Notification No. 39/2026, dated 30-03-2026

The Central Board of Direct Taxes (CBDT) has notified a Protocol amending the Convention and the Protocol between the Government of the Republic of India and the Government of the Federative Republic of Brazil for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

1. Background of the Amendment

The existing Double Taxation Avoidance Agreement (DTAA) between India and Brazil governs the taxation of cross-border income and aims to:

• Prevent double taxation
• Provide certainty in tax treatment
• Facilitate bilateral trade and investment

The notified Protocol updates specific provisions of this Convention.

2. Objective of the Protocol

The amendment seeks to:

• Align the DTAA with international tax standards and evolving global practices
• Strengthen measures for the prevention of tax evasion and avoidance
• Enhance clarity and efficiency in tax administration between the two countries

3. Implications of the Amendment

The revised Protocol is expected to:

• Impact the taxation of cross-border income flows between India and Brazil
• Provide greater certainty to taxpayers and businesses
• Improve exchange of information and cooperation between tax authorities

4. Conclusion

The notification of the amended Protocol reinforces India’s commitment to maintaining robust and updated tax treaties, supporting international economic cooperation while ensuring effective safeguards against tax avoidance.

Click Here To Read The Full Notification

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Notification no. F. No. IRDAI/Reg/2/216/2026; Dated: 30.03.2026

The Insurance Regulatory and Development Authority of India (IRDAI) has notified the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Amendment) Regulations, 2026. These amendments aim to strengthen the regulatory framework governing the financial and actuarial functions of insurers.

1. Objective of the Amendment

The primary objective of these regulations is to ensure that insurers prepare and present their financial statements in alignment with the applicable Indian Accounting Standards (Ind AS), along with prescribed principles and accounting policies.

2. Alignment with Ind AS Framework

The regulations emphasise the adoption of Ind AS-compliant financial reporting, thereby enhancing consistency, comparability, and transparency in financial disclosures across the insurance sector.

3. True and Fair View of Financial Position

A key focus of the amendment is to ensure that financial statements reflect a true and fair view of the state of affairs of insurers. This includes accurate representation of financial performance, position, and risk exposure.

4. Strengthening Financial Governance

By mandating adherence to structured accounting standards and principles, the regulations aim to improve financial governance, accountability, and investor confidence in the insurance industry.

5. Conclusion

Overall, the amendment reinforces IRDAI’s commitment to aligning the insurance sector with global financial reporting standards, ensuring higher levels of transparency, reliability, and regulatory compliance.

Click Here To Read The Full Notification

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Notification no. S.O. 1662(E); Dated: 30.03.2026

The Central Government has amended the notification dated 24th July 2020, relating to the composition and appointment of members under the International Financial Services Centres Authority (IFSCA) framework.

1. Appointment of New IRDAI Member

Pursuant to this amendment, the Government has appointed Ms Aparna Sinha, Adviser in the Ministry of Finance, Department of Economic Affairs, as a Member of the Insurance Regulatory and Development Authority of India (IRDAI).

2. Earlier Appointment

Previously, Shri Anand Mohan Bajaj, Additional Secretary, had been appointed as a Member of the IRDAI under the earlier notification.

3. Conclusion

This amendment reflects an update in the representation of the Ministry of Finance within the IRDAI, ensuring continued regulatory coordination and strengthening institutional governance in the financial sector.

Click Here To Read The Full Notification

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Notification no. S.O. 1663(E); Dated: 30.03.2026

The Central Government has amended the earlier notification dated 30th July 2020, which pertains to the composition and appointment of members associated with the International Financial Services Centres Authority (IFSCA) framework.

1. Appointment of New IRDAI Member

Pursuant to this amendment, the Government has appointed Smt. J. Meena Kumari, Executive Director, as a Member of the Insurance Regulatory and Development Authority of India (IRDAI).

This appointment reflects a continuation of efforts to strengthen leadership and regulatory oversight within the insurance sector.

