Why 31 December Is So Important for Professionals and Businesses

31st December 2025 is far more than just the close of the calendar year.
It marks one of the most crucial compliance cut-off dates under GST, Income Tax, and MCA regulations for FY 2024-25 / AY 2025-26.

For Chartered Accountants, tax consultants, business owners, companies, and professionals, overlooking this deadline can lead to loss of refunds, late fees, penalties, and long-term litigation exposure.

Let us break down why this single date carries such immense importance.

🔴 1. Deadline for Filing GSTR-9 (GST Annual Return) – FY 2024-25

GSTR-9 is the annual GST return that provides a consolidated view of:

  • Outward supplies

  • Inward supplies

  • Input Tax Credit (ITC) claimed

  • Taxes paid

  • Year-end adjustments

Important points to note:

  • 31st December 2025 is the statutory due date for filing GSTR-9 for FY 2024-25

  • Filing is optional for taxpayers with AATO up to ₹2 crore

  • Once submitted, GSTR-9 cannot be revised

This return plays a key role in:

  • GST scrutiny proceedings

  • Departmental notices

  • ITC verification and reconciliation

Who needs to be especially cautious?

  • Businesses with multiple amendments during the year

  • Taxpayers who rectified FY 2024-25 errors in FY 2025-26

  • Taxpayers facing ITC mismatches with GSTR-2B

🔴 2. Due Date for Filing GSTR-9C (GST Reconciliation Statement)

GSTR-9C is a reconciliation statement comparing:

  • Audited financial statements

  • GSTR-9 annual return

Key highlights:

  • Applicable to taxpayers whose turnover exceeds the prescribed audit limit

  • 31st December 2025 is the final due date

  • Although now self-certified, it remains a high-risk compliance document

Any mismatch may trigger:

  • GST audits

  • Demand notices

  • Interest and penalty proceedings

🔴 3. Final Date to File Belated or Revised ITR – AY 2025-26

This is one of the most overlooked yet most critical year-end deadlines.

What closes on 31st December 2025?

  • Filing of Belated Income Tax Returns

  • Filing of Revised Income Tax Returns

Why this date is crucial:

  • It is the last chance for non-filers to submit their return

  • Errors in earlier returns can no longer be corrected after this date

  • Unclaimed income tax refunds may lapse permanently

Who should be extra alert?

  • Salaried individuals awaiting refunds

  • Professionals and freelancers with TDS deductions

  • Businesses that filed incorrect or incomplete returns earlier

  • Taxpayers who have received CPC intimations or mismatch notices

    🔴 4. MCA Annual Compliance – Extended Due Date up to 31st December 2025

    The Ministry of Corporate Affairs (MCA) has permitted companies to complete their annual compliance filings for FY 2024-25 on or before 31st December 2025.

    Forms included:

    • AOC-4 – Filing of financial statements

    • MGT-7 / MGT-7A – Annual return

    Why this deadline matters:

    • Filing within the extended timeline helps avoid substantial additional fees

    • Failure to comply may result in:

      • Monetary penalties on the company

      • Personal penalties on directors

      • Long-term risk of director disqualification

    🔴 5. PAN–Aadhaar Linking – Practical Year-End Implications

    While PAN–Aadhaar linking requirements differ based on taxpayer categories, 31st December 2025 effectively serves as a practical deadline to ensure:

    • Hassle-free income tax return filing

    • Timely processing of tax refunds

    • Prevention of PAN becoming inoperative for income tax purposes

    Taxpayers with pending PAN–Aadhaar linkage issues frequently encounter:

    • Delays or blockage of refunds

    • Difficulties in filing returns

    • Increased scrutiny, notices, and compliance-related delays

      📌 Professional Compliance Checklist – Tasks to Complete Before 31st December 2025

      ✔ Ensure filing of GSTR-9 for FY 2024-25
      ✔ Submit GSTR-9C wherever reconciliation requirements apply
      ✔ File belated or revised Income Tax Returns for AY 2025-26
      ✔ Complete MCA annual compliances, including AOC-4 and MGT-7 / MGT-7A
      ✔ Confirm and regularise PAN–Aadhaar linkage status
      ✔ Finalise reconciliations, verifications, and supporting documentation

GST in 2025: Simplified tax rates, quicker dispute resolution, and stricter compliance

 

Representative Image

Nearly ten years after its introduction, the Goods and Services Tax (GST) entered a more stable and mature phase in 2025. The emphasis moved away from resolving transitional challenges to creating a predictable, consistent, and trust-based tax system. Tax professionals have termed this phase GST 2.0, as multiple policy initiatives and compliance reforms reshaped India’s indirect tax landscape.

