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In direct tax updates, the EPFO released a circular addressing the misuse of trust reserves and surplus funds by exempted establishments. The CBDT amended key provisions under Rule 21AA, Rule 26B, and relevant Income-tax forms, alongside announcing changes to Tax Collected at Source (TCS) rules. Additionally, the government has sanctioned INR 1,435 crore for PAN 2.0, a major digital transformation initiative.
On the judicial front, the Telangana High Court ruled that non-compete agreement payments are capital receipts and not taxable, while the Kerala High Court held that income from the sale of immovable property should be classified under capital gains rather than business income.
Indirect tax updates included clarifications on Section 128A of the CGST Act and the launch of GST Form DRC-03A, enabling better linkage of payments to demand orders.
Judicial rulings under GST included the Bombay High Court granting interest on delayed IGST refunds, the Delhi High Court quashing GST demands on secondment of employees by recognizing the employer-employee relationship, and a judicial review of Input Tax Credit (ITC) refund restrictions concerning exempt education services.
Regulatory developments featured the launch of an e-adjudication platform under the Companies (Adjudication of Penalties) Rules, 2024, a SEBI initiative easing foreign investor onboarding through new CAF guidelines, and a revised classification system for non-company entities for the applicability of accounting standards.
The Compliance Calendar for December 2024 rounds out this edition, helping businesses stay ahead on their statutory obligations.