Author: inavatiq

Press Release; Dated: 12.02.2026

The International Financial Services Centres Authority (IFSCA) has approved the draft IFSCA (Pension Fund) Regulations, 2026, proposing a comprehensive regulatory framework for long-term retirement savings and pension solutions within the IFSC ecosystem.

The draft framework aims to position IFSC as a competitive global hub for retirement and long-term savings products.

1. Introduction of Voluntary Pension Schemes

The proposed regulations enable:

• Voluntary pension schemes for individuals
• Eligibility for subscribers aged 18 years or above

The framework is designed to provide flexible, globally aligned retirement savings options for both domestic and international participants.

2. Flexible Investment and Lifecycle-Based Allocation

Subscribers will be allowed to:

• Choose their asset allocation based on risk appetite and financial goals
• Opt for lifecycle-based investment options where asset allocation:

1. 1. Adjusts automatically with age
   2. Gradually shifts toward lower-risk assets over time

This flexibility supports personalised retirement planning.

3. Dedicated Healthcare Benefit Option

A key innovation in the draft regulations is the introduction of a Healthcare Benefit Option.

3.1 Contribution Allocation

• Subscribers may allocate up to 10% of their contributions
• Into a separate healthcare sub-account

3.2 Key Features

• Investment in low-risk and highly liquid instruments
• Access to funds for:

1. 1. Medical emergencies
   2. Planned healthcare expenses

• At retirement, option to:

1. 1. Use the balance for health insurance purchase, or
   2. Roll over the balance into the main pension corpus

This feature integrates retirement and healthcare planning within a single framework.

4. Investment Framework for Pension Funds

Pension Fund Managers (PFMs) will be permitted to invest across diversified asset classes, including:

• Equities (domestic and foreign)
• Fixed income instruments
• Alternative assets
• Other permissible investment instruments

These investments will be subject to:

• Defined exposure limits
• Concentration norms
• Prudential risk management safeguards

5. Regulatory Objective

The proposed pension regulations aim to:

• Promote long-term retirement savings in IFSC
• Provide globally competitive pension products
• Encourage financial planning and healthcare preparedness
• Strengthen IFSC’s position as an international financial hub
• Ensure robust risk management and investor protection

6. Key Takeaway

The draft IFSCA (Pension Fund) Regulations, 2026 introduce a comprehensive and flexible retirement savings framework in IFSC, featuring voluntary participation, diversified investment options, lifecycle allocation, and an innovative healthcare benefit component to support holistic long-term financial security.

Click Here To Read The Full Press Release

The post IFSCA Draft Pension Fund Regulations 2026 for IFSC Retirement Framework appeared first on Taxmann Blog.

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Circular No. IRDAI/F&I/GDL/MISC/27/02/2026, Dated: 12.02.2026

The Insurance Regulatory and Development Authority of India (IRDAI) has issued revised guidelines governing the establishment and closure of liaison offices in India by insurance companies registered outside India.

The revised guidelines supersede earlier instructions and provide a comprehensive framework for regulatory oversight and compliance.

1. Eligibility and Application Requirements

The guidelines prescribe:

• Eligibility criteria for foreign insurance companies seeking to establish liaison offices in India
• Detailed application and approval process
• Documentation and disclosures required for obtaining regulatory approval

Approval from IRDAI is mandatory prior to commencing liaison office operations.

2. Permitted Activities of Liaison Offices

Liaison offices are permitted to undertake only limited and non-commercial activities, including:

• Representational and coordination functions
• Market research and information exchange
• Liaison with group entities and regulators

Such offices are not permitted to:

• Undertake insurance business
• Earn income in India
• Enter into underwriting or risk-bearing activities

3. Operational and Compliance Conditions

The revised framework specifies:

• Operational conditions governing the functioning of liaison offices
• Compliance requirements with applicable Indian laws and regulations
• Restrictions on activities beyond the approved scope

Liaison offices must operate strictly within the permitted framework.

4. Reporting and Record-Keeping Requirements

Foreign insurers operating liaison offices must:

• Maintain proper books of accounts and records in India
• Submit periodic reports to IRDAI
• Provide an annual activity certificate confirming compliance with permitted activities and conditions

These requirements strengthen regulatory monitoring and transparency.