Experts say 2025 represents a decisive shift for GST, moving beyond legacy problem-solving towards addressing deeper structural inefficiencies. The focus this year was on curbing litigation and laying the groundwork for a more transparent and growth-oriented tax regime.

GST rate rationalisation takes centre stage

One of the most significant developments in 2025 was the rollout of GST rate rationalisation in September. The revised framework consolidated tax rates into fewer slabs — 5% for essential goods, 18% as the standard rate, and 40% for luxury and sin goods.

This restructuring aimed to ease the tax burden on widely consumed items while safeguarding government revenues. It also sought to resolve persistent classification disputes and inverted duty structures that had long fuelled litigation between taxpayers and authorities.

GST Appellate Tribunal finally operational

After prolonged delays, the GST Appellate Tribunal (GSTAT) became functional in 2025, completing the dispute resolution mechanism under GST.

The tribunal is expected to reduce pressure on high courts, ensure uniform interpretation of GST laws across states, and enable faster resolution of disputes. For MSMEs and mid-sized enterprises, this marks a crucial development that could substantially lower litigation costs and timelines.

“The operationalisation of the GST Appellate Tribunal completes the adjudication framework. It is expected to bring consistency in rulings, reduce the burden on high courts, and provide quicker and more predictable dispute resolution,” an expert said.

Government acts to safeguard revenue

In 2025, the government also addressed a key revenue concern by overturning the Supreme Court’s ruling in the Safari Retreats case, which had permitted input tax credit (ITC) on construction costs where buildings were used for taxable rentals.

Through the Finance Act, 2025, Section 17(5)(d) of the CGST Act was amended retrospectively from July 1, 2017. A subtle yet significant change in wording — replacing “plant or machinery” with “plant and machinery” — aligned the provision with the statutory definition that excludes buildings and civil structures. As a result, ITC on construction of buildings now stands explicitly blocked, even when such properties generate taxable rental income.

While the government described the earlier wording as a drafting oversight, experts noted that the amendment has far-reaching implications, particularly for the real estate and leasing sectors.

“This amendment could negatively impact businesses engaged in renting commercial properties. Its consequences may require companies to reassess financial and operational strategies,” an expert observed.

Relief for post-sale discounts

Among the more taxpayer-friendly measures introduced in 2025 was the relaxation of rules governing post-sale discounts. Following the 56th GST Council meeting, amendments to Sections 15(3)(b) and 34 of the CGST Act now permit suppliers to issue GST credit notes for post-sale discounts without linking them to individual invoices.

Experts say this reform brings GST law closer to standard commercial practices such as annual turnover-based rebates, reduces compliance burdens, minimises disputes, and improves overall ease of doing business.

As India approaches the next decade of GST, 2025 is likely to stand out as the year when the tax system transitioned decisively from stabilisation to deep structural reform.

Income Tax Department’s access to emails and social media from April 2026: What you need to know

A message widely circulating on social media claims that from April 1, 2026, the Income Tax Department will be empowered to access citizens’ social media accounts, emails, and other digital platforms to curb tax evasion. The viral claim has generated significant curiosity and concern among taxpayers about whether the tax authorities will actually receive such extensive powers.

In response to the growing confusion, the Press Information Bureau’s (PIB) Fact Check team issued a clarification through a post on X (formerly Twitter) to verify the authenticity of the claim.

What does the viral social media post claim?

According to a post shared by the handle @IndianTechGuide, the Income Tax Department would gain sweeping authority from April 1, 2026, to monitor and access private digital platforms, including emails and social media accounts, as part of efforts to tackle tax evasion.

Can the Income Tax Department access private digital accounts?

The PIB Fact Check team has clarified that the claim is misleading. It stated that the Income Tax Department will not receive any such blanket powers.

As per the clarification, Section 247 of the Income Tax Act, 2025 allows access to digital records only during authorised search and survey operations. Such action can be taken solely when there is credible evidence of significant tax evasion and a formal search operation has been initiated. In the absence of such proceedings, the department has no authority to access a taxpayer’s private digital space.

Can these powers be used for routine assessments?

