RBI & Financial Sector

MONETARY POLICY  |  RBI MPC  |  3 – 5 JUNE 2026

June MPC Holds Repo Rate at 5.25%, Retains Neutral Stance Unanimously: Energy Prices and Supply-Side Pressures Flagged

The Reserve Bank of India's Monetary Policy Committee, at its June 2026 meeting concluded on Friday 5 June, voted unanimously to hold the policy repo rate unchanged at 5.25% and to retain the neutral stance. The Standing Deposit Facility (SDF) rate accordingly stays at 5.00%, and the Marginal Standing Facility (MSF) and Bank Rate remain at 5.50%. This is the second consecutive hold after the April pause, and confirms that the cumulative 125 basis points of cuts delivered through 2025 are the operative monetary cushion for the current cycle. Governor Sanjay Malhotra noted that the decision was unanimous and that the Committee remains "confident to withstand shocks with minimum pain amid heightened global uncertainties". The June meeting was the first full review following the rupee's record low of ₹96.96 on 20 May, and the unanimous hold reflects the Committee's preference for stability while FX-side pressure plays out.

The macro commentary was more important than the rate decision itself. The Governor confirmed that CPI inflation remains below target with an upward bias, and explicitly noted that elevated energy prices are translating into moderate growth and a rise in inflation. Three risk channels were called out: continued energy-price elevation transmitting through input costs, supply-side pressures from the West Asia conflict that have not eased, and external sector volatility carried forward from the May FX episode. On growth, the Committee assessed that domestic economic activity remains broadly steady, but flagged that the rise in energy prices and supply disruptions are likely to weigh on activity going forward. The MPC reiterated that it will remain data-dependent and closely monitor incoming inflation, growth, and external indicators before its next review. For corporates, the practical implication is that lending rates from the banks transmission channel are unlikely to ease materially in the near term; treasury and CFO functions should treat the current rate environment as the operative baseline through at least the August MPC review.

Source: Upstox — RBI Policy June 2026: MPC Keeps Repo Rate Unchanged at 5.25%, Stance Remains Neutral

Income Tax Updates

FILING SEASON + ACT TRANSITION  |  CBDT  |  27 MAY – 1 JUNE 2026

ITR-2 Utility Goes Live, Offline Utility Updated to v1.1.0, IT Act 1961 Formally Repealed: A Consolidated Note on the New Filing Architecture

The Income Tax Department has activated the ITR-2 Excel utility and online filing for Assessment Year 2026-27 on the e-filing portal. The release closes the utility gap flagged in earlier bulletins and unlocks the filing window for individuals and HUFs with capital gains, more than one house property, foreign assets, cryptocurrency or virtual digital asset income, director shareholdings, or unlisted equity. On 29 May 2026, the Department released Version 1.1.0 of the Common Offline Utility for ITR-1, ITR-2, and ITR-4, available for both Windows and Mac, allowing return preparation without a continuous internet connection. Three substantive ITR-2 changes deserve practitioner attention: the bifurcation of capital gains by 23 July 2024 has been removed at the schedule level (rates under Sections 111A and 112A remain segregated); donation deduction claims now require additional transaction details to support the 80G working; and representative-assessee filings have been simplified to capture only the name, contact, and email ID of the representative.

The portal also now carries a formal notice that the Income Tax Act, 1961 stands repealed effective 1 April 2026, pursuant to Section 536 of the Income Tax Act, 2025. The architecture handles dual-Act activity through a unified challan interface: taxpayers can make payments under the 1961 Act for dues up to FY 2025-26, and under the 2025 Act for Tax Year 2026-27 onwards, with the system automatically determining Act applicability from the year selected at entry. Several form-level changes have crystallised: Form 105 replaces Form 10AB for charitable trust re-registration; Form 145 and Form 146 offline utilities are now under the "Income Tax Forms → Income Tax Act 2025" section of the Downloads menu; Form 27 introduces mandatory reporting for the dissolution or reconstitution of firms; Form 52 is now mandatory for Advance Pricing Agreement holders; and Form 124 is the new prescribed format for employees to declare other-source income to their employer for accurate salary TDS computation. Salaried filers should wait for Form 16 (issuance deadline 15 June 2026) before filing the return.

