 2026 | Published by TaxCorp India
⚡ Quick Summary
- Finance Bill 2026 overhauled by Lok Sabha with sweeping changes to reassessment procedures, digital safeguards, and a progressive removal of arrest/detention provisions from tax recovery
- CBDT issues four Section 10(46)/10(46A) exemption notifications for statutory development authorities in Haryana, Patiala, Varanasi, and Visakhapatnam SEZ — effective retrospectively from AY 2024-25
- GST wins and losses: Karnataka HC quashes ₹124 crore demand on solar inverters; GSTAT upholds ₹19.86 lakh anti-profiteering penalty against a cinema hall; Supreme Court intervenes in GST pre-deposit access dispute
- SEBI tightens investor protection with 'Verified' badges on Google Play for trading apps, expanded audit eligibility for Cost Accountants, and defers mutual fund intraday borrowing rules to July 15, 2026
📂 Category-wise Updates
🔵 Income Tax
The Lok Sabha amendments introduce retroactive insertion of Section 292BC to shield assessments from procedural challenges (missing DINs, digital signatures), while simultaneously mandating a minimum 30-day response window for notices under Sections 148 and 280. Notably, arrest and detention provisions have been entirely removed from the Second Schedule, marking a civilized shift in tax recovery.
⚠️ Action Item: Tax practitioners must immediately review all pending reassessment cases for retroactive applicability of Section 292BC and recalibrate litigation strategy accordingly.
2. Key Rules for Capital Gains Tax: When Does a Property Transfer Actually Occur?
The ITAT Mumbai in Shree Jain v. ACIT (2026) reaffirms that registration of the sale deed triggers capital gains tax, regardless of whether sale proceeds are received. Subsequent events such as cheque dishonour or alternative asset transfers do not shift the year of taxability unless the deed is formally cancelled.
⚠️ Action Item: Assessees involved in property transactions must compute and report capital gains in the year of registration — not receipt — of consideration.
3. CBDT notifies Haryana Shehri Vikas Pradhikaran for exemption under Section 10(46A)
Notification No. 29/2026 formally grants Haryana Urban Development Authority (now Haryana Shehri Vikas Pradhikaran) tax exemption under Section 10(46A) effective from AY 2024-25, provided it continues to function under the Haryana Urban Development Authority Act, 1977. The retrospective application is certified as non-prejudicial to any party.
⚠️ Action Item: The authority must ensure tax filings from AY 2024-25 onwards reflect this exemption, with returns filed as mandated under the Act.
Notification No. 30/2026 brings the Patiala Urban Planning and Development Authority (constituted under the Punjab Regional and Town Planning and Development Act, 1995) within the exemption fold under Section 10(46A), operative from AY 2024-25.
⚠️ Action Item: Revise all past income tax filings from AY 2024-25 to claim this exemption, ensuring PAN linkage is accurate and updated.
Notification No. 31/2026 exempts the Varanasi Development Authority from income tax under Section 10(46A), effective from AY 2025-26, with retrospective assurance that no party is adversely affected. Resources can now be redirected towards urban development functions.
⚠️ Action Item: Ensure all income tax filings are accurately linked to the PAN AAATV6811A and claim the exemption starting AY 2025-26.
6. New CBDT Relief: Section 10(46) Income Tax Exemption for Visakhapatnam SEZ Authority
Notification No. 32/2026 grants targeted exemption to the Visakhapatnam SEZ Authority under Section 10(46) for lease rents, fees, charges, and bank deposit interest. The exemption spans AY 2024-25 through AY 2028-29, blending retrospective and prospective benefit.
⚠️ Action Item: Authority must not engage in commercial activities and must file returns under
Section 139(4C)(g)to preserve the exemption.
Form 130 replaces Form 16 as the definitive TDS certificate for salary, pension, and senior citizen interest income under Section 395(4)(b) and Rule 215(1). It must be generated exclusively via the TRACES portal and is invalid if prepared by any other means. Filing of quarterly Form 138 statements is a prerequisite.