The PIB further emphasised that these provisions cannot be used for routine tax processing, information gathering, or scrutiny assessments. The powers are strictly intended to combat black money and large-scale tax evasion during search and survey operations and are not applicable to law-abiding taxpayers.

Has the power to seize documents been newly introduced?

The clarification also noted that the authority to seize documents and evidence during search and survey operations has existed since the Income Tax Act, 1961 and is not a new provision under the 2025 Act.

What is black money?

Black money refers to income earned through illegal activities or income on which tax has not been paid. It may arise from legitimate sources that are not disclosed to tax authorities or from inherently illegal activities such as smuggling, illicit trade, counterfeit currency operations, arms trafficking, terrorism financing, and corruption. In essence, black money comprises assets or resources that were neither reported at the time of generation nor disclosed during their possession.

RBI puts Phase 2 of Cheque Truncation System on hold

The decision follows operational issues faced during the rollout of Phase 1.

The Reserve Bank of India (RBI) has deferred the implementation of Phase 2 of Continuous Clearing and Settlement on Realisation under the Cheque Truncation System (CTS) until further directions. The move is aimed at allowing banks additional time to stabilise and fine-tune their processes.

Phase 2 was originally scheduled to come into effect from January 3, 2026. However, the RBI cited challenges experienced during Phase 1 as the primary reason for the postponement.

After the introduction of the same-day cheque clearance facility on October 4, 2025, several banks, businesses, and individual customers reported delays in cheque realisation, highlighting system and operational glitches.

Under Phase 2, the item expiry time for cheques was proposed to be revised to T+3 clear hours. For instance, cheques received by the drawee bank between 10 am and 11 am would be required to be either positively or negatively confirmed by 2 pm, i.e., within three hours from the cut-off time.

If no confirmation is received from the drawee bank within the stipulated three-hour window, the cheque would be deemed approved and automatically included in the 2 pm settlement cycle.

Additionally, in its latest circular to banks, the RBI announced revisions in session timings. The presentation session has been rescheduled to 9 am to 3 pm, instead of the earlier proposed 10 am to 4 pm, while the confirmation session timing has been adjusted to 9 am to 7 pm, from the previously envisaged 10 am to 7 pm as mentioned in the August 2025 circular.

Join Us at the AMExpo: Visit Stall No. G7 by SwaNirmit Technologies

 

AmExpo 2026

Welcome to AMExpo 2026

We are excited to announce that Swanirmit Technologies will be participating in the AMExpo, taking place on January 8, 9, 10, and 11, 2026. This is a premier event dedicated to showcasing innovative technologies and solutions within the industry. Our stall, number G7, will feature cutting-edge products and services that reflect our commitment to excellence and innovation.

What to Expect at Our Stall G7

At Stall G7, attendees can look forward to engaging demonstrations of easy smart shop software product, informative presentations, and the opportunity to meet our expert team. We invite you to explore our latest technological advancements and see firsthand how they can benefit your business. Our knowledgeable staff will be available to answer your questions and provide insights tailored to your needs.

Register to Visit Us

To make the most of your experience at AMExpo 2026, be sure to register ahead of time. Clicking on the link below will allow you to secure your spot and receive all necessary event information. Join us at Stall No. G7 and discover the transformative potential of SwaNirmit Technologies.

 

Click Here Visitor Registration Link 

 

 

Income Tax Department Alerted 21 Lakh Taxpayers – Did You Receive the SMS? Take Action Immediately

Income Tax Alert: CBDT Launches NUDGE Campaign Against Incorrect Deductions & Exemptions (AY 2025-26)

Government of India | Ministry of Finance | Central Board of Direct Taxes
Press Release | 23 December 2025

The Central Board of Direct Taxes (CBDT) has released a significant advisory calling upon taxpayers to review their Income Tax Returns (ITRs) for Assessment Year 2025-26 and voluntarily rectify any incorrect claims of deductions or exemptions.

This action is part of the Government’s “NUDGE” Campaign (Non-intrusive Usage of Data to Guide and Enable), which focuses on encouraging voluntary tax compliance by using data analytics—without resorting to coercive or intrusive measures.

What Prompted This Action by CBDT?

Using advanced data analytics and risk management tools, the CBDT has detected several instances where taxpayers have made incorrect claims in their Income Tax Returns. These include cases where taxpayers have:

  • Claimed deductions or exemptions that are not legally admissible

  • Reported bogus or questionable donations, particularly to:

    • Registered Unrecognised Political Parties (RUPPs)

  • Quoted incorrect or invalid PAN details of donation recipients

  • Claimed deductions in excess of prescribed limits

  • Incorrectly disclosed exempt income amounts in their ITRs

Such inaccuracies lead to under-reporting of taxable income, making these returns prone to scrutiny.