Sources: CAclubindia — ITR-2 Excel Utility Live for AY 2026-27  |  CAclubindia — Updated Common Offline Utility v1.1.0 (29 May 2026)

SCRUTINY FRAMEWORK  |  CBDT  |  SEC 536(2)(c) IT ACT 2025  |  JUNE 2026

CBDT Releases Compulsory Scrutiny Guidelines for FY 2026-27: Six Categories Identified, Jurisdictional Officer Lists Due 15 June

The Central Board of Direct Taxes has released the Guidelines for Compulsory Selection of Returns for Complete Scrutiny during FY 2026-27, prescribing six specific categories under which returns filed during FY 2025-26 will be mandatorily picked up for detailed examination. The Guidelines are issued under Section 536(2)(c) of the Income Tax Act, 2025, which is the transition provision that preserves and operationalises the legacy administrative framework into the new Act. The six categories cover survey cases under the erstwhile Section 133A (CS-01), search and seizure cases under Sections 132 / 132A (CS-02), cases where notice under Section 142(1) has not been complied with by the taxpayer (CS-03), cases involving registration / approval under Sections 12A, 12AB, 35, 80G that have been cancelled or refused (CS-04), and information-driven selections based on Non-filers Monitoring System, Annual Information Statement, Statement of Financial Transactions, CPC-TDS, or Directorate of I&CI data (CS-05 and CS-06).

An important clarification narrows the scope of category CS-05 / CS-06: returns filed in response to Section 142(1) notices that were issued solely on the basis of NMS, AIS, SFT, CPC-TDS, or I&CI information will not automatically qualify for compulsory scrutiny unless they are also independently covered under one of the substantive categories. Jurisdictional Assessing Officers must prepare and submit consolidated lists of eligible CS-05 and CS-06 cases through the prescribed administrative hierarchy and forward them to the Directorate of Income-tax (Systems) by 15 June 2026. Cases handled by International Taxation and Central Charges may also be selected under these parameters with prior administrative approval and will continue to be handled by the respective jurisdictions rather than transferred to the National Faceless Assessment Centre (NaFAC). The Board has also reiterated that the last date for service of notice under Section 143(2) for returns filed during FY 2025-26 is 30 June 2026. Taxpayers and practitioners should treat the period through 30 June as an active risk window and verify that all FY 2025-26 returns carry adequate underlying documentation, particularly where AIS / SFT data populated automatically into the return.

Source: CAclubindia — CBDT Releases Compulsory Scrutiny Guidelines for FY 2026-27

GST Updates

REVENUE DATA  |  MINISTRY OF FINANCE  |  1 JUNE 2026

May 2026 GST Collections at ₹1.94 Lakh Crore: Domestic Contracts 2.6%, Imports Surge 19.1%, GSTIN Base Up 34.9% YoY to 9.49 Million

Gross GST collections for May 2026 stood at ₹1,94,184 crore, a 3.2% year-on-year increase over the ₹1,88,172 crore collected in May 2025, per data released by the Ministry of Finance on 1 June 2026. The headline number understates the underlying compositional shift, and the Ministry has flagged that the May 2025 base included a one-time ₹10,000 crore spectrum-allocation payment by a telecom operator. Stripping out that distortion, the adjusted gross growth comes to approximately 9% YoY, with adjusted net revenue growing 10.1%. Net of refunds, May 2026 collections were ₹1,66,904 crore, up 3.3% YoY. The collection is a moderation from the April 2026 all-time high of ₹2,42,702 crore, which is the typical April-to-May seasonality and not a signal of weakness.