⚠️ Action Item: Employers must ensure timely filing of Form 138 on TRACES to enable issuance of Form 130; delays will block certificate generation.
Form 129 under Section 395(2) and Section 400(3) of the Income-tax Act, 2025 replaces the earlier Form 15E and is the dedicated mechanism for obtaining lower or nil TDS certificates for non-resident payments, filed online through TRACES with detailed DTAA documentation.
⚠️ Action Item: Entities remitting payments to non-residents must file Form 129 proactively to avoid TDS deduction at full rates, especially where DTAA benefits apply.
Form 128 under Rule 213 of I.T. Rules, 2026 introduces a unified digital application for lower/nil TDS/TCS certificates, including the innovative Child Certificate mechanism (Annexure-II) that allows a single parent certificate to address hundreds of deductors — eliminating working capital friction.
⚠️ Action Item: Assessees should ensure PAN is active on TRACES and ITR data reconciled before initiating Form 128 applications to avoid rejection.
Form 127 replaces Form 27C for resident buyers procuring specified goods (scrap, coal, timber, iron ore, etc.) for manufacturing/production. Part A must be filed on or before the transaction date; sellers must upload declarations by the 7th of the following month.
⚠️ Action Item: Buyers must submit Form 127 to sellers before each qualifying transaction; sellers must upload declarations monthly to avoid non-compliance.
11. Fresh Framework For Nil TDS: Detailed Guide To New Form No. 126 Under Section 395(1)
Form 126 consolidates the erstwhile Forms 15C and 15D into a single online application for non-resident entities (foreign banks, insurers, overseas branches) to obtain nil TDS certificates. Eligibility requires five years of regular tax compliance and, for non-banking entities, Indian presence with fixed assets exceeding ₹50 lakhs.
⚠️ Action Item: Eligible non-resident entities should file Form 126 electronically via TRACES/NRI portal before income is credited to avoid TDS deduction.
Form 125 (replacing Form 12BBA) allows individuals aged 75 or above with income only from pension and interest within the same specified bank to forgo annual return filing. However, this is an exemption from filing — not from paying taxes. Any extraneous income requires prompt withdrawal of the declaration.
⚠️ Action Item: Super senior citizens must promptly withdraw Form 125 if any income beyond pension and bank interest arises during the tax year.
13. Form 124 Under Income Tax Act 2025: Employee Salary Declaration for TDS — Complete Guide with FAQs
Form 124 (replacing Form 12BB) enables salaried employees to communicate HRA, LTA, housing loan interest, and deduction claims to employers under Section 392(5)(b) and Rule 205. While submission is legally voluntary, it is practically indispensable for accurate TDS at source.
⚠️ Action Item: Salaried employees should submit Form 124 at the earliest to their employer payroll teams to ensure accurate TDS deductions for the current tax year.
14. New Compliance Guide to Form No. 123 (Earlier Form 12BA) for Salary Perquisites
Form 123 (successor to Form 12BA) is mandatory for employers where salary exceeds ₹1,50,000 per tax year and perquisites/fringe benefits are provided. It must be issued by 30 April following the tax year end and must accompany (not replace) Form 130.
⚠️ Action Item: Employers must prepare Form 123 for all eligible employees by April 30 — delay constitutes non-compliance under
Section 392(5)(a).
Form 122 consolidates the legacy Forms 12B and 12BAA into a unified document for reporting multiple salary sources, house property losses, and external tax credits under Section 392(1). Submission is voluntary but critical for protecting assessees from under/over-deduction risks.
⚠️ Action Item: Assessees with multiple employers or salary sources during the tax year should urgently submit Form 122 to their current employer for accurate consolidated TDS.
Form 121 merges the erstwhile Forms 15G and 15H into a single digitally enhanced declaration under Section 393(6) and Rule 211. PAN is mandatory; payers must assign a Unique Identification Number (UIN) and submit monthly consolidated statements to the e-filing portal. Companies, firms, and non-residents are explicitly excluded.
