Quick regulatory updates on Direct Tax, GST, and FEMA/FCRA — as soon as they are issued.
CBDT has extended the due date for issuance of TDS certificates under Section 203 of the Income-tax Act, 1961 read with Rule 31 of the Income-tax Rules, 1962, for the quarter ending 31 December 2025. The new deadline is 31 March 2026. The extension has been granted under Section 119 of the Act in view of genuine hardship caused by technical glitches on the income tax e-filing portal. TDS certificates issued within the extended period will be treated as having been issued within the prescribed time — no penal consequences will apply. Deductors should ensure Form 16A is issued to deductees before the close of business on 31 March 2026.
The Government has notified a new framework for Registered Valuers under Section 514 of the Income Tax Act, 2025 read with Rule 247 of the Income-tax Rules, 2026. The framework introduces a structured classification of valuers by asset category — immovable property, agricultural land, securities and business assets, plant and machinery, jewellery, works of art, and actuarial interests — each with specific qualification and experience requirements. Key changes: (1) Separate registration under Income-tax Rules even for IBBI-registered valuers; (2) Mandatory competency exam; (3) Standardised valuation report in Form 170; (4) Periodic regulatory review. Significant for capital gains, transfer pricing, M&A and restructuring transactions.
CBDT has issued an order under Section 119 of the Income-tax Act, 1961 (F.No.225/53/2024-IT A-II, dated 18 March 2026) directing all Income Tax offices across India to remain open on 31 March 2026, which is a closed holiday on account of Mahavir Jayanti. The order ensures completion of pending departmental work before the close of Financial Year 2025-26 — the last year governed by the Income Tax Act, 1961. Taxpayers with pending year-end submissions, advance tax payments, or last-minute tax-saving investments can visit their jurisdictional Income Tax office on 31 March 2026.
The Income Tax Act, 2025 consolidates the old Act into 536 sections across 23 chapters. All assessments, filings, and compliance from Tax Year 2026-27 onwards will be governed by the new Act. The old Act, 1961 continues to apply for matters relating to AY 2025-26 and earlier.
Budget 2026 revised the new tax regime slabs. Income up to ₹12 lakh is effectively tax-free (after rebate). Standard deduction remains ₹75,000. Slabs above ₹12L: ₹12L–16L @ 15%, ₹16L–20L @ 20%, above ₹20L @ 30%.
The Income Tax Act 2025 consolidates all TDS provisions into a single Section 393. New form numbers from 1 April 2026: Form 16 → Form 130, Form 24Q → Form 138, Form 26Q → Form 140, Form 15G/15H → Form 121.
Budget 2026 extends the deadline for filing revised or belated ITR to 31 March of the Assessment Year. For AY 2026-27, the last date for a revised ITR is 31 March 2027.
NRIs with Indian income above ₹15 lakh who stay in India for 120+ days and have been present for 365+ days in the preceding 4 years will be classified as RNOR. Indian citizens in zero-tax countries (UAE, Saudi Arabia, Bahrain) with Indian income above ₹15 lakh are deemed residents even without visiting India.
ESOP perquisite continues to be taxed at exercise under Section 16 of the IT Act, 2025. Employees of eligible start-ups under Section 80-IAC continue to benefit from TDS deferral under Section 192(1C) for up to 48 months from allotment.
Budget 2026 reduces TCS on LRS remittances: education and medical purposes reduced from 5% to 2%; overseas tour packages to flat 2%; threshold raised from ₹7 lakh to ₹10 lakh per year. TCS fully removed for education remittances funded by institutional loans.
Exporters supplying goods or services without payment of GST must file a fresh Letter of Undertaking (LUT) for FY 2026-27 on the GST portal by 31 March 2026. Without a valid LUT, exports in April 2026 will require GST payment upfront causing cash flow blockage.
The GST portal has made Table 3 (outward liability) of GSTR-3B non-editable — auto-populated from GSTR-1. ITC hard-locking is expected next, meaning Table 4 ITC values will also be locked based on GSTR-2B. Taxpayers must ensure GSTR-1 and purchase registers are reconciled before the 11th of each month.
Finance Bill 2026 removes the requirement that post-sale discounts must be pre-agreed. Discounts can now be given through a credit note under Section 34, provided the recipient reverses the proportionate ITC. This ends years of disputes for distributor-retailer models and volume rebate schemes.
Section 54(6) of the CGST Act is amended to extend provisional refund facility (90% of claim) to refunds arising from inverted duty structure — earlier available only for zero-rated supplies. The ₹1,000 minimum threshold for export refunds is also removed.
Finance Bill 2026 omits Section 13(8)(b) of the IGST Act. Indian IT/BPO/consulting firms providing services to foreign clients can now treat these as exports and claim refunds.
Annual GST returns GSTR-9 and GSTR-9C for FY 2024-25 are due by 31 December 2025. Taxpayers with aggregate turnover above ₹5 crore must file GSTR-9C with self-certification.
DPIIT issued Press Note 3 of 2026 amending the Consolidated FDI Policy. Investments from entities in countries sharing a land border with India (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar) continue to require Government Route approval. Downstream investment reporting and beneficial ownership disclosure requirements have been tightened.
NGOs holding FCRA registration certificates expiring in June 2026 must apply for renewal by March 2026 to ensure continuity of foreign contribution receipt. Applications must be filed on the MHA FCRA online portal at fcraonline.nic.in.
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