Tax rules worth knowing.
The latest CBDT, GST Council, MCA and RBI updates, checked against the official source, plus plain-English summaries of the rules that most often catch businesses out.
Latest official updates
ICSI asks MCA to extend AOC-4 and MGT-7 deadlines to 31 Dec 2026; no extension granted yet
ICSI has asked MCA to extend annual filings to 31 December 2026, with one-time relief from additional fees. As of 15 October 2026, MCA had issued no general circular extending FY 2025-26 annual filings (according to professional sources that checked MCA's circulars list).
Who it affects: All companies. If the AGM was held on 30 September, file AOC-4 by 30 October and MGT-7/7A by 29 November. Late filing attracts an additional fee of ₹100 per day per form.
Effective / due: Existing due dates apply (AOC-4: AGM + 30 days; MGT-7/7A: AGM + 60 days)
The CBDT audit extension does not apply to MCA filings.
Source: MCA: ICSI asks MCA to extend AOC-4 and MGT-7 deadlines to 31 Dec 2026; no extension granted yet (opens in a new tab) · Careerindia: ICSI asks MCA to extend AOC-4 and MGT-7 deadlines to 31 Dec 2026; no extension granted yet (opens in a new tab) (news) · CorpLaw Updates: ICSI asks MCA to extend AOC-4 and MGT-7 deadlines to 31 Dec 2026; no extension granted yet (opens in a new tab) (news)
Revised Form 161 for penalty waiver applications (Income-tax (Sixth Amendment) Rules, 2026)
A revised Form 161 is notified for applications to waive or reduce penalty under section 440(2) of the Income-tax Act, 2025.
Who it affects: Clients applying for waiver or reduction of a penalty must use the revised Form 161.
Effective / due: As per the notification
57th GST Council rate recommendations: psyllium seeds nil, e-commerce delivery 5% without ITC, optional 5% for EV passenger transport, scrap under reverse charge
Nil rate on psyllium seeds; retreaded tractor tyres at the same rate as new tractor tyres; some waste and scrap under reverse charge, with 2% TDS on supplies between registered persons; an optional 5% rate (with restricted ITC) for EV passenger transport and rental; 5% without ITC on e-commerce delivery services; some services exempted.
Who it affects: Scrap dealers, EV cab and rental operators, e-commerce delivery and logistics businesses, and tyre retreaders.
Effective / due: From the date of the rate notification
Some blogs reported no rate changes, but the official PIB release lists these decisions. Rates change only from the date of the rate notification.
57th GST Council recommends: no arrest power, ₹5 crore prosecution threshold, ₹10,000 general penalty, faster refunds, wider ITC
The Council recommended removing the arrest power under section 69, raising the prosecution threshold from ₹1 crore to ₹5 crore, cutting the section 125 general penalty from ₹25,000 to ₹10,000, no show-cause notice for amounts under ₹10,000, refund acknowledgement in 10 days instead of 15, 90% provisional refunds and automatic refund of excess cash-ledger balances. ITC relief is proposed for health and life insurance, outdoor catering and free samples. It also proposed automatic registration (Rule 14A) for ITC up to ₹2.5 lakh a month and, in principle, an optional annual return for B2C businesses up to ₹5 crore.
Who it affects: Almost every GST client, especially exporters and inverted-duty businesses (refunds), small B2C businesses (annual return option) and businesses with pending litigation (penalty and prosecution).
Effective / due: Proposed: refund of input-services ITC from 1 Nov 2026, capital-goods ITC from 1 Apr 2027; return changes from the April 2027 return
These are recommendations. They become law only after CBIC notifications or CGST Act amendments; the current rules apply until then.
Source: PIB press release: 57th GST Council recommends: no arrest power, ₹5 crore prosecution threshold, ₹10,000 general penalty, faster refunds, wider ITC (opens in a new tab) · GST Council press release (PDF): 57th GST Council recommends: no arrest power, ₹5 crore prosecution threshold, ₹10,000 general penalty, faster refunds, wider ITC (opens in a new tab)
RBI raises repo rate by 25 bps to 5.50%; stance changed to calibrated tightening
Repo rate 5.50%, SDF 5.25%, MSF and Bank Rate 5.75%. FY 2026-27 projections: GDP growth 7.1%, CPI inflation 5.2%. The next MPC meeting is on 2–4 December 2026.
Who it affects: Clients with repo-linked home or business loans may see higher EMIs, and FD rates may rise. Plan cash flow accordingly.
Effective / due: Immediately
Two members preferred to keep the stance neutral.
Joint and Additional Commissioners (Appeals) placed under the jurisdictional Principal Chief / Chief Commissioner
A 1988 notification is amended so that Joint Commissioners (Appeals) and Additional Commissioners (Appeals) work under their jurisdictional Principal Chief Commissioner or Chief Commissioner.
Who it affects: An administrative change. It does not change how clients with pending first appeals file.
Effective / due: As per the notification
Posted on the Income Tax portal on 12 Oct 2026; the notification is dated 30 Sep 2026.
