Monthly Tax Bulletin: April 2026

Key highlights:

Direct taxes:

• The Supreme Court is to decide the limitation period for passing under Section 201/201(1A) orders for a non-resident (NR).
• Key changes of the India-France protocol to the Double Taxation Avoidance Convention (DTAC).
• The Income-tax department conducts a nationwide survey on the food and beverage (F&B) sector and launches the SAKSHAM NUDGE campaign.

Transfer pricing:

• The ITAT deleted the interest levied u/s. 234B and 234C pursuant to the APA conclusion.
• The ITAT declines to extend the India-U.S. MAP Resolution to transactions with non-U.S. AEs, deletes the arbitrary TP addition on reimbursements, and remits the matter of the working capital adjustment.

FEMA:

• The Cabinet approves changes in guidelines on investments from countries sharing a land border with India.
• The DPIIT updates the FDI policy on investments from countries sharing a land border with India.

Indirect taxes:

• The Finance Act, 2026, enacted: Key indirect tax amendments, including changes to intermediary services.
• The ISD credit distribution triggered on the legal availability of the ITC, not invoice receipt – Madras HC.
• The ITC to bonafide recipients cannot be denied on account of the supplier’s default in tax payment – Karnataka HC.
• The DGFT grants automatic EO extensions for AA and EPCG authorisations and provides relief on the average EO.
• The U.S. CIT has directed the refund of reciprocal tariffs following the Supreme Court’s ruling.

Monthly Tax Bulletin - April 2026

The April 2026 edition of the Grant Thornton Bharat Monthly Tax Bulletin provides a concise summary of key developments in direct taxes, FEMA, transfer pricing, and indirect taxes for March 2026.

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