⚠️ Action Item: Eligible assessees must submit Form 121 to each payer individually before each income transaction — a single blanket submission is not valid.
17. Comprehensive Guide to New Income Tax Form 120 for Advance Rulings under Section 383(1)
Form 120 unifies the advance ruling application process for non-residents, residents with cross-border dealings, high-value residents, Public Sector Companies, and GAAR applicants under Section 383(1). The form requires comprehensive disclosures on facts, legal positions, ownership structures, and transaction details. Importantly, time spent before the BAR is excluded from assessment limitation periods.
⚠️ Action Item: Non-residents and assessees engaged in cross-border transactions should proactively use Form 120 to obtain tax certainty before executing high-value transactions.
18. Comprehensive Guide to E-Filing Form 119 for Dispute Resolution Under Section 379
Form 119 operationalizes the Dispute Resolution Committee mechanism under Section 379, offering a less adversarial alternative to traditional appeals. The electronic submission is irreversible and requires 100% payment of tax on returned income as a prerequisite.
⚠️ Action Item: Assessees must ensure absolute accuracy in drafting grounds and annexures before submitting Form 119 — revisions post-submission are not permitted.
19. Form 118 Under Income Tax Act 2025: Complete Guide to Deferment of Appeal Filing Before HC and ITAT
Form 118 allows the Income Tax Department to defer appeal filing before ITAT or High Court when an identical legal question is pending before a superior court. The mechanism requires collegium-based review, assessee consent, and senior commissioner oversight, with a strict 120-day filing window after deferment ends.
⚠️ Action Item: Assessees receiving deferment notices under Section 376 should track the superior court proceedings closely, as the 120-day filing window activates automatically upon finality.
20. Simplified Guide to Form 117 under Income Tax Act, 2025: Declaration for Identical Legal Questions
Form 117 under Section 375(1) allows assessees to declare that a legal question in their pending case is identical to one already before a High Court or Supreme Court. Filing this optional form prevents re-agitation of the same question in appeal and binds the assessee to the final judicial ruling.
⚠️ Action Item: Assessees with multi-year disputes on the same legal question should evaluate Form 117 as a cost-effective litigation management strategy.
Form 116 replaces Form 36A for filing cross-objections before ITAT without initiating a separate appeal. The 30-day statutory deadline from receipt of the appeal notice is non-negotiable, and post-submission revisions are strictly prohibited.
⚠️ Action Item: Respondents in ITAT proceedings must track the date of receiving the primary appeal notice and file Form 116 within 30 days if cross-objections are warranted.
22. Form 115 Under Income Tax Act 2025: Complete Guide to Filing Appeals Before ITAT
Form 115 replaces Form 36 for ITAT appeals under Section 362, structured into six parts. Appeals must be filed within two months from the end of the month in which the impugned order is communicated, with prescribed supporting documents and applicable fees.
⚠️ Action Item: Litigants must immediately transition to Form 115 for all new ITAT filings — Form 36 is no longer the prescribed form under the Income-tax Act, 2025.
Form 113 must be filed by registered NPOs electronically by 31st May after the tax year end. Only after its successful processing is Form 114 (the donation certificate replacing Form 10BE) auto-generated, enabling donors to claim deductions. PAN is compulsory; offline filing is not permitted.
⚠️ Action Item: NPOs must file Form 113 by May 31 every year without exception — failure blocks donors from receiving Form 114 and claiming deductions.
Complementing the above, this analysis confirms that Forms 113 and 114 replace the earlier Forms 10BD and 10BE under the new Section 354(1) framework. The system is entirely paperless with mandatory PAN validation, and corrections require fresh revised Form 113 filings to generate corrected Form 114 certificates.
⚠️ Action Item: NPOs with data errors in Form 113 must file correction statements immediately to ensure donors can claim their deductions before ITR filing deadlines.