2. Previous Appointment Reference

Prior to this change, Smt. T.L. Alamelu had been appointed as a Member of the IRDAI under the earlier notification framework.

3. Conclusion

This amendment updates the composition of IRDAI’s leadership, ensuring continuity and reinforcement of regulatory expertise in line with the evolving financial sector landscape.

Click Here To Read The Full Notification

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RBI/2025-26/253 A.P. (DIR Series) Circular No. 25; Dated: 30.03.2026

The Reserve Bank of India (RBI) has issued important clarifications regarding the reporting framework and compliance requirements for External Commercial Borrowings (ECB).

1. Classification of ECB Forms as Non-Flow Returns

The RBI has clarified that Form ECB 1 and the revised Form ECB 1 shall be treated as non-flow returns. This implies that these forms are not part of periodic reporting flows but are event-based submissions.

2. Delay in Form ECB 2 and LSF Implications

Each delay in the submission of Form ECB 2 under a Loan Registration Number (LRN) will be considered as a separate instance for the purpose of calculating the Late Submission Fee (LSF).

This means that multiple delays, even under the same LRN, will attract separate penalties.

3. Timeline for Submission by AD Category I Banks

Authorised Dealer (AD) Category I banks are now required to submit duly certified ECB returns to the RBI within 7 days from the date of receipt of such returns from the borrower.

This introduces a stricter timeline to ensure timely regulatory reporting.

4. Payment of Late Submission Fee (LSF)

Any applicable Late Submission Fee (LSF) must be remitted to the concerned Regional Office of the RBI.

The payment is to be made through standard banking channels such as NEFT or RTGS.

5. Conclusion

These clarifications reinforce the RBI’s focus on timely compliance, accurate reporting, and stricter monitoring of ECB transactions, while also streamlining procedural aspects for both borrowers and AD banks.

Click Here To Read The Full Circular

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Circular No. DOR.CRE.REC.451, Dated: 30.03.2026

The Reserve Bank of India (RBI) has issued revised Credit Facilities Directions for Small Finance Banks (SFBs), introducing a structured framework for lending against securities and strengthening prudential oversight of such exposures.

1. Framework for Loans Against Eligible Securities

The Directions establish a clear framework for granting loans against eligible securities, prescribing:

• Loan-to-Value (LTV) ceilings to limit excessive leverage
• Prudential limits to manage concentration and systemic risks

This ensures that lending remains aligned with the value and quality of the underlying collateral.

2. Conditions for Lending to Various Borrower Categories

The revised Directions lay down specific conditions governing lending to:

• Individuals
• Non-financial entities
• Capital market intermediaries

These conditions are designed to ensure appropriate credit assessment, monitoring, and end-use compliance across different borrower segments.

3. Classification as Capital Market Exposure (CME)

The RBI has clarified that such exposures, including Irrevocable Payment Commitments (IPCs), shall be treated as Capital Market Exposures (CME).

This classification subjects them to stricter regulatory scrutiny due to their linkage with capital market activities.

4. Collateral, Margin, and Risk Management Requirements

All such exposures shall be governed by applicable:

• Collateral requirements
• Margin norms
• Risk management frameworks

These safeguards aim to mitigate market volatility risks and ensure financial stability.

5. Conclusion

The revised Directions enhance discipline in secured lending practices, align exposures with capital market risk norms, and reinforce the RBI’s focus on robust risk management and prudential regulation within small finance banks.

Click Here To Read The Full Circular

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Circular No. DOR.CRE.REC.450, Dated: 30.03.2026

The Reserve Bank of India (RBI) has issued revised Undertaking of Financial Services Directions for commercial banks, updating the regulatory framework governing specific credit and financing activities.

1. Alignment with Credit Facilities Amendment Directions, 2026

The revisions have been introduced pursuant to the Credit Facilities Amendment Directions, 2026, ensuring that the Undertaking of Financial Services framework is aligned with the updated regulatory approach to credit exposures.

