📰 8th Pay Commission Expected to Take Effect from January 1 — But Will It Boost Your Salary?

A major development has brought cheer to around 50 lakh central government employees and 69 lakh pensioners — the Central Government has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), officially setting in motion the next major pay and pension revision.

The commission, headed by former Supreme Court judge Justice Ranjana Prakash Desai, is tasked with submitting its report within 18 months, and its recommendations are likely to be implemented from January 1, 2026.

Announcing the move, Union Minister Ashwini Vaishnaw said, “The exact date of implementation will be finalized after receiving the interim report, but it is most likely to be January 1, 2026.”

The announcement — just ahead of the Bihar assembly elections on November 6 and 11 — has drawn significant attention, given its direct impact on millions of government employees and pensioners nationwide.

📘 What Are the Terms of Reference (ToR)?

The Terms of Reference (ToR) act as the guidelines or framework that define the commission’s duties, scope, and deadlines. They specify what the panel will study, which data it should evaluate, and by when it must submit its findings.

For the 8th CPC, the ToR have been finalized after detailed consultations with multiple stakeholders — including ministries, state governments, and staff associations.

🔍 Key Focus Areas of the 8th Pay Commission

As per reports, the 8th CPC will examine several factors to ensure a fair and sustainable pay structure. The main focus points include:

• Assessing the current economic situation and maintaining fiscal prudence.

• Ensuring enough resources remain available for development and welfare programs.

• Reviewing the cost implications of pension schemes.

• Evaluating how the pay revisions might affect state government finances, since many states adopt the Centre’s recommendations.

• Comparing the pay, perks, and working conditions of central employees with those in public sector undertakings and private companies.

The commission’s primary goal is to balance fair compensation for employees with the government’s financial sustainability.

👥 Who’s on the 8th Pay Commission Panel?

The commission is chaired by Justice Ranjana Prakash Desai, with IIM Bangalore professor Pulak Ghosh as part-time member and Petroleum Secretary Pankaj Jain serving as member secretary.

Justice Desai, who also heads the Press Council of India, has led several national panels — including the Delimitation Commission for Jammu & Kashmir and the Uttarakhand Uniform Civil Code (UCC) committee.

🗓️ Timeline and What to Expect

If the process follows the usual pattern, the revised pay scales will be applicable from January 1, 2026, after the final recommendations are approved — continuing the decade-long cycle seen since the First Pay Commission.

For context, the 7th Pay Commission was constituted in 2014 and came into effect from January 1, 2016.

Until the new structure is implemented, employees will continue to receive Dearness Allowance (DA) revisions twice a year to help offset inflation.

💰 What It Means for Employees and Pensioners

The 8th Pay Commission is expected to bring:

• Higher basic salaries and revised allowances

• Increased pensions for retirees

• Upgraded benefits and revised pay structures

It will likely influence state government pay revisions as well, since most states typically align their pay scales with the Centre’s.

While the exact salary increase will only be known once the report is submitted, the approval of the ToR confirms that the long-awaited process for the next pay revision cycle has officially begun.

🚨 GSTN Update: Extension Granted for Filing Overdue GST Returns

🆕 Late Filing Restrictions to Take Effect from November 2025
📅 Announcement Date: 29th October 2025
📢 Issued By: Goods and Services Tax Network (GSTN)

Auditor’s Opinion on Financial Statements: ICAI Releases Detailed FAQs and Guidance

Important Tax & Compliance Amendments from 1st November 2025 – GST, Income Tax, PAN, and Aadhaar

(Applicable to GST, Income Tax, PAN–Aadhaar, and Banking Compliance)

Starting 1st November 2025, several important regulatory and procedural updates will take effect across GST, Income Tax, Aadhaar–PAN, and Banking regulations.
These changes are designed to streamline compliance, enhance digital verification, and promote greater transparency within the tax and financial ecosystem.

Let’s take a closer look at the major updates coming into force from this date.

🧾 GST Overhaul: Important Changes Taking Effect from 1st November 2025

1️⃣ New Simplified GST Registration for Small & Low-Risk Businesses

A new simplified GST registration framework will roll out on 1st November 2025, aimed at easing the compliance burden and speeding up the onboarding process for small and low-risk taxpayers.

