Legal Current Affairs — Week of March 26 to April 1, 2026

This was a historic week for Indian law. The Income Tax Act, 2025 replaced the 64-year-old 1961 Act on April 1 — the biggest direct tax reform since Independence. Parliament passed the IBC Amendment Bill introducing a mandatory 14-day NCLT admission rule and introduced both the Jan Vishwas Bill 2026 (decriminalising 717 offences) and the Corporate Laws Amendment Bill 2026. The Supreme Court delivered landmark judgments on women officers' permanent commission, Scheduled Caste status after religious conversion, bail under UAPA, tax concession withdrawal, and transnational issue estoppel. SEBI's algo trading framework became mandatory and new Mutual Fund Regulations replaced the 1996 framework. This digest covers 14 developments scoring 9+/15 on exam probability.

This week's highlights

1. New Income Tax Act 2025 replaces the 1961 Act (April 1) ★★★

Subject: Tax Law | Exams: CLAT GK, Judiciary Prelims, UPSC GS-III, SEBI Grade A | Score: 15/15

The Income Tax Act, 2025 came into force on April 1, 2026, replacing the Income Tax Act, 1961 — the most comprehensive overhaul of India's direct tax architecture in over 64 years. The new Act consolidates the statute from over 800 sections (47 chapters) to 536 sections (23 chapters). The landmark structural change is the replacement of the dual Assessment Year / Financial Year system with a unified "Tax Year" concept. All TDS provisions are consolidated under a single Section 393 (replacing scattered Sections 192-206C). Form 130 replaces Form 16 for salaried employees. Four cities — Bengaluru, Hyderabad, Pune, and Ahmedabad — join the metro HRA exemption list. The Act is revenue-neutral: tax rates, slabs, and deductions remain unchanged.

Exam angle: Expect an MCQ on "Which Act replaced the Income Tax Act, 1961?" and "What is the new unified concept replacing Assessment Year and Financial Year?" in CLAT GK and judiciary prelims. For UPSC, this is a must-know for GS-III (Indian Economy) and Law Optional Paper II. Remember: 536 sections, 23 chapters, Tax Year concept, Form 130.

2. Parliament passes Transgender Persons Amendment Bill 2026 (March 25) ★★★

Subject: Constitutional Law / Gender Justice | Exams: CLAT GK, Judiciary Mains, UPSC GS-II, UGC NET | Score: 14/15

Parliament passed the Transgender Persons (Protection of Rights) Amendment Bill, 2026, with Rajya Sabha approval on March 25 (Lok Sabha on March 24). The Bill replaces self-perceived gender identity with medical board-based certification, narrows the definition of "transgender person" to exclude trans-men, trans-women, and genderqueer individuals, and introduces enhanced penalties for coercion (10 years to life imprisonment). The Bill creates a new offence of forcing persons into presenting as transgender (5-10 years). This directly conflicts with the Supreme Court's NALSA v. Union of India (2014) judgment, which recognised the right to self-identification under Articles 14, 19, and 21. A constitutional challenge is widely expected.

Exam angle: This is a must-know for CLAT GK, judiciary mains (Constitutional Law), and UPSC. Expect questions linking this to the NALSA judgment (2014), Article 21 (right to dignity), and the basic structure doctrine. For descriptive papers: "Examine the constitutional validity of replacing self-identification with medical board certification in light of NALSA v. Union of India."

3. SC finds systemic bias against women officers in Armed Forces (March 24) ★★★

Subject: Constitutional Law / Gender Equality | Exams: Judiciary Mains, UPSC GS-II, CLAT GK | Score: 13/15

In Lt. Col. Pooja Pal v. Union of India, a Bench of CJI Surya Kant, Justice Ujjal Bhuyan, and Justice N. Kotiswar Singh held that systemic bias in the Indian Armed Forces denied permanent commission to women officers. The Court found that Annual Confidential Reports were written assuming women would not serve long-term careers — tainting the entire evaluation process. Relief: women officers released from service deemed to have completed 20 years qualifying service; full pension with arrears from January 1, 2025; permanent commission for serving officers meeting 60% threshold. Violation of Articles 14 and 16 established.