5. Closure of Liaison Offices

The guidelines also prescribe procedures for:

• Voluntary closure of liaison offices
• Submission of closure application and documentation
• Settlement of all liabilities prior to closure
• Regulatory confirmation from IRDAI

6. Regulatory Objective

The revised guidelines aim to:

• Ensure clear regulatory oversight over foreign insurers’ presence in India
• Standardise approval and compliance processes
• Prevent unauthorised insurance activities
• Enhance transparency and accountability

7. Key Takeaway

Foreign insurance companies intending to establish liaison offices in India must comply with IRDAI’s revised comprehensive framework covering eligibility, permitted activities, reporting, compliance, and closure procedures, reinforcing regulatory supervision of cross-border insurance presence.

Click Here To Read The Full Circular

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Notification no. G.S.R 119(E); Dated: 09.02.2026

Section 136 of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC Code), empowers the Central Government to make regulations relating to mines and dock work. Accordingly, the Central Government has notified the draft Occupational Safety, Health and Working Conditions (Dock Work) Central Regulations, 2026, prescribed under the OSH&WC Code. The draft regulations apply to all the major ports in India as defined in the Indian Port Act, 2025.

Objections and Suggestions can be submitted within 45 days from the date of publication in the Official Gazette. The key highlights of the draft Regulations are as follows:

• Qualifications of Chief Inspector-cum-Facilitator or Inspectors-cum-Facilitators – As per the draft regulations, the central government may, by notification in the official gazette, appoint persons as it thinks fit and possessing a degree in any branch of engineering or science from a recognised university or institute to be Chief inspector-cum-facilitator or inspector-cum-facilitator.
• Filing of Annual Returns by Establishments – As per the draft regulations, every employer of an establishment must send annually a return relating to such establishment in Form IX to the Inspector-cum-facilitator having jurisdiction by 31st January following the end of each calendar year.
• General Requirements Relating to Construction, Equipping and Maintenance for Safety of Working Places – The general requirements relating to construction, equipping and maintenance for the safety of working places on shore, ship, dock, structure and other places at which any dock work is carried on are as follows:

1. 1. The port authority, in the case of shore, and the master, in the case of a ship, must ensure that the maximum loads are not exceeded.
   2. Staircases in a warehouse or storage must be provided with a substantial handrail of 1 metre height and maintained. The protective handrail must be provided on the open sides of the staircase.
   3. Safe access to the deck cargo, hold ladders and any place of work must be ensured by securely installed steps or ladders.
   4. All areas of a dock must be kept properly drained and graded in order to facilitate safe access to sheds, warehouses and store places and safe handling of cargo and equipment.
   5. Cargo platforms must be made of sound material, substantially and firmly constructed, adequately supported and maintained in good working condition.
   6. Cargo platforms must not be overloaded.

• Efficient Lighting Requirements – The draft regulations require the port authority in case of a dock, wharf and master in case of ship to ensure that all areas on a dock and a ship where the dock work is carried out and all approaches to such areas and locations to which dockworkers are required to go during their employment, must be safely and efficiently lighted in an appropriate way.
• Providing and Maintaining Adequate Ventilation and Suitable Temperature in Every Building – As per the draft regulations, the port authority, in case of a dock, wharf, and master in case of ship, must ensure that all areas and buildings where goods are kept must be designed and constructed ensuring effective and suitable arrangements for securing and maintaining adequate ventilation through the circulation of fresh air and comfortable temperature.
• Fire and Explosion Prevention Measures – As per the draft regulations, the port authority must ensure that every place where dock workers are employed must be provided with sufficient and suitable fire-extinguishing equipment and an adequate water supply at ample pressure as per national standards. Further, fire-extinguishing equipment must be properly maintained and inspected at regular intervals, and a record must be maintained to that effect.
• Safety Measures for Dock Workers Onboard – Every employer of the dock worker must ensure the following safety measures for the dock workers working onboard:

1. 1. Weather forecasts must be regularly checked and monitored.
   2. Individuals with compromised health conditions must be forbidden from engaging in work aboard vessels.
   3. The master must ensure that preventive measures are in place to reduce the risk of persons falling overboard and systems are in place to raise the alarm and to begin recovery procedures immediately.
   4. Provision for the rescue from drowning of dock workers must be made and maintained. It must include the supply of life-saving appliances or other suitable rescue equipment, which must be kept in readiness and must be reasonably adequate for all circumstances.

• Measures Providing for the Handling of Dangerous Substances – The draft regulations require that before the unloading of any dangerous goods from any ship commences, the master or officer-in-charge and the agent of ship, intending to handle such goods, must furnish the employer of the dock workers, the Port authority, and the inspector-cum-facilitator with a declaration of dangerous goods at least 48 hours prior to the ship’s arrival.

Click Here To Read The Full Notification

The post Draft Dock Work Safety Regulations 2026 Issued Under OSH Code appeared first on Taxmann Blog.

