CorpConnect Corporate Law News February 2026

February 23, 2026
corp connect feb edition 2026

Resignation Is Not Final Until Accepted: Legal Principles Governing Resignation Under Indian Law

Resignation Is Not Final Until Accepted

In employment relationships, resignation is often perceived as a simple unilateral act, reduced to a letter placed on an employer’s desk. Indian jurisprudence, however, treats resignation as a legally nuanced process, governed by principles of voluntariness, intention, notice, acceptance, and withdrawal. The Supreme Court of India has repeatedly clarified that resignation is not always final upon submission, and that the employer–employee relationship may subsist until specific legal thresholds are crossed.

Through an analysis of authoritative judicial precedents, this article examines the legal contours of resignation under Indian law, highlighting when a resignation becomes operative, when it may be withdrawn, and why acceptance by the employer often assumes decisive importance.

Meity Plans to Cut Short DPDP Compliance Timeline and Notify Cross Border Restrictions for SDFs

Meity Plans to Cut Short DPDP

On January 23, 2026, the Ministry of Electronics and Information Technology (hereinafter referred to as ‘MeitY’) held stakeholder discussions with various industry leaders and proposed certain measures to fast track implementation of the Digital Personal Data Protection Act, 2023 (hereinafter referred to as ‘DPDPA’).MeitY has sought comments and feedback on these proposal from industry stakeholders by February 4, 2026. The Proposal seeks to cut short compliance deadline from 18 months to 12 months which means that the last date for complying with the DPDPA will change to November 13, 2026, which was earlier May 13, 2027. Notably, on November 17, 2025, Shri Ashwini Vashnaw had indicated the intention of the Government to compress the time line of enforcing the DPDPA for large businesses which already comply with stricter global regulations.

Section 80-Iac of the Income-Tax Act, 1961- A Comprehensive Guide for Startups in India

Section 80-Iac of the Income-Tax Act

India’s startup ecosystem has witnessed exponential growth over the last decade, supported by progressive policy measures and targeted fiscal incentives. One of the most significant tax incentives introduced by the Government of India is the tax holiday under Section 80-IAC of the Income-tax Act, 1961, which aims to reduce the financial burden on startups during their formative and scale-up years.

Recognising that early-stage enterprises often prioritise reinvestment over profitability, Section 80-IAC provides eligible startups with thae opportunity to claim a 100% deduction of profits and gains derived from eligible business activities for a limited period. When utilised strategically, this provision can materially improve cash flows, enhance valuation, and strengthen long-term sustainability.

Government Notifies Information Technology Amendment Rules 2026

Government Notifies Information Technology

On February 10, 2026, the Central Government notified the amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026 (hereinafter referred to as “IT Amendment Rules”), marking a significant shift in how India regulates Artificial Intelligence (AI) and synthetically generated content online. The Amendment was issued by the Ministry of Electronics and Information Technology (hereinafter referred to as MeitY) under its power conferred by Section 87(1), (2)(z) & (2)(zg) of the Information Technology Act, 2000 (hereinafter referred to as IT Act). The IT Amendment Rules shall be enforced from February 20, 2026.

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