Tax & Compliance News

Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2020-21 Series XII due on September 09, 2026

In terms of GoI notification F.No. 4(4)-B(W&M)/2020 dated October 09, 2020 (SGB 2020-21 Series XII - Issue date March 09, 2021) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranche shall be on September 09, 2026. 2. Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption due on September 09, 2026, shall be ₹15,355/- (Rupees Fifteen Thousand Three Hundred and Fifty-Five Only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., September 04, September 07, and September 08, 2026. Ajit Prasad           Deputy General Manager (Communications)     Press Release: 2026-2027/1071

08 September 2026

Review of Circulars issued under Foreign Exchange Management Act, 1999 (FEMA)

RBI/2026-27/254 A.P. (DIR Series) Circular No. 21 September 08, 2026 To All Authorised Persons Madam / Sir, Review of Circulars issued under Foreign Exchange Management Act, 1999 (FEMA) In pursuance of the Reserve Bank’s ongoing initiative to rationalise the regulatory framework under the Foreign Exchange Management Act, 1999 (FEMA), a comprehensive review of circulars issued since June 01, 2000, is underway. 2. In furtherance of the aforementioned initiative, seven circulars as listed at Annex , that have ceased to be operative owing to subsequent regulatory amendments, redundancy, overlap or supersession by newer directives, are being withdrawn. 3. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned. 4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Dr. Aditya Gaiha) Chief General Manager-in-Charge Annex List of A.P. (DIR Series) Circulars superseded Sr. No. Subject AP (DIR) Series Circular No. Date 1 External Commercial Borrowings (ECB) Policy - Issuance of Rupee denominated bonds overseas 17 29.09.2015 2 External Commercial Borrowings (ECB) in Indian Rupees 25 03.09.2014 3 External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector 85 06.01.2014 4 Borrowing and Lending in Rupees - Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds 81 24.12.2013 5 External Commercial Borrowings (ECB) Policy – Import of Services, Technical know-how and License Fees 119 26.06.2013 6 Money Transfer Service Scheme - List of Sub Agents 49 07.11.2012 7 External Commercial Borrowings Policy – ECB by Small Industries Development Bank of India 48 06.11.2012

08 September 2026

ICAI invites Suggestions for Draft Income-tax Rules, 2026 (and forms)

07 September 2026

ICAI invites suggestions on tax proposals in the Finance Bill, 2026.

07 September 2026

Relaxation in timeline with respect to Accredited Investor mandate for Angel Funds

Relaxation in timeline with respect to Accredited Investor mandate for Angel Funds

07 September 2026

Ease of regulatory compliances for FPIs investing only in Government Securities

Ease of regulatory compliances for FPIs investing only in Government Securities

07 September 2026

ICAI invites Suggestions for Simplification of Income-tax Returns (ITRs) and Related Forms.

07 September 2026

Publication of Bare Act: "INCOME TAX ACT, 2025 Including Tabular Mapping of Sections vis-a-vis Income-tax Act, 1961.

07 September 2026

Exposure Draft - Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961.

07 September 2026

Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 (Revised 2026)

07 September 2026

Exposure Draft - 'Guidance Note on Tax Audit under section 44AB of the Income-tax Act,1961' for Public Comments.

07 September 2026

Exposure Draft - Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961 - A.Y. 2026-27.

07 September 2026

Income-tax Act, 2025 (as amended by the Finance Act, 2026) including Tabular Mapping of Sections vis-à-vis the Income-tax Act, 1961.

07 September 2026

Inviting Suggestions on Pre-Budget Memorandum 2027

07 September 2026

Income-tax Act, 2025 and Income-tax Rules, 2026 (and Forms) - Publishing of Bare Act and Rules by DTC of ICAI.

07 September 2026

Relief Measures in Areas Affected by Natural Calamities - Reporting through Centralised Information Management System (CIMS) Portal - Introduction of Half-Yearly Return

RBI/2026-27/250 CO.FIDD.FSD.No.S544/05-10-001/2026-27 September 02, 2026 The Chief Executive Officer / Managing Director All Scheduled Commercial Banks (including Regional Rural Banks and Small Finance Banks) All Local Area Banks/ Urban Cooperative Banks/ Rural Cooperative Banks/ Non-Banking Financial Companies / AIFIs Madam / Dear Sir, Relief Measures in Areas Affected by Natural Calamities - Reporting through Centralised Information Management System (CIMS) Portal - Introduction of Half-Yearly Return The regulatory framework governing the relief measures to be extended by the Regulated Entities (REs) in areas affected by natural calamities has been revised vide the amendment directions on Resolution of Stressed Assets dated April 29, 2026 ( list enclosed ), which came into effect from July 1, 2026. 2. These directions require REs to submit data relating to relief measures extended in areas affected by natural calamities through the CIMS portal on a half-yearly basis. Accordingly, in order to align the existing reporting mechanism with the revised regulatory framework, REs shall furnish the required information in the revised reporting format through the CIMS portal. 3. The return shall be submitted within 30 days from the end of each half-year, i.e., by October 30 for the half-year ending September 30, and by April 30 for the half-year ending March 31. 4. REs shall ensure that the information submitted through the CIMS portal is accurate, complete, and duly validated. Appropriate internal systems and processes may be established to facilitate timely collection, verification, consolidation, and submission of the required information. 5. Further, the existing monthly return which was applicable to all Scheduled Commercial Banks (including Small Finance Banks and excluding Regional Rural Banks) on relief measures extended in areas affected by natural calamities stands discontinued with effect from July 1, 2026. Yours sincerely, (R Giridharan) Chief General Manager

