India Tax News Roundup

GST Reforms and Tax Disputes

• Businesses in India are embracing the Goods and Service Tax (GST) but are seeking more reforms, according to a survey by Deloitte India.
• Nearly 69% of respondents favored expanding the refund formula to include all input taxes.
• The survey also found strong support for policy-level reforms, including a uniform GST audit system and fewer tax disputes.

Income Tax Updates

• The Income Tax Appellate Tribunal (ITAT) has ruled that a reassessment notice issued beyond the limitation period is invalid.
• A Delhi resident's income of Rs 17.25 lakh was added as taxable salary despite working in the UK, but the ITAT provided relief under the India-UK Double Taxation Avoidance Agreement.

Tax Collection and Audits

• Auditors are being warned by the Institute of Chartered Accountants of India (ICAI) to ignore GST reconciliations before finalizing accounts, as it may distort financial statements.
• Businesses are seeking uniform GST audits and fewer tax disputes, with 83% of respondents supporting policy-level reforms, according to a Deloitte survey.

Tax Exemptions and Amendments

• The Indian government has granted tax exemption to foreign investors on interest income and capital gains arising from the sale of Indian bonds.
• The Insurance Regulatory and Development Authority of India (Irdai) has proposed a plan to tap into insurer premiums to create a policyholder fund.
• The government has amended the scheme of payment of railway pensions through public sector banks.