YouWe Quest LLP · Chartered Accountants
Ref YWQ/2026/W30 · 20 July 2026 · Dear Reader,

Weekly
Regulatory Brief

Window11 - 20 July 2026
Items10
Material3
Deadlines5
QuietGST
01
Direct Tax · Notification 85/2026, 15 July 2026 · Material
Cost Inflation Index for FY 2026-27 set at 384
The CBDT notified the Cost Inflation Index (CII) at 384 for FY / Tax Year 2026-27 (AY 2027-28), up from 376 for FY 2025-26 - a 2.13% rise - under s.72(8)(a) of the Income-tax Act, 2025. Use CII = 384 for the indexed cost of acquisition / improvement when computing long-term capital gains on transfers made on or after 1 April 2026, for the assets on which indexation is still available (it was withdrawn for most assets from 23 July 2024).
Source ↗
02
RBI / FEMA · A.P. (DIR Series) Circular 19, 17 July 2026 · Material
Special Rupee Vostro Account framework consolidated into one circular
The RBI (RBI/2026-27/203) consolidated and rationalised all prior instructions on Special Rupee Vostro Accounts (SRVAs), permitting AD banks to open SRVAs for cross-border trade settlement in Indian Rupees and permissible current- and capital-account transactions. It supersedes five earlier circulars (2022-2025). For clients using INR trade settlement, re-map FEMA documentation and compliance checklists to this single reference - the earlier five circulars are withdrawn.
Source ↗
03
ICAI · Announcement, 15 July 2026 · Material
ICAI (Global Networking) Guidelines, 2025 kept in abeyance
The ICAI has kept further implementation of the ICAI (Global Networking) Guidelines, 2025 in abeyance until further orders (Aggregation of CA Firms Committee announcement, 15 July 2026). The Guidelines - notified vide Notification No. 3-CACAF/GN-F/2026 dated 11 February 2026 (Gazette of India, Extraordinary, Part III, Section 4, dated 17 February 2026) - were to govern tie-ups between Indian CA firms and global networks. Firms with, or planning, global-network affiliations should hold off on Guideline-driven restructuring and await the revised framework.
Source ↗
04
Direct Tax · Notification 88/2026, 16 July 2026
Protocol amending the India-Sri Lanka DTAA given effect in India
Under s.159(1) of the Income-tax Act, 2025, the CBDT gave effect in India to the Protocol amending the India-Sri Lanka DTAA (signed 16 December 2024), which entered into force on 19 June 2026. The amended provisions apply in India to income of fiscal years beginning on or after 1 April 2027 (AY 2028-29). International-tax practices should update treaty positions, TRC / Form 10F and withholding analysis for India-Sri Lanka flows.
Source ↗
05
Direct Tax · Notification 84/2026, 15 July 2026
Oman's Social Protection Fund notified under s.10(23FE)
The CBDT notified Oman's Social Protection Fund (SPF) (PAN ABOCS3010J) as a specified pension fund eligible for the s.10(23FE) exemption on eligible Indian investments made up to 31 March 2030 - dividend, interest and long-term capital gains from eligible infrastructure investments are exempt, subject to the prescribed reporting and continued Oman regulation. Relevant to inbound structuring and the withholding position on payments to this fund.
Source ↗
06
Direct Tax · TRACES 2.0 portal update
OLTAS challan correction for TY 2025 & 2026 coming to TRACES 2.0
TRACES (CPC-TDS) has notified that OLTAS challan correction for FY / TY 2025-26 and TY 2026-27 will be enabled shortly on TRACES 2.0. Deductors will then be able to submit online OLTAS correction requests (challan-detail corrections - assessment year, major / minor head, amount) for these tax years through the portal's correction wizard. Await the enablement before initiating challan corrections for the current cycle rather than routing them offline.
