Tax & Finance Updates — India
Short, sourced notes on tax and finance stories that affect Indian taxpayers. Every item links to the original report so you can read it in full.
Summaries of reporting by the outlets named, not tax advice and not our analysis. Read the linked source before acting.
India's fiscal deficit reaches Rs 7.14 lakh crore in April-September
The Economic Times reports that India’s fiscal deficit for the first six months of the fiscal year reached Rs 7.14 lakh crore, or 42.1% of the FY27 aim. Total receipts were Rs 18.35 lakh crore, including net tax revenue of Rs 12.76 lakh crore and non-tax revenue of Rs 4.81 lakh crore, which was lower than last year.
PHDCCI urges government to lower capital gains taxes
The Financial Express reports that PHDCCI has urged the Finance Ministry to abolish long-term capital gains tax, reduce short-term capital gains tax to 10% and lower securities transaction tax rates. It also says PHDCCI suggested increasing the holding period for long-term capital gains on equity shares from 12 months to 18–24 months.
Finance Ministry model estimates Q2 FY27 GDP growth at 7.35%
The Financial Express reports that a Finance Ministry nowcasting model estimates India’s GDP growth at 7.35% in Q2 FY27, following growth of 7.8% in the April-June quarter. The report says GST collections, industrial output, power demand and investment supported activity, while inflation and global risks remained concerns.
Factory output growth slowed to 6.7% in September
The Hindu Business Line reports that India’s factory output growth, measured by the Index of Industrial Production, slowed to 6.7 per cent in September from 7.8 per cent in August, according to government data. The article says manufacturing and electricity growth were strong, while mining declined and the GST impact was noted.
Ridham Desai says an LTCG cut alone may not bring FIIs back
Moneycontrol reports that Morgan Stanley India managing director Ridham Desai said a lower long-term capital gains tax may briefly improve sentiment. He said foreign investors will return only when Indian equity returns and earnings momentum improve.
Shankar Sharma calls for zero capital gains tax on foreign investors
Business Standard reports that Shankar Sharma called for zero capital gains tax on foreign investors at the BFSI Insight Summit 2026. He also called for better fixed-income returns and reforms to attract global capital to India.
TDS relief announced on interest from Maharajah INR bonds
The Economic Times reports that the government has notified that interest paid by the New Development Bank on its Maharajah INR bonds will not attract TDS for eligible investors from tax year 2026-27 onwards. The article says Irdai allowed insurers to invest in the bonds in August 2026.
Government announces TDS relief on Maharajah INR bond interest
The Economic Times reports that the government has notified that interest paid by the New Development Bank on its Maharajah INR bonds will not attract TDS for eligible investors from tax year 2026-27 onwards. It says Irdai allowed insurers to invest in the bonds in August 2026.
Subbarao says correcting the rupee against fundamentals is futile
The Economic Times reports that former RBI governor D Subbarao says allowing the rupee to find its level based on economic fundamentals is preferable to costly short-term measures that do not address structural causes of capital outflows. Subbarao also highlights tax reforms as important for attracting foreign investment in India.
India’s equity taxation framework faces renewed scrutiny
The Financial Express reports that India’s equity taxation framework is in focus, with questions about the structure of capital gains tax and securities transaction tax. It says the debate centres on balancing revenue, simplicity and investment incentives in discussions about possible reform.
Luxury carmakers raise prices after GST cut
The Economic Times reports that Mercedes-Benz, BMW and Audi have raised vehicle prices after a GST cut, citing rising input costs and a weakened rupee. It says luxury car sales in India are projected to grow by about 11% by 2026, below the broader passenger vehicle market’s estimated growth of 13–14% this year.
ITAT Jaipur rules in retired employee’s leave encashment case
The Economic Times reports that a retired employee won her case at ITAT Jaipur over an income tax notice concerning leave encashment. The article also describes how leave encashment is taxed for private and government employees in India.
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