Form 112 consolidates the earlier dual-form structure of Forms 10B and 10BB into a single unified audit report under Section 348. Differentiated reporting obligations apply based on income and foreign contribution thresholds, easing the compliance burden for smaller NPOs.
⚠️ Action Item: NPOs must assess whether they fall under the "small" or "large" category under the new income/foreign contribution thresholds to determine their Form 112 disclosure obligations.
26. Fresh Guidelines on Form 110 for NPOs: Changing Purpose of Accumulated Income under Section 342(5)
Form 110 is the mandatory online application under Section 342(5) for NPOs wishing to change the purpose of previously accumulated income (reported in Form 109). The Assessing Officer reviews and passes an order under Section 342(6) before the new purpose can be utilized.
⚠️ Action Item: NPOs planning to redirect accumulated funds must file Form 110 before utilising such funds for the new purpose — retroactive approval is not available.
Form 109 replaces legacy Form 10 as the sole mechanism for NPOs to legally accumulate income for future charitable purposes under Section 342(1). It must be submitted on or before the return filing due date via the e-filing portal. The form cannot be edited post-submission, and offline filing is not accepted.
⚠️ Action Item: NPOs must file Form 109 before the ITR deadline each year — missing this deadline renders accumulated income fully taxable in the year of receipt.
Form 108 (replacing Form 9A) allows NPOs to claim a timing relief under Section 341(7) where income has not been received within the tax year due to genuine reasons. Must be filed before the return due date under Section 263(1) and cannot be revised once submitted.
⚠️ Action Item: NPOs with income-receipt timing mismatches must file Form 108 before the ITR due date — failure eliminates the relief entirely.
29. Comprehensive Guide to Form No. 107 for NPO Registration and Approval under Sections 332 and 354
Form 107 is the departmental order format for regular NPO registration/approval, valid for 5 tax years (or 10 years for smaller NPOs with income ≤ ₹5 crore). The Principal Commissioner/Commissioner must pass the order within six months from the end of the quarter of application.
⚠️ Action Item: NPOs approaching the expiry of their 5-year registration must apply for renewal well before expiry to avoid loss of exempt status.
Form 106 replaces Form 10AC as the automated provisional registration order issued by CIT (CPC), assigning a 16-digit Unique Registration Number (URN) valid for up to three tax years or six months from commencement of activities, whichever is earlier. GPU trusts face a strict 20% receipts cap on commercial activities.
⚠️ Action Item: Provisionally registered NPOs must convert to regular registration before URN expiry via Form 105 — lapse of URN withdraws all exemption benefits ab initio.
Form 105 (replacing Form 10AB) is the consolidated digital gateway for NPOs to seek regular registration under Section 332(3) or approval under Section 354(2). Key features include a 10-year registration period for smaller NPOs (income ≤ ₹5 crore), a 7-day withdrawal window, and a pre-order correction facility.
⚠️ Action Item: NPOs transitioning from provisional to regular registration must file Form 105 meticulously — the Commissioner must receive it in time for the 6-month order window.
32. Streamlined Guide to Income Tax Form 104 for Provisional NGO Registration & Approval
Form 104 is the central online gateway for newly established NPOs and armed forces funds yet to commence activities, enabling provisional registration under Section 332(3) and approval under Section 354(2). Valid for three tax years or six months from commencement, whichever is earlier.
⚠️ Action Item: New NPOs must file Form 104 through the e-filing portal to unlock tax exemption benefits from day one — without it, all receipts are taxable.
33. Comprehensive Guide to Form 103: Navigating Demand Notices Under Section 289 of the New Tax Regime
Form 103 replaces old Form 7 as the formal demand notice under Section 289 and Rule 179. The standard compliance window is 30 days from service. The updated form includes digital payment instructions and references to the Joint Commissioner of Income Tax (Appeals) for redressal.
⚠️ Action Item: Assessees receiving Form 103 demand notices must respond within 30 days — by payment, appeal, or application for extension/instalment — to avoid coercive recovery action.
