Tax
Breaking: Budget 2026–27 Keeps Income Tax Slabs And Standard Deduction Unchanged
Finance Minister Nirmala Sitharaman on Sunday presented her ninth Union Budget since taking charge in 2019, keeping income tax slabs under the new tax regime unchanged from changes made last year The income tax slabs under the new tax regime remain as follows: Income up to ₹4 lakh – Nil ₹4 lakh to ₹8 lakh – 5% ₹8 lakh to ₹12 lakh – 10% ₹12 lakh to ₹16 lakh – 15% ₹16 lakh to ₹20 lakh – 20% ₹20 lakh to ₹24 lakh – 25% Above ₹24 lakh – 30%, plus applicable cess. The standard deduction...
Budget 2026-27 Proposes Penalty Relief, Decriminalisation And Litigation Reduction In Income Tax Law
The Union Budget 2026–27 on Sunday proposed wide-ranging changes to the income tax penalty and prosecution framework, including immunity schemes, decriminalisation of certain offences and procedural measures to reduce litigation.Presenting her direct tax proposals, Finance Minister Nirmala Sitharaman said, “Multiplicity of proceedings are a hindrance to the ease of doing business.” She proposed to “integrate assessment and penalty proceedings by way of a common order for both.” The Finance...
Budget 2026-27 Proposes Sharp Cuts In TCS On Overseas Travel, Education And Medical Remittances
The Union Budget 2026–27 on Sunday also proposed significant reductions in tax collection at source (TCS) rates on overseas travel and certain foreign remittances. Presenting the direct tax proposals, Finance Minister Nirmala Sitharaman announced a cut in TCS on foreign tour packages. “I propose to reduce TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent, without any stipulation of amount,” she said. The Finance Minister also...
Breaking: Interest On Motor Accident Compensation To Be Tax-Free Under Budget Proposal
Interest received on compensation awarded by Motor Accident Claims Tribunals may soon be taken out of the income-tax net. While presenting the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a proposal to exempt such interest from tax and remove the requirement of tax deduction at source. “I propose that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any TDS on this account will be done away with,”...
Customs Duty On Vessels Fixed On Import Date, Not On Foreign To Coastal Run Conversion: Madras High Court
The Madras High Court recently held that customs duty on a vessel is fixed on the date of its import and cannot be reopened later merely because the vessel is converted from foreign-going to coastal run. The court said a later change in how the vessel is operated does not create a fresh tax liability. A bench of Justice Anita Sumanth and Justice Mummineni Sudheer Kumar said the date of import is the only point that matters for determining liability under the customs law. “The critical event in...
Supreme Court Slaps Rs 5 Lakh Costs On Union Govt For Stalling IRS Officer's ITAT Appointment
The Supreme Court on Friday allowed a petition filed by Captain Pramod Kumar Bajaj, a former Indian Revenue Service officer and ex-Army personnel, holding that he was subjected to sustained institutional bias, mala fide conduct and deliberate obstruction by departmental authorities in relation to his appointment as Member (Accountant) of the Income Tax Appellate Tribunal. It also imposed costs of Rs 5 lakh on the Union Government for rank procrastination and deliberate obstruction in his...
GST Not Payable On Transfer Of Leasehold Rights: Gujarat High Court Directs Refund
The Gujarat High Court, recently relying on its earlier ruling, reiterated that transferring or assigning leasehold rights in land is equivalent to the sale of land and therefore does not constitute a taxable 'supply' under the GST frameworkA Bench of Justice A. S. Supehia and Justice Pranav Trivedi was hearing a petition filed by Aquaeva Chemtech Private Limited, which had challenged the withholding of its GST refund relating to the transfer of leasehold rights in an industrial plot. The court...
Barreled Bitumen Cost Included In Excise Valuation: CESTAT Ahmedabad
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 22 January upheld the inclusion of the cost of barrels for bitumen sold from depots. It clarified that barrelled bitumen is different from bulk clearances from a refinery and therefore, the two cannot be treated the same.A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh was examining whether the cost of barrels used for packing bitumen by Nayara Energy...
DGFT Revises Bulk Drug Policy, PEN-G, Amoxycillin Subject To Minimum Import Price Till Jan 2027
In a Notification dated 29 January 2026, the Directorate General of Foreign Trade (DGFT) has revised the import policy for certain bulk drugs, including Penicillin G-Potassium (PEN-G) and its salts. According to the notification, specific antibiotics such as PEN-G, Amoxycillin and its salts, and 6-APA have been moved from the 'Free' category to the 'Restricted' category. Further, the notification prescribes a Minimum Import Price (MIP) for certain imports. It is the lowest price at which a...
Services For Private Railway Sidings Are Exempt From Tax: Karnataka High Court
The Karnataka High Court on 8 January held that services rendered for the construction of private railway sidings are eligible for service tax exemption. A Division Bench comprising Justice S.G. Pandit and Justice K.V. Aravind was hearing an appeal filed by the Commissioner of Central Tax, Bengaluru East Commissionerate, challenging an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Bench held: “There is no indication in the notification, nor any exception...
Supreme Court To Examine If PF, ESI Deposits Late Under Welfare Laws but Paid Before IT Return Are Deductible
The Supreme Court has recently said that it will examine a long-standing dispute under the Income Tax Act on whether employees' provident fund and ESI contributions, deposited late under labour welfare laws, can still be allowed as deductions if paid before the income tax return due date. A Bench of Justice J.B. Pardiwala and Justice Sandeep Mehta, while hearing a petition filed by Woodland (Aero Club) Private Limited, noted that High Courts across the country have taken conflicting views on...