Exam angle: This builds on Babita Puniya (2020). For judiciary mains, expect a question on "systemic bias as a ground for constitutional violation under Articles 14 and 16." For CLAT GK, remember the case name, bench (CJI bench), and the 20-year deemed service remedy.

4. Lok Sabha passes IBC Amendment Bill with 14-day admission rule (March 30) ★★★

Subject: Insolvency Law / Corporate Law | Exams: Judiciary Prelims, UPSC Law Optional, SEBI Grade A, UGC NET | Score: 13/15

The Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, introducing 12 structural amendments. The most significant: NCLT must admit or reject insolvency applications within 14 days where default is established through Information Utility records. Other key provisions: project-wise resolution for real estate (individual projects resolved without triggering company-wide CIRP); Creditor-Initiated Insolvency Resolution Process (CIIRP) with 51% creditor consent; statutory dues expressly denied secured creditor status; group insolvency and cross-border insolvency framework. The IBC has contributed Rs 54,528 crore (52.3% of total bank recoveries of Rs 1,04,099 crore).

Exam angle: The 14-day admission rule, project-wise resolution, and CIIRP are new concepts. For judiciary prelims, expect MCQs on "What is the mandatory timeline for NCLT admission under the IBC Amendment Bill?" For UPSC Law Optional: "Critically examine the IBC Amendment Bill 2025 in the context of NCLT backlog and homebuyer protection."

5. Jan Vishwas Bill 2026 — decriminalises 717 offences across 79 laws (March 27) ★★

Subject: Regulatory Law / Criminal Law | Exams: CLAT GK, UPSC GS-II, Judiciary Prelims | Score: 12/15

The Jan Vishwas (Amendment of Provisions) Bill, 2026, introduced in Lok Sabha on March 27, targets 717 provisions across 79 central Acts administered by 23 Ministries. This is the third phase of the decriminalisation drive (Phase 1: Jan Vishwas Act 2023 — 183 provisions across 42 Acts; Phase 2: Jan Vishwas Bill 2025 — 355 provisions across 16 Acts). The Bill replaces imprisonment for minor/technical violations with graduated monetary penalties, warnings, or advisory notices, and shifts adjudicatory authority from criminal courts to administrative officers.

Exam angle: CLAT GK staple — remember the three phases and numbers: 183 (2023) + 355 (2025) + 717 (2026). For UPSC: "Examine the ease of doing business implications of the Jan Vishwas legislative programme."

6. Corporate Laws Amendment Bill 2026 introduced (March 23) ★★

Subject: Company Law | Exams: Judiciary Prelims, UPSC Law Optional, SEBI Grade A, UGC NET | Score: 11/15

The Corporate Laws (Amendment) Bill, 2026 was introduced in Lok Sabha on March 23, amending both the Companies Act, 2013 and the LLP Act, 2008. Key changes: decriminalisation of 21 minor offences (shifted to e-adjudication with monetary penalties); small company threshold raised to Rs 20 crore capital / Rs 200 crore turnover; CSR net profit threshold doubled from Rs 5 crore to Rs 10 crore; recognition of RSUs and SARs as employee compensation; IFSC LLPs allowed foreign currency operations; trust-to-LLP conversion enabled; hybrid AGMs with at least one physical AGM every three years.

Exam angle: For judiciary prelims, expect MCQs on the new small company thresholds and CSR reforms. For SEBI Grade A: the IFSC LLP concept and decriminalisation of company law offences are testable.

7. SC upholds Clause 3 — SC status lost after religious conversion (March 24) ★★★

Subject: Constitutional Law / Reservation Law | Exams: CLAT GK, Judiciary Mains, UPSC GS-II | Score: 13/15

The Supreme Court upheld the constitutional validity of Clause 3 of the Constitution (Scheduled Castes) Order, 1950 — ruling that a person who converts to Christianity and actively practises that faith ceases to be a member of a Scheduled Caste. SC status is available only to persons professing Hinduism, Sikhism, or Buddhism. For re-conversion, the Court imposed a "conclusive proof" standard: the person must demonstrate genuine re-conversion AND acceptance by the original caste community.