(See entry 16 above — included here for cross-reference completeness)
🟢 GST
In ABB India Limited Vs Joint Commissioner, the Karnataka HC held that solar inverters are integral components of solar power generating systems and rightly attract 5% GST under Entry 234 of Notification No. 1/2017-CT (Rate). The Court clarified that "intended use" supported by commercial documentation suffices — physical proof of end-use by the purchaser is not required. Departmental circulars cannot override statutory exemption notifications.
⚠️ Action Item: Renewable energy suppliers and their GST advisors should review product classifications and immediately contest demands raised on solar components taxed above 5%.
GSTAT upheld the anti-profiteering finding against Jyothi Theatre under Section 171 of CGST Act, 2017. Although gross ticket prices remained unchanged post GST rate cut, the simultaneous increase in base prices absorbed the rate reduction benefit — constituting profiteering of ₹19,86,640. State-level cinema ticket price regulations do not override the central anti-profiteering mandate. Maintenance charges form part of taxable value.
⚠️ Action Item: All cinema hall operators and hospitality businesses must audit their pricing post any GST rate reduction to ensure the benefit is passed through to consumers.
In Simla Gomti Pan Products Pvt. Ltd. Vs Commissioner of State Tax U.P. [SLP (C) No. 5266 of 2026], the Supreme Court intervened where a ₹6.70 crore pre-deposit requirement became inaccessible due to simultaneous bank account seizures. The case highlights the dangerous cascade where portal errors prevent document access, leading to massive ex-parte assessments and financially impossible appellate remedies.
⚠️ Action Item: Assessees facing simultaneous bank account freezes and pre-deposit requirements should immediately approach higher courts for constitutional relief — don't wait for appellate deadlines.
The AAR in In re Indovation Healthcare LLP ruled that O&M services provided to a PSU contractor (as sub-contractor) do not qualify as "pure services" exempt from GST, even if end-users receive free healthcare. Free services to end-users do not automatically exempt backend operational services. Privity of contract with the government is essential for specific exemptions.
⚠️ Action Item: PPP entities and sub-contractors in government healthcare/infrastructure must review their contractual chain to assess GST liability — exemptions apply only to direct government contracts.
The Maharashtra State Tax Department has granted M/s JSW Greentech Limited a conditional waiver from e-way bill generation for road testing of motor vehicles (no supply involved) under sub-rule (5) of Rule 138A of MGST Rules, 2017. Movements must be accompanied by a pre-authenticated delivery challan and trade plates. A monthly bond covering full vehicle value is mandatory.
⚠️ Action Item: (Note: The original permission was time-bound up to March 31, 2026 — affected parties must apply for renewal immediately if this process continues.)
🟠 Company Law / Corporate Law
CCI, in Mahesh N R Vs BESCOM, closed information under Section 26(2) of the Competition Act, 2002 after finding no prima facie case of bid rigging under Section 3. The key finding: the Government Order explicitly permitted procurement entities to modify Standard Tender Documents, completely undermining the foundational allegation. Further, no material evidence was produced against OP-2 and OP-3.
⚠️ Action Item: Informants filing competition complaints must ensure they possess concrete, party-specific evidence — sweeping allegations unsupported by material facts will not survive CCI scrutiny.
2. CCPA Mandates Strict Prohibition on Additional LPG and Fuel Surcharges by Eateries and Hotels
The CCPA's March 25, 2026 advisory bans all "LPG charges," "gas surcharges," and similar hidden operational fees in the hospitality industry under Section 2(47) of the Consumer Protection Act, 2019. All operational costs must be transparently incorporated into menu prices. Multiple consumer redressal avenues have been highlighted.
⚠️ Action Item: Hotel and restaurant operators must immediately revise physical and digital menus to remove all hidden surcharges and ensure final prices are displayed inclusive of all operational costs.
