Tax Law

A gift deed is a legal instrument through which one person voluntarily transfers ownership of property to another without consideration. Gift deeds are commonly used to transfer property to family members, trusts, or charitable organizations. Understanding the legal requirements for a valid gift, the distinction between movable and immovable property gifts, registration obligations, stamp duty, tax treatment under the Income Tax Act, and the conditions under which gifts may b

A significant procedural development in Goods and Services Tax (GST) law has emerged from the Patna High Court, which has clarified the remedies available to taxpayers whose GST registration has been cancelled without prior notice. The Court held that affected taxpayers can challenge an ex-parte cancellation before the newly operational GST Appellate Tribunal under Section 112 of the Central Goods and Services Tax Act. This judgment is particularly important now that GST Appe

Joint Development Agreements (JDAs) have become one of India's most prevalent real estate development structures, enabling landowners to monetize their property while developers gain access to land without upfront capital expenditure. In a JDA, the landowner contributes the land, the developer provides construction expertise and financing, and the parties share project proceeds according to an agreed formula. However, JDAs operate at the intersection of multiple legal regimes

On April 10, 2026, the Delhi High Court delivered an important decision clarifying the taxation of share buyback transactions. In PCIT v. Globe Capital Market (ITA 364/2024), the Court held that a share buyback by a company does not constitute a 'receipt of property' under the Income Tax Act that can be taxed separately. This ruling provides much-needed clarity for corporate entities engaged in buyback programs and has significant implications for how tax authorities assess s

From 1 April 2026, GST e-invoicing becomes mandatory for all businesses whose aggregate annual turnover (AATO) under GST exceeds Rs. 5 crore in the financial year 2025-26. E-invoicing means generating and uploading invoices in a structured digital format on the IRP (Invoice Registration Portal) rather than creating invoices manually or using traditional software. This is not optional. Compliance is compulsory. Failure to e-invoice when mandatory results in loss of Input Tax C

On April 1, 2026, the Income Tax Act, 1961, was replaced by the Income Tax Act, 2025. Alongside this legislative changeover, the TDS framework underwent significant restructuring. Professional fees paid to lawyers, chartered accountants, doctors, and architects now face a uniform 10 percent TDS rate, a substantial reduction from historical rates. Technical and managerial services face a 2 percent rate. These changes require immediate vendor master updates in every company's E

Understanding how capital gains tax applies to your investments and property sales is essential for tax planning. In 2026, India's capital gains tax regime has stabilized with specific rules for long-term gains, indexation relief, and the Cost Inflation Index (CII). Knowing when you pay 12.5%, when you can claim indexation, and how the CII affects your tax bill will help you optimize your investment strategies. LTCG Tax Rates and Holding Periods Long-term capital gains (LTC

From April 1, 2026, e-invoicing under GST becomes mandatory for a broad class of businesses. The compliance deadline is fast approaching, and businesses failing to prepare face operational disruption and penalties. Understanding the scope, deadlines, and exemptions is essential. What Is GST e-Invoicing GST e-invoicing is the electronic generation, signing, and reporting of invoices through the Invoice Registration Portal (IRP) operated by the GST network. Instead of manuall

On April 1, 2026, India's income tax system undergoes its largest legislative overhaul in decades. After 65 years, the Income Tax Act 1961 is being repealed and replaced by the new Income Tax Act 2025. For individuals, businesses, and tax professionals, understanding these changes is critical to ensure compliance. Why the Change Happened The Income Tax Act 1961, with its 819 sections and 47 chapters, had become outdated, repetitive, and difficult to navigate. Over six decad

The Income Tax Act, 2025 marks the most significant overhaul of India's income tax system since 1961. Effective April 1, 2026, this new legislation replaces the Income Tax Act, 1961, reorganizing 65 years of accumulated provisions into 23 streamlined chapters. While the core tax principles and rates remain largely unchanged, the structural transformation reshapes how businesses, employees, and individual taxpayers interact with India's tax system. This guide explains the key

