SIP Date Matters – Early SIP Gives More Units

Most people keep SIP on the 10th, 15th, or 25th.
But markets are usually more volatile (and often lower) at the start of the month.

👉 Keeping SIP date between 1st–5th generally gives more units over long term.

Not guaranteed, but historically beneficial.

Removal of annual DIR-3 KYC 👍

Earlier:
✔️ DIR-3-KYC or DIR-3-KYC-WEB
✔️ Annual filing every year

Now (w.e.f. 31-03-2026):
🔹 Filing once every 3 years (by 30 June)
🔹 Mandatory update within 30 days of any change

A welcome rationalisation. ✔️

ICAI has decided to extend the last date for complying with the CPE hours’ requirements for the Calendar Year 2025 *from 31st December 2025 to 31st March, 2026* This extension is being granted for the benefit of members at large and to avoid any hardship due to non-compliance with the prescribed requirements.

Income Tax Rates for A.Y. 2026-27 for Individuals

🌟 Interesting Fact About Investing in PPF! 🌟

💡 Do you know?
PPF gives interest only on the amount deposited before the 5th of every month!
If you deposit after the 5th, that month’s interest ❌ won't be counted.

📜 As per Rule 7(2) of the Public Provident Fund Scheme, 2019:
Interest is calculated on the lowest balance between the 5th and the end of the month.

🎯 Smart Tip: To maximize your PPF returns, always invest on or before the 5th every month!

List of Some Important Sections of Old Income Tax Act,1961 and Section Number of the Same of New Income Tax Act, 2025

#Budget2026 Highlights

- 🧾 New Income Tax Act, 2025 effective from 1 April 2026
- 🗂 Simpler income tax forms to be notified soon

Revised ITR Filing Timelines

- 📄 ITR-1 & ITR-2: Due date 31 July
- 🏢 Non-audit business & trusts: Due date 31 August
- 🔁 Revised return filing allowed up to 31 March with nominal fee

Foreign Income & Asset Disclosure

- 🕕 One-time 6-month foreign asset disclosure scheme
- 👨‍🎓 Applicable to small taxpayers, students & NRIs
- 🛡 Disclosure with immunity, subject to conditions

International Taxation & Incentives

- 🌐 Tax holiday till 2047 for foreign companies providing cloud services in India
- 📉 MAT exemption for non-residents opting for presumptive taxation

TCS Rationalisation

- 🧳 TCS on overseas tour packages reduced from 5%/20% to 2%, no limit
- 🏥 TCS on medical & education remittances reduced from 5% to 2%

TDS & Withholding Tax Changes

- 🧑‍💼 TDS on property purchase from NRIs using PAN instead of TAN
- 👷 Supply of manpower services under Section 194C

Exemptions & Relief Measures

- 🚗 MACT interest income exempt from tax for natural persons
- ❌ No TDS on MACT interest
- 🌾 Co-operative sector dividend income exempt, subject to conditions

Compliance Simplification

- ⏳ Safe harbour applications valid for 5 years
- 📘 Definition of “accountant” rationalised
- 🧾 Late Tax Audit Report submission treated as Late Fees

Capital Markets

- 📊 STT on Futures: 0.02% → 0.05%
- 📊 STT on Option Premiums: 0.10% → 0.15%
- 📊 STT on Option Exercise: 0.125% → 0.15%

Customs & Trade Facilitation

- 👟 Increased duty-free goods limit for inputs, leather & synthetic footwear

Penalty Provisions

- 🚨 Misreporting income attracts 100% penalty of tax amount
- 🛡 Immunity schemes expanded to cover specified cases

Draft Income-tax Rules, 2026

Link https://incometaxindia.gov.in/Documents/draft-income-tax-rules/draft-Income-tax-Rules-2026.pdf

NAVIGATOR – INCOME-TAX FORMS - https://incometaxindia.gov.in/Documents/draft-income-tax-rules/navigator-Income-tax-Forms-2026.pdf

Note – Draft Income-tax Rules & Forms, 2026
https://incometaxindia.gov.in/Documents/draft-income-tax-rules/note-Draft-Income-tax-Rules-and-Forms-2026.pdf

A new rule has been inserted in the Income Tax Rules, 2026, which was not present in the earlier Income Tax Rules, 1962.

