New Rules from 1 September 2026: Key Updates on ITR, Tax, GST and Banking
From 1 September 2026, several important developments will affect taxpayers, bank customers, and businesses. However, it would not be technically correct to say that every change is a “new law effective from 1 September.” Some are consequences arising after the 31 August deadline, while others are important regulatory developments scheduled during September. Certain banking-related changes may also vary from one bank to another.
Therefore, this article explains the key changes and developments that taxpayers, businesses, and bank customers should be aware of from 1 September 2026 onwards, particularly:
- ITR filing after 31 August
- Filing of Belated ITR
- New timeline for Revised ITR
- 57th GST Council Meeting
- ATM withdrawal charges
- Possible changes in bank-specific charges
- New security features and alphanumeric codes in cheque books
- Important tax compliance deadlines in September
ITR Filing: 31 August Deadline Has Ended
One of the most significant developments concerns Income Tax Return filing.
For AY 2026-27, the applicable due date for non-audit taxpayers to file their ITR was 31 August 2026. Therefore, after 31 August, the normal deadline for filing an original return under Section 139(1) has expired.
The Income Tax Department has also clarified that 31 August 2026 was the applicable due date for non-audit taxpayers for AY 2026-27.
Accordingly, if an eligible taxpayer files an ITR on or after 1 September 2026, it will generally be treated as a Belated Return.
Which ITR Can Be Filed After 1 September?
Missing the 31 August deadline does not mean that taxpayers can no longer file their ITR.
Taxpayers who failed to submit their original return by 31 August can still file a Belated Return, subject to the applicable provisions.
For AY 2026-27:
Last Date for Filing Belated ITR: 31 December 2026
As per the Income Tax Department, a belated return for AY 2026-27 can be filed up to 31 December 2026, subject to the earlier completion of assessment.
However, filing a belated return may attract the applicable late filing fee:
- Total income up to ₹5 lakh → ₹1,000
- Total income above ₹5 lakh → ₹5,000
In addition, interest on outstanding tax liability may also apply wherever applicable.
Therefore, the key takeaway from 1 September is:
ITR filing does not stop after 31 August. However, returns filed after the deadline will generally be treated as Belated Returns, and applicable late filing fees may be payable.
Major Change in the Revised ITR Filing Timeline
There is an important change regarding Revised Income Tax Returns for AY 2026-27.
If you have already filed your ITR within the prescribed time and later discover any issue, such as:
- Income was not reported;
- An incorrect deduction was claimed;
- Bank interest was missed;
- There was an error in reporting capital gains;
- A TDS mismatch was noticed;
- Incorrect information was entered;
you can generally file a Revised Return to correct the details.
The timeline for filing a revised return has also been extended compared with the earlier framework.
New Last Dates for Revised ITR
31 December 2026
If the Revised ITR is filed on or before 31 December 2026, the return can be filed within this extended timeline without the additional fee prescribed under Section 234I.
31 March 2027
A Revised ITR can also be filed between 1 January 2027 and 31 March 2027. However, in such cases, the additional fee prescribed under Section 234I will apply.
The Income Tax Department’s current FAQs specifically confirm that for AY 2026-27, a revised return can be filed up to 31 March 2027, subject to completion of assessment. A revised return filed after 31 December 2026 will attract the applicable Section 234I fee.
In Simple Terms:
Type of ITR Last Date Consequence Original ITR – Non-Audit 31 Aug 2026 Normal due date has expired Belated ITR 31 Dec 2026 Late filing fee + applicable interest Revised ITR 31 Dec 2026 No Section 234I additional fee Revised ITR after 31 Dec 31 Mar 2027 Section 234I additional fee applicable Therefore, if you have already filed your ITR but later realize that there is an error or omission, filing the revised return before 31 December 2026 may be financially more beneficial.
Important Difference Between Belated and Revised ITR
Taxpayers should clearly understand the difference between these two types of returns.
Belated Return
If the original ITR was not filed within the applicable due date:
31 August deadline missed → Belated ITR
Revised Return
If the ITR has already been filed and an error is discovered later:
ITR already filed → Revised ITR
Therefore, a taxpayer who did not file the ITR by 31 August 2026 will generally need to file a Belated Return.
On the other hand, a taxpayer who filed the ITR on or before 31 August 2026 but later discovers an error can generally file a Revised Return to correct it.
57th GST Council Meeting: Major Meeting Scheduled for 12 September
September brings an important development for GST taxpayers and businesses.
The 57th GST Council Meeting is scheduled to take place in New Delhi on 12 September 2026.
