MM TAX CLUB

In an important step towards participative law-making, the Central Board of Direct Taxes (CBDT) has invited inputs and suggestions from stakeholders on the proposed Income-tax Rules and Forms framed under the Income-tax Act, 2025.

The Income-tax Act, 2025 received the assent of the President in August 2025 and is scheduled to come into force from 1st April 2026. Before finalising the supporting Rules and Forms, CBDT has opened the door for public consultation to ensure clarity, simplicity, and reduced compliance burden.

What is this consultation about?

As part of a wider consultative process, CBDT has uploaded the proposed Income-tax Rules and related Forms on its official website. These drafts have been prepared after broad-based discussions and are aligned with the provisions of the new Income-tax Act, 2025.

Now, taxpayers, professionals, and other stakeholders are encouraged to review these drafts and share their suggestions before the Rules and Forms are formally notified.

Four key areas where inputs are invited

CBDT is specifically seeking suggestions under the following four categories:

1. Simplification of Language
   To make tax provisions easier to understand for taxpayers and professionals.

2. Reduction of Litigation
   Suggestions that can help avoid ambiguity and future disputes.

3. Reduction of Compliance Burden
   Ideas to simplify procedures, forms, and reporting requirements.

4. Identification of Redundant or Obsolete Rules & Forms
   Removal of provisions that are no longer relevant or useful.

How to submit suggestions?

To make the process smooth and accessible, CBDT has launched a dedicated utility on the Income-tax e-filing portal.

• The facility is live from 04.02.2026

• Accessible to all stakeholders

• Requires basic details such as name and mobile number

• Submission is completed through OTP-based validation

While submitting suggestions, stakeholders must clearly mention:

• The relevant rule, sub-rule, or Form number

• The specific category (out of the four mentioned above) to which the suggestion relates

Why this matters

This initiative reflects CBDT’s intent to build a simpler, more transparent, and taxpayer-friendly income-tax framework. Inputs from practitioners and taxpayers can play a crucial role in shaping practical and effective Rules before they become law.

For tax professionals, this is also an opportunity to flag real-world issues faced during compliance and reporting.

The GST Portal has rolled out an important update to simplify compliance and improve user experience. As per the latest change, the “Additional Notices & Orders” tab has now been merged with the existing “Notices and Orders” tab on the GST Portal.

What Has Changed?

Earlier, taxpayers had to check two separate tabs—

• Notices and Orders

• Additional Notices & Orders

This often caused confusion and increased the risk of missing important communications from the GST department.

With the new update:

• All GST notices, orders, and related communications will now be available under a single tab – “Notices and Orders”.

• The separate “Additional Notices & Orders” tab has been removed.

Why This Update Matters

This change is aimed at making GST compliance more streamlined and transparent. Here’s how it helps taxpayers:

• ✅ Single access point for all notices and orders

• ✅ Reduced chances of missing critical GST communications

• ✅ Better tracking and faster response to GST notices

• ✅ User-friendly navigation on the GST Portal

What Taxpayers Should Do Now

• Regularly check the “Notices and Orders” tab on the GST Portal.

• Do not rely on the old “Additional Notices & Orders” section, as it no longer exists.

• Ensure timely action and replies to any notice or order to avoid penalties or further proceedings.

Final Thoughts

This GST Portal update is a positive step toward simplifying digital compliance for taxpayers, professionals, and businesses. Staying updated with such changes is crucial to avoid unnecessary notices, interest, or penalties.

 Tip: Make it a habit to review the “Notices and Orders” tab frequently, especially during return filing and assessment periods

In a major step towards protecting consumers in the digital payments ecosystem, the Reserve Bank of India (RBI) is planning a compensation framework for victims of small digital frauds. This move is expected to bring much-needed relief to individuals who fall prey to online scams and unauthorized transactions.

Compensation for Digital Fraud Victims

As per the proposed plan:

• Victims of small digital frauds may receive compensation of up to ₹25,000 or 85% of the loss, whichever is lower.

• This compensation will be provided as a one-time benefit.

• For first-time fraud victims, RBI plans to ensure 70% of the loss is compensated, while the remaining burden will be shared between banks and customers.

This initiative aims to build trust in digital transactions and reduce the financial stress faced by ordinary users after fraud incidents.

Tighter Rules on Mis-selling and Loan Recovery

Along with fraud compensation, RBI is also taking steps to strengthen consumer protection:

• Stricter norms on mis-selling of financial products.

• Improved guidelines on loan recovery practices, to prevent harassment and unfair treatment of borrowers.

• RBI will soon release draft guidelines for public consultation, allowing stakeholders and consumers to share feedback before final implementation.