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Circular eF.No. IFSCA-DSI/12/2025-Capital Markets, Dated: 12.02.2026

The International Financial Services Centres Authority (IFSCA) has issued a circular specifying the format of the net worth certificate to be submitted by:

• Global Access Providers (GAPs)
• Broker-dealers accessing global markets through GAPs

The circular also provides an indicative checklist for conducting annual audits of such entities.

1. Net Worth Certificate – Format and Certification

IFSCA has prescribed a standardised format for submission of the net worth certificate.

1.1 Certification Requirement

• The certificate must be certified by an independent member of the
  Institute of Chartered Accountants of India (ICAI)

1.2 Frequency and Timeline

• The net worth certificate must be submitted annually
• Deadline for submission: 30 September
• Applicable for the preceding financial year

This requirement ensures regular monitoring of financial soundness of regulated entities operating through the IFSC.

2. Annual Audit Requirement

The circular mandates that:

• Annual audit must be conducted by a peer-reviewed professional
• Eligible professionals include members of:

1. 1. Institute of Chartered Accountants of India (ICAI)
   2. Institute of Company Secretaries of India (ICSI)
   3. Institute of Cost Accountants of India (ICMAI)

Peer review status is required to ensure quality and reliability of the audit process.

3. Indicative Checklist for Annual Audit

IFSCA has provided an indicative audit checklist to guide professionals in conducting annual audits of GAPs and related broker-dealers.

The checklist is intended to:

• Ensure comprehensive verification of regulatory compliance
• Standardise audit procedures
• Enhance consistency in reporting and oversight

4. Regulatory Objective

The circular aims to:

• Strengthen financial and compliance oversight of GAPs
• Ensure standardised reporting of net worth
• Improve audit quality through peer-reviewed professionals
• Enhance transparency and supervisory effectiveness in IFSC

5. Key Takeaway

Global Access Providers and broker-dealers operating through IFSC must submit an annually certified net worth certificate by 30 September and undergo annual audits by peer-reviewed professionals, in line with the format and checklist prescribed by IFSCA.

Click Here To Read The Full Circular

The post IFSCA Prescribes Net Worth Certificate Format for Global Access Providers appeared first on Taxmann Blog.

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Case Details: Shree Bharat Motors Ltd. vs. Chief Commissioner of CT & GST, Odisha - [2026] 183 taxmann.com 248 (Orissa)

Judiciary and Counsel Details

• Harish Tandon, CJ. & Murahari Sri Raman, J.
• Rudra Prasad Kar, Sr. Adv. & Asit Kumar Dash, Adv. for the Petitioner.
• Sunil Mishra, Standing Counsel for CT for the Respondent.

Facts of the Case

The petitioner faced audit proceedings alleging non-reversal of ITC related to suppliers’ credit notes and excess ITC compared to Form GSTR-2A, while contending that ITC matched Form GSTR-2A and the reversal was netted off in Form GSTR-9, supported by the purchase register, reconciliation statements, and credit notes ledger. The adjudication order nonetheless raised a demand citing the absence of original credit notes. The petitioner filed a rectification application, asserting that reconciliations and portal data showed no excess ITC, but it was rejected without reasons, verification of portal figures, or a hearing, and the matter was placed before the High Court.

High Court Held

The High Court held that Section 161 of the CGST Act contemplates rectification of mistakes apparent on record and requires reasoned consideration of materials available before the authority. The Court observed that the record disclosed an exhaustive point-wise reply and an ITC reconciliation summary filed by the petitioner, which warranted verification before rejection of the rectification application. It was held that the order of rejection, founded solely on reference to the rectification provision without examining portal data or affording opportunity of hearing, suffered from legal infirmity. Accordingly, the rejection order was set aside.

The post HC Sets Aside ITC Rectification Rejection for Lack of Reasons appeared first on Taxmann Blog.

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Venkatesh Pani, J V Kodhandapani & K Chakrapani – [2026] 183 taxmann.com 346 (Article)

1. Background, Legislative Intent and Context

In the Budget Speech for 2026, the Hon’ble Finance Minister noted that under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”), no penalty is leviable for non-disclosure of non-immovable foreign assets where the aggregate value is below Rs. 20 lakh, and proposed to extend immunity from prosecution in such cases with retrospective effect from 1 October 2024. The Memorandum explaining the Finance Bill, 2026 candidly acknowledges widespread legacy and inadvertent non-disclosures by small taxpayers, including ESOPs and RSUs earned during foreign employment, dormant foreign bank accounts of former students, savings and insurance policies of returning non-residents, social security accumulations, and assets held during overseas deputation. Information received under the Automatic Exchange of Information (AEOI) framework further evidences substantial non-compliance.

