A curated read on the changes that matter to banks, businesses and institutions — direct tax, GST, banking and regulatory. Updated periodically by the firm.
The new Act replaces the six-decade-old Income-tax Act, 1961 and applies from tax year 2026-27 onwards. It introduces a single "Tax Year" in place of the previous-year/assessment-year system, with simplified language and re-engineered forms. The Income-tax Rules, 2026 were notified on 20 March 2026.
From FY 2026-27, Minimum Alternate Tax is proposed to be made a final tax, with the rate reduced to 14% from 15%. MAT credit accumulated up to 31 March 2026 continues to be available for set-off.
Amounts received on buy-back of shares are now taxed as capital gains in the shareholder's hands. Securities Transaction Tax rates have also been increased for F&O, raising transaction costs for derivatives traders.
The Income-tax Rules, 2026 add Bengaluru, Pune, Hyderabad and Ahmedabad to the list of cities eligible for the 50% HRA exemption — now eight cities in all. Taxpayers must also disclose their relationship with the landlord.
The next-generation rate reform from the 56th GST Council — primary slabs of 5% and 18%, with 40% for demerit and luxury goods — is now embedded across invoicing. Businesses should ensure their ERP rate masters reflect the revised slabs to avoid non-compliant invoices.
A GSTN advisory makes the Ship-to GSTIN mandatory in the IRN and e-Way Bill APIs wherever Ship-to information is present (marked "URP" for unregistered consignees). A voluntary e-Way Bill closure facility has also been introduced.
Output liability is now hard-locked in GSTR-3B, Input Tax Credit is governed through the Invoice Management System, and a statutory three-year bar blocks filing of old-period returns. The clear message: reconcile early and review the IMS dashboard regularly.
The next Council meeting is expected to consider bringing electricity and natural gas within the GST ambit and permitting refunds of accumulated ITC on input services — both long-standing working-capital concerns for industry.
The AASB's annual guidance, updated for RBI directions up to 28 February 2026, places fresh emphasis on digital-banking and cybersecurity risk, KYC compliance, deposit classification and securitisation norms — essential reading ahead of branch audit season.
The Standing Committee on Finance has called the Reserve Bank of India and the ICAI for its study on Virtual Digital Assets and the way forward. The audit standards and accounting treatment of digital assets are expected to feature in the discussion.
The CBDT extended the timeline for issuance of TDS certificates under Section 203 for the quarter ending 31 December 2025 — useful relief for deductors finalising compliance for the period.
Curated for general awareness from public sources, current as of June 2026. This bulletin is not professional advice; please verify on the official Income Tax, GST, RBI and ICAI portals, and consult the firm, before acting on any item.