02 September 2026

Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026

RBI/2026-27/249 DOR.MRG.REC.No.217/00-00-011/2026-27 September 2, 2026 Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026 Please refer to Chapter VIII of Reserve Bank of India (Urban Co-operative Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025 dated November 28, 2025 , on Investment in non-SLR securities. In view of the establishment of Indian Digital Payment Intelligence Corporation (IDPIC) as the nation's central digital payment fraud intelligence platform and to enable UCBs to acquire its membership, there is a need to amend the extant instructions. 2. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act), read with Section 56 thereof, and all other laws enabling the Reserve Bank in this regard, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified. 3. (i) These Directions shall be called the Reserve Bank of India (Urban Co-operative Banks – Classification, Valuation and Operation of Investment Portfolio) Second Amendment Directions, 2026. (ii) These Amendment Directions shall come into effect from the date of issue. 4. The Reserve Bank of India (Urban Co-operative Banks - Classification, Valuation, and Operation of Investment Portfolio) Directions, 2025 , are amended as provided below. (i) Paragraph 101.(5) shall be substituted by the following, namely:- “101.(5) Equity shares of Umbrella Organization (UO) of UCB sector and Indian Digital Payment Intelligence Corporation (IDPIC) for acquiring membership;”. (ii) Paragraph 107.(1) shall be substituted by the following, namely:- “107.(1) Equity shares of Market Infrastructure Companies (MICs), Umbrella Organization (UO) of UCB Sector, IDPIC, and CCBs / StCBs, if it

02 September 2026

Deposits and Accounts – Accounts of Non-resident banks

RBI/2026-27/251 A.P. (DIR Series) Circular No. 20 September 02, 2026 To All Authorised Dealer Category-I banks Madam / Sir Deposits and Accounts – Accounts of Non-resident banks Please refer to Para B.2(ii) and B.8(i) of Part B of the A.P. (DIR Series) Circular No.92, dated April 4, 2003 , in terms of which AD banks were required to: Furnish an up-to-date list of all its offices/branches maintaining Rupee accounts of non-resident banks, as at the end of December each year before 15th January of the following year to the Central Office of Reserve Bank, and Report temporary overdrawals by overseas branches/ correspondents over permissible limit, if not adjusted within five days, to the Central Office of Reserve Bank. 2. On a review, it has been decided to dispense with the above reporting requirements with immediate effect. 3. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully (N. Senthil Kumar) Chief General Manager

02 September 2026

SEBI to review Settlement Price methodology for Derivative Contracts in the light of CAS rollout

SEBI to review Settlement Price methodology for Derivative Contracts in the light of CAS rollout

02 September 2026

CBDT has issued Notification No. 114/2026 [F. No. 370142/18/2026-TPL], notifying the rules and prescribed forms under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026. 

01 September 2026

Advance Tax Q1 due date: 15 June 2026 — 15% of estimated annual tax

The first instalment of advance tax for FY 2026-27 is due on 15 June 2026. Taxpayers (other than those covered by presumptive taxation under sections 44AD/44ADA) whose tax liability exceeds ₹10,000 must pay 15% of assessed tax by this date. Seniors (no business income) are exempt.

20 May 2026

DIN KYC (DIR-3 KYC) for FY 2025-26 due by 30 September 2026

Directors with DIN allotted or approved up to 31 March 2026 must file DIR-3 KYC or DIR-3 KYC Web by 30 September 2026. Non-compliance results in DIN deactivation with ₹5,000 reactivation fee. Pre-filled form available on MCA21 v3 portal.

15 May 2026

GST Input Tax Credit — Rule 36(4) GSTR-2B reconciliation mandatory

ITC can only be claimed against invoices/debit notes appearing in GSTR-2B (auto-populated from supplier's GSTR-1). Provisional ITC of up to 5% of eligible ITC available for invoices not yet reflecting in GSTR-2B. Mismatch may attract demand with 18% interest and 100% penalty.

01 May 2026

ITR filing forms for AY 2026-27 notified; e-filing portal updated

CBDT has notified ITR forms 1 through 7 for Assessment Year 2026-27 (FY 2025-26 returns). New schedules added for reporting foreign assets, virtual digital assets and ESOP taxation. Tax-audit under Section 44AB must be completed by 30 September 2026 and ITR filed by 31 October 2026 for audit cases.

