Direct Tax
Delay in Form 10A Filing - Jurisdictional Principal Commissioner or Commissioner can condone the delay.
Circular No. 1/2026 (F.No.300173/26/2026-ITA-I) dated 23 March 2026
With effect from 1 October 2024, section 12A empowered the Principal Commissioner or Commissioner of Income-tax to condone delay in filing of Form No. 10A for registration under section 12A (1) (ac) (i) of the Income Tax Act, 1961 if the form is filed beyond the time allowed and such delays was due to reasonable cause. However, as the authority for processing such registrations was with Director of Income-Tax (Centralized Processing Centre), Bengaluru confusion arose whether condonation rights were with jurisdictional Principal Commissioner or Commissioner or with Director of Income-Tax (CPC). This Circular clarifies that the power vests with jurisdictional Principal Commissioner or Commissioner. This clarification aims to prevent denial of registration benefits due to procedural delays and reduce hardship for eligible trusts and shall apply to applications where condonation requests are pending or filed on or after issuance of this circular.
India–Brazil DTAA – Amending Protocol notified
Notification No. 39/2026 dated 30 March 2026
The notification is issued to notify that the provisions of protocol entered between the Governments of India and Brazil amending the India - Brazil Double Taxation Avoidance Convention, effective from 18 October, 2025, shall be given effect to in the Union of India.
The highlights of the Amending Protocol are as under:
The Protocol modernizes the treaty by incorporating anti-abuse measures, including introduction of Principal Purpose Test.
Expansion of scope of Permanent Establishment (PE).
Withholding Tax (WHT) Rates change in below cases:
| Income Type | Earlier DTAA Rate | Revised Rate |
|---|---|---|
| Dividends | 15% | 10% (company holding 20% of capital)/15% (Others) |
| Interest | 15% | 10% (specific case)/15% (others) |
| Royalties | 15% (general)/ 25% for trademark | 10% (general)/15% (trademark) |
| Fees for Technical Services (FTS) | Not specifically covered | 10% |
CBDT Amends Rule 10U to Protect Pre-2017 Investments from GAAR Applicability
Notifications No 54/2026 and 55/2026 dated 30 March 2026 and 31 March 2026
The CBDT, through Notification Nos. 54/2026 and 55/2026 dated 31 March 2026, has amended Rule 10U of Income-Tax Rules 1962 and Rule 128 of the Income-Tax Rules, 2026, to clarify the applicability of General Anti-Avoidance Rules (GAAR) on investments made prior to 1 April 2017. The amendment provides that any income arising on or after 1 April 2017 from the transfer of investments which were made prior to 1st April 2017 (grandfathered) shall be excluded from the ambit of GAAR. The notification shall come into force from the date of publication of the notification.
Income-Tax Return Forms notified for Assessment Year 2026-27
Notification G.S.R. 226(E) TO G.S.R. 233(E) dated 30 March 2026
In exercise of powers conferred u/s 139 r.w.s. 295 of the 1961 Act, CBDT has amended the Income-Tax Rules, 1962 and notified the Income-Tax Return (ITR) forms for Assessment Year 2026-27.
The notified forms include ITR-1 to ITR-7, as well as Form ITR-U (Updated Return).
Indirect Tax
Customs
CBIC exempts imports of Aviation Turbine Fuel from Additional Duty equivalent to Special Additional Excise Duty
Notification No. 07/2026 Customs dated 26 March 2026
Import of Aviation Turbine Fuel (ATF) falling under tariff heading 2710 exempted from the Additional Duty of Customs to the extent equivalent to the Special Additional Excise Duty leviable under the Finance Act, 2002. The exemption has been issued in public interest bringing a welcome relief to the aviation industry and is expected to provide cost relief to airlines by reducing the overall customs duty burden on imported ATF.
Government notifies One Time Concessional Duty window for clearance of SEZ manufactured goods into DTA
Notification No. 11/2026 Customs dated 31 March 2026
A special one-time relief window is notified for Special Economic Zone (SEZ) units facing challenges in meeting their production or export obligations due to unforeseen circumstances, such as supply chain disruptions, force majeure events, or other exceptional factors. The notification permits eligible units to clear goods into the domestic market at concessional rates, thereby improving their competitiveness. This relief comes into effect on 1 April 2026 and remains valid until 31 March 2027. It is a time-bound, one-time measure designed to support SEZ units impacted by global or domestic disruptions during this period, restricted to SEZ units that had already commenced production by 31st March 2025 and obtained a certification from the Development Commissioner confirming that conditions are met.
Additionally, an undertaking to pay full duty in case of non-compliance and maintain proper documentation will be required to be submitted. The concession does not apply to the units in Free Trade and Warehousing Zones (FTWZ). Further, domestic clearances under this scheme are capped at 30% of the unit’s highest export turnover achieved in any of the last three financial years. Further, export incentives such as duty drawback cannot be claimed on such domestic sales, preventing any double benefit.
| Present Customs Duty Rate (incl. BCD, AIDC & Health Cess) | Concessional Rate under Relief Window |
| 7.50% | 6.50% |
| 10% | 9% |
| 12.50% | 10% |
| 15% | 12.50% |
| 20% | 12.50% |
| Between 20% and 30% | 15% |
| Between 30% and 40% | 20% |
Customs Payments now digitized through Payment Aggregators
Notification No. 30/2026-Customs (N.T) dated 24 March 2026
In line with the Government’s continued push towards digitization and ease of doing business, the CBIC has updated the Customs (Electronic Cash Ledger) Regulations, 2022 by allowing payment aggregators as an additional payment mode.
