Guides on tax, GST and compliance

New vs old tax regime: which one suits you?

The new tax regime is the default for individuals. It has lower slab rates but removes most deductions and exemptions, such as Section 80C, 80D and HRA. The old regime keeps those deductions at higher slab rates.

For FY 2025-26, the new regime has slabs from nil up to ₹4 lakh, rising in steps of ₹4 lakh to 30% above ₹24 lakh. A rebate under Section 87A means no tax is payable where taxable income does not exceed ₹12 lakh, which is ₹12.75 lakh of salary after the ₹75,000 standard deduction.

The old regime can still work out lower if you claim large deductions, for example a home loan with interest under Section 24(b), full 80C investments, health insurance and HRA. Compare both before filing.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Documents you need to file your income tax return

Gathering documents before you start avoids errors and later notices. The starting point is the Annual Information Statement (AIS) and Form 26AS on the income tax portal. Together they show TDS, interest, dividends, securities transactions and high-value transactions reported against your PAN.

Match your own records with the AIS. Income reported there but missing from your return is the most common reason for a mismatch notice.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Advance tax: who pays it and when

If your total tax liability for the year, after TDS, is ₹10,000 or more, you must pay it in instalments during the year as advance tax rather than in one go at the time of filing.

Resident senior citizens (60 years or more) who have no income from business or profession are exempt. Taxpayers under presumptive taxation (Sections 44AD and 44ADA) may pay the entire amount by 15 March.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

The Income-tax Act, 2025: what changes from April 2026

The Income-tax Act, 2025 replaces the Income-tax Act, 1961 with effect from 1 April 2026. It aims to simplify the language and structure of the law and reduce the number of sections.

One visible change is the concept of a single “tax year”, which replaces the separate terms previous year and assessment year. Section numbers have been renumbered, so forms, notices and references will look different even where the substance is largely the same.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

GST registration: who needs it and how to apply

A supplier must register under GST once aggregate turnover crosses ₹40 lakh for suppliers of goods, or ₹20 lakh for suppliers of services. Lower limits apply in some special category states. These thresholds apply in Maharashtra.

Certain persons must register regardless of turnover. These include those making inter-state taxable supplies of goods, sellers through e-commerce operators (subject to exceptions), casual taxable persons and persons liable under reverse charge.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

GST rate rationalisation of September 2025, explained

With effect from 22 September 2025, GST moved to a simpler structure with two main rates, 5% and 18%, and a special 40% rate for a small set of luxury and sin goods. Most items earlier taxed at 12% moved to 5%, and most at 28% moved to 18%.

Several daily-use items, such as toiletries, packaged foods and medicines, moved to lower rates. Many consumer durables, such as air conditioners and televisions, moved from 28% to 18%. Individual life and health insurance policies were exempted.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

GSTR-1, GSTR-3B and matching input tax credit

GSTR-1 reports outward supplies invoice by invoice. GSTR-3B is the summary return through which tax is paid. Your buyers’ input tax credit depends on what you report in GSTR-1.

Input tax credit can be claimed only when the supplier’s invoice appears in your GSTR-2B. Reconcile your purchase register with GSTR-2B every month before filing GSTR-3B.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Annual ROC compliance checklist for private companies

Every private limited company has annual filings with the Registrar of Companies on the MCA portal, even if it had no business during the year. Delays attract additional fees per day, which add up quickly.

The annual cycle runs from the financial year end on 31 March, through the audit and board approval of accounts, to the AGM and the filings that follow it.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

LLP annual filings: Form 8 and Form 11

A Limited Liability Partnership files two annual forms with the ROC: Form 11 (annual return) and Form 8 (statement of account and solvency).

An LLP must have its accounts audited if turnover exceeds ₹40 lakh or partners’ contribution exceeds ₹25 lakh in the year.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Proprietorship, partnership, LLP or private limited?

The right structure depends on liability, compliance burden, funding plans and how profits will be taken out. A proprietorship is simple, but the owner has unlimited personal liability. An LLP gives limited liability with lighter compliance. A private limited company suits businesses planning to raise equity.

