Jane Street Takes Legal Privilege Issue to Supreme Court Amid Tax Dispute

Jane Street, the US‑based quantitative trading firm, has filed a review application with the Supreme Court to obtain a definitive ruling on the scope of legal privilege for internal communications, a matter that has arisen during an Income Tax Department enquiry into its Indian subsidiaries, as per The Economic Times report. 

Supreme Court Review Application 

The application was admitted by a 3 judge bench and notice has been issued to the tax department. The matter is scheduled for hearing on March 25, 2026.  

Jane Street argues that emails and advice exchanged with its in house legal team should be protected under the Bharatiya Sakshya Adhiniyam 2023, the legislation that replaced the Indian Evidence Act of 1872. 

Court Directions on In House Counsel 

In October 2025, the Court issued directions on client attorney privilege. It held that an in-house counsel is not an advocate practising in courts and therefore does not qualify for privilege under Section 132 of the BSA.  

However, the Court said that communications made to an external legal advisor are covered by Section 134, while internal exchanges between the employer and its in-house counsel are not protected. 

Read More: Jane Street Update: Tax Department Moves to Apply GAAR on Jane Street Over India Singapore Treaty! 

Implications for Jane Street and Other Entities 

The clarification sought by Jane Street could affect how foreign portfolio investors and other corporate groups handle confidential legal advice in India.  

If the Court extends protection to in house counsel under Section 134, companies may be able to shield internal legal strategy from tax authority scrutiny. Conversely, a narrow interpretation would keep such communications open to examination. 

Conclusion 

Jane Street’s review application brings the question of legal privilege for in house counsel before the apex court. The outcome will determine whether internal legal advice enjoys protection under the BSA and will have relevance for many businesses facing regulatory investigations. 

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