Source ↗
07
MCA · Public consultation, 20 July 2026
Stakeholder suggestions invited on an Integrated Insolvency Platform (iPIE)
MCA invited suggestions on the proposed Integrated Platform for Insolvency Ecosystem (iPIE) - a unified digital platform to connect the IBC ecosystem (IBBI, insolvency professionals, creditors and adjudicating authorities) end-to-end. A consultation, not yet a binding rule; the comment window and mode are inside the document. Insolvency professionals, resolution applicants, creditors and advisers to distressed companies should consider submitting suggestions.
Source ↗
08
ICAI · IDTC publication · Flagged (edition date)
GST Sectoral Guide on Charitable Trusts & NPOs surfaces
The ICAI Indirect Taxes Committee's final GST Sectoral Guide on Charitable Trusts and NPOs appeared on the IDTC publications page around 14 July - a practical reference on GST registration, exemption analysis and returns for the trust / NPO sector. Flag: the edition label reads "June (1st) 2026", so it is borderline whether it belongs in this window - included pending your call. Separately, the Direct Taxes Committee's Guidance Note on Tax Audit u/s 44AB (AY 2026-27) remains an exposure draft (9 July).
Source ↗
09
Direct Tax · Notifications 82 - 91/2026 · Record only
Entity exemptions, a NaBFID zero-coupon bond, a research approval and a PSU transfer
BBNDA, Himachal Pradesh exempted under s.10(46) / 2025-Act transition (Notif. 82 & 83/2026); Delhi Pollution Control Committee under s.10(46) / Schedule III r/w s.11 (Notif. 86 & 87/2026); the NaBFID Ten-Year Zero Coupon Bond (₹20,000 cr on maturity, to be issued by 31 Mar 2028) specified as a zero-coupon bond under s.2(112) (Notif. 89/2026); IIIT Dharwad approved for scientific research under s.45, TYs 2026-27 to 2030-31 (Notif. 90/2026); and the NPCIL-to-ASHVINI (NPCIL-NTPC JV) transfer of the Mahi Banswara project asset treated as "not a transfer" for capital gains (Notif. 91/2026). No general applicability.
Source ↗
10
GST · Quiet window · RBI / SEBI context
No new GST action; two peripheral items noted, not featured
No CBIC notification, circular, instruction or Order and no GSTN advisory in the 11 - 20 July window; no GST Council meeting (verified via the CBIC portal, the GSTN feed and two independent trackers - latest GST item on record is 2 July). Peripheral, not featured: the CBIC EMI (Eligible Manufacturer Importer) Duty-Deferment Scheme (Customs, outside the five domains) and an RBI prudential direction on Regulated Entities' acquisition of specified non-financial assets (banking supervision). SEBI's in-window circulars (SWP-STP standing instruction; MF intraday borrowing) are pure capital-markets items - no audit-practice angle.
Item 01 · Cost Inflation Index = 384 · Direct Tax · new law · Material
01.1
Reference
Notification No. 85/2026 (S.O. 3889(E); F.No. 370149/112/2026-TPL) dated 15 July 2026, under s.72(8)(a) of the Income-tax Act, 2025.
01.2
Effect
Notifies the Cost Inflation Index at 384 for FY / Tax Year 2026-27 (AY 2027-28), up from 376 for FY 2025-26 - a rise of about 2.13%.
01.3
Action
Apply CII = 384 for the indexed cost of acquisition / improvement when computing long-term capital gains on transfers made on or after 1 April 2026 (FY 2026-27 / AY 2027-28). Indexation now applies only where still permitted - withdrawn for most assets from 23 July 2024 - so confirm the asset qualifies before indexing.
Item 02 · SRVA framework consolidated · RBI / FEMA · new law · Material
02.1
Reference
RBI A.P. (DIR Series) Circular No. 19 (RBI/2026-27/203) dated 17 July 2026 (RBI NotificationUser Id 13581).
02.2
Scope
Consolidates and rationalises all prior instructions on Special Rupee Vostro Accounts (SRVAs) into a single circular, permitting AD banks to open SRVAs for cross-border trade settlement in Indian Rupees and for permissible current- and capital-account transactions.
