Policy
CBDT makes all Income Tax offences compoundable, eases rules for defaulters
The central board of direct taxes (CBDT) has made all offences under the income-tax law compoundable if the applicant is not involved in anti-national or terrorist activity. Taxpayers can apply multiple times for compounding, and the previous 36-month time limit for filing applications has been removed.
A 25 bps rate cut seen in April on cooling inflation: ET Poll
Economists are predicting a possible interest rate cut by the Reserve Bank of India (RBI) in April after retail inflation fell below the central bank's target. Retail inflation dropped to 3.61% in February, and increased farm output is expected to keep food prices stable.
CBDT clarifies exemptions from principal purpose test in double taxation avoidance agreements
India's Central Board of Direct Taxes (CBDT) has clarified that exemptions from the Principal Purpose Test (PPT) under some tax treaties won't hinder domestic anti-abuse rules. This move reassures investors that past investments won't be reevaluated, ensuring consistency in tax law interpretation while preventing treaty abuse.
I-T Department digs deep, explores unusual sources for info gathering
It is happening across businesses and states, with the taxman snooping around for transaction details with organisations in financial services, hospitality, healthcare, real estate, manufacturing, and those linked to telecom and direct-to-home services. The aim is to collect evidence of tax evasion, misreporting, and racketeering by verifying various dealing records with the claims made by individuals and entities, under the scrutiny of the I-T Department.
RBI to set up 'on Tap' cohort on climate change risks: Guv Malhotra
The Reserve Bank of India will create an 'on Tap' cohort dedicated to climate change risks and sustainable finance under its Regulatory Sandbox initiative, said Governor Sanjay Malhotra. This aims to build capacity, develop ecosystems, and finance green transitions while managing financial risks. Additionally, a 'Greenathon' focused on climate change will be conducted to foster sustainable finance.
RBI may go for 75 bps rate cut this fiscal, 25 bps each in April, June and October 2025: Report
SBI research predicts a 75 basis points rate cut in FY25 due to low inflation. Inflation is expected to be 3.9% in the fourth quarter and average 4.7% for the year. Industrial production grew to 5% in January 2025. Corporate revenue increased by 6.2% in Q3 FY25. Rising imported inflation and global uncertainties remain concerns.
RBI's new guidelines for account aggregators envisage net worth of Rs 2 crore
The Reserve Bank of India (RBI) has introduced a new framework for recognising self-regulatory organisations (SROs) in the account aggregator ecosystem. SROs must be set up as a not-for-profit company with a minimum net worth of Rs 2 crore and report regularly to the RBI, ensuring adherence to guidelines and regulations.
$50 billion boost coming for India with wage revisions in 2026
India is set to experience a $50 billion increase in consumption and savings from the 8th Central Pay Commission's wage revision for government employees and pensioners in January 2026. UBS predicts the wage hike will mainly enhance savings while ensuring fiscal stability, with various scenarios impacting GDP growth and interest rates.
India proposes to set up trading exchange for domestic coal
India is planning to create a coal trading exchange to handle the increased coal output from privatized mines. This move aims to foster competitive markets within the coal sector, transforming the current sales model. Coal India, representing 75% of the nation's coal production, will be part of this new marketplace, enhancing trade for commercial and surplus coal.
RBI will push payment systems innovations with soft touch regulations: Governor Sanjay Malhotra
The Reserve Bank of India (RBI) will continue to promote innovations in payment systems with soft touch regulations and expand the reach of UPI for more efficient cross-border payments. In 2025, challenges such as high cost, slow speed, and lack of awareness in digital payments were addressed to further deepen and expand digital transactions in the country.
Must Watch
Govt readying 23-point reform template to ease business regulations
The Centre is developing a 23-point reform plan to simplify business operations by enhancing a single-window clearance system, reducing inspections, and increasing permit validity. The task force, led by Cabinet Secretary T.V. Somanathan, is focusing on land, labour, and utility regulations, using technology to improve procedural efficiency.
Income tax officials can read your emails and social media? I-T sources reveal the true plan
The new Income Tax Bill of 2025 retains the existing powers for tax authorities to access digital devices during search and survey operations, not affecting common taxpayers' privacy. These measures aim to uncover sophisticated tax evasion methods, emphasizing critical investigations while protecting regular taxpayers.
Government invites application for the post of IRDAI chairperson
The Finance Ministry has begun the search for a new Chairperson for the Insurance Regulatory and Development Authority of India (IRDAI), with applications open until April 6 for the role to be filled by March 14, 2025. The selected candidate will serve a three-year term in Hyderabad, receiving a monthly pay and allowances of Rs 5.62 lakh.
ET Awards: GST rate cut, slabs review in works, says Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman announced that India is close to further reducing GST rates and reviewing slabs. She assured that the GST has not made life costlier and hinted at further reductions. Sitharaman highlighted the need for protecting small and medium enterprises from dumping, ongoing trade deal negotiations, and the importance of private sector investments for growth.
Sitharaman gives an idea of what's coming as Trump tariffs take effect and dumping fears become more real
India aims for a strong trade deal with the US to boost economic growth and ensure efficient supply chains, amid global tariff conflicts. Finance Minister Nirmala Sitharaman stresses the importance of protecting domestic industries while balancing interests, with Commerce Minister Piyush Goyal driving the negotiations.
ET Awards 2024: FM Nirmala Sitharaman reveals full spectrum of India's current challenges and opportunities
India needs to maintain strong supply chains amid uncertain trade equations, guiding its trade negotiations with the Trump administration. FM Nirmala Sitharaman emphasised the importance of a robust treaty and the need for India to boost exports and protect itself from potential dumping, particularly from nations like China.
