India: Tax

The Chennai Tribunal in the case of Vestas Wind Technology India Pvt. Ltd. v. ITO* has held that disallowance u/s 94B of the Incometax Act, 1961 (“the Act”) cannot be sustained since it violates the non-discrimination clause contained in Article 24(4) of the India– Denmark Double Taxation Avoidance Agreement (“DTAA”).

India’s General Anti-Avoidance Rule (“GAAR”) framework has long rested on a critical assurance to investors: investments made prior to 1 April 2017 would remain outside the scope of GAAR scrutiny. For nearly a decade, this grandfathering protection was widely understood to extend to gains realised on the eventual transfer of such investments, irrespective of when the exit occurred.

The Supreme Court's ruling in AAR v. Tiger Global examines the legal weight of Tax Residency Certificates, treaty grandfathering protections, and the role of anti-avoidance principles in scrutinizing DTAA claims.

The due date for filing appeals before the GST Appellate Tribunal has been extended till 31.07.2026, in respect of all orders communicated before 01.05.2026.

インドの医療機器市場への参入を検討する日本企業向けに、規制承認、輸入手続き、税制、事業形態の選択、製造インセンティブなど、市場参

In the case of Sterling Holiday Resorts Limited1, while examining the conditions for a tax-neutral demerger under the Income-tax Act, 1961 (IT Act), the Income-Tax Appellate Tribunal (Mumbai Bench) (ITAT) has, inter alia, held that where the company receiving the demerged undertaking does not itself issue shares to the shareholders of the demerged company, the transaction fails to satisfy the definition of "demerger" under Section 2(19AA) of the IT Act, even if shares are issued by its 100% holding company.

Most businesses running entities across the UAE, Singapore and India assume their compliance position is solid because each entity files on time in its own jurisdiction. However, that assumption is rarely tested until an audit exposes the gaps.

Cross-border Employee Stock Option Plans (ESOPs) have become an increasingly important component of global compensation strategies. As multinational corporations, Global Capability Centres (GCCs), private equity-backed businesses and internationally expanding startups continue to grow their operations in India, employee participation in foreign equity incentive plans has become commonplace.

Multinational enterprises across technology, financial services, manufacturing, and healthcare sectors continue to expand their GCC presence in India, supported by favourable policy initiatives. The Union Budget 2025–26 launched a national framework to expand GCCs into Tier-II cities, driving broader geographic reach and deeper capability integration.

The Indian government has introduced sweeping tax exemptions on interest and capital gains from Government Securities for Foreign Institutional Investors and the Bank for International Settlements, effective retrospectively from April 2026. As the rupee plummets past the 97-mark against the US dollar and foreign portfolio investments hemorrhage approximately INR 2.5 lakh crore, these reforms aim to stabilize currency pressures and restore investor confidence in India's debt markets.

The Supreme Court's recent order in Tej Pratap Singh has reignited a fundamental debate about statutory authority in India's faceless assessment regime. When Parliament retrospectively inserted Section 147A to clarify which officer holds jurisdiction over reassessment notices, it transformed a procedural efficiency measure into a constitutional question about the limits of legislative intervention and the identity of the officer authorized by law to impose tax liabilities.

For many finance teams, the warning signs are familiar. The month-end close often stretches beyond ten days. Different versions of the same profit and loss statement get shared over email, and no one has a clear idea which is the latest file. A single minor change to a formula in a spreadsheet can disrupt the entire consolidation. By the time someone notices the mistake, it might be too late.