The composition of the May print is the more interesting story. Gross GST on imports rose 19.1% YoY to ₹59,654 crore, while gross domestic GST contracted 2.6% YoY to ₹1.35 lakh crore, an unambiguous signal of consumption moderation that runs counter to the headline narrative. Total refunds disbursed rose 2.6% YoY to ₹27,281 crore. The strongest structural signal in the release is the 34.9% YoY growth in registered GSTINs, from 7.03 crore in May 2025 to 9.49 crore in May 2026, indicating an unprecedented widening of the taxpayer base under the new IMS and Tax Liability Breakup regime. State-wise, Maharashtra remained the largest contributor at ₹29,141 crore. The 57th GST Council meeting is now expected later in June following the new state government formations. On the portal side, the e-Way Bill upgrade goes live on 15 June 2026: Ship-To GSTIN becomes mandatory in Bill-To / Ship-To transactions ("URP" for unregistered consignees), and the voluntary EWB Closure facility will be available via web, mobile, and API. ERP and EWB workflow updates should be completed before that date.

Sources: CAclubindia — GST Collections Rise 3.2% to ₹1.94 Lakh Crore in May 2026  |  StartupTalky — Imports and Formalisation Drive May 2026 Growth

MCA Updates

NOTIFICATION  |  MCA  |  G.S.R. 415(E)  |  EFFECTIVE 27 MAY 2026

CSR Goes to the Social Stock Exchange: Up to 10% of CSR Spend Can Now Be Routed Through Zero Coupon Zero Principal Instruments

The Ministry of Corporate Affairs has notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026 through Gazette Notification G.S.R. 415(E) dated 27 May 2026, which came into force on the same day. The amendment inserts a new Rule 4A permitting companies to discharge their CSR obligations by subscribing to Zero Coupon Zero Principal (ZCZP) Instruments issued by Not for Profit Organisations registered on the Social Stock Exchange (SSE) segment of a recognised stock exchange. The instruments are defined with reference to Regulation 292A of the SEBI ICDR Regulations, 2018, and the NPO definition is aligned with the SEBI framework. The change formally integrates the CSR spending channel with the SSE ecosystem that SEBI has been building out since 2022.

Four important guardrails apply. First, expenditure on ZCZP Instruments cannot exceed 10% of a company's total CSR expenditure for the relevant financial year. Second, NPOs issuing ZCZP Instruments must undertake projects with a duration not exceeding three succeeding financial years from the date of issuance. Third, companies subscribing to ZCZP Instruments are exempt from conducting impact assessments for projects funded through them, recognising that SSE-listed NPOs are already subject to SEBI-supervised disclosure. Fourth, on termination of the instrument's listing, any unspent amount must be transferred to a Schedule VII fund and a compliance report submitted to SEBI. The NSE has welcomed the change, noting it will allow corporates to direct CSR funding through a regulated and disclosure-driven platform. On the labour side, the Code on Wages (Central) Rules, 2026 notified on 8 May 2026 under Section 67 of the Wage Code (effective 21 November 2025) continues to drive payroll and HR policy reviews; the rules cover the minimum-wage calculation methodology and definitions of "wages" that flow into PF, gratuity, and other statutory contributions.

Sources: The Tribune — Up to 10% of CSR Spend Through SSE Instruments (30 May 2026)  |  NewsX — CSR Rules 2026: MCA Allows ZCZP Instruments via SSE

Importance & Applicability

Who each update applies to, why it matters, and the action it triggers.