2. Inclusion of Acquisition and Bridge Finance

The Directions have been modified to explicitly include:

• Acquisition finance
• Bridge finance

These are now permitted for financing promoters’ stake in new companies, thereby providing greater clarity and flexibility in structuring such transactions.

3. Lending to Individuals Against Eligible Securities

The revised framework also recognises and permits lending to individuals against eligible securities, subject to applicable prudential norms and safeguards.

This expands the scope of permissible credit facilities under the Directions.

4. Strengthening Regulatory Clarity and Consistency

By incorporating these changes, the RBI aims to:

• Ensure consistency across related regulatory frameworks
• Provide clear guidance on permissible financing structures
• Enhance prudential oversight of capital market-linked exposures

5. Conclusion

The revised Directions streamline and modernise the regulatory framework, aligning it with recent amendments and enabling banks to undertake structured financing activities within a well-defined and risk-sensitive regime.

Click Here To Read The Full Circular

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World Labour Law News provides a weekly snapshot of labour law developments from around the globe. Here’s a glimpse of the key labour law update this week.

1. Labour Law

1.1 US Dept. of Labour Proposes to Take Away Employers’ Right to Pay Substandard Wages to Foreign Workers in Certain Visa Programs

Under current law, U.S. employers seeking to hire temporary foreign workers through the H-1B, H-1B1, or E-3 visa programs must pay foreign workers the higher of (a) the prevailing wage for the area of intended employment or (b) the actual wage rate paid to similarly qualified U.S. workers in the area of intended employment.

For employers seeking to hire foreign workers permanently through the permanent labour certification program, they must offer and pay foreign workers at least the prevailing wage for the job opportunity in the area of intended employment.

The prevailing wage operates as a wage floor. Employers must certify that: (a) the wage offered at the time of filing meets or exceeds the prevailing wage; (b) the wage offered during recruitment meets or exceeds the prevailing wage; and (c) the foreign worker will be paid at least the prevailing wage upon commencement of employment.

1.2 Overview of H-1B, H-1B1 and E-3 Programs

The H-1B program allows employers to temporarily employ foreign workers in the U.S. on a non-immigrant basis in speciality occupations or as fashion models of distinguished merit and ability.

The H-1B1 program allows employers to temporarily employ foreign workers from Chile and Singapore in the U.S. on a non-immigrant basis in speciality occupations.

The E-3 program allows employers to temporarily employ foreign workers from Australia in the U.S. on a non-immigrant basis in speciality occupations.

1.3 Proposed Rule

On March 26, 2026, the U.S. Department of Labour’s Employment and Training Administration issued a proposed rule aimed at protecting the wages and job opportunities of American workers by eliminating employers’ ability to pay substandard wages to foreign workers under the H-1B, H-1B1 and E-3 visa programs.

The proposed rule seeks to modernise the existing methodology for determining prevailing wages across the permanent labour certification, H-1B, H-1B1 and E-3 visa programs. The updated methodology would use statistically grounded percentile thresholds derived from the Bureau of Labour Statistics’ Occupational Employment and Wage Statistics survey to align better wages paid to foreign workers with those paid to similarly employed American workers.

1.4 Official Statement

“The Trump Administration is committed to ensuring that American workers are not disadvantaged by unfair wage practices,”

said U.S. Secretary of Labour Lori Chavez-DeRemer.

“This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labour, in addition to protecting the wages and job opportunities of American workers. The continued abuse of the H-1B program by certain bad actors will no longer be tolerated.”

The proposed change aims to curb abuse of certain visa programs by reducing incentives to displace American workers with lower-wage foreign visa holders and by establishing parity in wages between U.S. workers and foreign workers entering the country on certain employment-based visas.

The Department noted that existing prevailing wage levels have, for too long, been set significantly below market rates received by many American workers, particularly entry-level workers and recent college graduates in science, technology, engineering, and mathematics fields. As a result, the H-1B program has been distorted by hiring practices that abuse the program to replace their existing American workforce with cheap foreign labour.