What’s New:

• Instant approval: Applications from low-risk businesses will be automatically processed within three working days.

• Who can apply: Businesses whose output tax on B2B supplies is below ₹2.5 lakh per month (inclusive of all GST components) can register under this scheme.

• Flexible participation: Taxpayers can join or exit the scheme anytime without restrictions.

• Around 96% of new GST applicants are expected to qualify for this faster, paperless process.

Why It Matters:
The move is set to reduce bureaucracy and manual checks, enabling startups, freelancers, and small enterprises to get GST registration swiftly and focus more on business growth than compliance delays.

2️⃣ Smart Refund System for Zero-Rated Supplies (Based on Risk Profiling)

Starting 1st November 2025, exporters and SEZ suppliers can look forward to faster GST refunds under a newly introduced risk-based provisional refund mechanism. The move is aimed at improving liquidity and reducing refund delays while keeping a close eye on compliance risks.

Here’s How It Works:

• Under the revised Rule 91(2) of the CGST Rules, up to 90% of the refund amount will be released provisionally after a system-driven risk check.

• Refunds will only be held back in exceptional cases where a deeper review is needed.

• The government may notify certain high-risk categories that won’t qualify for this automatic process.

Why It Matters:
This update promises a smoother refund experience for exporters and SEZ units — helping them maintain better cash flow and focus on business operations, while the system continues to ensure data-backed risk monitoring.

3️⃣ Faster Refunds for Inverted Duty Structure (IDS) Cases

To provide relief to manufacturers and traders struggling with input tax credit accumulation, the government is introducing provisional refunds for cases under the Inverted Duty Structure (IDS) — a long-awaited reform effective from 1st November 2025.

What’s Changing:

• The CBIC will soon issue instructions allowing 90% of eligible refunds to be released provisionally, based on a risk assessment framework.

• This new process will operate similarly to the zero-rated refund mechanism, ensuring faster processing and reduced delays.

• A formal amendment to the CGST Act is expected to follow, solidifying the provision.

Why It Matters:
This change will bring much-needed cash flow support to manufacturers and sectors where input taxes outweigh output liability, helping them manage liquidity better and ease working capital pressure

4️⃣ Three-Year Deadline Introduced for Filing Pending GST Returns

Beginning 1st November 2025, taxpayers will face a strict three-year time limit for filing any pending GST returns. This change, introduced through the Finance Act, 2023 and implemented via Notification No. 28/2023, aims to bring more discipline and finality to GST compliance.

What’s Changing:
After three years from the original due date, taxpayers will no longer be able to file or revise the following GST returns on the portal:

• GSTR-1, IFF – Outward supplies

• GSTR-3B – Summary return

• GSTR-4 – For composition taxpayers

• GSTR-5 / 5A – For non-residents and OIDAR services

• GSTR-6 – Input Service Distributors

• GSTR-7 / 8 – TDS/TCS returns

• GSTR-9 & 9C – Annual return and reconciliation statement

Example:
If a return for September 2022 (or any earlier period) is still unfiled, it cannot be submitted after 1st November 2025.

Why It Matters:
Businesses with old or pending filings should immediately reconcile records and complete submissions before the deadline. Missing this window could result in permanent blocking of return filing and potential non-compliance issues.

5️⃣ New “Pending” Option for Credit Notes in the GST Invoice Management System (IMS)

To make GST reconciliation smoother and minimize supplier–recipient disputes, a new “Pending” status has been added to the Invoice Management System (IMS) on the GST portal.

What’s New:

• Taxpayers can now mark Credit Notes as “Pending” for a specific tax period, giving them more flexibility in managing input tax credit (ITC) reversals.

• Once the credit note is accepted, taxpayers can update or revise the ITC reversal accordingly.

• This update is designed to reduce timing mismatches and disagreements between buyers and suppliers during return filing.

Why It Matters:
The new option gives businesses greater control and transparency over how credit notes and ITC adjustments are handled — resulting in fewer reconciliation errors and smoother compliance management.

6️⃣ Annual GST Return (GSTR-9 & 9C) Enabled for FY 2024–25

The GST portal has now activated GSTR-9 and GSTR-9C filing for the financial year 2024–25. Taxpayers can begin preparing their annual returns and reconciliation statements for submission.