BANKING & FINANCE June MPC holds repo at 5.25%; neutral stance retained	APPLIES TO Corporate borrowers, NBFCs, banks, and any business with floating-rate debt linked to external benchmarks. Treasury and CFO functions managing borrowing cost projections.	WHY IT MATTERS Borrowing costs unlikely to ease materially in the near term. Treat current rate environment as baseline through at least August MPC. Energy-price risk channel now flagged explicitly.
DIRECT TAX ITR-2 live; IT Act 1961 repealed; new form architecture	APPLIES TO Individuals and HUFs with capital gains, multiple properties, foreign assets, crypto income, directors. Charitable trusts (Form 105). Partnership firms reconstituting (Form 27). APA holders (Form 52). Salaried employees (Form 124).	WHY IT MATTERS Filing window now open. Capital gains bifurcation removed at schedule level. Unified challan eliminates Act-tagging errors. Update internal form-mapping checklists. Wait for Form 16 (15 Jun) before salaried ITR filing.
DIRECT TAX CBDT Compulsory Scrutiny Guidelines FY 2026-27	APPLIES TO All FY 2025-26 return filers across six categories: survey / search cases, Sec 142(1) non-compliance, cancelled registrations under Sec 12A / 12AB / 35 / 80G, and AIS / SFT / NMS / CPC-TDS / I&CI information-driven selections.	WHY IT MATTERS Jurisdictional lists due 15 Jun 2026. Sec 143(2) notice service deadline 30 Jun 2026. Active risk window through end-June. Verify documentation for FY 2025-26 returns, especially AIS / SFT-driven entries.
INDIRECT TAX May GST ₹1.94 lakh crore; GSTIN base up 34.9% YoY	APPLIES TO All GST-registered businesses. Consumer-facing sectors should read 2.6% domestic contraction as planning input. Importers tracking import-led growth. ERP teams preparing for 15 Jun EWB upgrade.	WHY IT MATTERS Adjusted +9% growth on clean base shows new triple-layer regime is biting on compliance. 34.9% GSTIN growth signals durable revenue base. 57th Council expected late June.
CORPORATE LAW CSR via ZCZP Instruments on Social Stock Exchange	APPLIES TO Companies meeting Section 135 CSR threshold (₹500 cr net worth, ₹1,000 cr turnover, or ₹5 cr net profit). NPOs registered on the SSE. CSR committees and board secretaries managing FY 2026-27 spend plans.	WHY IT MATTERS Up to 10% of CSR spend can flow through SSE-listed instruments. Impact assessment waived. NPO project tenure capped at 3 FYs. Update CSR policy and committee charters before FY 2026-27 budgeting.

KEY COMPLIANCE DEADLINES — JUNE TO AUGUST 2026

11 JUN 2026 — THIS THURSDAY GSTR-1 for May 2026 (monthly filers). GSTR-1 IFF for QRMP. Confirm IMS reconciliation; open Tax Liability Breakup tab; verify ECRS and RCM balances.	15 JUN 2026 — SIX DAYS AWAY Form 16 issuance deadline for salaried employees (Rule 31). First instalment of advance tax for AY 2027-28 (15%). Jurisdictional CS-05 / CS-06 scrutiny lists due to DG (Systems).
15 JUN 2026 (CONT.) e-Way Bill portal upgrade live: Ship-To GSTIN mandatory in Bill-To / Ship-To transactions (URP for unregistered); voluntary EWB Closure facility via web, mobile, and API.	20 JUN 2026 GSTR-3B for May 2026 (monthly filers). Second full filing cycle under IMS hard block + Tax Liability Breakup tab + ECL-based interest formula.
30 JUN 2026 Form DPT-3 (Return of Deposits) for FY 2025-26. Triennial DIR-3 KYC Web filing under Rule 12A(1). Last date for Sec 143(2) notice service on FY 2025-26 returns.	1 JUL 2026 Unregistered Type I NBFC framework live. PRAVAAH portal deregistration window opens for eligible entities (closes 31 Dec 2026).
15 JUL 2026 CCFS-2026 amnesty window closes. Last day to file pending ROC returns at 10% of additional fee. No extension expected.	31 JUL 2026 ITR-1, ITR-2, ITR-4 for AY 2026-27 (non-audit). ITR-3 expected before this date. DIR-3 KYC late window.

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This bulletin is for general information only and does not constitute legal, tax, or financial advice.
Please verify with primary sources and consult your CA or advisor before acting.