📩 How Are Taxpayers Being Notified?

Taxpayers identified through this exercise are being informed through:

  • SMS

  • Email

These messages advise taxpayers to:

  • Review their already-filed ITRs

  • Voluntarily correct any errors, if found

⚠️ Important Clarification

This communication is not a statutory notice under the Income Tax Act.
It is an early compliance alert, giving taxpayers a chance to self-correct.

⏰ Deadline to Take Corrective Action

👉 31 December 2025

Before this date, taxpayers may:

  • File a Revised Return, or

  • Submit an Updated Return, wherever permitted

Timely correction can help avoid:

  • Further verification or scrutiny

  • Formal notices

  • Penalties or additional proceedings

📊 CBDT Data Shows Strong Voluntary Compliance

The CBDT has highlighted encouraging results from this approach:

  • Over 21 lakh taxpayers have already:

    • Updated their returns for AYs 2021-22 to 2024-25

    • Paid more than ₹2,500 crore in additional taxes

  • For AY 2025-26 alone, more than 15 lakh revised returns have been filed

These figures demonstrate that voluntary compliance is more effective than coercive enforcement.

✅ What Should Taxpayers Do Now?

Step-by-Step Guidance:

  1. Review your ITR carefully, especially:

    • Chapter VI-A deductions (Sections 80C, 80G, etc.)

    • Exempt income disclosures

  2. Verify supporting documents, such as:

    • Donation receipts

    • PAN details of donees

    • Eligibility criteria for exemptions

  3. If any discrepancy is found:

    • File a Revised or Updated Return

  4. If all claims are accurate and genuine:

    • No further action is required

❌ Who Does Not Need to Worry?

The CBDT has clearly assured that:

Taxpayers who have correctly claimed legitimate deductions and exemptions need not take any action.

Honest taxpayers remain fully safeguarded under this initiative.

📅 What Happens If This Opportunity Is Ignored?

  • Taxpayers may still file an Updated Return from 1 January 2026

  • However:

    • Additional tax liability will arise

    • The risk of future inquiries or assessments increases

🧠 Key Takeaway

The NUDGE Campaign reflects the government’s:

  • Trust-based, taxpayer-friendly approach

  • Emphasis on voluntary compliance

  • Strategic use of technology and data, instead of harassment

Senior Citizens Get Special Tax Advantages in 2026

Senior Citizens in India: Comprehensive Tax & Financial Benefits Guide 2026

The Government of India acknowledges the lifelong contribution of senior citizens and, in return, extends a broad set of tax concessions, exemptions, compliance relaxations, banking advantages, and lifestyle-related benefits to ensure financial stability and dignity during retirement.

This detailed guide explains 30+ benefits and features available to senior and super senior citizens in India for FY 2025–26 / AY 2026–27.

1. Definition of Senior Citizen Under Income Tax Law

As per the Income Tax Act:

  • Senior Citizen: Resident individual aged 60 years or more but below 80 years

  • Super Senior Citizen: Resident individual aged 80 years or above

  • Specified Senior Citizen (Section 194P): Resident aged 75 years or above, earning only pension and interest from the same bank, and eligible for exemption from filing ITR

2. Income Tax Slabs – New Tax Regime (FY 2025–26)

The New Tax Regime, which is now the default option, applies equally to all taxpayers, including senior citizens:

Total Income Tax Rate
Up to ₹4,00,000 Nil
₹4,00,001 – ₹8,00,000 5%
₹8,00,001 – ₹12,00,000 10%
₹12,00,001 – ₹16,00,000 15%
₹16,00,001 – ₹20,00,000 20%
₹20,00,001 – ₹24,00,000 25%
Above ₹24,00,000 30%

Taxpayers may still opt for the old tax regime if it offers better savings.

3. Zero Tax on Income Up to ₹12.75 Lakh – Major Relief

Under the New Regime:

  • Standard deduction on salary/pension: ₹75,000

  • Taxable income up to ₹12,00,000

  • Section 87A rebate applicable

As a result, a senior citizen earning up to ₹12.75 lakh from pension/salary pays zero income tax, making the new regime highly beneficial for retirees.

