🏢 Companies / MCA Updates
MCA
Effective 31 March 2026 | Notification G.S.R. 412(E), dated 16 July 2024
Director KYC Compliance: Annual DIR-3-KYC Replaced with 3-Year Compliance Cycle
The Ministry of Corporate Affairs (MCA) has notified the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025, effective from 31st March 2026, to streamline the DIN KYC framework. Under the earlier regime, every DIN holder was required to file Form DIR-3 KYC annually. The amended rules significantly ease this by requiring a KYC intimation once every three years.
The revised KYC Form can be used for:
- KYC compliance
- Updation of mobile number
- Updation of email address
- Updation of residential address
- Re-activation of DIN
All directors who have completed KYC till date — their next KYC filing will be due by 30th June 2028. Directors who have not submitted KYC so far may continue to get DINs re-activated as per existing provisions till 31st March 2026.
📄 View Detailed Notification →
MCA
15 April 2026 – 15 July 2026 | General Circular No. 01/2026, dated 24 February 2026
Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) – One-Time Opportunity by MCA
MCA has introduced CCFS-2026 to provide relief to defaulting and inactive companies. Earlier, companies paid ₹100 per day per form as additional fees for delayed ROC filing. This one-time scheme allows regularization of pending ROC compliances at concessional fees.
Key Features:
- Valid from 15th April 2026 to 15th July 2026
- Pending Annual Filings can be completed by paying only 10% of total additional fees
- Companies intending to strike off can file STK-2 by paying only 25% of filing fees
- Dormant Companies have option to file MSC-1 with reduced fees
- Avoid risk of Directors' disqualification and prosecutions
- Relief from heavy additional fees
📄 View Detailed Circular →
📊 Income Tax Updates
Income Tax
Effective 1 April 2026
New Income Tax Act, 2025 Applicable w.e.f. 1st April 2026
The Income Tax Act, 2025 replaces the 1961 Act, introducing a streamlined "Tax Year" system for FY 2026-27. Key updates include a ₹12 lakh tax-free income limit under the new regime and revised ITR forms on the e-Filing portal.
- New IT Act, 2025: Replaces the 1961 Act with simplified language and updated, higher exemption limits for allowances (e.g., ₹3,000/month for child education).
- "Tax Year" Concept: Replaces "Financial Year" and "Assessment Year" for simplicity, starting with Tax Year 2026-27.
- New Tax Regime (Default):
- Income up to ₹12 lakh is effectively tax-free due to higher rebates.
- No changes in tax rates for FY 2026-27, but structure reduces middle-income burdens.
- Old Tax Regime: Continues for those preferring to claim exemptions (80C, 80D).
- Revised ITR Forms: Available on the e-filing portal for AY 2026-27.
- Presumptive Taxation: Revised limits for small businesses/professionals (95% digital transactions required).
- Virtual Digital Assets (VDAs): 30% flat tax on crypto/NFT gains; no deductions except cost of acquisition.
Income Tax
Effective 1 April 2026
TDS/TCS & Advance Tax Payment — New Codes Updated on Income Tax Portal
New consolidated TDS/TCS section codes (1001–1092) have been introduced on the e-filing portal to replace old 1961 Act provisions. Salary is now under Section 392; other payments fall under Section 393.
- New Code Structure: TDS challans use numeric system — 1001–1067 (TDS), 1068–1092 (TCS).
- Salary TDS (Section 392): Codes 1001–1004 for government and non-government employees.
- Other TDS (Section 393): Residents (1005–1038), Non-residents (1039–1057).
- TCS Rates: LRS (education/medical) reduced to 2% (above ₹10 lakh); overseas tour packages now flat 2%.
- Form Changes: Form 16 → Form 130 | 26AS → Form 168 | 15G/15H → Form 121
- Payment Process: Use updated 'e-Pay Tax' as "Income Tax Act, 2025" module on the Income Tax portal.
- Advance Tax: Use new codes when paying self-assessment or advance tax.
🧾 GST Updates
GST
Notification No. 15/2025-Central Tax
Taxpayers with Annual Turnover < ₹2 Crore Exempted from Filing Annual Return (GSTR-9)
The filing of annual return for FY 2024-25 onwards has been exempted for registered persons whose aggregate turnover in any financial year is up to two crore rupees. Such taxpayers are no longer required to file GSTR-9.
GST
Operational from 16 February 2026
GST Appellate Tribunal (GSTAT) Starts Functioning
The Goods and Services Tax Appellate Tribunal (GSTAT) officially began operations with online filing of appeals starting on 16th February 2026. Formally launched on 24th September 2025, it is a specialized, digital-first body to resolve GST disputes.
- Filing & Operations: Accepting online appeals through a dedicated portal; over 1,000 cases filed upon commencement.
- Backlog Deadline: For orders passed before 1st April 2026 — deadline to file appeals is 30th June 2026.
- Procedure Rules: GST Appellate Tribunal (Procedure) Rules, 2025 govern proceedings; "digital-by-default" approach including virtual hearings.
- Structure: Principal Bench (New Delhi) as National Appellate Authority for Advance Rulings + state benches with Judicial and Technical members.
- Chennai Bench was among the first to become operational (late January 2026).
- Appeal Fee: ₹1,000 per ₹1 lakh in dispute (max ₹25,000); flat ₹5,000 for non-tax cases.
GST
Effective 1 January 2026
Other Key GST Changes from 1st January 2026
- Registration Withdrawal (Rule 14A): Small suppliers (output liability < ₹2.5 lakh/month) can exit the simplified 3-day registration route, requiring only 1 month of filed returns (instead of three).
- GST 2.0 Rationalization: New four-tier rate structure — 0%, 5%, 18%, 40% — replacing the earlier 5-12-18-28% system.
- TDS/TCS Corrections: Window for filing correction statements reduced to two years from the end of the financial year.
- Exporters Relief: Mandatory minimum threshold for export refunds has been removed, benefiting smaller exporters.
- Stricter ITC Validation: GST portal now auto-blocks GSTR-3B filings if ITC mismatches occur.
- Interest Calculation: Updated formula for delayed payments, taking into account cash balance in the electronic cash ledger.
- E-Invoicing Rules: 30-day reporting window for IRN generation strictly applied to taxpayers with AATO ≥ ₹10 crore.
- E-way Bill Changes: 180-day limitation on document usage; 360-day cap on extension of E-way Bills.
- Bank Account Details: Mandatory validation of bank account details; potential suspension of registration if not updated.