Key Details:

• Forms Enabled: GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement)

• Due Date: 30th November 2025 — also the final date to claim Input Tax Credit (ITC) for FY 2024–25.

Why It Matters:
Businesses should start reconciling purchase data, invoices, and ITC records early to ensure accurate filing. Submitting before the deadline helps avoid ITC loss and ensures error-free compliance for the year.

💼 Key Income Tax & Corporate Compliance Deadlines Ahead

Although no fresh Income Tax amendments take effect from 1st November 2025, this period continues to be a crucial compliance window for taxpayers, businesses, and corporate entities. Multiple statutory filings and reporting obligations converge during the last quarter of the calendar year.

Important Upcoming Deadlines:

• 📅 31st October 2025 –
  • Submission of Tax Audit Reports (Form 3CA/3CB–3CD)
  • Income Tax Returns for companies and audited taxpayers (including partners of audited firms)
  • TDS Returns for Quarter 2 (July–September 2025)
  • Director KYC through DIR-3 KYC / DIR-3 KYC-WEB

• 📆 30th November 2025 – Filing of Transfer Pricing Report (Form 3CEB)

• 💸 15th December 2025 – Payment of the third instalment of Advance Tax

• 🧾 31st December 2025 – MCA Annual Filings – AOC-4 and MGT-7/7A for submission of financial statements and annual returns

Takeaway:
As this period overlaps with GST rule changes and digital compliance reforms, businesses should coordinate tax audits, TDS submissions, and ROC filings in advance. Maintaining consistency across Income Tax, GST, and MCA disclosures helps avoid mismatches, penalties, and last-minute stress.

🪪 Updates on Aadhaar, PAN, and KYC Compliance

As regulatory bodies move toward stronger digital identity verification, several new updates related to Aadhaar, PAN, and KYC procedures will shape compliance practices in the coming months.

📘 Aadhaar Policy Changes

The UIDAI has introduced a refreshed policy for updating Aadhaar information to maintain the accuracy of demographic and biometric data:

• Individuals are now advised to review and update their Aadhaar details every 10 years to ensure their information stays current.

• Both biometric and demographic corrections can be made periodically through authorized service centers.

• Children’s Aadhaar records can be updated free of charge when they reach the ages of 5 and 15.

🧾 PAN–Aadhaar Integration

• The deadline to link PAN with Aadhaar has been set for 31st December 2025.

• Any PAN left unlinked after the cut-off will be temporarily deactivated, restricting access to ITR filing, banking, and investment transactions until the linkage is completed.

💳 KYC Framework Enhancements

• Financial institutions have been directed to implement live Aadhaar-based KYC authentication for faster and more secure identity validation.

• High-value accounts will undergo stricter and more frequent verification cycles to help detect and prevent financial irregularities.

In Short:
Keeping your Aadhaar, PAN, and KYC records up to date is now more critical than ever — delays or mismatches can disrupt essential banking and tax-related activities.

🏦 Upcoming Banking Regulation Updates – Effective Around November 2025

The banking sector is set to roll out a series of compliance and verification updates aimed at improving transparency, reducing fraud, and strengthening digital security.

💰 Stricter Monitoring of High-Value Transactions

Banks will now conduct enhanced checks on large cash and digital transactions, ensuring that every high-value payment or deposit is verified through Aadhaar and PAN.

🧾 Mandatory KYC Re-Verification for Dormant Accounts

Accounts that have remained inactive for over two years will soon require fresh KYC verification before reactivation. This move is intended to prevent misuse of dormant accounts and ensure updated customer records.

⚙️ Digital, Consent-Based Onboarding

A new framework for paperless, consent-driven account opening will be introduced to simplify customer onboarding while maintaining robust data security and compliance with privacy norms.

💳 Revised Credit Card and UPI Linking Rules

Banks and payment platforms will be required to validate PAN details for all credit card and UPI-linked accounts, tightening identity verification and reducing the risk of fraudulent transactions.

Takeaway:
These measures reflect a broader push toward secure, transparent, and digitally integrated banking, aligning financial systems with India’s evolving regulatory and compliance ecosystem.