Against this backdrop, a time-bound disclosure scheme (“the Scheme”) is introduced to facilitate voluntary compliance through payment of tax or fee, coupled with limited immunity from penalty and prosecution under the Black Money Act. However, the design and mechanics of the Scheme raise significant interpretational, procedural and constitutional issues.

A transitional enforcement-backed disclosure window, using global data flows as leverage, aimed at converting non-compliance into revenue and regularisation before stricter action begins.

2. Revenue Orientation of a Compliance Scheme

Although styled as a compliance-facilitation measure, the Scheme is revenue-oriented in structure. It mandates tax at a flat rate of 30 per cent on undisclosed foreign income or assets, together with an additional levy equal to 100 per cent of such tax in specified cases. The effective fiscal burden often approaches 60 per cent of the asset value, without any provision for instalment or deferred payment. This structure raises doubts as to whether the Scheme genuinely encourages voluntary disclosure or primarily seeks accelerated tax collection.

3. Charging Provision and Scope of Declaration

Section 116 permits any person to make a declaration for any previous year in respect of income or assets referred to in section 117 where a return was not furnished, where assets or income were not disclosed in a furnished return, or where such income or asset has escaped assessment under section 147 of the Income-tax Act, 1961. While declaratory in form, the Scheme imports assessment-like elements by requiring explanation of sources and satisfaction of the Assessing Officer, thereby diluting its professed non-adjudicatory character.

4. Applicability to Residents, Non-Residents and RNORs

The definition of “assessee” extends the Scheme not only to residents but also to non-residents and not-ordinarily-resident individuals, provided they were residents either in the year of earning the income or in the year of acquisition of the foreign asset. This extension creates substantial confusion. Statutorily, disclosure of foreign assets in the return of income is required only for residents. Non-residents with no Indian income, or income below the basic exemption limit, are not otherwise required to file returns. Extending the Scheme to such persons indirectly imposes a disclosure obligation where none existed under the Income-tax Act.

Even among residents below the filing threshold, CBDT FAQs require filing of returns solely for foreign asset disclosure, failing which such persons are treated as defaulters. This position appears inconsistent with the Scheme’s stated objective of easing compliance for small taxpayers and warrants reconsideration.

5. Interaction with Return Filing and Remedial Provisions

Assessees who omitted disclosure may theoretically cure defects through belated returns under section 139(4), revised returns under section 139(5), or updated returns under section 139(8A). The FAQs are silent on whether an updated return cures the default of non-disclosure of foreign assets, particularly in light of the third proviso to section 139(8A), which bars updated returns where information under the Black Money Act has already been communicated. Section 116(b), however, appears to override this restriction by permitting declaration even where returns were furnished but assets were not disclosed. Clear guidance is therefore required on the preferred remedial route.

Click Here To Read The Full Article

The post [Opinion] Foreign Assets Disclosure Scheme 2026 | A Critical Appraisal appeared first on Taxmann Blog.

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THE INDUSTRIAL RELATIONS CODE (AMENDMENT) BILL, 2026; Dated: 10.02.2026

The Industrial Relations Code (Amendment) Bill, 2026 has been introduced in the Lok Sabha.

The Bill proposes amendments to the Industrial Relations Code, 2020, specifically to clarify the legal basis of repeal of certain earlier labour laws.

1. Proposed Amendment to Section 104(1)

The Bill seeks to substitute Section 104(1) of the Industrial Relations Code, 2020.

The amendment clarifies that the following enactments stand repealed:

• Trade Unions Act, 1926
• Industrial Employment (Standing Orders) Act, 1946
• Industrial Disputes Act, 1947

2. Clarification on Nature of Repeal

The proposed substitution makes it explicit that:

• The repeal of the above Acts operates by statutory mandate, and
• Not by delegated executive power

This clarification reinforces that the repeal flows directly from the legislative enactment of the Industrial Relations Code and does not depend on any separate executive notification beyond the commencement provision.

3. Effective Date and Retrospective Operation

The Bill provides that:

• The amendment shall be deemed to have come into force on 21 November 2025
• This aligns with the appointed date under Section 1(3) of the Industrial Relations Code, 2020

The retrospective deeming provision ensures legal continuity and removes any ambiguity regarding the status of the repealed enactments from the date of commencement.

