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In a significant policy development, CBDT has issued a notification, amending Rule 128 of the Income-tax Rules, 2026 pertaining to applicability of GAAR, with effect from 1 April 2026.Rule 128(1)(d) grandfathered pre-April 2017 investments from GAAR. However, Rule 128(2) provided…
Background The Corporate Laws (Amendment) Bill, 2026[1], introduced by Finance Minister Nirmala Sitharaman on 18th March 2026, proposes several significant changes to the M&A and corporate restructuring framework under the Companies Act, 2013 and the LLP Act, 2008. Key Highlights:…
Background of the Case In a recent ruling, the Bombay High Court (“the Court”) decided on a writ petition filed by Schaeffler India Ltd1 (“the Company”) challenging the validity of stamp duty levied on an NCLT sanction order approving a…
Background of the case In a significant ruling, the Mumbai Income Tax Appellate Tribunal ('ITAT'), in the case of Fairbridge Capital (Mauritius) Limited1, has delivered an important judgment clarifying the scope and applicability of Section 56(2)(x) of the Income-tax Act,…
The Reserve Bank of India (RBI) has taken a significant step towards risk-based regulation with the release of the Draft- Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026 on 10 February…
Background of the case In a recent ruling, the Supreme Court (“The Hon’ble Court”) in the case of M/s Jindal Equipment Consultancy Services Ltd1 (“the assessee” or “the Company”) adjudicated a batch of appeals concerning the taxability of shares received…
The Securities and Exchange Board of India (SEBI) has issued an updated Master Circular on compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), consolidating and rationalizing applicable circulars and regulatory provisions as in force up…
The Ministry of Corporate Affairs (MCA) has officially notified the Companies (Specification of definition details) Amendment Rules, 2025 on 1 December 2025, revising the financial thresholds for classification as a “small company.” As per the notification, for the purposes of…
Background of the case In a recent ruling, the Supreme Court (‘SC’), in the case of Jupiter Capital Pvt Ltd1 (‘Company’ or ‘assessee’), examined the tax consequences of capital reduction and its treatment under the provisions of the Income Tax…
Overview The Union Budget for FY 2026-27, presented by the Hon’ble Finance Minister, Ms. Nirmala Sitharaman, in Parliament on 1 February 2026, was positioned as a continuation of the Government’s emphasis on economic stability, fiscal discipline, and long-term growth. Anchored…
Background of the case In a landmark judgment, the Supreme Court of India, in the case of Tiger Global International II Holdings & Ors.1 (2026 INSC 60), has settled several long-standing controversies relating to taxation of indirect transfers, treaty shopping,…
In an interesting development in the case of Hinduja Global Solutions Limited (“HGSL”), the Bombay High Court, by its interim order dated 19 December 2025, admitted the writ petition filed by HGSL and granted interim relief. Background The GAAR panel…
Background of the case In August 2021, Hinduja Global Solutions Ltd (“HGSL” or “the Company”) announced that it has entered into definitive agreements to divest its Healthcare Services business (“HS business”) to funds affiliated with Baring Private Equity Asia (BPEA),…
Background On 4th September 2025, the Ministry of Corporate Affairs (MCA) notified1 the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025. These rules amend Rule 25 of the Companies (CAA) Rules, 2016, which deals with fast-track mergers and arrangements under…
The Reserve Bank of India has notified the Foreign Exchange Management (Export of Goods & Services) (Second Amendment) Regulations, 2025 vide Notification F. No. FEMA 23(R)/(7)/2025-RB dated 13 November 2025, introducing significant relief measures for Indian exporters.1. Extended Export Realisation PeriodEarlier Provision (Old Rule): Pursuant to…
Background In a recent ruling, the Telangana High Court (“the Court”) in the case of Spectra Shares and Scrips Limited1 (“the assessee” or “the Company”) decided on the tax treatment of the transfer of an entire bottling and marketing undertaking…
Background In a recent ruling, the Delhi High Court (“the Court”), in the case of PMV Maltings (P) Ltd1 (“the Company” or “the Assessee”), examined the interpretation of Fifth Proviso to Section 32(1) of the Income-tax Act, 1961 (“the Act”),…
Background In a recent ruling, the Delhi Income-Tax Appellate Tribunal (“The Tribunal”) adjudicated the case of Rajesh Kumar Sharma1 (“the assessee”) arising from the order passed by the CIT(A)/NFAC, Delhi dated 03.08.2023 for Assessment Year 2016–17. The assessment was framed…
Recently, the Delhi Revenue Department has issued a clarification stating that the applicable stamp duty rate on the issuance of shares whether in physical or dematerialized form is 0.1%, superseding the previously considered rate of 0.005%.Accordingly, all companies having their…
Background In a recent ruling, a petition was filed by Modern Hi-Rise Private Limited1 (“the Company”) before the National Company Law Tribunal (“NCLT” or “The Tribunal”), Kolkata Bench, seeking approval for Reduction of Share Capital under Section 66 of the…
Background In a recent ruling, the Mumbai Income-tax Appellate Tribunal (“the Tribunal”), in the case of Atyant Capital India Fund-I1 (“the Company” or “the Assessee”), examined the tax treatment of long-term capital gains and losses arising from investments by a…
In Press Release No. 2025-2026/1218, accompanying the Statement on Developmental and Regulatory Policies dated October 1, 2025, the Reserve Bank of India (RBI) has announced a pivotal shift impacting India’s mergers and acquisitions (M&A) landscape.Acquisition Financing FrameworkUnder the proposed review…
Background In a recent ruling, the Chennai Income Tax Appellate Tribunal (“ITAT” or “Tribunal”), in the matter of M/s. Aathmika Holdings Pvt. Ltd. v. DCIT1 (“Assessee” or “Company”), examined the scope of Section 56(2)(x) of the Income-tax Act, 1961 (“IT…
Background In a recent ruling, the Delhi High Court (“The Court”), in the case of Equity Intelligence AIF Trust1, examined the taxability of Category III AIFs (Alternative Investment Funds) under Section 164 of the Income Tax Act, 1961 (“IT Act”).…
Background In a recent ruling, the Mumbai Income-tax Appellate Tribunal (“the Tribunal” or “the ITAT”), in the case of ISC Specialty Chemicals LLP1, examined the tax implications of converting a private limited company into a Limited Liability Partnership (LLP) under…
A Typical Demerger Structure In a typical demerger structure, a distinct division or undertaking say, Business B is carved out from an Existing Company (Demerged Company) and transferred as a going concern to a newly formed or existing Resulting Company…
In a recent ruling, the Mumbai Income Tax Appellate Tribunal (ITAT) in the case of iShares ESG Aware MSCI ETF, held that short-term capital loss (STCL) on securities where Securities Transaction Tax (STT) is paid can be set off against…
Background In a recent ITAT ruling, the Ahmedabad Bench of the ITAT, in the case of Reckitt Benckiser Healthcare India Private Limited (‘Company’ or ‘assessee’), addressed the issue of tax neutrality of a demerger under Section 2(19AA) of the Income-tax…
Background The trend of ‘reverse flipping’ has been picking up in India for many startups in recent times. Some of the reasons for such trend are the resilience and growth of the country's IPO market which provides investors with a…
Background of the case In a recent ruling, the Bangalore Income-tax Appellate Tribunal (‘the Tribunal’), in the case of Buckeye Trust1, examined the taxation of a discretionary trust where the trustee has discretion to add beneficiaries other than relatives of…
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