Exam angle: This is a high-frequency topic for CLAT GK, judiciary mains (Constitutional Law), and UPSC. Link to Article 341 (Presidential Order for SCs), Article 366(24) (definition of SCs), and the broader debate on caste-religion intersection. Expect: "Can a person who converts from Hinduism to Christianity retain Scheduled Caste status?"

8. SC: Government can withdraw tax concessions in public interest (March 31) ★★

Subject: Tax Law / Constitutional Law | Exams: Judiciary Mains, UPSC Law Optional | Score: 11/15

In State of Maharashtra v. Reliance Industries Ltd. [2026 LiveLaw (SC) 304], Justices P.S. Narasimha and Alok Aradhe held that tax concessions do not create vested or indefeasible rights. Promissory estoppel cannot compel the State to act against public interest in fiscal matters. The sovereign power to tax must remain flexible to address changing economic realities.

Exam angle: This is a classic judiciary mains question on the limits of promissory estoppel against the State. Remember: "Promissory estoppel cannot override public interest in fiscal policy." Link to Article 14, Article 19(1)(g), and the distinction between executive policy and legislative power.

9. SC grants bail to Shabir Ahmed Shah in UAPA terror funding case (March 31) ★★

Subject: Criminal Law / Constitutional Law | Exams: Judiciary Mains, CLAT GK, UPSC GS-II | Score: 11/15

The Supreme Court granted bail to Kashmiri separatist Shabir Ahmed Shah in an NIA terror funding case [2026 LiveLaw (SC) 305], emphasising that the right to speedy trial under Article 21 cannot be overridden solely by gravity of alleged offences. The statutory restriction on bail under Section 43D(5) UAPA must be read in the context of constitutional guarantees against indefinite detention. This continues the SC's recent trend of scrutinising prolonged pre-trial detention under special statutes.

Exam angle: For judiciary mains, this tests the interplay between special statutes (UAPA Section 43D(5)) and fundamental rights (Article 21). Link to K.A. Najeeb Abdul Kuddus v. Union of India (2021), which first opened this door. For CLAT: "SC granted bail under UAPA citing Article 21 right to speedy trial."

10. SC explains transnational issue estoppel in international arbitration (March 31) ★★

Subject: International Arbitration | Exams: Judiciary Mains, UPSC Law Optional, UGC NET | Score: 10/15

In Nagaraj V. Mylandla v. PI Opportunities Fund-I [2026 LiveLaw (SC) 305], the Supreme Court introduced the concept of "transnational issue estoppel" — a party cannot re-agitate in India challenges to a foreign arbitral award already rejected by the seat court. Section 48 Arbitration Act, 1996 (corresponding to Article V, New York Convention) gives enforcement courts a limited supervisory role. Indian public policy exception under Section 48(2)(b) remains available but operates within narrow bounds.

Exam angle: For judiciary mains and UPSC Law Optional, this introduces a new doctrine. Remember: "transnational issue estoppel prevents relitigating seat-court-rejected grounds in enforcement jurisdiction." Link to Section 48 and the New York Convention's pro-enforcement policy.

11. SEBI algo trading framework becomes mandatory (April 1) ★★

Subject: Securities Law | Exams: SEBI Grade A, Judiciary Prelims | Score: 10/15

SEBI's retail algorithmic trading framework became fully mandatory on April 1, 2026. Every algo order must carry an exchange-assigned Algo-ID. Brokers bear full accountability for all algorithms on their platform. Black box algos require a SEBI Research Analyst licence. White box algos face lighter one-time registration. Traders executing fewer than 10 orders per second are exempt.

Exam angle: This is highly testable for SEBI Grade A. Remember: Algo-ID mandatory, broker accountability, 10 OPS exemption threshold, RA licence for black box algos. For judiciary prelims: awareness-level MCQ on "Which regulator mandated Algo-ID for all algorithmic trading orders?"

12. SEBI Mutual Fund Regulations 2026 replace 1996 framework (April 1) ★

Subject: Securities Law / Regulatory Law | Exams: SEBI Grade A, Judiciary Prelims | Score: 9/15

The SEBI (Mutual Funds) Regulations, 2026 came into force on April 1, replacing the 30-year-old 1996 Regulations. A consolidated Master Circular merges decades of scattered circulars into a single document. AIF reporting framework revised (Annual Activity Report due May 31, 2026). Non-research personnel exempted from NISM Series-XV certification.