Rule 166 i.e. Conditions for treating a return as defective return under section 263(7) of the Act ..

Limits Under GST

1. GST Registration Limit:
➡️For Goods - ₹40 lakh
➡️For Services/Both – ₹20 lakh
➡️G/S/B -Special Category States 1 - ₹10 lakh)
➡️G/S/B - Special Category States 2 - ₹20 lakh

2. Composition Scheme Limits:
➡️Traders / Manufacturers (Goods) - ₹1.5 crore
(Special Category States - ₹ 75 Lakh)
➡️Service Providers (Sec 10(2A)) - ₹50 lakh
➡️Restaurants (no alcohol) - ₹1.5 crore

3. GST Returns – Turnover Based Limits
➡️Composition Scheme - ₹1.5 crore/ ₹75 Lakh
➡️Quarterly return (QRMP Scheme) - Up to ₹5 crore.
➡️Annual Return (GSTR-9) mandatory - Above ₹2 cr
➡️Annual Return optional - Up to ₹2 crore
➡️GST Audit (GSTR-9C) - Above ₹5 crore

4. E-Invoicing Limits (Turnover in any FY)
➡️Mandatory e-invoicing - ₹5 crore & above

5. E-Way Bill Limits:
➡️Mandatory e-way bill - Consignment > ₹50,000
➡️Optional e-way bill - Up to ₹50,000

6. GST Penalty/ Late fee Limits :
➡️General penalty of up to ₹50,000 (IGST)
➡️GSTR-3B/1 :
🔸₹50/day (Max - ₹10,000)
🔸₹20/day Nil return (Max - ₹ 500)
➡️GSTR - 4 :
🔸₹50/day (Max - ₹2000)
🔸₹20/day Nil return (Max - ₹ 500)
➡️GSTR-9 & 9C:
🔸₹200 per day, capped at Total 0.5% of turnover

7. Prosecution Limit:
➡️Prosecution applicable - Tax evasion > ₹5 crore
➡️Arrest threshold - ₹2 crore & above (specified offences)

8. Appeal Pre-deposit Limits:
➡️1ST Appeal- 10% of disputed tax (max ₹40 crore)
➡️2nd appeal - 20% (max ₹50 crore)

9. TCS / TDS Limits Under GST:
➡️TDS applicable contract value - Above ₹2.5 lakh
➡️TDS rate - 2% (1% CGST + 1% SGST)
➡️TCS by ECO - 1%

Mandatory Levy of Service Charge by Restaurants Violates Consumer Law: CCPA

Automatic Addition of Service Charge Declared Unfair Trade Practice

Penalties imposed up to ₹50,000; restaurants directed to refund service charge and modify billing systems

Action triggered by consumer complaints on National Consumer Helpline (NCH) supported by invoices

Penalty of Rs 200 per day for Non-Reporting of Crypto Transactions From April 2026!

🔴🔥 GST Alert: Multiple SCNs for One Tax Period? Yes, Says Court!

✅ The Madras High Court ruled that GST authorities can issue multiple Show Cause Notices (SCNs) for the same tax period if they address distinct discrepancies. The Court found no statutory bar under Section 73 or Rule 142 against this, even if a prior notice for that period was quashed. This means different issues, like ITC mismatches and unreconciled turnover, can lead to separate assessments as tax laws lack strict res judicata principles.

HUGE ICAI BREAKING: ICAI has found 11 Chartered Accountants from Ahmedabad guilty of professional misconduct in a matter linked to an alleged bogus political donation network that was earlier flagged by the Income Tax Department.

BREAKING: The Supreme Court of the United States has officially ruled that President Trump's tariffs are illegal, in a 6-3 ruling.

The US now faces $150+ billion in potential tariff refunds.

Dear Taxpayer,

The functionality to utilise CGST or SGST ITC in any order for payment of IGST liability, after fully utilisation of IGST Credit, will be available from February-2026 period.

Thanks
Team GSTN

Finanical Year 2026-27 will be indeed special for Tax Purpose!

It will be both Tax Year and Assessment Year.

Tax Year 2026-27 for Income Tax Act 2025 which comes in effect from 1st April 2026.

Assessment Year 2026-27 for Income Tax Act 1961 for the purpose of Assessment of Income Earned in Previous Year 2025-26.