India's GST e-invoicing requirement becomes mandatory from April 1, 2026 for businesses with aggregate annual turnover exceeding Rs 5 crore. The e-invoice system creates an automated, real-time link between the Goods and Services Tax Network and billing software, reducing paperwork and creating an audit trail. Non-compliance can result in denial of input tax credit and penalties. Who Must Implement E-Invoicing E-invoicing applies to GST-registered persons with aggregate annu

Eight years after the introduction of the Goods and Services Tax in India, the GST Appellate Tribunal has finally commenced operations. The Principal Bench and several State Benches, including Delhi and Cuttack, became functional for hearing cases on February 16, 2026, with the Chennai Bench beginning operations from April 1, 2026. The operationalisation of the GSTAT marks a critical milestone in India's indirect tax architecture, filling a long-standing gap in the appellate

From April 1, 2026, obtaining Input Service Distributor (ISD) registration under the GST framework has become mandatory for businesses that receive common input services at a centralised location and distribute the related input tax credit (ITC) to their branches or units registered in different states. The change, introduced through the Finance Act 2024 amendments to Section 20 of the CGST Act and notified for effect from April 2026, replaces the earlier optional ISD mechani

The Union Budget 2026 has proposed extending the validity of customs advance rulings from the current three-year period to five years. The change, proposed through an amendment to the Customs Act, 1962, is aimed at bringing greater predictability to long-term business planning in international trade. Advance rulings allow importers and exporters to obtain binding determinations on classification, valuation, and duty applicability of goods before the actual import or export ta

The Income-tax Rules, 2026, notified by the Central Board of Direct Taxes on March 20, 2026, have expanded the list of cities eligible for the higher 50 percent House Rent Allowance exemption from four to eight. Effective April 1, 2026, salaried employees in Bengaluru, Pune, Hyderabad, and Ahmedabad now qualify for the same 50 percent HRA deduction that was previously available only to employees in Delhi, Mumbai, Chennai, and Kolkata. This change recognises the rapid urbanisa

India's direct tax landscape underwent its most significant transformation in over six decades on April 1, 2026, when the Income-tax Act, 2025 officially replaced the Income-tax Act, 1961. The new legislation consolidates and simplifies the direct tax framework, reducing the total number of sections from over 800 to 536 across 23 chapters. The Central Board of Direct Taxes notified the corresponding Income-tax Rules, 2026 on March 20, 2026, along with simplified forms to oper

A recurring question in commercial arbitration in India is whether, and to what extent, Goods and Services Tax (GST) applies to amounts awarded by an arbitral tribunal. The issue is not straightforward because arbitration awards can comprise multiple components: additional consideration for work performed, price escalation, interest, liquidated damages, compensation for breach, and reimbursement of costs. The GST treatment of each component depends on whether it constitutes c

Classifying food and beverage products correctly under the Goods and Services Tax regime is one of the most commercially significant compliance challenges for Indian manufacturers and importers. The GST rate schedule categorises food products across multiple headings of the Customs Tariff Act, 1975, as adopted by GST law, with rates ranging from nil to 28 percent depending on the nature and processing level of the product. Small differences in classification, whether a produc

India does not yet have a standalone cryptocurrency legislation, but virtual digital assets are now subject to a multi-layered regulatory regime spanning the Income-tax Act, the Prevention of Money Laundering Act, and an evolving Securities and Exchange Board of India framework. Understanding these overlapping obligations is essential for exchanges, brokers, and individual investors who hold or trade in cryptocurrencies and other digital tokens. Taxation of Virtual Digital A

On 20 March 2026, the Central Board of Direct Taxes notified the Income-tax Rules, 2026 vide Notification No. G.S.R. 198(E), issued under Section 533 of the Income-tax Act, 2025. Both the Act and the Rules come into force on 1 April 2026, consolidating and replacing the old Income-tax Act, 1961 and the Income-tax Rules, 1962. With less than two weeks remaining before the changeover, taxpayers, businesses, and practitioners need to understand what the new procedural framework