Tax Updates

Last date to file revised or belated income tax return for AY 2025-26 (FY 2024-25) is December 31, 2025. Taxpayers who missed the original deadline or need to correct errors should file before this date.

GST portal has enabled filing of annual return GSTR-9 and reconciliation statement GSTR-9C for FY 2024-25. Deadline is December 31, 2025. GSTR-9C mandatory for turnover > ₹5 crore.

E-way bill validity period extended for over-dimensional cargo and certain specific goods. Multi-vehicle option enabled for consignments requiring transshipment during transit.

CBDT notifies revised Form 3CD (Tax Audit Report) incorporating Budget 2025 changes. New clauses added for reporting virtual digital asset transactions, new regime disclosures, and enhanced related-party reporting.

Income Tax e-filing portal updated with new features for AY 2026-27 including improved pre-filled data from AIS, easier regime selection wizard, and enhanced Form 26AS integration.

GSTN enhances GSTR-2B auto-drafted ITC statement with improved matching algorithm. Taxpayers advised to reconcile GSTR-2B with purchase records before filing GSTR-3B to avoid ITC mismatches.

Import of Goods at Concessional Rate of Duty (IGCR) rules amended to simplify compliance for manufacturers importing raw materials at concessional customs duty rates.

Employers must issue Form 16 (TDS certificate for salary) to employees by June 15, 2025. Form 16A for non-salary TDS to be issued within 15 days of filing quarterly TDS return.

GSTN implements biometric-based Aadhaar authentication for new GST registrations in all states to curb fake registrations and fraudulent input tax credit claims.

CBDT extends the faceless assessment scheme with improved AI-based selection of cases for scrutiny. Faceless penalty proceedings and appeals also continue with enhanced digital infrastructure.

CCI (Competition Commission of India) takes over anti-profiteering complaints from National Anti-Profiteering Authority. Businesses must pass on GST rate reduction benefits to consumers.

Simplified quarterly return filing process introduced for composition scheme dealers. CMP-08 challan-cum-statement due by 18th of the month following the quarter. Annual return GSTR-4 due by April 30.

CBDT notifies updated ITR forms for AY 2026-27 incorporating changes from Budget 2025 including new tax slabs, revised rebate, and updated schedules for virtual digital assets and foreign assets.

GSTN mandates 6-digit HSN code reporting on e-invoices for taxpayers with turnover exceeding ₹5 crore. 4-digit HSN code mandatory for taxpayers between ₹5 crore and ₹10 crore turnover.

E-invoicing now mandatory for businesses with aggregate turnover exceeding ₹5 crore (previously ₹10 crore). Applicable from April 1, 2025, for all B2B and export invoices.

Section 206AB and 206CCA continue to apply higher TDS/TCS rates (twice the prescribed rate or 5%, whichever is higher) for specified persons who have not filed ITR for last 2 years with aggregate TDS/TCS ≥ ₹50,000 each year.

Remission of Duties and Taxes on Exported Products (RoDTEP) scheme extended until March 2026. Revised rates notified for various export sectors including textiles, engineering goods, and chemicals.

PAN cards not linked with Aadhaar remain inoperative. ₹1,000 penalty for late linking. Inoperative PAN leads to higher TDS deduction, non-processing of ITR, and inability to open financial accounts.

Deadline for Vivad Se Vishwas (Direct Tax Dispute Resolution) Scheme 2024 extended. Taxpayers can settle pending income tax disputes by paying disputed tax with reduced penalties and interest.

GST Council recommends rate changes on certain goods: reduced rate on health insurance premiums from 18% to 5%, certain food items reclassified, and input tax credit norms simplified for small businesses.

Finance Minister announced revised income tax slabs under the new regime effective from AY 2026-27. Income up to ₹4 lakh is now tax-free, with revised slabs up to ₹24 lakh. Rebate u/s 87A increased making income up to ₹12 lakh effectively tax-free.

Under the new tax regime, individuals with total income up to ₹12 lakh (₹12.75 lakh for salaried with standard deduction) will pay zero income tax due to enhanced rebate u/s 87A of ₹60,000.

Standard deduction for salaried employees and pensioners under the new regime continues at ₹75,000. Under the old regime, it remains at ₹50,000.

Several TDS thresholds increased: Section 194A interest from banks raised to ₹50,000 for non-seniors, 194H commission threshold increased, and 194I rent threshold raised to ₹2.4 lakh annually to reduce compliance burden.

TCS threshold under LRS (Liberalised Remittance Scheme) increased from ₹7 lakh to ₹10 lakh. TCS rate of 20% continues for amounts above the threshold (except education and medical).

Taxpayers can now file updated returns (ITR-U) within 4 years from the end of the relevant assessment year (previously 2 years). Additional tax of 70% on additional income for 3rd year and 100% for 4th year.

Government to expand Annual Information Statement (AIS) to include more financial transactions. Taxpayers encouraged to verify AIS before filing returns to ensure accurate pre-filled data.

Budget 2025 introduces reduced customs duty on critical minerals, electronics components, and certain medical devices. BCD on mobile phone parts reduced to promote domestic manufacturing.

Government continues push for new tax regime adoption. Employer NPS contribution deduction u/s 80CCD(2) increased to 14% for all employers (previously 14% only for Central Govt, 10% for others).

Section 44AD threshold remains at ₹3 crore (for digital transactions > 95%) and ₹2 crore (otherwise). Section 44ADA threshold remains at ₹75 lakh (digital) and ₹50 lakh (otherwise) for professionals.