Why This Matters

With the rapid growth of digital payments, fraud cases have also increased. RBI’s proposed measures signal a strong intent to:

• Enhance customer confidence in digital banking.

• Ensure accountability of banks and financial institutions.

• Promote fair and transparent practices in lending and recovery.

   What Should Customers Do?

• Always report digital frauds immediately to your bank and on the cybercrime portal.

• Stay alert against phishing, fake calls, and suspicious links.

• This proposal marks a positive shift towards a safer and more customer-friendly digital financial system in India.

• Follow RBI updates closely once the draft guidelines are released.

The United States and India have taken a major step forward in strengthening their economic partnership by announcing a framework for an Interim Trade Agreement. This framework lays the foundation for a broader and more comprehensive U.S.–India Bilateral Trade Agreement (BTA), signaling renewed commitment to reciprocal, balanced, and mutually beneficial trade between the two democracies. 

The announcement reaffirms the intent expressed by U.S. President Donald J. Trump and Indian Prime Minister Narendra Modi on February 13, 2025, when formal BTA negotiations were launched. The Interim Agreement is being positioned as a historic milestone that will enhance market access, improve supply chain resilience, and deepen strategic economic cooperation.

What Does the Interim Agreement Mean?

At its core, the Interim Agreement focuses on reciprocity, market access, and economic security alignment. Both countries have agreed on tangible steps that deliver real trade outcomes rather than only long-term promises.

???? Key Commitments by India

India has agreed to eliminate or reduce tariffs on:

• All U.S. industrial goods

• A wide range of U.S. food and agricultural products, including:

  One of the most notable announcements is India’s intention to purchase $500 billion worth of U.S. goods over the next five years, including:

  • Dried Distillers’ Grains (DDGs)

  • Red sorghum (animal feed)

  • Tree nuts

  • Fresh and processed fruits

  • Soybean oil

  • Wine and spirits

  • India has also committed to addressing long-standing non-tariff barriers, especially in:

  • Medical devices

  • Information and Communication Technology (ICT) products

  • Food and agricultural imports

  • Additionally, India will review and align standards and testing requirements for U.S. exports in identified sectors within six months of the agreement’s entry into force.

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     Key Commitments by the United States

    The U.S. will apply a reciprocal tariff rate of 18% on certain Indian-origin goods, including:

  • Textiles and apparel

  • Leather and footwear

  • Plastics and rubber

  • Organic chemicals

  • Home décor and artisanal products

  • Certain machinery

    However, subject to the successful conclusion of the Interim Agreement, the U.S. has agreed to remove reciprocal tariffs on several critical Indian exports, such as:

  • Generic pharmaceuticals

  • Gems and diamonds

  • Aircraft parts

  • India will receive preferential tariff-rate quotas for automotive parts, and negotiated outcomes in pharmaceuticals, subject to findings under the U.S. Section 232 investigation.

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     Strengthening Supply Chains & Economic Security

    Both countries have agreed to:

  • Establish rules of origin ensuring that benefits flow primarily to the U.S. and India

  • Cooperate on addressing non-market policies of third countries

  • Enhance coordination on:

    • Export controls

    • Investment screening

    • Supply chain resilience

  • This alignment reflects a shared strategic interest in building secure and diversified global supply chains.

    Digital Trade & Technology Cooperation

    The Interim Agreement also sets the stage for robust digital trade rules under the future BTA. Both sides have committed to:

  • Address discriminatory or burdensome digital trade practices

  • Promote fair, transparent, and mutually beneficial digital trade frameworks

  • In a major forward-looking move, the two countries plan to significantly expand trade in technology products, including:

  • Graphics Processing Units (GPUs)

  • Data center infrastructure

  • Advanced technology components

     India’s $500 Billion Purchase Commitment

    The Road Ahead

    The Interim Agreement is not the end goal but a stepping stone toward a full-fledged Bilateral Trade Agreement. Both countries have agreed to promptly implement the framework and continue negotiations to:

  • Expand market access further

  • Lower tariffs on Indian goods

  • As negotiations progress, the U.S.–India trade relationship is poised to enter a new era—one driven by cooperation, trust, and shared economic interests.

  • Finalize ambitious, balanced, and sustainable trade rules

• Energy products

• Aircraft and aircraft parts

• This commitment underscores India’s long-term engagement with U.S. industries and strengthens bilateral trade flows.

• Precious metals

• Technology products

• Coking coal

• The U.S. will also remove tariffs on aircraft and aircraft parts previously imposed under national security proclamations related to aluminum, steel, and copper imports.