According to the official memorandum issued by the GST Council Secretariat:
57th GST Council Meeting
Date: 12 September 2026
Time: 11:00 AM onwardsA meeting of GST officers will also be held one day earlier:
Officers’ Meeting
Date: 11 September 2026
Time: 11:00 AM onwardsThis GST Council meeting is being held after a gap of more than a year since the previous Council meeting.
ATM Cash Withdrawal Charges
Now let us look at an important development concerning the banking sector.
Under the RBI’s existing framework, customers are entitled to a certain number of free ATM transactions every month.
At the customer’s own bank’s ATM, the general framework provides for:
5 Free Transactions
At another bank’s ATM:
Metro Cities — 3 Free Transactions
Non-Metro Cities — 5 Free Transactions
Once the free transaction limit is exhausted, banks may charge up to ₹23 per transaction, along with applicable taxes.
Are All Banks Increasing ATM Charges from 1 September?
No.
This distinction is very important.
The RBI specifies the maximum permissible charges, while individual banks determine their actual applicable fee structure within the regulatory framework.
Therefore:
ATM charges can differ depending on the bank and the type of account.
For example, certain banks may have separate charges for:
- Additional ATM transactions;
- Non-financial ATM transactions;
- Cash withdrawals;
- Balance enquiries.
Customers should therefore check their bank’s latest Schedule of Charges to understand the applicable fees during September.
Important Point
It would be incorrect to assume that ₹23 is a fixed charge for every ATM transaction.
The ₹23 amount relates to the applicable maximum customer charge after the prescribed free transaction limit has been exceeded, subject to the RBI framework.
ATM Transaction Failed but Money Was Debited?
This is another important protection available to bank customers.
If an ATM transaction fails and:
- Money is debited from the bank account; but
- Cash is not dispensed by the ATM,
the bank is required to reverse the amount within the prescribed timeline.
Under the RBI framework, failed ATM transactions have an outer reversal timeline of T+5 calendar days.
If the amount is not reversed beyond this prescribed period, a compensation of ₹100 per day is applicable.
Therefore, if an ATM transaction fails, customers should not simply wait for the refund.
Keep records such as:
Bank statement + ATM receipt + Complaint Number
New Alpha-Numeric Security Code May Be Introduced in Cheque Books
Cheque users may also see an important development going forward from September.
Several banks are introducing additional security features in cheque leaves to strengthen cheque security and reduce the risk of cheque fraud.
One such feature is the Alpha-Numeric Code.
An alpha-numeric code means that, instead of using numbers alone, a combination of letters and numbers may be printed on the cheque leaf.
The primary objective is to strengthen cheque authentication and help prevent fraudulent cheque transactions.
For example, policy documents of Bank of India mention the Alphanumeric Code as an enhanced security feature, and the bank has introduced it in its new-series cheque books.
Will All Old Cheque Books Become Invalid After 31 December 2026?
Customers should be cautious about such claims circulating on social media.
Some banks have issued communications asking customers to adopt new-series cheque books with enhanced security features.
However, it would be incorrect to claim that:
“The RBI has made all old cheque books across India automatically invalid after 31 December 2026.”
Requirements for replacing an existing cheque book may depend on the specific instructions issued by the respective bank.
Therefore, if your bank asks you to:
- Obtain a new cheque book;
- Replace your existing cheque series;
- Use a newly introduced alphanumeric security code;
you should follow the bank’s instructions.
Customers who frequently use cheques for high-value transactions should especially verify the validity of their cheque book and any applicable security requirements.
The RBI’s Cheque Truncation System (CTS) framework has also continued to focus on cheque security, standardisation, and prevention of cheque-related fraud.
Second Advance Tax Instalment Due in September
September is important not only for banking and ITR matters but also for Income Tax compliance.
For taxpayers covered by the advance tax provisions, 15 September 2026 is an important due date for the second instalment of Advance Tax.
Generally, cumulative advance tax payments are scheduled as follows:
15 June → 15%
15 September → 45%
15 December → 75%
15 March → 100%
These percentages are subject to the applicable provisions and taxpayer circumstances.
Therefore, taxpayers who are liable to pay advance tax should review their estimated income, tax liability, and payments already made before the September deadline.
GST Compliance Also Remains Important in September
September is also an important month for GST taxpayers because of various regular compliance deadlines.
Monthly filers should keep track of the applicable due dates for August 2026 transactions, including returns and tax payments.
Important GST compliances may include:
- GSTR-1
- GSTR-3B
- GSTR-7
- GSTR-8
- GSTR-5
- GSTR-6
- QRMP-related payments
Taxpayers should verify the applicable due dates based on their registration type and filing frequency.
Moreover, the 12 September GST Council Meeting makes September 2026 particularly significant from the perspective of GST policy developments.
Another Important Income Tax Deadline in September
September is also significant for taxpayers covered by tax audit requirements.
