Important Information & Documents for CA-CS & Tax Professions

Mandatory Levy of Service Charge by Restaurants Violates Consumer Law: CCPA Automatic Addition of Service Charge Declared Unfair Trade Practice Penalties imposed up to ₹50,000; restaurants directed to refund service charge and modify billing systems Action triggered by consumer complaints on National Consumer Helpline (NCH) supported by invoices

Limits Under GST 1. GST Registration Limit: ➡️For Goods - ₹40 lakh ➡️For Services/Both – ₹20 lakh ➡️G/S/B -Special Category States 1 - ₹10 lakh) ➡️G/S/B - Special Category States 2 - ₹20 lakh 2. Composition Scheme Limits: ➡️Traders / Manufacturers (Goods) - ₹1.5 crore (Special Category States - ₹ 75 Lakh) ➡️Service Providers (Sec 10(2A)) - ₹50 lakh ➡️Restaurants (no alcohol) - ₹1.5 crore 3. GST Returns – Turnover Based Limits ➡️Composition Scheme - ₹1.5 crore/ ₹75 Lakh ➡️Quarterly return (QRMP Scheme) - Up to ₹5 crore. ➡️Annual Return (GSTR-9) mandatory - Above ₹2 cr ➡️Annual Return optional - Up to ₹2 crore ➡️GST Audit (GSTR-9C) - Above ₹5 crore 4. E-Invoicing Limits (Turnover in any FY) ➡️Mandatory e-invoicing - ₹5 crore & above 5. E-Way Bill Limits: ➡️Mandatory e-way bill - Consignment > ₹50,000 ➡️Optional e-way bill - Up to ₹50,000 6. GST Penalty/ Late fee Limits : ➡️General penalty of up to ₹50,000 (IGST) ➡️GSTR-3B/1 : 🔸₹50/day (Max - ₹10,000) 🔸₹20/day Nil return (Max - ₹ 500) ➡️GSTR - 4 : 🔸₹50/day (Max - ₹2000) 🔸₹20/day Nil return (Max - ₹ 500) ➡️GSTR-9 & 9C: 🔸₹200 per day, capped at Total 0.5% of turnover 7. Prosecution Limit: ➡️Prosecution applicable - Tax evasion > ₹5 crore ➡️Arrest threshold - ₹2 crore & above (specified offences) 8. Appeal Pre-deposit Limits: ➡️1ST Appeal- 10% of disputed tax (max ₹40 crore) ➡️2nd appeal - 20% (max ₹50 crore) 9. TCS / TDS Limits Under GST: ➡️TDS applicable contract value - Above ₹2.5 lakh ➡️TDS rate - 2% (1% CGST + 1% SGST) ➡️TCS by ECO - 1%

A new rule has been inserted in the Income Tax Rules, 2026, which was not present in the earlier Income Tax Rules, 1962. Rule 166 i.e. Conditions for treating a return as defective return under section 263(7) of the Act ..

Draft Income-tax Rules, 2026 Link https://incometaxindia.gov.in/Documents/draft-income-tax-rules/draft-Income-tax-Rules-2026.pdf NAVIGATOR – INCOME-TAX FORMS - https://incometaxindia.gov.in/Documents/draft-income-tax-rules/navigator-Income-tax-Forms-2026.pdf Note – Draft Income-tax Rules & Forms, 2026 https://incometaxindia.gov.in/Documents/draft-income-tax-rules/note-Draft-Income-tax-Rules-and-Forms-2026.pdf