By seeking to implement these proposed changes, the Department of Labour aspires to improve the correlation between wages paid to foreign workers and those paid to American workers with similar skills and qualifications, reduce the economic incentives to underpay foreign workers and undermine the American workforce, and promote fair competition in the American labour market.

Source – Official Announcement

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Notification no. 1, dated 30-03-2026

Section 393(6) of the Income-tax Act, 2025 provides for no deduction of tax in certain cases wherein a declaration in Part A of Form No. 121 is furnished by the payee to the payer as per Rule 211 of the Income-tax Rules, 2026.

The person responsible for paying any income or sum of any nature referred to in section 393(6) (“payer”) shall enable the payee to furnish the declaration either in paper form or in electronic form after due verification through an electronic process. The declarant shall mandatorily quote its PAN in the declaration in Part A of Form No. 121 (Form 15G & Form 15H as per Income-tax Rules, 1962) in accordance with the provisions of section 397 of the Income-tax Act 2025.

A Unique Identification Number (UIN) shall be allowed by the payer to each declaration received in paper or in electronic form. The Central Board of Direct Taxes (CBDT) issued a notification prescribing the procedure, formats and standards for generation and allotment of UIN in respect of declarations furnished in Part A of Form No. 121.

As per the notification, the payer is required to allot a 26-character UIN to each declaration received, whether in paper or electronic form. The UIN comprises three components:

(a) Sequence Number—Ten alphanumeric characters beginning with the letter “D” followed by nine digits

(b) Tax Year—Six digits representing the tax year for which the declaration is furnished;

(c) Tax Deduction and Collection Account Number (TAN) of the payer.

Illustration – UIN to be allotted by the payer (TAN: MUMN12345A) to the first declaration (Part A of Form No. 121) received by him for Tax Year 2026—27 shall be, “D000000001202627 MUMN12345A”

Further, when declarations are received in physical form, the payer must digitise them and generate UINs accordingly. The payer is also mandated to furnish Part B of Form No. 121, containing details of such declarations, within the prescribed timelines in the specified format on the income-tax e-filing portal. The notification shall be applicable with effect from 1 April 2026.

Click Here To Read The Full Notification

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Case Details: Spandan Electrical vs. State of West Bengal - [2026] 184 taxmann.com 571 (Calcutta)

Judiciary and Counsel Details

• Om Narayan Rai, J.
• Nilratan Banerjee & Arijit Dey for the Petitioner.
• Tanay Chakraborty & Saptak Sanyal for the Respondent.

Facts of the Case

The petitioner filed an appeal after depositing 10 percent of the disputed tax as mandatory pre-deposit under Section 112 of the CGST Act read with the West Bengal GST Act. Despite the deposit, recovery proceedings were initiated, resulting in a debit to the electronic cash ledger. A writ petition was filed for seeking a refund of the excess recovered amount and restoration of the electronic cash ledger, contending that upon compliance with the statutory pre-deposit requirement, recovery of the balance demand stood automatically stayed. It was further submitted that the excess recovery adversely impacted the petitioner’s electronic cash ledger without the authority of law. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that upon demonstration of compliance with the mandatory pre-deposit requirement for filing an appeal before the Tribunal under Section 112 of the CGST Act, the statutory consequence of a deemed stay on recovery of the balance demand would operate till the disposal of the appeal. It was observed that the cumulative pre-deposit requirements at the first appellate and Tribunal stages effectively limit the extent of permissible recovery, and any amount recovered beyond such threshold would be liable to refund. It was held that the GST authorities are obligated to give effect to the statutory scheme and cannot continue recovery once the prescribed pre-deposit condition stands satisfied. Accordingly, the petitioner was directed to submit a representation demonstrating compliance, and upon satisfaction, the jurisdictional officer under CGST was required to process refund of excess recovery and restore the electronic cash ledger.

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