02.3
Context
The circular supersedes five earlier circulars (2022-2025) - the SRVA framework is now stated in one place.
02.4
Action
For clients using INR trade settlement (exporters / importers) and AD banks, re-map the rupee-vostro framework to Circular No. 19 - update FEMA documentation, board / compliance checklists and correspondent-banking arrangements; the five earlier circulars are withdrawn.
Item 03 · Global Networking Guidelines in abeyance · ICAI · deferral · Material
03.1
Reference
ICAI (Aggregation of CA Firms Committee) Announcement dated 15 July 2026, concerning the ICAI (Global Networking) Guidelines, 2025 notified vide Notification No. 3-CACAF/GN-F/2026 dated 11 February 2026, published in the Gazette of India, Extraordinary, Part III, Section 4, dated 17 February 2026.
03.2
What it does
Keeps further implementation of the ICAI (Global Networking) Guidelines, 2025 in abeyance until further orders.
03.3
Context
The Guidelines were framed to regulate the networking arrangements and tie-ups between Indian CA firms and global / international networks. Their operation now stands paused pending further orders from the Institute.
03.4
Action
Firms with, or contemplating, global-network affiliations should defer any Guideline-driven restructuring or fresh compliance steps under the 2025 Guidelines and monitor for the revised framework / further orders.
Item 04 · India-Sri Lanka DTAA Protocol · Direct Tax · new law
04.1
Reference
Notification No. 88/2026 (S.O. 3926(E); F. No. 503/8/2005-FTD-II) dated 16 July 2026, under s.159(1) of the Income-tax Act, 2025.
04.2
Effect
Gives effect in India to the Protocol amending the India-Sri Lanka Double Taxation Avoidance Agreement, signed at New Delhi on 16 December 2024, which entered into force on 19 June 2026.
04.3
Effective
The amended provisions apply in India to income of fiscal years beginning on or after 1 April 2027 (AY 2028-29).
04.4
Action
Update India-Sri Lanka treaty positions, TRC / Form 10F documentation and withholding analysis. Read the Protocol text for the specific articles amended (typically anti-avoidance / PPT-type strengthening and information-exchange updates) before advising on cross-border flows.
Item 05 · Oman Social Protection Fund · Direct Tax · new law
05.1
Reference
Notification No. 84/2026 (S.O. 3890(E); F.No. 500/PF-15/S10(23FE)/FT&TR-II) dated 15 July 2026, under s.10(23FE) of the Income-tax Act, 1961.
05.2
Scope
Notifies Oman's Social Protection Fund (SPF) (PAN ABOCS3010J) as a specified pension fund whose eligible Indian investments made up to 31 March 2030 qualify for the s.10(23FE) exemption on dividend, interest and long-term capital gains from eligible infrastructure investments.
05.3
Action
Inbound-structuring and withholding relevance - payments to the SPF on eligible investments carry the exemption, subject to the fund satisfying the prescribed conditions (continued Oman regulation, prescribed reporting, no loan / benefit to participants beyond the pension mandate). Verify eligibility of each investment before applying nil / reduced withholding.
Item 06 · TRACES 2.0 OLTAS correction · Direct Tax · portal note
06.1
What changed
A TRACES (CPC-TDS) portal notice states that OLTAS challan correction for FY / TY 2025-26 and TY 2026-27 will be enabled shortly on TRACES 2.0. The online OLTAS correction request flow (enter challan details for which the correction is sought) is being extended to these tax years.
06.2
Context
Follows the migration to TRACES 2.0. OLTAS correction covers changes to challan attributes - assessment year, major / minor head, and amount - previously routed through the assessing officer or the older utility.
06.3
Action
Where a deductor needs to correct a challan (wrong AY, head or amount) for FY / TY 2025-26 or TY 2026-27, await the TRACES 2.0 enablement and use the online facility rather than an offline route; monitor the portal for the go-live.
