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Thursday,16-July-2026

National News

Bombay High Court Grants Exemption To Foreign Institutional Investors In Capital Gains Tax

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The Bombay High Court has granted exemption to Foreign Institutional Investors (FII) in the matter of capital gains from alienation of any property taxable in Singapore. The HC was hearing an appeal filed by the Commissioner of Income Tax, challenging the 2017 order of the Income Tax Appellate Tribunal in favour of M/s Citicorp Investment Bank (Singapore) Ltd for taxing capital gains of the firm in Singapore.

A division bench of Justices KR Shriram and Firdosh Pooniwalla, recently observed, “The Singapore authorities have certified that the capital gain would be brought to tax without reference to the amount remitted or received there. The assessing officer(AO) could not have come to a conclusion otherwise.”

Citicorp says they have FII debt segment with SEBI

According to Citicorp, a tax resident of Singapore, it’s an FII in debt segment with the Securities and Exchange Board of India. It filed its return on September 30, 2009, declaring total income of nearly Rs34 crore. In its return, it declared a capital gain of nearly Rs 86.62 crore on the sale of debt instruments and claimed exemption under Article 13(4) of the India-Singapore Double Taxation Avoidance Agreement (DTAA). During the assessment, the assessee was asked to explain as to how the provisions of Article 24 of DTAA stood complied in order to claim capital gain exemption in India.

Company says its is liable to pay tax in Singapore

The company contended that being an FII, it was liable to tax in Singapore on its worldwide income. Even the Singapore Revenue Authority has confirmed the taxation on the company. As per Article 13 (4) of DTAA, if the company is offering its worldwide income for taxation in Singapore then remittance of such income to Singapore has no relevance for the purpose of claiming benefit under the DTAA. The AO, however, rejected the certificate.

Singapore authorities confirm company liable to pay tax in the Southeast Asian country

Senior advocate PJ Pardiwalla, appearing for Citicorp, contended that the limitations of relief under Article 24 of the DTAA would only arise when the entire capital gain is taxed in Singapore on the remitted amount and not the entire amount. Since the Singapore authorities have also certified that under the Singapore Laws, the income derived by the assessee from buying or selling Indian Debt Securities would be considered under Singapore tax law as accruing in or derived from Singapore, such income would be brought to tax in Singapore.

Business

Govt proposes new fuel economy norms for cars from April 1, 2027

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New Delhi, July 16: The Ministry of Power on Thursday circulated the draft Corporate Average Fuel Economy 2027 Norms (CAFE-III) for stakeholder consultation, which propose a fresh five-year fuel efficiency regime for passenger vehicles, beginning from April 1, 2027.

The draft norms apply to M1 category vehicles, a classification that covers passenger cars carrying up to eight people besides the driver, which includes all hatchbacks, sedans and SUVs sold for personal use. The category excludes commercial goods carriers and buses, according to an official statement.

The existing CAFE-II norms are likely to lapse on March 31, 2027. Compliance under CAFE-III will be assessed in two phases, the first covering three years and the second the remaining two, with fuel efficiency targets progressing to more stringent levels through each passing year.

The framework, overseen by the Bureau of Energy Efficiency under the Ministry of Power, aims to bring down average fleet emissions from current levels to a significantly lower threshold by FY32, according to earlier drafts reported in the media.

Compliance credits have been priced at Rs 2,500 each, rising by Rs 500 every year through the period, with unused credits expiring once the compliance period ends. Automakers that fail to meet targets could face penalties, though the detailed amounts have not been mentioned. Manufacturers selling fewer than 1,000 vehicles annually will remain exempt.

Industry has differed in its response to earlier versions of the draft. The Society of Indian Automobile Manufacturers (SIAM) has backed the proposal as balanced, while some carmakers have pushed for relief on small petrol cars and others have opposed differentiated treatment for that segment.

The ministry has invited suggestions from stakeholders and the public. Feedback can be sent to the Under Secretary, Energy Conservation, at the ministry’s New Delhi office, or can be emailed.

