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Yes. The Income Tax Act, 2025 came into force on 1 April 2026, fully replacing the Income Tax Act, 1961. It is leaner — 536 sections vs 819 in the old Act — and introduces a unified "Tax Year" concept (April to March) replacing the separate "Previous Year" and "Assessment Year" terminology. Crucially, no new taxes have been imposed; the reform is aimed at simplification and easier compliance. All proceedings relating to years prior to 1 April 2026 continue under the old Act's transitional provisions.

For individuals and HUFs not subject to tax audit, the due date for ITR-1 and ITR-2 is 31 July 2026. For those filing ITR-3 or ITR-4 (business/profession, no audit), the deadline is 31 August 2026. Taxpayers liable to audit have until 31 October 2026. The revised return window has also been extended to 12 months from the end of the tax year under the new Act.

E-invoicing (electronic Invoice Registration Portal) is now mandatory for all businesses with an annual aggregate turnover exceeding ₹5 crore. Registered taxpayers in this bracket must generate a unique Invoice Reference Number (IRN) via the IRP before issuing a GST invoice. This directly impacts ITC eligibility for your buyers — invoices without a valid IRN will not reflect in GSTR-2B.

The Quarterly Return Monthly Payment (QRMP) scheme allows taxpayers with aggregate turnover up to ₹5 crore in the previous financial year to file GSTR-1 and GSTR-3B quarterly, while paying tax monthly via a Fixed Sum or Self-Assessment method. It reduces the compliance burden — instead of 24 returns per year, only 8 quarterly returns are filed. IFF (Invoice Furnishing Facility) allows you to upload B2B invoices for the first two months of a quarter so your buyers can claim ITC in those months.

Under the new regime effective from Tax Year 2026-27, income up to ₹4 lakh is tax-free, with rates graduating to 30% for higher slabs. The new regime is now the default and does not allow most deductions (80C, HRA, home loan interest, etc.). The old regime remains available as an option and is beneficial if you have substantial deductions. The right choice depends entirely on your specific deductions — a personalised computation by your CA is strongly recommended before the filing date.

The MCA recently notified the Companies Compliance Facilitation Scheme 2026 (CCFS-2026), a one-time amnesty programme that waives additional late fees for companies that file overdue ROC forms during the scheme's window. This is an opportunity for companies with pending AOC-4, MGT-7, or other MCA filings to regularise their compliance at normal fees. Check MCA21 portal for the exact operational dates and applicable forms.

Union Budget 2026 (presented 1 February 2026) kept personal income tax slabs unchanged and focused on compliance ease under the new Income Tax Act 2025. Key direct tax changes include: rationalised TDS/TCS provisions to reduce cash-flow burden; simplified forms under the new Act; extended revised return timelines; and the introduction of a Foreign Assets of Small Taxpayers – Disclosure Scheme 2026 — a six-month voluntary disclosure window for eligible taxpayers to regularise limited undisclosed foreign income with immunity from penalties.

Interest for late or non-deposit of TDS runs at 1.5% per month (or part thereof) from the date of deduction to the date of actual deposit, under Section 201(1A) of the Income Tax Act 2025. Additionally, failure to file TDS returns on time attracts a penalty of ₹200 per day under Section 234E, subject to a maximum of the TDS amount. Depositing TDS before the 7th of the following month avoids all interest charges for deductions made in that month.