Source: Income Tax portal news: Joint and Additional Commissioners (Appeals) placed under the jurisdictional Principal Chief / Chief Commissioner (opens in a new tab) · TaxGuru weekly analysis: Joint and Additional Commissioners (Appeals) placed under the jurisdictional Principal Chief / Chief Commissioner (opens in a new tab) (news)
Tax audit report due date extended to 21 Oct 2026; ITR for audit cases to 21 Nov 2026 (AY 2026-27)
CBDT has extended the specified date for furnishing the tax audit report for AY 2026-27 from 30 September to 21 October 2026, and the return due date for these assessees from 31 October to 21 November 2026.
Who it affects: Companies, assessees liable to tax audit, and partners of such firms (including spouses covered by section 5A). Transfer-pricing cases (section 92E / Form 3CEB) are not covered.
Effective / due: Audit report: 21 Oct 2026 · ITR: 21 Nov 2026
Applies only to assessees in S. No. 2 of Explanation 2 to section 139(1) to whom section 92E does not apply.
Source: Income Tax portal news: Tax audit report due date extended to 21 Oct 2026; ITR for audit cases to 21 Nov 2026 (AY 2026-27) (opens in a new tab) · CBDT press release (PDF): Tax audit report due date extended to 21 Oct 2026; ITR for audit cases to 21 Nov 2026 (AY 2026-27) (opens in a new tab) · TaxGuru: Tax audit report due date extended to 21 Oct 2026; ITR for audit cases to 21 Nov 2026 (AY 2026-27) (opens in a new tab) (news)
TDS reporting on property bought from non-residents extended; Forms 132 and 141 revised
TDS reporting requirements on property transactions with non-residents are extended, and Forms 132 and 141 are revised.
Who it affects: Buyers purchasing property from a non-resident file the TDS challan-cum-statement in the revised forms.
Effective / due: As per the notification
Registration deadline for registered valuers and authorised income-tax practitioners extended to 31 Mar 2027
The registration deadline for registered valuers and authorised income-tax practitioners is extended to 31 March 2027, and revised Forms 169 and 171 are notified.
Who it affects: Registered valuers and authorised income-tax practitioners must complete registration before 31 March 2027.
Effective / due: 31 Mar 2027
Rules and forms notified for the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
CBDT has notified the rules and prescribed forms for the disclosure scheme for small taxpayers' foreign assets.
Who it affects: Clients with small undisclosed foreign assets or accounts, such as ESOPs or an overseas bank account, can check the scheme terms and disclose.
Effective / due: As per the scheme
See the notification for the scheme window and thresholds.
Checked against the official portals on . Items marked "Awaiting notification" are not law yet.
Goods & Services Tax (GST)
- GST 2.0 Since 22 September 2025, GST has two main rates, 5% and 18%, plus 40% for luxury and sin goods. The 12% and 28% slabs were removed (details on GST 2.0 (opens in a new tab)).
- E-invoicing Mandatory for businesses whose aggregate turnover in any year since 2017-18 exceeded ₹5 crore.
- Late fee GSTR-3B filed late attracts ₹50 per day (₹20 for nil returns) plus 18% per annum interest on unpaid tax.
- E-way bill Generally required to move goods worth more than ₹50,000; some states set their own limit for movement within the state.
- E-commerce Marketplaces collect TCS at 0.5% on net taxable sales made through them (since 10 July 2024); sellers can claim it in their cash ledger.
Source: CBIC (opens in a new tab) · GST portal (opens in a new tab)
Income Tax & TDS
- New Act The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Returns for FY 2025-26 still use the old section numbers; from tax year 2026-27, new numbers apply (e.g. 44AD/44ADA are now section 58).
- ITR dates From AY 2026-27, ITR-3 and ITR-4 without a tax audit are due by 31 August (ITR-1/ITR-2 stay at 31 July), and a filed return can be revised until 31 March (details on ITR dates (opens in a new tab)).
- Regime The new tax regime is the default. You can still choose the old regime, with deductions such as 80C, 80D and HRA, when you file.
- Presumptive Presumptive taxation (44AD/44ADA, now section 58) covers business turnover up to ₹3 crore and professional receipts up to ₹75 lakh, when cash receipts are no more than 5% of the total.
- Advance tax Pay 15%, 45%, 75% and 100% of your tax by 15 June, 15 September, 15 December and 15 March to avoid interest under sections 234B and 234C.
- MSME dues Under section 43B(h), payments to micro and small enterprises must be made within 45 days (15 days without a written agreement) to be deductible in that year.
- Late ITR Filing after the due date attracts a fee of up to ₹5,000 (₹1,000 if income is up to ₹5 lakh), and some losses can no longer be carried forward.
Corporate Affairs (MCA)
- Annual filing Companies file AOC-4 within 30 days and MGT-7/MGT-7A within 60 days of the AGM, which must be held by 30 September.
- Late fee Late ROC forms attract an additional fee of ₹100 per day, per form, and continued default can disqualify directors.
- Demat Private companies that are not small companies must issue and transfer shares only in dematerialised form.
- Director KYC Since 31 March 2026, directors file DIR-3 KYC Web once every three financial years, by 30 June. Changes to phone, email or address must still be reported within 30 days. A DIN is deactivated if KYC is missed (details on Director KYC (opens in a new tab)).
Last reviewed by our team: 16 October 2026. Rules change often, so this summary is general information, not advice for your case. Ask us before you act on it.