📅 Mandatory Deadlines – Ensure Completion by 31st October 2025

The period from October to December marks one of the busiest compliance seasons for businesses, professionals, and taxpayers. With GST, Income Tax, and MCA filings due, several key deadlines are approaching.

Check out the full list of upcoming statutory due dates to ensure timely compliance and avoid penalties-

GSTR-3B Filing Deadline – 25th October 2025

Who should file: All regular GST-registered taxpayers
What it is: GSTR-3B is a monthly return summarizing sales, purchases, and taxes paid.
Due date: 25th October 2025 (monthly filers)
For QRMP taxpayers, this is the due date for the July–September quarter.
📌 Penalty for delay: Late fee plus 18% annual interest on tax due.

📅 31st October 2025 – Key Statutory Compliance Deadlines

The end of October brings several critical regulatory filings under both Income Tax and MCA frameworks. Completing these on time is vital to stay compliant and avoid penalties or interest.

🧾 a. Tax Audit Report (Form 3CA/3CB-3CD)

Applicable to: Businesses and professionals who come under Section 44AB of the Income Tax Act.
Summary: Entities covered by tax audit provisions must upload their Tax Audit Report electronically to the Income Tax portal by 31st October 2025.

💻 b. Income Tax Return – Companies

Applicable to: Every registered company, regardless of whether it shows profit, loss, or no income.
Summary: The Income Tax Return (Form ITR-6) for companies not engaged in transfer pricing transactions must be submitted by 31st October 2025.

👨‍💼 c. Income Tax Return – Audited Entities & Partners

Applicable to: Taxpayers whose accounts are subject to audit under Section 44AB, along with their partners.
Summary: Such assessees are required to file their ITRs no later than 31st October 2025.

💸 d. TDS Returns – Quarter 2 (July to September 2025)

Applicable to: All persons or entities responsible for deducting tax at source (TDS).
Summary: TDS statements for the second quarter, including Forms 24Q, 26Q, and 27Q, must be filed by 31st October 2025.

🪪 e. DIR-3 KYC / DIR-3 KYC-WEB

Applicable to: Every individual who holds a Director Identification Number (DIN).
Summary: The last date to complete KYC verification through DIR-3 KYC or DIR-3 KYC-WEB without paying a ₹5,000 penalty is 31st October 2025 (as per the extended deadline).

📌 Note: Missing these filings may attract interest, late fees, or penalties, and for directors, even temporary disqualification under MCA rules.

30th November 2025 – Submission of Chartered Accountant–Certified TP Report

Who it applies to: Entities that have entered into cross-border or specified domestic dealings with their associated enterprises.

What’s required:
Taxpayers falling under the provisions of Section 92E must electronically file Form 3CEB, which needs to be verified and attested by a Chartered Accountant, no later than 30th November 2025.

This date holds significant importance for multinational corporations and related group entities involved in inter-company transactions.

15th December 2025 – Key Date for Advance Tax (3rd Instalment)

Applicability: All taxpayers required to pay advance tax, i.e., those whose total tax liability exceeds ₹10,000 in a financial year.

Details:
By 15th December 2025, taxpayers must ensure that at least 75% of their total estimated tax liability is paid as the third instalment of advance tax.
Failure to pay the required amount may lead to interest charges under Sections 234B and 234C of the Income Tax Act.

💡 Tip: Keep track of your income and tax projections throughout the year to adjust advance tax payments in time and avoid last-minute shortfalls or penalties

31st December 2025 – Critical MCA Compliance: ROC Annual Filings Due

The close of the calendar year brings important company filing obligations under the Companies Act, 2013. All companies are required to complete their annual submissions with the Registrar of Companies (ROC) by this date.

🏢 a. Form AOC-4 – Filing of Financial Statements

Every company must submit its audited financial statements along with the Board’s Report in Form AOC-4 to the ROC within the prescribed timeline.

🧾 b. Form MGT-7 / MGT-7A – Filing of Annual Return

All companies are required to file their Annual Return providing details of shareholders, directors, and other statutory disclosures.
Small companies and One Person Companies (OPCs) must use Form MGT-7A, while all others file Form MGT-7.

📌 Filing Deadline: 31st December 2025, assuming the company’s Annual General Meeting (AGM) was held on or before 30th September 2025.

