Income Tax Updates

COMPLIANCE  |  CBDT  |  18 APRIL 2026

ITR-3 and ITR-4 Filing Deadlines Extended to 31 August for Non-Audit Taxpayers

Under the framework of the new Income Tax Act 2025, the Central Board of Direct Taxes (CBDT) has confirmed the extension of the filing deadline for ITR-3 and ITR-4 (non-audit cases). Traditionally due by 31 July, these returns can now be filed until 31 August 2026. This shift provides a necessary compliance buffer as taxpayers and professionals adapt to the streamlined 536-section structure and re-architected forms.

This extension acts as a critical window for professionals conducting section-wise comparisons between the legacy 1961 provisions and the new 2025 Act to ensure accurate reporting. The deadline for salaried individuals (ITR-1 and ITR-2) remains strictly fixed at 31 July 2026. Businesses subject to statutory tax audits must continue to adhere to their 31 October deadline.

NOTIFIED RATES  |  FINANCE ACT 2026  |  EFFECTIVE APRIL 2026

Rationalized TCS Rates and New MAT Provisions Take Effect

Revisions to Tax Collected at Source (TCS) are now live for the current financial year. Remittances under the Liberalised Remittance Scheme (LRS) for education or medical treatment exceeding ₹10 lakh have been reduced to 2%. Crucially, for corporate taxpayers, the Minimum Alternate Tax (MAT) has been finalized at a flat rate of 14% under the new regime. Brought-forward MAT credit accumulated up until March 2026 will be available for set-off under specific transitional limits over the next five years.

Source: Income Tax Portal — IT Act 2025 Transitional Guidelines

GST Updates

ENFORCEMENT  |  GSTN  |  EFFECTIVE 16 APRIL 2026

Strict 30-Day Window for IRN Reporting and 180-Day E-Way Bill Rule

The GST Network has enabled hard locks on the Invoice Registration Portal (IRP). Taxpayers with an Aggregate Annual Turnover (AATO) of ₹10 crore and above must now report e-invoices within exactly 30 days of the invoice date. Invoices reported after this window will be rejected by the portal, rendering them invalid for Input Tax Credit (ITC) claims by the recipient. Simultaneously, E-way bills (EWB) can now only be generated against base documents dated within the prior 180 days, directly targeting the circular movement of goods using outdated documentation.

PROCEDURE  |  CBIC  |  EXPORT RELIEF  |  19 APRIL 2026

Removal of ₹1,000 Threshold for Export Refunds

In a move to benefit micro-exporters, the CBIC has removed the previous restriction that blocked refund applications below ₹1,000. Every valid export refund claim, regardless of the denomination, is now eligible for processing through the GST portal. Exporters are also reminded that a fresh Letter of Undertaking (LUT) must be filed for FY 2026-27 to continue making zero-rated supplies without payment of integrated tax.

Source: CBIC Advisory — April 2026 Updates

RBI & Financial Sector

NOTIFICATION  |  RBI  |  DIGITAL PAYMENTS  |  20 APRIL 2026

RBI Issues Consolidated "E-mandate Framework 2026"

The Reserve Bank of India has issued the master Digital Payments – E-mandate Framework, 2026. This framework simplifies recurring payments by allowing automated debits for insurance premiums, mutual fund SIPs, and credit card bill payments up to ₹1 lakh per transaction without requiring Additional Factor Authentication (AFA) every time. The AFA is only required once during the initial mandate registration. For all other categories of recurring payments (like software subscriptions or OTT platforms), the AFA-exempt limit remains capped at ₹15,000.

Source: RBI Circular — E-mandate Framework 2026

MCA Updates

PUBLIC CONSULTATION  |  MCA  |  OPEN TILL 15 MAY 2026

MCA Launches Consultation to Rationalize Companies Act Compliance

The Ministry of Corporate Affairs, in collaboration with the Indian Institute of Corporate Affairs (IICA), initiated a massive public consultation on 17 April 2026 to review the Companies (Incorporation) Rules, 2014. The review follows a lifecycle-based approach—covering company entry, ongoing operations, and exit procedures—aiming to drastically cut redundant filing requirements on the V3 portal. Stakeholders and corporate professionals are invited to submit evidence-based feedback and suggestions for form consolidation via the e-Consultation module until 15 May 2026.

Labour Law Updates

NEW CODE  |  MINISTRY OF LABOUR  |  EFFECTIVE APRIL 2026

Implementation of the 50% Basic Salary Validation Rule

With the phased rollout of the new Labour Codes taking effect this month, the definition of "wages" has officially shifted. The new mandate dictates that Basic Salary (plus DA and retaining allowance) must constitute at least 50% of an employee's Total CTC. If other allowances (like HRA, special allowances, etc.) exceed 50%, the excess amount will be legally treated as part of basic wages for the purpose of calculating statutory benefits such as Provident Fund (PF) and Gratuity. Employers must immediately restructure compensation packages to avoid short-payment penalties.

Furthermore, under the new framework, Fixed-Term Employees (FTE) are now eligible for gratuity payouts after completing just 1 year of continuous service, abandoning the legacy 5-year requirement that previously applied to permanent staff.

Source: Ministry of Labour & Employment — Wage Code 2026 Guidelines

KEY COMPLIANCE DEADLINES — APRIL TO AUGUST 2026

30 APR 2026 MSME Form-1 due (Oct-Mar return) · NDH-3 for Nidhi Companies	15 MAY 2026 Deadline for public comments on MCA Companies (Incorporation) Amendment Rules
30 MAY 2026 LLP Form 11 due — Annual Return of Limited Liability Partnerships	31 MAY 2026 TDS Return due for Q4 (FY 2025-26) — Forms 24Q, 26Q, 27Q, 27EQ
15 JUN 2026 First Installment of Advance Tax due for FY 2026-27	30 JUN 2026 Form DPT-3 due — Annual Return of Deposits for Companies
15 JUL 2026 CCFS-2026 amnesty window closes — last day to file pending ROC returns at 10% additional fee.	31 AUG 2026 Revised due date for ITR-3 and ITR-4 (non-audit taxpayers) under the new tax regime.

— ✦ —

TRUSTFACTON

www.evensetconsultancy.com

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