15 April 2026

TDS rates for FY 2026-27 — Finance Act 2026 changes

Finance Act 2026 rationalises TDS rates under multiple sections. Section 194C contractor TDS remains 1%/2%. Section 194J professional fees TDS reduced to 2% across all categories. Section 194N cash withdrawal threshold increased to ₹1 crore for cooperative societies. Updated TDS rate chart available on the Income Tax portal.

10 April 2026

UDIN mandatory for all tax audit reports from AY 2026-27

CBDT has reiterated that all tax audit reports submitted under Section 44AB (Form 3CA/3CB/3CD) must carry a valid UDIN generated from the ICAI UDIN portal. Reports without UDIN will be treated as invalid. CAs must generate UDIN within 15 days of signing the report.

05 April 2026

GST amnesty scheme for pending GSTR-9 / 9C up to FY 2023-24

CBIC has notified a one-time amnesty under Section 128A for taxpayers with pending annual returns (GSTR-9) and reconciliation statements (GSTR-9C) for FY 2017-18 to FY 2023-24. Late fee reduced to ₹1,000 per act (₹500 CGST + ₹500 SGST). Eligible taxpayers must file by 30 June 2026.

02 April 2026

Income-tax Act, 2025 comes into force — applies from FY 2026-27

The new direct-tax code (536 sections, 23 chapters) enacted to replace the 1961 Act is effective 1 April 2026. Slabs, rates and most provisions are unchanged. Practitioners must use both Acts during the transition — 2025 Act for FY 2026-27 onwards and the 1961 Act for earlier assessments and pending appeals.

01 April 2026

GSTR-1 and GSTR-3B monthly return due dates for Q1 FY 2026-27

Monthly GSTR-1 (outward supplies) is due on the 11th of the following month. GSTR-3B is due on the 20th for taxpayers with turnover > ₹5 crore (22nd/24th for others). QRMP scheme taxpayers file GSTR-1 quarterly by the 13th of the month following the quarter. All dates confirmed for April–June 2026.

01 April 2026

MSME Form 1 (MSME-1) return due April 30 and October 31 each year

Companies with dues outstanding to MSME suppliers for more than 45 days must file half-yearly return Form MSME-1 by 30 April (for Oct–Mar period) and 31 October (for Apr–Sep period). Non-filing attracts penalty of ₹25,000 to ₹3 lakh on the company and additional liability on officers.

01 April 2026

LRS remittance limit remains USD 250,000 per year; TCS at 20% for amounts > ₹7 lakh

The Liberalised Remittance Scheme limit of USD 2,50,000 per financial year per resident remains unchanged. TCS at 20% (5% for education/medical purpose backed by loan) applies on LRS remittances exceeding ₹7 lakh in a financial year. Form 15CA/15CB requirements apply for amounts above threshold.

01 April 2026

MCA21 V3 portal — new filing forms and enhanced validation

MCA has migrated all company/LLP filings to the MCA21 Version 3 portal. New web-based forms replace old e-forms for most filings. CAs and CS should re-register DSC on the new portal. Forms AOC-4, MGT-7, ADT-1 and most annual compliance forms are now web-based.

01 March 2026

FEMA Master Directions updated — FDI regulations revised for space sector

RBI has updated the FEMA (Non-Debt Instruments) Rules, 2019 to permit 100% FDI under automatic route in satellite manufacturing, launch vehicles and ground-based systems as per the revised national space policy. Prior government approval threshold raised to activities of national security concern.

20 February 2026

Related-party transaction reporting thresholds revised under LODR

SEBI has revised the materiality threshold for RPT approval under SEBI (LODR) Regulations. Transactions exceeding ₹1,000 crore or 10% of annual consolidated turnover (whichever is lower) require shareholder approval. Enhanced disclosure requirements for omnibus approval also notified.

15 January 2026

ICAI CPE hours requirement for 2026: 20 structured hours minimum

ICAI members with a Certificate of Practice are required to complete a minimum of 20 structured CPE hours and 120 total CPE hours across every 3-year block. For the 2024-2026 block, the structured hours must include at least one mandatory e-learning module on ethics. Non-compliance may affect COP renewal.

10 January 2026

Tax audit limit for CAs raised to 60 assignments per member

ICAI's Council has enhanced the tax audit limit from 45 to 60 assignments per year for practising CAs. The limit is per CA member (not per firm). Assignments under Section 44AB, 44AD, 44ADA, 44AE and Transfer Pricing are counted. Statement of particulars must be filed with ICAI by 31 December each year.

20 November 2025

E-Invoice threshold reduced to ₹5 crore aggregate turnover — mandatory B2B

From 1 April 2025, e-invoicing is mandatory for all registered persons with aggregate annual turnover exceeding ₹5 crore in any preceding financial year for B2B, B2G and export transactions. IRN must be generated before or at the time of issuance of the invoice through IRP.

01 April 2025

T+0 settlement introduced for top 500 securities from March 2025

SEBI has rolled out same-day (T+0) settlement for the top 500 listed securities as an optional mechanism from 28 March 2025. Market participants may opt for T+0 at the time of order placement. Standard T+1 settlement continues as default.

28 March 2025