Insights
Taxation and fiscal
Notes on Indian law filed under Taxation and fiscal. The practice itself is described on its own page.
Reselling foreign software in India: payments for resale are not royalty, but goods and services tax and exclusivity terms still bind
In Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax, decided on 2 March 2021, the Supreme Court held that a payment by an Indian distributor or end user to a foreign supplier for the resale or use of software under a distribution agreement or an end-user licence agreement is not royalty and gives rise to no income taxable in India, so no duty to deduct tax arose under section 195 of the Income-tax Act, 1961.
Appealing a goods and services tax demand takes 10 per cent of the central tax in dispute at each of two appeals, capped at INR 20 crore at each
A goods and services tax (GST) demand under the Central Goods and Services Tax Act, 2017 (CGST Act) is appealed first to the Appellate Authority under section 107 within three months, which one further month can extend, on payment of the admitted amount and 10 per cent of the remaining tax in dispute, capped at INR 20 crore of central tax.
An NRI or OCI cardholder selling a flat in India and sending the money abroad: the rules from 1 April 2026
A non-resident Indian (NRI) or an overseas citizen of India (OCI) cardholder may sell immovable property in India to a person resident in India, and the Reserve Bank of India's directions under the Foreign Exchange Management Act, 1999 (FEMA) let an authorised dealer bank send the money abroad, but each exit route has its own cap and conditions.
When an Indian citizen living abroad is resident in India for tax: the day tests, the INR 15 lakh line and not ordinarily resident
Under section 6 of the Income-tax Act, 2025, in force from 1 April 2026, an Indian citizen living abroad is resident in India for a tax year on 182 days or more in India, or on 60 days plus 365 days in the four years before, but a citizen on a visit from abroad is outside the 60-day test unless total income other than income from foreign sources exceeds INR 15 lakh, when the test runs at 120 days.
Customs now has two years to finalise a provisional assessment, and the oldest files run out on 29 March 2027
The Finance Act, 2025 inserted sub-sections (1B) and (1C) into section 18 of the Customs Act, 1962 from 29 March 2025.
Online money games are prohibited in India from 1 May 2026, and the tax on the years before that survives the prohibition
The Promotion and Regulation of Online Gaming Act, 2025 came into force on 1 May 2026, and it does not regulate online money games.
Investing into India through Mauritius or Singapore in October 2026: the treaty tests, the GAAR and Tiger Global
Under the India-Mauritius and India-Singapore double taxation avoidance agreements (DTAAs) as amended in 2016, gains on Indian shares acquired on or after 1 April 2017 may be taxed in India, while shares acquired before that date stay taxable only in the investor's State of residence, subject in Singapore to a limitation of benefits clause.
Hotel rooms up to INR 7,500 a night carry 5 per cent goods and services tax from 22 September 2025, without input tax credit
From 22 September 2025, a hotel room with a value of supply of up to INR 7,500 per unit per day is taxed under goods and services tax (GST) at 5 per cent, on condition that the hotel takes no input tax credit on the goods and services used to supply it, and the hotel cannot choose a higher rate instead.
By sector
By practice
By author