Clarification on self-sealing facility for exporters
Circular No. 14/2026-Customs dated 27 March 2026
CBIC has clarified that the self-sealing facility for exporters does not have any fixed validity period. Once granted, it will continue indefinitely unless customs authorities withdraw or suspend it due to misuse or non-compliance. This removes uncertainty for exporters who were unclear about renewal requirements. At the same time, authorities have been advised to take a facilitative approach while keeping necessary checks in place.
Amendment in Courier Regulations
Notification No. 33/2026-Customs (N.T) dated 31 March 2026
Circular No. 17/2026-Customs dated 31 March 2026
DGFT Notification No. 67/2025 26 dated 27 March 2026
Government has updated the Courier Import/Export rules effective 1 April 2026 to make handling of unclaimed shipments easier and more structured by introducing Return to Origin (RTO) facility. Now, if imported goods remain uncleared for over 15 days, authorized couriers can send them back to the origin, provided the goods are not restricted and no investigation is ongoing. Further, businesses must now provide additional details for returned goods, including shipment tracking, export status, e-commerce transaction links, and confirmation that any export benefits claimed are properly reversed.
The re-import process for returned goods has been simplified by moving to a risk-based system, reducing excessive checks and paperwork, with the introduction of dedicated module in Express Cargo Clearance System. This brings clarity to situations such as rejected or undelivered shipments, helping reduce delays and congestion at courier hubs. Most importantly, the earlier INR 1 million limit on courier export consignments has been removed. This allows businesses to ship higher-value goods through courier mode, even beyond e-commerce transactions.
Facilitation measures for the transit through Strait of Hormuz
Circular No. 09/2026-Customs dated 8 March 2026,
Circular No. 10/2026-Customs dated 10 March 2026
Circular No. 12/2026-Customs dated 17 March 2026,
Circular No. 15/2026-Customs dated 27 March 2026
In response to global shipping disruptions caused by the closure of the Strait of Hormuz, CBIC introduced temporary measures to help exporters manage returned or stuck cargo. Export shipments that could not reach their destination and returned to India can now be handled through a simplified process. In many cases, vessels can re-enter the same port without full documentation, and goods can be offloaded without filing import documents, subject to basic checks. Export documents such as Shipping Bills and Let Export Orders can be cancelled, and goods can be brought back into the domestic market using the “Back to Town” facility. To reduce the burden on exporters, fees for amendment or cancellation of export documents may be waived where shipments are withdrawn due to such unavoidable disruptions, provided proper evidence is submitted. For cases where cargo returns to a different port, a slightly detailed process applies, including manifest filing, seal verification, and ensuring that any export incentives are reversed. Temporary permissions have also been given for transshipment and storage of cargo under customs control.
Update on tariff concessions for India–UAE CEPA and India–Mauritius CECPA
Notification No.9/2026 Customs dated 31 March 2026,
Notification No.10/2026 Customs dated 31 March 2026
The government has updated certain existing customs duty exemption notifications by replacing key duty tables with revised versions. Under the said notifications, earlier tables that specified duty rates, exemptions, and concessional structures for various goods have been substituted with new ones. These changes do not introduce a new scheme but update the existing duty framework which may impact applicable rates, classifications, or conditions.
Foreign Trade Policy
DGFT Introduces Time Limited RELIEF Scheme to Support Exporters Amid West Asia Geopolitical Disruptions
Notification No. 65/2025-26 dated 19 March 2026
DGFT has introduced a temporary support scheme RELIEF (Resilience & Logistics Intervention for Export Facilitation) to help exporters deal with rising shipping costs and risks due to disruptions in the Gulf and West Asia region. Exporters are facing higher freight charges, insurance costs, and risk premiums, owing to these disruptions. To address this, the scheme provides financial and risk support through three key measures.
Exporters already covered by ECGC insurance can now get up to 100% risk coverage, reducing their exposure to losses, new shipments are encouraged through enhanced insurance cover of up to 95%, making exports less risky. Lastly, MSME exporters who are not using ECGC insurance can claim reimbursement of up to 50% of the additional freight and insurance costs. This scheme is available for a limited period and specific destinations.
Full RoDTEP Rates restored and value caps for eligible exports
Notification No. 66/2025-26 dated 23 March 2026
DGFT has restored full RoDTEP benefits for exporters by withdrawing the earlier restriction that had reduced benefits to 50%, superseding Notification No. 60/2025-26 along with its corrigendum, except for actions already undertaken. With this change, exporters will now receive RoDTEP incentives at the original rates and value caps (as applicable before 23 February 2026). The restored rates apply from 23 February 2026 to 31 March 2026. While the earlier reduced benefits remain valid for past transactions, going forward, exporters can claim full refunds of embedded taxes, improving their overall export margins.
Extension of Export Obligation period for Advance Authorization and Export Promotion of Capital Goods
Notification 51/2025-26 dated 6 March 2026
In light of ongoing geopolitical disruptions affecting global shipping routes and supply chains, a one-time facilitation measure has been introduced by extending the timelines for fulfilling export obligations under key export promotion schemes. This relaxation covers a broad set of authorizations, including standard Advance Authorizations, Advance Authorization for Annual Requirement, Special Advance Authorizations, as well as EPCG licenses.
The Export Obligation (EO) period has been automatically extended up to 31 August 2026 for cases where the original or already extended deadline was falling between 1 March 2026 and 31 May 2026. Exporters are not required to submit applications, seek approvals, or pay any fees to avail this benefit. Exporters who may have already applied for extensions earlier by paying composition fees will not be eligible for a refund. This reinforces that the measure is prospective relief rather than a retrospective adjustment.