Monthly Tax Bulletin: June 2026

Key highlights

Direct taxes

• The SC sets aside the HC’s reassessment rulings on the Jurisdictional Assessing Officer (JAO) vs Faceless Assessing Officer issue, remits matters to jurisdictional HCs.
• The SC holds 35% share from the Association of Persons (AOP) taxable as business income (not profit share); reopening for AY 2007-08 and AY 2008-09 upheld, the HC’s ruling set aside.
• The Delhi HC strikes down the limitation circular of the excess TDS refund; the SC grants a leave in the SLP filed by the Revenue.
• The OECD has released the Global Minimum Tax Implementation Toolkit.

Transfer pricing

• The mere existence of transactions/higher profitability of the eligible unit is no basis to invoke Section 80IA(10).
• The ITAT accepts the assessee’s characterisation as a limited risk service provider for training and technical services.
• The AO cannot pass two draft orders u/s.144C, quashes the second order.
• The Chapter-X mandate provides the AO no 'jurisdictional immunity' for any lapse in computing tax-exempt profit u/s.80IA.

FEMA

• The Ministry of Finance notifies the FEMA (Non‑Debt Instruments) (Amendment) Rules, 2026.
• The Ministry of Finance notifies the NDI (Second Amendment) Rules, 2026, for FDI in the insurance sector.

Indirect taxes

• The SC upholds the GST levy on online gaming, fantasy sports and casino transactions involving stakes, irrespective of skill or chance.
• The SC affirms the Bombay HC’s ruling that the assignment of leasehold rights is not taxable under GST.
• The SC stays the Allahabad HC’s ruling that the GST portal upload alone is insufficient to trigger appeal limitation.
• The U.S. Court of Appeals for the Federal Circuit grants a stay against the U.S. CIT order invalidating 10% temporary import surcharge.
• The U.S. CIT examines the scope of the IEEPA tariff refunds as CBP processes claims through CAPE.
• The GSTAT issues operational directions on bench constitution and extends relaxed appeal scrutiny till 31 December 2026.

Monthly Tax Bulletin: June 2026

The June 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 May 2026.

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