The consultation outlines reforms to ease operational constraints for REITs and InvITs, including SPV continuity and borrowing flexibility. The key takeaway is a more practical regulatory framework without diluting safeguards.
The Finance Bill, 2026 removes certain commercial activity violations from the scope of specified violations, preventing automatic cancellation of NPO registration from AY 2026–27.
Section 332 is amended to exclude certain Schedule VII funds from registration requirements. From AY 2026–27, these funds can claim tax exemption without registering as NPOs.
Section 349 is amended to permit belated return filing by NPOs through a reference to section 263(4). The change applies from AY 2026–27, restoring flexibility available under the earlier tax law.
The law addressed the compliance burden faced by resident buyers purchasing property from non-resident sellers. It was held that resident individuals and HUFs need not obtain TAN for such transactions, simplifying TDS compliance from October 2026.
The issue involved repetitive filing of no-TDS declarations with multiple payers by investors. The amendment permits filing a single declaration with a depository, which will share it with payers, significantly reducing compliance burden.
The issue was confusion over whether manpower supply attracted contractor TDS or technical services TDS. The amendment clarifies it as work, ensuring lower and uniform TDS rates from April 2026.
The issue was denial of deduction to non-life insurers where TDS was not deducted or paid on time. The amendment allows such expenses to be claimed later once TDS compliance is completed.
The circular mandates auto goods registration, Auto OOC, and Auto LEO to reduce physical interface and delays. It confirms that risk-based systems will drive faster and more predictable customs clearances.
The notification introduces fully electronic baggage declarations, standard CBD forms, and risk-based checks to simplify passenger compliance and speed up customs clearance.