4. Higher Basic Exemption Under Old Tax Regime

Those opting for the old regime enjoy enhanced exemption limits:

Category Exemption Limit
General taxpayer ₹2,50,000
Senior Citizen (60–79 years) ₹3,00,000
Super Senior Citizen (80+ years) ₹5,00,000

5. Section 80TTB – Deduction on Interest Income

Senior citizens can claim a deduction up to ₹50,000 on interest earned from:

  • Savings bank accounts

  • Fixed & recurring deposits

  • Post office schemes

  • Co-operative bank deposits

This benefit is exclusive to senior citizens and replaces Section 80TTA.

6. Section 80D – Health Insurance & Medical Expenses

To reduce healthcare costs, senior citizens are eligible for:

  • ₹50,000 deduction for health insurance premium

  • Medical expenses allowed if insurance is not taken

  • Additional deduction for premiums paid for dependent parents

7. Section 80DDB – Deduction for Specified Diseases

For treatment of serious ailments such as cancer, kidney failure, Parkinson’s disease, etc., senior citizens can claim:

  • Deduction up to ₹1,00,000, subject to conditions and certification

8. No Advance Tax Liability (Section 207)

Senior citizens are not required to pay advance tax if:

  • They do not have business income, and

  • Their income consists only of pension and interest

This also protects them from interest under Sections 234B and 234C.

9. Relaxations in ITR Filing

Offline ITR Filing

Super senior citizens may file paper returns (ITR-1 or ITR-4) instead of mandatory e-filing.

Section 194P – ITR Filing Exemption

Eligible residents aged 75+ earning only pension and bank interest are not required to file ITR, as the bank computes and deducts tax.

10. TDS Benefits & Form 15H

  • Form 15H can be submitted to avoid TDS if total tax liability is nil

  • TDS threshold on interest income increased to ₹1,00,000 per year

  • No TDS on bank/post office interest up to this limit

11. Enhanced Family Pension Exemption

Under the new regime:

  • Exemption increased to ₹25,000 per year

  • Allowed as lower of one-third of pension or ₹25,000

12. LTCG Benefits on Equity Investments

Senior citizens enjoy:

  • Basic exemption adjustment up to ₹4,00,000

  • Additional ₹1,50,000 LTCG exemption

  • Effectively, LTCG up to ₹1.5 lakh can be tax-free

13. Reverse Mortgage – Capital Gains Exemption

Amounts received through reverse mortgage of a residential property:

  • Are not treated as transfer

  • Hence, no capital gains tax applies

14. Higher Interest Rates on Senior Citizen FDs

Banks generally offer:

  • Additional 0.50% interest for senior citizens

  • Up to 0.75% extra for super senior citizens

15. Senior Citizen Savings Scheme (SCSS)

Key features:

  • Eligibility: Age 60+

  • Maximum investment: ₹30 lakh

  • Quarterly interest payout (rate as notified)

  • Eligible for Section 80C deduction

  • Backed by Government of India

16. Other Social, Banking & Lifestyle Benefits

Senior citizens also enjoy several non-tax advantages, including:

  • Railway & state transport concessions

  • Airline fare discounts

  • Healthcare priority & hospital rebates

  • Enhanced Ayushman Bharat coverage

  • Doorstep banking services (age 70+)

  • Property tax & stamp duty rebates (state-wise)

  • Telecom concessions

  • State-sponsored old-age pension schemes

Conclusion

For FY 2026, senior citizens in India benefit from a strong combination of:

✔ Lower tax burden
✔ Simplified compliance
✔ Higher exemptions and deductions
✔ Secure investment options
✔ Banking and lifestyle privileges

These measures collectively aim to ensure financial independence, stability, and improved quality of life after retirement.

New Banking and Cash Transaction Rules from 2026

🇮🇳 Introduction – Why Banking Transactions Deserve More Attention Today

In a rapidly digitising India, almost every financial move—personal or professional—passes through the banking system. Whether it’s UPI collections, cash deposits, fixed deposits, or GST-related receipts, banks today function not just as facilitators but also as statutory reporting entities.

A common misconception among taxpayers is that only very large or suspicious transactions attract scrutiny from the Income Tax Department.
However, this assumption is incorrect.

Even regular, everyday transactions—if misunderstood, misclassified, or improperly reported—can:

  • Get reported under Specified Financial Transactions (SFT)

  • Reflect in AIS / Form 26AS

  • Trigger income-tax notices

  • Result in bank account restrictions

  • Create GST registration or compliance complications

The purpose of this article/video is not to alarm, but to educate and empower.