3. CCI rejects dominance abuse charge in Google Play Store developer account termination case
In M/s Zucol Solutions Pvt. Ltd. Vs Google India Pvt. Ltd., CCI rejected abuse of dominance allegations against Google despite its dominant position in the Android app store market. Google's application of Malware, Deceptive Behavior, and Relation Ban Policies was found standard and transparent, and the account was ultimately reinstated. The Informant's case was undermined by inconsistent statements and incomplete disclosures.
⚠️ Action Item: App developers must maintain complete and consistent disclosures in competition complaints — factual inconsistencies will fatally weaken even legitimate grievances.
An analytical piece examining how criminal enterprises have migrated from physical territorial control to sophisticated digital networks leveraging ransomware, dark web marketplaces, cryptocurrency laundering, and AI-driven fraud. The convergence of digital and physical criminal activity presents regulatory and enforcement challenges that transcend national boundaries.
⚠️ Action Item: Tax and legal professionals advising businesses should be alert to technology-enabled financial crime risks, particularly in cross-border transactions and cryptocurrency dealings.
🟣 SEBI
1. SEBI Mandates 'Verified' Badges on Google Play to Eradicate Counterfeit Stock Trading Applications
SEBI's PR No. 20/2026 (dated March 25, 2026) mandates a 'Verified' badge on Google Play for all legitimate stock trading applications. The CVV (Check, Validate, Verify) methodology provides investors with a toolkit to authenticate bank accounts, UPI handles, and mobile apps. This initiative will be scaled to other regulated intermediaries.
⚠️ Action Item: Investors must look for the 'Verified' badge before downloading any trading app; SEBI-registered intermediaries should initiate the Google Play verification process immediately.
SEBI's consultation paper proposes an IT Resilience Index (ITRI) for stock exchanges, clearing corporations, and depositories across nine weighted parameters including availability, security, integrity, governance, reliability, business continuity, modularity, scalability, and incident handling. Scoring is system-driven and non-discretionary to eliminate subjectivity.
⚠️ Action Item: MII compliance and IT teams should engage with the Industry Standards Forum consultation process and begin self-assessment against the nine ITRI parameters to identify gaps.
3. SEBI expands audit eligibility: Cost Accountants can now conduct annual audits of Research Analysts
SEBI's circular dated March 25, 2026 amends the Master Circular for Research Analysts (February 6, 2026) to include ICMAI members as eligible auditors under Regulation 25(3) of SEBI (Research Analysts) Regulations, 2014. Audit must be completed within six months from financial year-end; reports submitted to RAASB/SEBI by October 31.
⚠️ Action Item: Research Analysts can now engage ICMAI members for compliance audits — adverse findings and corrective actions must be published on the RA's website.
SEBI's March 25, 2026 circular extends ICMAI audit authority to Investment Adviser annual compliance audits as well, on par with ICAI and ICSI members. The annual certificate confirming client fund segregation under Regulation 22 must also now be certified by ICAI, ICSI, or ICMAI professionals.
⚠️ Action Item: Investment Advisers must engage eligible auditors (ICAI/ICSI/ICMAI) and ensure both the compliance audit report and the fund segregation certificate are submitted by October 31.
SEBI's addendum dated March 25, 2026 defers the applicability of intraday borrowing guidelines under clause 5.9.1 of the SEBI Master Circular for Mutual Funds to July 15, 2026. Only this specific provision is deferred; all other circular provisions remain in force.
⚠️ Action Item: AMCs and trustee companies must use the extended window productively — complete system readiness, process alignment, and compliance infrastructure by July 15, 2026 without fail.
🔴 Insolvency
Parliamentary disclosures on Rajya Sabha Unstarred Question No. 3581 confirm that NCLT and NCLAT can direct Resolution Professionals to execute sale deeds for fully paid and possessed properties even during CIRP. Homebuyers who have fulfilled all financial obligations cannot be denied legal title merely because the corporate debtor has defaulted on dues to local authorities.
⚠️ Action Item: Homebuyers with fully paid, possessed flats in CIRP projects should file applications before NCLT/NCLAT seeking registration directions — the legal principle is now firmly established.