Item 07 · iPIE consultation · MCA · consultation
07.1
Reference
MCA public consultation - "Invitation of Stakeholder Suggestions on the Integrated Platform for Insolvency Ecosystem (iPIE)", posted 20 July 2026 on the MCA "What's New" / Notices feed.
07.2
What it is
A proposal and call for suggestions on a unified digital platform for the IBC / insolvency ecosystem - intended to connect IBBI, insolvency professionals, creditors and adjudicating authorities across the insolvency process. A consultation / feedback invitation, not a binding rule; the comment window and mode are specified inside the document.
07.3
Retrieval
MCA V3 per-item PDFs have no stable shareable URL - retrieve the consultation from the MCA "What's New" / Notices listing dated 20 July 2026. No MCA General Circular, GSR / SO notification or rule-making public notice was issued in the 15 - 20 July window.
07.4
Action
IBC-facing practices may submit suggestions to shape the platform. Other in-window MCA "What's New" items (SFIO prosecutor / IICA Shillong vacancies, a legal-research EoI, and the "Corporate Mitra" course registration open 15 - 31 July) are administrative / skilling items with no compliance effect.
Item 08 · IDTC GST Sectoral Guide · ICAI · publication · Flagged
08.1
Reference
ICAI Indirect Taxes Committee - GST Sectoral Guide on Charitable Trusts and NPOs, edition labelled "June (1st) 2026", surfaced on the IDTC publications page around 14 July 2026.
08.2
What it is
A final sectoral guide on the GST treatment of charitable trusts and not-for-profit organisations - registration, exemption analysis and returns - useful in advisory and audit engagements for the sector.
08.3
Rest of ICAI
Apart from Item 03 (Global Networking Guidelines) and this guide, no other final Technical Guide, Guidance Note, Standard, Code of Ethics revision or UDIN / Peer-Review change surfaced between 11 and 20 July. The Direct Taxes Committee's Guidance Note on Tax Audit u/s 44AB (AY 2026-27) remains an exposure draft (9 July) - excluded.
08.4
Flag
Because the edition reads "June 2026" though it appeared on the IDTC page in mid-July, this item is borderline in-window - included pending your call on whether to feature it as a W30 item.
Item 09 · Notifications 82 - 91/2026 · Direct Tax · record only
09.1
Reference
Notification Nos. 82/2026 (S.O. 3798(E)) & 83/2026 (S.O. 3799(E)), 13 July 2026, F.No. 300196/45/2025-ITA-I
Notification Nos. 86/2026 (S.O. 3919(E)) & 87/2026 (S.O. 3920(E)), 16 July 2026, F.No. 300196/75/2024-ITA-I
Notification No. 89/2026 (S.O. 3936(E)), 17 July 2026, F. No. 164/1/2026-ITA-1
Notification No. 90/2026 (S.O. 3934(E)), 17 July 2026, F. No. 203/23/2025-ITA-II
Notification No. 91/2026 (S.O. 3935(E)), 17 July 2026, F. No. 225/139/2025-ITA.II
09.2
What they do
82-83/2026: notify the Baddi Barotiwala Nalagarh Development Authority (BBNDA), HP (PAN AAALB0528J) for exemption of specified income - No. 82 under s.10(46), 1961 Act (back-years); No. 83 continuing it into the 2025-Act regime
86-87/2026: notify the Delhi Pollution Control Committee (DPCC) - No. 86 under s.10(46), 1961 Act (AY 2024-25 to 2026-27); No. 87 under Schedule III r/w s.11, 2025 Act (TY 2026-27, 2027-28)
89/2026: specifies the Ten-Year Zero Coupon Bond of the National Bank for Financing Infrastructure and Development (NaBFID) as a zero-coupon bond under s.2(112), Income-tax Act 2025 r/w rule 7 - ₹20,000 cr payable on maturity, discount ₹10,296.12 cr, 20 lakh bonds, to be issued by 31 March 2028
90/2026: approves the Indian Institute of Information Technology (IIIT) Dharwad (PAN AAAAI9526L) for Scientific Research under s.45(4)(b) r/w s.45(3)(a)(i), 2025 Act, for tax years 2026-27 to 2030-31 - donors may claim the research deduction, subject to the institute's Form 15 / Form 16 reporting under rules 31 and 34
91/2026: notifies the transfer of a capital asset from NPCIL (Mahi Banswara Rajasthan Atomic Power Project) to the NPCIL-NTPC JV ASHVINI (Anushakti Vidyut Nigam Ltd) as a transfer not regarded as a "transfer" - no capital-gains charge; transferee inherits cost / holding period
09.3
Note
Entity / instrument-specific; no general applicability. Relevant to the notified authorities and parties - and, for 90/2026, donors funding IIIT Dharwad research; for 89/2026, investors in the NaBFID zero-coupon bond; for 91/2026, the power / PSU space.