In this guide, we clearly explain:

  • Banking transaction limits applicable for 2026

  • Transactions that are most likely to attract scrutiny

  • Rules related to cash, UPI, fixed deposits, and withdrawals

  • How bank activity links with Income Tax and GST

  • Practical steps to remain compliant and notice-free

If you carefully apply the compliance tips shared towards the end, you can manage your finances legally, confidently, and without unnecessary tax anxiety.

1️⃣ Banking Transaction Modes & Applicable Limits

🟦 UPI (Unified Payments Interface)

UPI remains India’s most popular digital payment method.

  • Standard daily limit: ₹1,00,000 per user

  • Per-transaction limit: Generally ₹1 lakh (varies by bank)

  • Higher limits: Up to ₹5 lakh per day for specific categories such as education, healthcare, government payments, and capital market transactions (effective 15 September 2025)

💡 Banks may impose lower internal limits—always verify with your bank.

🟦 IMPS (Immediate Payment Service)

  • Usually capped at ₹5 lakh per day per account

  • Available 24×7, making it suitable for urgent, higher-value transfers (subject to bank limits)

🟦 NEFT (National Electronic Funds Transfer)

  • Minimum: ₹1

  • No statutory maximum limit

  • Banks may set daily caps

  • Suitable for large-value transfers without UPI/IMPS restrictions

🟦 RTGS (Real-Time Gross Settlement)

  • Minimum transaction value: ₹2 lakh

  • No upper limit prescribed

  • Best for very high-value, time-sensitive transfers

2️⃣ Cash Transactions & Deposit Rules

🔸 Cash Deposit Reporting (SFT)

Banks and financial institutions are required to report:

  • ₹10 lakh or more cash deposits in a savings account in a financial year

  • ₹50 lakh or more cash deposits in a current account

  • ₹10 lakh or more in fixed deposits during a financial year

👉 This does not mean tax is levied automatically, but the transaction is reported and may be examined.

🔸 Cash Receipt Restrictions – Section 269ST

  • Receiving ₹2 lakh or more in cash from a single person:

    • In one day, or

    • In a single transaction, or

    • For one occasion/event
      is prohibited.

💡 Penalty can be equal to the cash amount received.

🔸 Cash Loans & Repayments – Sections 269SS & 269T

  • Acceptance or repayment of loans/deposits in cash above ₹20,000 is not allowed.

  • Penalty equals the amount involved.

3️⃣ TDS on Cash Withdrawals – Section 194N

This provision discourages excessive cash usage and promotes transparency.

🧾 TDS Applicability on Cash Withdrawals

ITR Filing Status Withdrawal Limit TDS Rate
ITR filed for last 3 AYs Above ₹1 crore 2%
ITR not filed for last 3 AYs Above ₹20 lakh 2% up to ₹1 crore, 5% thereafter

📌 Limits apply per bank, calculated cumulatively for the financial year.

4️⃣ Specified Financial Transactions (SFT)

Banks report high-value transactions such as:

  • Cash deposits crossing prescribed limits

  • Large or unusual digital inflows/outflows

These details appear in AIS and Form 26AS and must align with your ITR disclosures.

5️⃣ GST Linkage With Bank Accounts

🟡 GST Registration Threshold

  • Goods: ₹40 lakh

  • Services: ₹20 lakh

If bank receipts exceed these limits, GST registration becomes mandatory.

⚠️ Non-linking of bank account on GST portal within 30 days may lead to GST suspension.

6️⃣ Mandatory Disclosures in ITR & GST

📌 Income Tax Return

  • All bank accounts must be disclosed

  • Unexplained SFT entries can trigger notices

📌 GST Portal

  • Primary bank account linking is compulsory

  • Non-compliance can result in registration suspension

7️⃣ Business Cash Payment Restriction – Section 40A(3)

  • Cash expenses exceeding ₹10,000 per person per day are not deductible

  • Encourages digital payments and proper documentation

8️⃣ Practical Tips to Stay Notice-Free

✅ Maintain separate accounts for business and personal use
✅ Reconcile UPI inflows with business records
✅ Avoid unnecessary cash transactions
✅ File ITR regularly to benefit from higher withdrawal thresholds
✅ Maintain documentation for all large-value transactions

🧠 Key Takeaways

  • Know your banking limits and comply with them

  • Large cash dealings attract reporting and penalties

  • Regular ITR filing provides tangible compliance benefits

  • GST-bank linkage is critical for business continuity

  • Proper record-keeping is your best defence against notices

New Regulations for TDS Return Rectification Applicable from 01-04-2026

TDS / TCS Correction Statements: Time Limit Cut Down to 2 Years (Effective 01 April 2026)

🔔 What’s the Latest Change?