Exam angle: For SEBI Grade A, this is directly testable. Remember: 2026 Regulations replace 1996 Regulations, Master Circular consolidates all prior circulars, effective April 1, 2026.

13. RBI Commercial Banks Credit Facilities Amendment (April 1) ★

Subject: Banking Law / Regulatory Law | Exams: RBI Grade B, SEBI Grade A, Judiciary Prelims | Score: 9/15

The RBI's Commercial Banks Credit Facilities Amendment Directions, 2026 came into force on April 1, introducing a dedicated framework for lending to capital market intermediaries. Key provisions: credit to brokers only on fully secured basis; loan-to-value ratio for listed shares capped at 60%; IPO subscription loans capped at Rs 25 lakh per individual with minimum 25% margin.

Exam angle: For RBI Grade B and banking law papers, remember: 60% LTV cap, Rs 25 lakh IPO loan ceiling, fully secured basis requirement.

14. SC issues contempt notice to ASI Director General (March 28) ★

Subject: Constitutional Law / Environmental Law | Exams: CLAT GK, Judiciary Prelims | Score: 9/15

In Rajeev Suri v. Union of India, Justices Ahsanuddin Amanullah and N. Kotiswar Singh issued a contempt notice to the ASI Director General for failure to submit a status report on 173 protected monuments in Delhi under the Ancient Monuments Act, 1958. The ASI DG was directed to appear personally. MCD had surveyed only 62 of 85 monuments; NDMC had surveyed only 2 of 54.

Exam angle: For CLAT GK, this tests awareness of the contempt jurisdiction and heritage protection. For judiciary: "Can the Supreme Court direct personal appearance of a government officer for non-compliance with judicial directions?"

Key facts to remember

Exam-wise relevance

For CLAT / AILET aspirants

• Must-know for GK section: New Income Tax Act 2025 (Tax Year concept, 536 sections), Transgender Persons Amendment Bill (conflict with NALSA judgment), Jan Vishwas Bill (Phase 3, 717 offences), and the SC judgment on women officers' permanent commission (Lt. Col. Pooja Pal case)
• Constitutional awareness: SC ruling on Scheduled Caste status and religious conversion (Clause 3, Constitution (Scheduled Castes) Order 1950) is a classic CLAT constitutional law question
• Quick recall: Income Tax Act 2025 has 536 sections (not 800+); Jan Vishwas is Phase 3 (183 + 355 + 717); IBC Amendment mandates 14-day NCLT admission

For judiciary exam aspirants

• Constitutional Law: Women officers' permanent commission (Articles 14, 16; systemic bias doctrine); SC status and conversion (Article 341, Clause 3); Transgender Bill vs NALSA judgment (Article 21 dignity); tax concession withdrawal (promissory estoppel limits)
• Criminal Law: Shabir Ahmed Shah bail (UAPA Section 43D(5) vs Article 21 speedy trial) — link to K.A. Najeeb (2021) line of cases
• Corporate / Insolvency Law: IBC Amendment Bill (14-day rule, CIIRP, project-wise resolution); Corporate Laws Amendment Bill (small company thresholds, decriminalisation of 21 offences)
• International Arbitration: Transnational issue estoppel (Section 48 Arbitration Act, New York Convention) — new doctrine, likely descriptive question
• Tax Law: Income Tax Act 2025 (Tax Year replaces AY/FY); promissory estoppel limits (Maharashtra v. Reliance Industries)

For UPSC Law Optional

• Paper I: Articles 14, 16, 21 (women officers, transgender rights, UAPA bail); Article 341 (SC status and conversion); contempt jurisdiction (ASI case)
• Paper II: IBC Amendment Bill (reform of insolvency framework); Income Tax Act 2025 (direct tax reform); Corporate Laws Amendment Bill (company law modernisation); Jan Vishwas decriminalisation programme (regulatory reform)
• GS-II overlap: Transgender Persons Bill (social justice), women officers' permanent commission (governance and gender equality), Jan Vishwas (ease of doing business), Income Tax Act 2025 (economic reform)