4. Legislative Objective

The amendment seeks to:

• Remove interpretational uncertainty regarding repeal provisions
• Ensure legislative clarity in the transition from legacy labour laws to the consolidated Labour Codes
• Reinforce the statutory foundation of the repeal mechanism

5. Key Takeaway

The Industrial Relations Code (Amendment) Bill, 2026 strengthens the legal clarity surrounding the repeal of the earlier labour enactments by expressly affirming that the repeal operates through statutory authority, deemed effective from 21 November 2025.

Click Here To Read The Full Update

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NOTIFICATION NO. S.O. 700(E), Dated: 10.02.2026

The Central Government of India has amended its earlier delegation of powers relating to the allotment of Director Identification Number (DIN) under the Companies Act, 2013.

The amendment revises the authority responsible for exercising powers under Sections 153 and 154 of the Act.

1. Background – Sections 153 and 154 | DIN Allotment

• Section 153 mandates that every individual intending to be appointed as a director must apply for a Director Identification Number (DIN).
• Section 154 empowers the Central Government to allot such DIN upon receipt of application.

These powers are exercised through delegated officers.

2. Change in Delegated Authority

Earlier:

• The authority for allotment of DIN was vested in officers posted in the Office of the Regional Director at Noida.

Now:

• The powers have been delegated to officers in the Regional Director, Northern Region Directorate-I, Headquarters, New Delhi.

This represents an administrative reallocation of authority within the Ministry’s regional structure.

3. Effective Date

• The amendment is effective from 16 February 2026.

All applications and matters relating to DIN allotment from the effective date shall fall within the jurisdiction of the newly designated office.

4. Key Takeaway

The notification effects a jurisdictional shift in administrative authority for DIN allotment, transferring powers from the Regional Director’s office at Noida to the Northern Region Directorate-I at New Delhi, effective 16 February 2026.

Click Here To Read The Full Notification

The post Govt Shifts DIN Allotment Powers to RD Northern Region-I appeared first on Taxmann Blog.

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Notification No. F.No. 30/03/2016-Insolvency; Dated: 11.02.2026

The Central Government of India has appointed Ashutosh Mishra, Additional Secretary, as an ex officio member of the Insolvency and Bankruptcy Board of India (IBBI).

1. Representation of Ministry of Law and Justice

Shri Ashutosh Mishra will serve on the IBBI Board as the representative of the Ministry of Law and Justice

The appointment ensures continued representation of the Ministry on the Board in accordance with the statutory framework governing IBBI.

2. Nature of Appointment

• The appointment is in an ex officio capacity
• The membership is linked to the office held by the appointee (Additional Secretary)
• It reflects inter-ministerial representation within the regulatory structure of IBBI

3. Regulatory Context

The IBBI is the statutory regulator responsible for implementing and overseeing the insolvency framework under the Insolvency and Bankruptcy Code, 2016, and its Board composition includes representatives from key ministries and regulatory authorities.

4. Key Takeaway

The appointment of Shri Ashutosh Mishra as an ex officio member strengthens the Ministry of Law and Justice’s representation on the IBBI Board, ensuring coordination and oversight within India’s insolvency regulatory framework.

Click Here To Read The Full Notification

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Case Details: Srikant Das vs. Joint Commissioner of State Tax [2026] 182 taxmann.com 867 (Orissa)

Judiciary and Counsel Details

• Harish Tandon, CJ. & Murahari Sri Raman, J.
• Pranaya Kishore Harichandan, Adv. for the Petitioner.
• Sunil Mishra, Standing Counsel (for State CT & GST) for the Opposite Parties.

Facts of the Case

The petitioner was a works contractor who had ceased business and did not possess any GST registration, yet the assessing officer generated a temporary GSTIN and issued ASMT-14 initiating assessment proceedings under Section 63 of the CGST Act, based on data indicating turnover and returns, and passed an ex parte order treating the petitioner as an unregistered person. The petitioner remained unaware of the proceedings and did not participate, and the appellate authority dismissed the appeal and confirmed the demand. The petitioner filed a writ petition challenging both the assessment order and the appellate affirmation. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the assessment and appellate orders suffered from a fundamental error of fact, as the standing counsel admitted that the assessment was based on mistaken identity, the returns and turnover data relied upon pertained to another registered person bearing an identical name. It was observed that the assessment under Section 63 could not be sustained when the basic premise of the proceedings was conceded to be incorrect, and the appellate order confirming the demand likewise lacked legal validity. Consequently, the appellate orders were quashed, holding that the proceedings under Section 63, read with Section 107 of the CGST Act and the Odisha GST Act, were vitiated by mistaken identity, and the writ petition was allowed.

The post GST Assessment Quashed Due to Mistaken Identity | HC appeared first on Taxmann Blog.

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