Filing of GSTR-9 and GSTR-9C for FY 2024-25 is now available on the GST Portal

✅ Recent Update

GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) for FY 2024-25 are now available on the GST Portal.

Taxpayers can now file their annual returns and reconciliation statements in line with the updated formats and instructions, which reflect the recent amendments in GST rules and legislation.

The deadline to file both forms, unless an extension is announced, is 31st December 2025.

🆕 GSTR-9 & 9C: Key Modifications for FY 2024-25

The revised forms include multiple updates based on recent amendments and notifications. Let’s go through them step by step:

1️⃣ Enhanced ITC Reporting and Reversal Requirements

• Taxpayers are now required to submit more detailed information regarding Input Tax Credit (ITC).
• Reversals must be reported separately as per Rules 37, 37A, 38, 42, and 43.

This is intended to enhance reconciliation accuracy and ensure proper tracking of ITC.
👉 Tip: Before submitting, thoroughly check reversal entries, reclaimed credits, and auto-filled data.

2️⃣ New Fields for Import and Transitional Credit Reporting

• New fields have been introduced for reporting import-related ITC and transitional credits.
• This promotes greater transparency for businesses importing goods or transferring credits from previous tax regimes.
  👉 Tip: Match your import details with the ICEGATE system and verify accuracy before submission.

3️⃣ Auto-Population of Data and Mismatch Handling

• The updated forms automatically fetch data from GSTR-1, GSTR-3B, and GSTR-2B.

Several fields will be prefilled to minimize manual mistakes.
However, taxpayers should carefully verify and reconcile all details, as discrepancies may trigger future audits.

👉 Tip: Ensure sales, ITC, and outward supply figures are fully reconciled before filing.

4️⃣Late Fee and Interest Reporting Standardized

• The revised guidelines mandate clear disclosure of any late fees or interest due under Section 47(2).
• All filing delays must be reported transparently in the prescribed form.

👉 Tip: Do not use back-dated entries — ensure the actual delay period and corresponding charges are reported accurately.

5️⃣New Instructions with Relevant Rule References

• The instructions for both GSTR-9 and GSTR-9C have been revised to enhance clarity and ease of understanding.
• Table references and compliance logic have been simplified to minimize errors in interpretation

👉 Tip: Review the updated instruction sheet before beginning the filing process.

⚠️ Beyond the Investment: What Startup Fundraising Really Costs You

The Real Price of Raising Capital for Startups

Securing capital marks a defining milestone in every startup’s growth path. While attention often gravitates toward the headline valuation and total funds raised, it’s equally important to understand the actual cost of reaching that milestone.

Recognising these expenses isn’t merely about accounting accuracy — it’s about empowering founders to make informed financial and strategic choices.

Each phase of fundraising comes with its own financial commitments, and these must be anticipated well in advance. The reality is that many of these costs are borne by the startup, whether or not the deal eventually materialises. Proper planning helps safeguard liquidity and ensures the company remains financially stable throughout the fundraising journey.

Key Insight

Raising money can be expensive — and if unmanaged, these costs can quietly consume a notable portion of the very funds you aim to secure.

Expenses such as advisory retainers, legal and diligence fees, marketing costs, and months of lost operating focus can add up quickly. Without careful management, these can strain working capital and delay business progress.

Startup Fundraising Expenses

So, what exactly should founders plan and budget for? Let’s break it down.

1. Upfront Advisory Fees and Retainers

The first expense comes from hiring external experts — placement agents, venture advisors, or fundraising consultants. These professionals often charge monthly retainers to structure your raise, prepare materials, and coordinate investor outreach.

As of 2025, retainers generally range between £2,000 and £10,000 per month, lasting up to a year for larger rounds. Additionally, one-time engagement fees of 2%–5% of the fundraising target are often included.

💡 Tip: Always request a clear deliverables list — such as investor meetings or valuation reports — tied directly to any advance payments. Transparency ensures accountability and value.

2. Success Fees or Commissions

Nearly all intermediaries charge a success-based commission, usually between 3%–7% of total funds raised. On a £1 million round, a 5% fee means £50,000 payable upon closing.

Check whether the commission applies to gross commitments or the net received after deductions, and confirm whether it’s due on signing or on fund transfer.

