Direct tax, GST, banking regulation and institutional governance — reviewed and, where noted, authored by the partner responsible for that practice area.
The new Act replaces the six-decade-old Income-tax Act, 1961 and applies from tax year 2026-27 onwards, introducing a single "Tax Year" in place of the previous-year/assessment-year system. 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.
A GSTN advisory makes the Ship-to GSTIN mandatory in the IRN and e-Way Bill APIs wherever Ship-to information is present. 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 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.
The Institute has released its updated Guidance Note on Audit of Banks, incorporating recent regulatory changes relevant to statutory and concurrent bank auditors.
A parliamentary committee is set to hear the Reserve Bank of India and the Institute of Chartered Accountants of India on the treatment of digital assets.
The timeline for issuance of TDS certificates under Section 203 has been extended, giving deductors additional time to complete compliance.
Long-form perspective pieces, each carrying a named partner's byline, are published on a rolling basis against the themes below. This section is being built out as part of the firm's thought-leadership programme.
Annual and thematic research notes will appear here as they are published, extending the firm's fifty-four-year practice into forward-looking sector commentary.