The last date for submissions is August 6, 2026. The draft norms will also be uploaded on the websites of the Ministry of Power and the Bureau of Energy Efficiency shortly, the statement said.

M1 vehicles are subject to stringent fuel efficiency and emission targets under Corporate Average Fuel Economy (CAFE) norms, which are regularly updated to reduce greenhouse gases.

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National News

Hindu student of Hyderabad school asked to read ‘Kalma’

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Hyderabad, July 16: A controversy erupted at a private school in Hyderabad following an allegation that a Hindu student of Class 2 was assigned Islamic religious verses as homework.

The student was asked to recite ‘Kalima’ and ‘Sura Fatiha’. The incident occurred at a school in the Saidabad area.

The parents of the student confronted the school management, questioning the appropriateness of such an act within an academic environment.

The parents lodged their protest with the management of ‘Success’ school and demanded action against the teacher involved.

Following the protest, the school management sacked the teacher. She has been permanently disqualified from applying for employment in future in the ‘Success’ group of educational institutions.

According to the parents, the teacher had given the homework on July 15. “Read Sura Fatiha”, mentioned in the school diary under the subject ‘Deeniyath’. Earlier on July 11, the teacher had written ‘Read Kalima’, but the same was struck off by the teacher, apparently after realising that the subject did not apply to the non-Muslim student.

According to the school management, almost all the students in the school are Muslims, and they have the subject of ‘Deeniyath’ or Islamic teaching. However, the subject is not taught to non-Muslim students.

‘Kalima’ is the Islamic declaration of faith and testimony, while ‘Surah Fatiha’ is the first chapter of the Holy Quran.

The management clarified that it was an inadvertent mistake, but they still took the action of terminating the services of the teacher.

Meanwhile, independent MLA T. Raja Singh Lodh condemned the incident. He said it was deeply shameful that a Class 2 student was allegedly pressured by the school management to recite the Kalma.

“This is not the first such case in Telangana; there have been several similar incidents in the past. Yesterday, when the parents of the child went to the school and questioned the management about how they could pressure their Hindu child to recite the Kalma, the school authorities had no answer,” he said

He demanded that Chief Minister Revanth Reddy take action against schools which are forcing Hindu children to recite ‘Kalma’.

The former BJP MLA questioned the silence of AIMIM chief and Hyderabad MP Asaduddin Owaisi on the issue.

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Business

Govt hikes windfall duty on diesel, ATF exports

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New Delhi, July 16: The Centre has raised windfall taxes on exports of diesel and aviation turbine fuel (ATF) while lowering the levy on petrol exports, as surging global oil prices driven by the escalating US-Iran conflict boosted refining margins, with the revised rates taking effect from Thursday.

According to a Finance Ministry notification, the export duty on diesel has been increased to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on aviation turbine fuel has been raised to Rs 14.5 per litre from Rs 7.5 per litre.

At the same time, the government has reduced the export duty on petrol to Rs 2.5 per litre from Rs 4 per litre.

The revised rates came into effect from July 16, according to the notification.

The latest revision comes amid a sharp rise in global crude oil prices following an escalation in hostilities between the United States and Iran.

Oil prices climbed on Wednesday before easing slightly after US President Donald Trump reimposed a naval blockade on all Iranian ports, prompting Iran to launch retaliatory strikes on US infrastructure in the region.

Earlier this month, the government had revised the windfall tax on exports of petroleum products by raising the levy on petrol while reducing the duties on diesel and aviation turbine fuel.

The Special Additional Excise Duty (SAED) on petrol exports was increased to Rs 4 per litre from Rs 1.5 per litre. At the same time, the export duty on diesel was reduced to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports was cut to Rs 7.5 per litre from Rs 12.5 per litre.

The government reviews windfall taxes on domestically produced crude oil and exports of petroleum products at regular intervals to align the levies with changes in international crude prices and refining margins.

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