Tax treatment differs too. Companies can opt for concessional rates under Section 115BAA, while LLP profits are taxed in the LLP and partners’ share is exempt in their hands.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Registrations a new business in Pune needs

Beyond choosing a structure, a new business usually needs several registrations before it starts invoicing customers or hiring staff. Which ones apply depends on the activity, turnover and number of employees.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

DPIIT startup recognition and the Section 80-IAC tax holiday

DPIIT recognition is available to a private limited company, LLP or registered partnership up to 10 years from incorporation, with turnover not exceeding ₹100 crore in any year, that is working on innovation or a scalable business model.

Recognised startups incorporated before 1 April 2030 can apply to the Inter-Ministerial Board for certification under Section 80-IAC. With that certificate, they can claim a 100% deduction of profits for any three consecutive years out of their first ten.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Udyam (MSME) registration and the 45-day payment rule

Udyam registration is free and online, based on Aadhaar and PAN. Classification uses both investment in plant and machinery and turnover. From 1 April 2025, micro enterprises have investment up to ₹2.5 crore and turnover up to ₹10 crore. Small enterprises go up to ₹25 crore and ₹100 crore, and medium up to ₹125 crore and ₹500 crore.

Under Section 43B(h), a buyer can deduct amounts owed to micro and small enterprise suppliers only when paid within the time allowed: 45 days with a written agreement, or 15 days without one. Unpaid amounts are allowed only in the year of payment.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Residential status: are you an NRI for tax purposes?

Tax residency depends on days physically present in India, not citizenship or visa. An individual is resident if in India for 182 days or more in the year, or 60 days in the year plus 365 days in the four preceding years.

For Indian citizens or persons of Indian origin visiting India, the 60-day test becomes 120 days where Indian income exceeds ₹15 lakh. A citizen with Indian income above ₹15 lakh who is not liable to tax in any other country may be deemed resident.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Selling property in India as an NRI

When an NRI sells property in India, the buyer must deduct TDS under Section 195 and deposit it using a TAN. TDS applies to the capital gains, including surcharge and cess, and often to the full sale value if no certificate is obtained.

An NRI can apply under Section 197 for a lower or nil deduction certificate based on the actual capital gains. This avoids large amounts being locked up until a refund. Long-term gains may also be reinvested under Sections 54 or 54EC to save tax.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

NRE vs NRO accounts: tax and repatriation

An NRE account holds foreign earnings remitted to India. Its interest is exempt from tax in India and the balance is freely repatriable. An NRO account holds income earned in India, such as rent, dividends or pension. Its interest is taxable, with TDS.

Funds in an NRO account can be repatriated up to USD 1 million per financial year, after taxes, with the required Form 15CA / 15CB documentation.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Tax audit under Section 44AB: when it applies

A tax audit is required for a business whose turnover exceeds ₹1 crore. The limit is ₹10 crore if cash receipts and cash payments are each within 5% of the total. For professionals, it applies when gross receipts exceed ₹50 lakh, or ₹75 lakh where cash receipts are within 5%.

A tax audit is also required where income is declared below the presumptive rate under certain conditions. The audit report in Form 3CA or 3CB with Form 3CD is due by 30 September, a month before the return.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Presumptive taxation under Sections 44AD and 44ADA

Small businesses can declare profits at 8% of turnover, or 6% of digital receipts, under Section 44AD. This applies up to turnover of ₹2 crore, or ₹3 crore where cash receipts are within 5%. Books of account and audit are then generally not required.

Specified professionals such as doctors, CAs, architects and consultants can declare 50% of gross receipts as income under Section 44ADA, up to ₹50 lakh, or ₹75 lakh where cash receipts are within 5%.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.

Books of account every small business should keep

Good books are the basis of every return, loan application and audit. Even where the law does not prescribe specific books, a cash book, bank book, sales and purchase registers, and a ledger are the minimum.

Certain professionals must maintain prescribed books under Rule 6F once their receipts cross set limits. Records generally need to be preserved for at least six years.

General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.