📅 Key Deadlines & Action Items
| Deadline | Compliance Obligation | Reference |
|---|---|---|
| April 30 | Issue Form 123 (Perquisite Statement) to eligible employees | Section 392(5)(a), IT Act 2025 |
| May 31 | File Form 113 (Donation Statement) by NPOs for previous tax year | Section 354(1)(e), IT Act 2025 |
| Before ITR due date | File Form 108 (timing relief for NPO income), Form 109 (income accumulation), Form 110 (change of accumulated purpose) | Section 341(7), 342(1), 342(5) |
| Before each transaction | Submit Form 127 (TCS exemption declaration) to seller | Section 394(2), Rule 212 |
| 7th of following month | Sellers to upload Form 127 declarations on e-filing portal | Rule 212, IT Rules 2026 |
| Within 30 days of ITAT notice | File Form 116 (cross-objections before ITAT) | Section 362, IT Act 2025 |
| Within 2 months | File Form 115 (ITAT appeal) from end of month of impugned order | Section 362, IT Act 2025 |
| October 31 | Submit SEBI compliance audit reports (RA & IA) to RAASB/SEBI | SEBI Circulars, March 25, 2026 |
| July 15, 2026 | AMC compliance with intraday borrowing guidelines (deferred) | SEBI Master Circular, Clause 5.9.1 |
| AY 2024-25 onwards | Claim Section 10(46A) exemptions — Haryana, Patiala, Visakhapatnam SEZ | Notifications 29, 30, 32/2026 |
| AY 2025-26 onwards | Claim Section 10(46A) exemption — Varanasi Development Authority | Notification 31/2026 |
| Immediate | Restaurants/hotels: revise menus to remove LPG/fuel surcharges | CCPA Advisory, March 25, 2026 |
| Was March 31, 2026 | Maharashtra e-way bill waiver for JSW Greentech road testing — renewal required | Sub-rule (5), Rule 138A, MGST Rules |
💡 Professional Takeaways
1. The New Income Tax Act 2025 Form Ecosystem is Now Live — Urgency Required
The sheer volume of new forms released under the Income-tax Act, 2025 — from Form 103 (demand notices) to Form 130 (TDS certificates), spanning NPO registration (Forms 104–112), TDS exemptions (Forms 121–128), appeals (Forms 115–118), and advance rulings (Form 120) — signals that the new legislative regime is fully operational. Tax practitioners who continue using legacy forms risk non-compliance, invalid filings, and missed statutory deadlines. An immediate, firm-wide audit of all standard operating procedures referencing old form numbers is non-negotiable.
2. Procedural Technicalities Are Losing Ground — Substance is the New Battlefront
The retroactive insertion of Section 292BC via Finance Bill 2026 amendments, CCI's closure of the BESCOM bid-rigging case for lack of substantive evidence, and Google's successful defence in the Play Store developer dispute all share a common thread: regulators and courts are decisively moving away from procedural technicalities toward substantive merit. Tax professionals must recalibrate their advisory and litigation strategy — arguments based solely on form errors, DIN defects, or procedural lapses will carry significantly less weight going forward. Build your case on merits, backed by documented evidence.
3. The Compliance Horizon is Widening for Cost Accountants and Converging for the Rest
SEBI's twin circulars granting ICMAI members audit authority over both Research Analysts and Investment Advisers represent a significant expansion of the Cost Accountant's professional mandate in securities law. Simultaneously, SEBI's CVV investor protection framework, CCPA's hospitality billing directives, and the anti-profiteering ruling against Jyothi Theatre collectively signal that consumer-facing transparency is the dominant regulatory theme of 2026. Advisors across disciplines must help their clients not just comply technically, but demonstrate transparency visibly — in pricing, disclosures, and digital interfaces.
© 2026 TaxCorp India | All articles sourced from TaxCorp India | This digest is for informational purposes only and does not constitute legal or tax advice. Consult a qualified professional for specific guidance.