3. Legal & Advisory Costs

Legal counsel is essential for drafting, reviewing, and negotiating term sheets. Expect to spend between £5,000 and £20,000 depending on deal complexity.

In some cases, investors may ask startups to cover a portion of their legal expenses — adding another £10,000 to £30,000. While cutting corners may seem tempting, solid legal advice protects against future liabilities.

4. Due Diligence Expenses

Investors conduct due diligence covering financial audits, IP verification, and compliance checks. While investors lead the process, startups often pay for supporting reports — ranging from £2,000 to £10,000.

Typical reimbursable costs include accounting verification, IP audits, and secure data room setup for document sharing.

5. Marketing & Investor Material Costs

A strong pitch requires professional storytelling. External support for pitch decks, videos, and financial models can cost:

• Deck design: £1,000–£5,000

• Investor video: £2,000–£10,000

• Financial modelling: £1,000–£5,000

Though optional, polished materials can increase investor engagement by 20–30%.

6. Travel & Investor Meetings

Despite digital tools, many investors prefer in-person meetings. Factor in £1,000–£5,000 for travel, accommodation, and event participation.

7. Time & Opportunity Costs

Fundraising can take 3–9 months — time the founder could otherwise spend on customers or product development. This hidden cost often outweighs direct expenses and must be acknowledged in strategic planning.

8. Post-Funding Obligations

Even after funding closes, administrative and investor management costs persist — such as board meetings, statutory filings, and audit requirements. These recurring commitments should be part of your long-term forecast.

Budgeting Smartly for Fundraising

• List every cost: Treat fundraising as its own project with a detailed budget.

• Demand transparency: Get written confirmation of all fees and conditions from intermediaries.

• Negotiate structure: See if retainers can be adjusted against final fees or legal costs capped.

• Add a buffer: Always include a 10–20% contingency for unforeseen expenses.

Accounting & Finance: Top Q3 2025 Earnings Influencing Market Trends

As companies worldwide unveil their Q3 2025 earnings, traders and investors are getting a clearer picture of the global economy’s momentum — and its weak spots.

From tech giants to retailers, every sector is revealing something about consumer strength, inflation impact, and investor confidence.

Key Takeaway

Quarter three results are shaping global market sentiment. Strong tech earnings are boosting optimism, while consumer and retail sectors show growing caution.

For traders, even one comment in an earnings call can send shockwaves through markets — making this season a critical moment to stay alert.

Tech Takes the Lead

Technology firms are once again driving global optimism.
AI, semiconductor, and cloud companies have delivered solid results, reassuring investors that last year’s growth wasn’t just a one-time surge.

And it’s not just Wall Street reacting — European and Asian markets are following suit, proving that tech continues to anchor global sentiment.

Retail Feels the Pressure

Retailers, however, are facing mounting challenges.
Rising tariffs, inflation, and changing consumer habits are eating into margins. Even companies showing higher revenues are struggling with shrinking profits.

The question remains: can consumer demand hold through the final quarter of 2025?

Financials and Real Estate: A Mixed Bag

Higher interest rates have helped banks with better margins but slowed loan growth.
Real estate firms are still adjusting to new demand dynamics, especially in major cities.

This mix makes financials tricky — one strong result can mask underlying weakness elsewhere.
Traders using flexible tools like CFDs can adapt quickly, hedging against risk while seizing short-term opportunities.

Themes Shaping Market Sentiment

• Consumer Spending: Retail earnings continue to reflect household confidence (or lack thereof).

• Interest Rates: Central bank signals can easily overshadow even strong results.

• Currency Moves: Exchange rate fluctuations remain a key factor in cross-border earnings.

• Geopolitics: Supply chain shifts and policy uncertainty keep volatility alive.

Sector Snapshot

Traders Should Ask:

• Can tech maintain its growth pace into Q4?

• Will consumers keep spending through higher costs?

• Could higher rates hurt credit growth?

• Are commodities still a safe hedge against volatility?

Setting the Tone for the Year-End

Q3 2025 earnings are setting the stage for how markets will close out the year.
Tech’s strength brings confidence, but consumer caution and sectoral divergence keep uncertainty high.

For traders, adaptability is the key — those watching closely and reacting quickly could find opportunity amid volatility.