Income Tax Updates

The Indian government has introduced several changes to the income tax laws. The Lok Sabha has passed a bill enabling the government to allow MDR on UPI and digital payments. This amendment seeks to create a sustainable revenue model for payment service providers.
- The ITAT has ruled that no disallowance under section 40(a)(ia) will be made if interest expenses are capitalized as work-in-progress.
- The Supreme Court has ruled that cruise operators are eligible for section 44B presumptive taxation.
- The deadline for filing ITR 3 and ITR 4 has been extended to August 31 for taxpayers who earned income from business or profession during the financial year 2025-26.
- GSK has received a tax refund of ₹52 Cr for AY 1984-85 and has booked ₹42 Cr interest income.
- The government plans to cut tariff on most items to a single digit in the FY28 budget.
- There are major reporting gaps among crypto investors in the 2026 ITR season, with some still able to file tax returns by August 31.