Latest changes, key rates and limits, official links and simple answers — each fact with its source.
The changes that matter most to individuals and small businesses this year.
AOC-4 (all versions, incl. CFS and XBRL) can now be filed till 31 December 2026, and MGT-7 / MGT-7A till 31 January 2027, without additional fees. AGM dates, ADT-1 and LLP forms are not extended. Read our full guide →
Source: MCA General Circular No. 05/2026
The new Act replaces the 1961 Act. "Tax Year" replaces previous year and assessment year. Both tax regimes continue, and the new regime stays the default.
Non-audit business and professional returns (ITR-3 / ITR-4) are now due on 31 August. ITR-1 and ITR-2 keep the 31 July date.
A revised return can now be filed till 31 March. Filing after 31 December attracts a fee of ₹1,000 (income up to ₹5 lakh) or ₹5,000.
TCS on overseas tour packages is a flat 2%, and on education and medical remittances above ₹10 lakh it falls to 2%. TCS on scrap, tendu leaves and liquor rises to 2%.
The 12% and 28% slabs were removed. Most goods moved to 5% or 18%, with a special 40% rate for luxury and sin goods.
Source: GST Council — GST 2.0 FAQ
Recommended: no show-cause notice below ₹10,000, maximum general penalty cut from ₹25,000 to ₹10,000, prosecution limit raised from ₹1 crore to ₹5 crore, and faster refunds. These apply only after CBIC notifies them.
All four Labour Codes are effective. Fixed-term employees now get gratuity after one year of service.
Source: EY alert on Labour Codes
The government ratified 8.25% interest on EPF deposits for 2025-26, the same as the previous year.
Source: Outlook Money
| 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% |
No tax up to ₹12 lakh after rebate (₹12.75 lakh for salaried with ₹75,000 standard deduction). 4% cess extra.
Source: Income Tax Department — Section 202, Income-tax Act 2025
| Item | Limit |
|---|---|
| Tax audit — business | Turnover above ₹1 crore (₹10 crore if cash receipts and payments ≤ 5%) |
| Tax audit — profession | Receipts above ₹50 lakh |
| Presumptive income (old 44AD) | Turnover up to ₹2 crore (₹3 crore if cash ≤ 5%); profit 6% digital / 8% cash |
| Advance tax | If tax after TDS is ₹10,000 or more |
| ITR-1 / ITR-2 due date | 31 July |
| ITR-3 / ITR-4 (no audit) | 31 August |
| Revised return | Up to 31 March (fee after 31 December) |
| Rate | Applies to |
|---|---|
| Nil | Fresh food, milk, education, health services and similar essentials |
| 5% | Items of daily use, many food products, some services |
| 18% | Standard rate for most goods and services |
| 40% | Luxury and sin goods |
| 3% | Gold, silver and jewellery |
| 0.25% | Rough diamonds |
In force from 22 September 2025. Find the rate for your product →
Source: GST Council — GST 2.0 FAQ
| Item | Limit |
|---|---|
| Registration — goods | Turnover above ₹40 lakh (₹20 lakh in special category states) |
| Registration — services | Turnover above ₹20 lakh (₹10 lakh in special category states) |
| Late fee — GSTR-3B / GSTR-1 | ₹50 a day; ₹20 a day for nil return |
| Maximum late fee | ₹2,000 / ₹5,000 / ₹10,000 by turnover; ₹500 for nil |
| Interest on late tax | 18% a year (24% on excess ITC) |
| Missed ITC of FY 2025-26 | Claim by 30 November 2026 |
Common payments by businesses. All rates are now in Section 393 of the Income-tax Act 2025.
| Payment | Old section | Limit | Rate |
|---|---|---|---|
| Contractor | 194C | ₹30,000 per bill / ₹1 lakh a year | 1% individual/HUF, 2% others |
| Professional fees | 194J | ₹50,000 a year | 10% |
| Technical fees | 194J | ₹50,000 a year | 2% |
| Commission / brokerage | 194H | ₹20,000 a year | 2% |
| Rent — land and building | 194-I | ₹50,000 a month | 10% |
| Rent — plant and machinery | 194-I | ₹50,000 a month | 2% |
| Rent by individual / HUF | 194-IB | ₹50,000 a month | 2% |
| Interest — bank | 194A | ₹50,000 a year (₹1 lakh seniors) | 10% |
| Interest — others | 194A | ₹10,000 a year | 10% |
| Purchase of goods | 194Q | Above ₹50 lakh | 0.1% |
| Purchase of property | 194-IA | ₹50 lakh and above | 1% |
Source: StudyCafe — TDS rate chart FY 2026-27 under Income-tax Act 2025
Always use the official site. Bookmark these.
The new regime has lower rates and no tax up to ₹12 lakh income (₹12.75 lakh for salaried). The old regime can still be better if you have large deductions such as HRA, 80C, 80D and home-loan interest. Use our income tax calculator to compare.
From 1 April 2026 the new Act replaced the 1961 Act. The language is simpler and "Tax Year" replaces previous year and assessment year. Slab rates did not change. Income of FY 2025-26 is still filed under the old Act.
When yearly turnover crosses ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh / ₹10 lakh in special category states). It is compulsory from the first rupee for inter-state sales of goods, e-commerce sellers and a few others.
Since 22 September 2025, most goods and services are taxed at 5% or 18%. A 40% rate applies to luxury and sin goods. Gold and silver are at 3%. Find the rate for your product with our HSN finder.
A late fee of ₹50 a day (₹20 for a nil return) applies, up to a cap linked to turnover, plus 18% yearly interest on tax paid late. Try our late fee calculator.
Businesses with turnover above ₹1 crore — or above ₹10 crore if both cash receipts and cash payments are within 5% — and professionals with receipts above ₹50 lakh. It can also apply when presumptive profit is declared below the set rate.
When your tax for the year, after TDS, is ₹10,000 or more. Pay 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March.
Fixed-term employees become eligible after one year under the Labour Codes in force from 21 November 2025. Permanent employees need 5 years, except in case of death or disablement.
This guide is general information, checked against the sources linked above as of October 2026. Laws change — please confirm before acting, or ask us.
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