Item 10 · quiet & peripheral · GST · RBI / FEMA · SEBI · period context
10.1
GST
No CBIC notification, circular, instruction or Order (swept across Central Tax, Rate, IGST, UTGST, Compensation Cess, Circulars, Instructions and Orders) and no GSTN advisory in the window; no GST Council meeting. Confirmed via the CBIC portal, the GSTN feed and two independent trackers - the most recent GST item on record is dated 2 July 2026.
10.2
RBI / FEMA
Beyond the SRVA consolidation (Item 02): RBI issued prudential directions on the acquisition of specified non-financial assets by Regulated Entities (16 July) - a banking-supervision measure for banks / NBFCs with no direct CA / FEMA-advisory angle - and continued its Internal Ombudsman / grievance-redress outreach.
10.3
Customs
CBIC publicised an EMI (Eligible Manufacturer Importer) Duty-Deferment Scheme (17 July) - a Customs facilitation outside the five core domains, noted for completeness.
10.4
SEBI angle
The SEBI circulars in / near the window - the SWP-STP standing-instruction facility (17 July) and mutual-fund intraday borrowing - are pure capital-markets / mutual-fund items with no LODR audit-committee, SQM or auditor-practice implication. Excluded per scope.
DueActionRunwayT-minus
31 Jul
Direct Tax
File Q1 TDS/TCS statements (TY 2026-27) and non-audit ITR (AY 2026-27) - subject to any CBDT extension; reconcile Form 16 / AIS / 26AS first
T-11
31 Jul
GST
File GSTAT s.112 appeals for orders communicated before 1 May 2026 - the statutory window closes (20% pre-deposit)
T-11
31 Jul
GST
Complete FY 2025-26 AATO amendments on the GST portal - verify each client's system-computed turnover
T-11
31 Jul
MCA
File Form DPT-3 (Return of Deposits, position as on 31 Mar 2026) to avail the GC 02/2026 additional-fee relaxation
T-11
31 Aug
MCA
Clear all overdue ROC filings under CCFS-2026 before the extended window closes (GC 03/2026) - run a portfolio-wide pendency scan
T-42
Ongoing / watchApply the new Cost Inflation Index (CII = 384) for LTCG indexation on eligible assets transferred on / after 1 April 2026 (Notif. 85/2026). Re-map SRVA (rupee-vostro) client documentation to A.P. (DIR Series) Circular No. 19 - the earlier five circulars are withdrawn. Watch for OLTAS challan correction (FY / TY 2025-26 and TY 2026-27) going live on TRACES 2.0. The ICAI (Global Networking) Guidelines, 2025 are in abeyance - monitor for further orders. IBC-facing practices may submit suggestions on the MCA iPIE consultation (posted 20 July; window in the document). T-minus counts are as at 20 July 2026, the compile date of this consolidated W29-W30 brief.
S. Triyambaka Patro, CA · YouWe Quest LLP Prepared for clients · Not for circulation