For applicable tax audit cases for AY 2026-27, the Tax Audit Report is due by 30 September 2026, while the corresponding ITR filing deadline may fall later depending on the applicable category.
The Income Tax Department has also clarified the tax audit report timeline for AY 2026-27.
Therefore, audit taxpayers should not assume:
“The ITR due date is in October, so there is no compliance required in September.”
The Tax Audit Report must be submitted first, within the prescribed timeline.
MCA DIR-3 KYC: No Longer an Annual Requirement
The MCA has provided an important compliance relief for company directors.
Earlier, DIN holders generally had to complete DIR-3 KYC compliance every year.
However, the MCA has amended the Companies (Appointment and Qualification of Directors) Rules and changed the annual KYC requirement.
DIR-3 KYC Is No Longer Required Every Year
Under the revised system, DIR-3 KYC Web is required once in every three consecutive financial years.
This change became effective from 31 March 2026.
Therefore, directors should understand an important point in September 2026:
DIR-3 KYC is no longer an annual compliance requirement.
However, There Is an Important Condition
If there is any change in the Director’s:
- Mobile Number
- Email Address
- Residential Address
the updated details must be reported through DIR-3 KYC Web within 30 days, along with the applicable fee.
Therefore, directors should ensure that their contact and residential details remain updated in the MCA records.
Therefore, do not assume that no MCA KYC update is required for the next three years.
Example
Suppose a director was allotted a DIN during FY 2025-26.
In that case, the director’s three-year KYC cycle will begin from that financial year, and the applicable DIR-3 KYC Web filing will be required in the third consecutive financial year.
For directors who had already completed their KYC by FY 2025-26, the MCA indicates that their next KYC filing cycle would generally be due by 30 June 2028.
Another Important Point
If there is any change in the director’s:
Mobile Number / Email Address / Residential Address
there is no need to wait for the three-year KYC cycle.
Such changes must be updated within the prescribed period as applicable.
Therefore, in September 2026, directors should review their:
DIN + KYC Status + Mobile Number + Email Address + Residential Address
to ensure that all details are accurate and up to date.
Companies Compliance Facilitation Scheme 2026
According to the recent update, the window for the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) has been extended up to 15 September 2026.
The scheme provides eligible companies with an opportunity to regularise pending statutory filings, subject to the applicable terms and conditions.
This can be particularly useful for companies that have outstanding or delayed MCA filings.
September MCA Compliance Checklist
For Directors:
- Check the DIR-3 KYC cycle
- Update any changes in mobile number, email address, or residential address
For Companies:
- Review pending MCA forms
- Check eligibility under CCFS-2026
- Ensure the 15 September deadline is not missed, wherever applicable
Major Opportunity for Small Taxpayers with Foreign Assets — FAST-DS 2026
The Government has introduced the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS).
It is a one-time voluntary disclosure opportunity that allows eligible taxpayers to declare specified foreign assets or foreign income that may not have been disclosed earlier, subject to the prescribed conditions.
Most importantly:
On 1 September 2026, the Income Tax Department enabled FAST-DS Form 1 for online filing.
This makes FAST-DS an important Income Tax development associated with 1 September 2026.
Who May Benefit from FAST-DS?
The scheme may be relevant for eligible taxpayers who hold certain specified foreign assets or foreign income that were not properly disclosed earlier.
Some examples include:
1. Foreign Bank Account
An individual may have opened a bank account abroad while studying or working overseas and later returned to India, but the account was not properly disclosed.
2. Foreign Shares / ESOP / RSU
An employee may have received:
- ESOPs
- RSUs
- Shares
- Other securities
from a foreign company, but the required foreign asset disclosure may have been missed.
3. Foreign Insurance
A person may hold a foreign insurance policy or a cash-value insurance contract that was omitted from the required disclosure.
4. Foreign Property
A taxpayer may own property or another specified asset outside India that was not disclosed as required.
5. Foreign Income
Income earned from a foreign source may not have been appropriately reported for Indian tax purposes.
The Income Tax Department’s FAQs specifically refer to situations such as MNC employees holding foreign ESOPs/RSUs, former students with dormant overseas bank accounts, and returning non-residents as examples of potentially relevant cases.
What Is the Value Limit Under FAST-DS?
An important distinction needs to be understood here.
Broadly, the scheme provides for two categories.
Category A
Where the combined value of specified undisclosed foreign income/assets is up to ₹1 crore, the prescribed scheme mechanism may apply.
Under this category, the prescribed amount is calculated at 60% of the relevant value, subject to the applicable provisions.
Category B
For certain specified foreign assets or income having a value of up to ₹5 crore, a separate mechanism applies. Subject to the prescribed conditions, there is a provision for a ₹1 lakh fee.