The Income Tax Department has introduced a major compliance reform by reducing the time limit for filing TDS and TCS correction statements to just 2 years, applicable from 1 April 2026.

Until now, deductors had the flexibility to revise old TDS/TCS returns even after many years. This long-standing practice will no longer be permitted.

⏳ Key Change Explained: Old Rule vs New Rule

🔙 Earlier Position (Before 01.04.2026)

  • No strict statutory deadline for filing correction statements

  • Corrections were practically allowed up to 7 years or more

  • Deductors commonly rectified:

    • Incorrect PAN details

    • Challan mapping errors

    • Short or excess deduction

    • Late reporting issues

  • Corrections were accepted even after several years

🔜 New Rule (From 01.04.2026)

  • ⛔ Correction statements allowed only within 2 years

  • The 2-year period will be calculated from:

    • End of the relevant financial year

  • ❌ No correction will be permitted beyond this period

  • This is a strict and absolute deadline, not extendable in any case

📅 Last Opportunity for Old TDS/TCS Periods

Correction statements for the following quarters will be allowed only up to 31 March 2026:

  • Q4 of FY 2018–19

  • Q1 to Q4 of FY 2019–20 to FY 2022–23

  • Q1 to Q3 of FY 2023–24

⚠️ From 1 April 2026 onwards, the TRACES portal will permanently block corrections for these periods.

❌ Impact of Missing the 2-Year Deadline

Failure to file corrections within the prescribed time may result in:

  • ❌ Permanent denial of correction facility

  • ❌ Loss of TDS/TCS credit for deductees in Form 26AS / AIS

  • ❌ Disputes with employees, vendors, or contractors

  • ❌ Penalties ranging from ₹10,000 to ₹1,00,000

  • ❌ Higher compliance and audit risks

  • ❌ Interest liability and possible disallowance of expenses

✅ Reason Behind This Amendment

The department aims to promote:

  • Timely reconciliation of data

  • Faster and accurate credit to deductees

  • Reduced backlog of old corrections

  • Lower litigation and disputes

  • A shift towards real-time, technology-driven compliance

This change reflects a move towards strict timelines and disciplined reporting.

🧾 Best Practices Suggested by the Department

  • Regularly use TRACES utilities and validation tools

  • Track defaults and mismatches frequently

  • File correction statements immediately upon detecting errors

  • Train staff on the revised timelines

  • Adopt a preventive compliance approach

📌 Action Checklist for Deductors & Tax Professionals

✔ Review all pending TDS/TCS correction requirements
✔ Resolve old mismatches before 31 March 2026
✔ Strengthen internal review and control systems
✔ Inform clients and staff about the 2-year non-negotiable limit

Job Opening
Java Angular Fullstack Developer Internship Now Open!

🚀 Java Angular Fullstack Developer Internship Now Open!

Are you a passionate student eager to dive into the world of fullstack development? We’ve got exciting news for you! Our Java Angular Fullstack Developer Internship program is officially open, starting 1st January 2026.

💡 Why This Internship?

This is more than just an internship — it’s a launchpad for your career in modern web development. You’ll gain hands-on experience building scalable backend systems with Java and crafting dynamic, responsive user interfaces using Angular.

👩‍💻 Who Should Apply?

  • Students pursuing Computer Science, IT, or related fields
  • Those with a basic understanding of Java, HTML/CSS, and JavaScript
  • Eager learners who want to work on real-world projects and collaborate with experienced mentors

📚 What You’ll Learn

  • Fullstack architecture and integration
  • RESTful APIs and backend logic with Java
  • Angular components, routing, and state management
  • Version control with Visual SVN and collaborative workflows

📅 Internship Start Date: 1st Jan 2026

Spots are limited, and the opportunity is priceless. Whether you’re looking to build your portfolio, sharpen your skills, or explore fullstack development, this internship is your gateway.

Contact Us :

Send Your Updated Resume to : hradmin@swanirmit.com

Contact No : + 91 81 8000 9888