#Budget2026 Highlights - 🧾 New Income Tax Act, 2025 effective from 1 April 2026 - 🗂 Simpler income tax forms to be notified soon Revised ITR Filing Timelines - 📄 ITR-1 & ITR-2: Due date 31 July - 🏢 Non-audit business & trusts: Due date 31 August - 🔁 Revised return filing allowed up to 31 March with nominal fee Foreign Income & Asset Disclosure - 🕕 One-time 6-month foreign asset disclosure scheme - 👨‍🎓 Applicable to small taxpayers, students & NRIs - 🛡 Disclosure with immunity, subject to conditions International Taxation & Incentives - 🌐 Tax holiday till 2047 for foreign companies providing cloud services in India - 📉 MAT exemption for non-residents opting for presumptive taxation TCS Rationalisation - 🧳 TCS on overseas tour packages reduced from 5%/20% to 2%, no limit - 🏥 TCS on medical & education remittances reduced from 5% to 2% TDS & Withholding Tax Changes - 🧑‍💼 TDS on property purchase from NRIs using PAN instead of TAN - 👷 Supply of manpower services under Section 194C Exemptions & Relief Measures - 🚗 MACT interest income exempt from tax for natural persons - ❌ No TDS on MACT interest - 🌾 Co-operative sector dividend income exempt, subject to conditions Compliance Simplification - ⏳ Safe harbour applications valid for 5 years - 📘 Definition of “accountant” rationalised - 🧾 Late Tax Audit Report submission treated as Late Fees Capital Markets - 📊 STT on Futures: 0.02% → 0.05% - 📊 STT on Option Premiums: 0.10% → 0.15% - 📊 STT on Option Exercise: 0.125% → 0.15% Customs & Trade Facilitation - 👟 Increased duty-free goods limit for inputs, leather & synthetic footwear Penalty Provisions - 🚨 Misreporting income attracts 100% penalty of tax amount - 🛡 Immunity schemes expanded to cover specified cases

List of Some Important Sections of Old Income Tax Act,1961 and Section Number of the Same of New Income Tax Act, 2025

🌟 Interesting Fact About Investing in PPF! 🌟 💡 Do you know? PPF gives interest only on the amount deposited before the 5th of every month! If you deposit after the 5th, that month’s interest ❌ won't be counted. 📜 As per Rule 7(2) of the Public Provident Fund Scheme, 2019: Interest is calculated on the lowest balance between the 5th and the end of the month. 🎯 Smart Tip: To maximize your PPF returns, always invest on or before the 5th every month!

Income Tax Rates for A.Y. 2026-27 for Individuals

ICAI has decided to extend the last date for complying with the CPE hours’ requirements for the Calendar Year 2025 *from 31st December 2025 to 31st March, 2026* This extension is being granted for the benefit of members at large and to avoid any hardship due to non-compliance with the prescribed requirements.

Removal of annual DIR-3 KYC 👍 Earlier: ✔️ DIR-3-KYC or DIR-3-KYC-WEB ✔️ Annual filing every year Now (w.e.f. 31-03-2026): 🔹 Filing once every 3 years (by 30 June) 🔹 Mandatory update within 30 days of any change A welcome rationalisation. ✔️

SIP Date Matters – Early SIP Gives More Units Most people keep SIP on the 10th, 15th, or 25th. But markets are usually more volatile (and often lower) at the start of the month. 👉 Keeping SIP date between 1st–5th generally gives more units over long term. Not guaranteed, but historically beneficial.

Taxmann's MSME Ready Reckoner – Concise | One-stop Reference on Revised MSME Classifications | Section 43B(H) Compliance | Practical Tools—Spanning Udyam Registration | Tax Benefits https://amzn.to/4qzDlef

Gold 100 years journey

INCOME TAX DEPARTMENT CRACKS DOWN ON TAXPAYERS CLAIMING REFUNDS AGAINST DONATIONS TO FAKE POLITICAL PARTIES AND CHARITIES

ICAI Convocation December - 2025: The next ICAI Convocation will be held at the following Cities as per date mentioned, for Members enrolled from 16th July, 2025 to 30th November, 2025. They will be awarded Certificate of Membership/COP in the Convocation. Rank Holders of CA Final Examination held in September 2025 will also be felicitated with the Rank Certificates.

Important announcement! NSE releases the full list of trading holidays for 2026 - here’s the official circular.

ITC in Table 8C: Net of Reversals or Gross Availment? Let’s Settle This! What should be reported in Table 8C of GSTR-9? Net ITC after reversals, or only the ITC availed in the next FY? Remember: ITC for any FY can be availed up to 30 Nov of the next FY, subject to Section 16 (most importantly, its appearance in GSTR-2B.) You may also reverse some of these upto 30 Nov if it is ineligible under Section 17. This results in a net effect (Availed – Reversed). But Table 8C is NOT meant to capture this net figure. Why? Because Table 8A (GSTR-2A data) is gross ITC without reversals. So to reconcile excess/short availment, Table 8C must show only the gross ITC availed in the next FY and NOT adjusted post reversals. 📌 Conclusion: Table 8C = Only ITC availed in the next FY (Gross). Reversals are NOT reduced here. TheGSTLedger