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Income Tax 10 October 2026

India Tax Reforms Impact Auto, Courts, and Investors

New GST Council rules free input tax credits, boosting India's auto manufacturing and exports. Gujarat and Karnataka courts clarified reassessment notices and tax benefits for same‑sex couples, and the Supreme Court permitted tax refunds to be set‑off without prior adjudication. Updates also note a uniform 5% GST on major e‑commerce platforms, FD vs mutual‑fund return comparisons, and upcoming insurance commission caps.

GST and auto sector
- The council will speed up input tax credit refunds, unlocking capital for manufacturers and encouraging higher export volumes.
- Courts in Gujarat dismissed a reassessment notice under the Income Tax Act, while Karnataka examined tax benefits for same‑sex couples.
- The Supreme Court ruled that income‑tax refunds can be set‑off without a prior adjudication order.

Investor and consumer impact
- A flat 5% GST will apply to major e‑commerce platforms such as Ola, Uber, Swiggy, Zomato, Amazon and Flipkart.
- Fixed deposits now face higher taxable interest compared with mutual‑fund returns, prompting investors to reassess portfolios.
- The IRDAI may introduce insurance commission caps from January, reshaping distribution rules.

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