FAST-DS Last Date
This is one of the most important dates to remember:
31 December 2026
The last date for submitting a declaration under the scheme is 31 December 2026.
Therefore, eligible taxpayers have a limited window beginning in September 2026 to evaluate their position and take appropriate action.
What Should Foreign Asset Holders Do?
If you have any of the following:
- Foreign Bank Account
- Foreign Shares
- ESOPs / RSUs
- Foreign Property
- Foreign Insurance
- Foreign Investments
- Foreign Income
and believe that a previous disclosure may have been missed or incomplete, the matter should not be ignored.
The first step should be to determine:
Am I eligible for FAST-DS?
If you are eligible, then carefully evaluate:
Value + Source + Applicable Category + Tax/Fee + Supporting Documentation
before making the disclosure.
Important: A Foreign Asset Is Not Limited to a Foreign Bank Account
A foreign asset does not simply mean a bank account maintained outside India.
Foreign shares, securities, ESOPs, RSUs, insurance policies, overseas property, investments, and other specified foreign assets may also be relevant depending on the applicable disclosure requirements.
Therefore, taxpayers should review their complete overseas asset and income position rather than checking only for foreign bank accounts.
Taxpayers often assume:
“I do not have a foreign bank account, so I do not need to worry about Schedule FA.”
However, this assumption may not always be correct.
Depending on the circumstances, foreign assets may include:
- Foreign bank accounts
- Foreign custodial accounts
- Foreign equity or debt interests
- Foreign financial interests
- Immovable property located outside India
- Foreign insurance or cash-value policies
- Interests in foreign trusts
- Foreign accounts for which the taxpayer has signing authority
- Other specified foreign assets
The Income Tax Department also covers several categories within the scope of foreign asset disclosure.
FAST-DS and Foreign Asset Disclosure in ITR — Understand Both Separately
This distinction is also important for taxpayers.
FAST-DS is a special one-time disclosure scheme.
On the other hand, under the regular ITR filing framework, eligible resident taxpayers are required to disclose applicable foreign assets and foreign income through the prescribed schedules.
According to the Income Tax Department, Schedule FA, Schedule FSI, and Schedule TR are associated with the disclosure of foreign assets and foreign income. These schedules are not available in ITR-1 and ITR-4.
Therefore, taxpayers holding foreign assets should not consider only:
“Is my income taxable?”
They should also ask:
“Do I have any foreign assets or foreign income, and am I required to disclose them?”
🚨 1 September 2026 — Major Tax Update
The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) 2026 – Form 1 has become available for filing through the Income Tax e-Filing Portal.
Eligible taxpayers can disclose specified undisclosed foreign assets or income subject to the prescribed conditions.
Last Date: 31 December 2026
Important SFT Reporting Thresholds
The following transactions may be reportable under the Statement of Financial Transactions (SFT) framework once the specified thresholds are reached:
S. No. Transaction SFT Reporting Threshold 1 Cash payment for purchasing a bank draft, pay order, or banker’s cheque ₹10 lakh or more in a financial year (with PAN); ₹5 lakh or more (without PAN) 2 Cash deposits in savings or other accounts, excluding current accounts and time deposits ₹10 lakh or more in a financial year (with PAN); ₹5 lakh or more (without PAN) 3 Time deposits, excluding renewal of another time deposit ₹10 lakh or more in a financial year 4 Credit card bill payments ₹1 lakh or more in cash OR ₹10 lakh or more through other modes in a financial year 5 Purchase of bonds or debentures ₹10 lakh or more in a financial year 6 Purchase of shares or payment towards share application money ₹10 lakh or more in a financial year 7 Buy-back of shares, other than purchases through the open market ₹10 lakh or more in a financial year 8 Sale or purchase of foreign currency, forex cards, etc. ₹10 lakh or more with PAN; ₹5 lakh or more without PAN 9 Purchase, sale, gift, or Joint Development Agreement (JDA) involving immovable property ₹45 lakh or more, or stamp duty value of ₹45 lakh or more 10 Purchase of stamp paper ₹2 lakh or more in a single transaction with PAN; ₹1 lakh or more without PAN 11 Payment of insurance premiums ₹5 lakh or more in a financial year with PAN; ₹2.5 lakh or more without PAN 12 Cash receipts from the sale of goods or services by a specified person liable to tax audit More than ₹2 lakh Disclaimer
The proposed or expected changes discussed in relation to the GST Council should not be treated as final GST law unless officially notified. Before taking any action relating to tax, GST, or banking transactions, taxpayers and businesses should verify the relevant official notification, circular, and applicable instructions issued by their bank.
