Weekly Regulatory Update — YouWe Quest LLP

GST

Direct Tax

MCA

SEBI

ICAI

Actions

GST

Goods & Services Tax

Deadline

GSTR-3B for February 2026 — 20 Mar (monthly filers with turnover > ₹5 crore) / 22 Mar (QRMP Group B). Ensure cash ledger is sufficiently funded before filing. Interest under s.50 CGST begins from the 21st.

Portal

GSTN — 6-digit HSN validation tightened at IRP stage. Taxpayers generating e-invoices (eligible IRPs) now face rejection if 6-digit HSN codes do not match the description uploaded. Description mismatches or abbreviated text are being flagged automatically. Update ERP product masters immediately.

Court

Delhi HC — ITC on works contract for plant & machinery permissible. s.17(5)(d) CGST restriction on "immovable property" applies only to buildings and structures embedded in earth — not to plant & machinery embedded for manufacturing. ITC on civil work for P&M foundation held allowable.

New Law

CGST (Amendment) Act 2025 — commencement notified. Provisions (including post-sale discount relaxation, intermediary place of supply omission, provisional refund for IDS) take effect 01 April 2026. Transition planning required for affected taxpayers.

Portal

E-way bill vs GSTR-3B mismatch — auto-notices rolling out. GSTN's analytics engine is issuing system-generated notices (DRC-01C equivalent) for value mismatches between e-way bills and GSTR-3B. Pre-emptive reconciliation before March return filing is strongly advised.

Portal

GSTN Advisory — DRC-03A pre-deposit mandatory before filing GST appeal. Taxpayers must file Form DRC-03A to link the pre-deposit payment made in the cash ledger with the appeal, before the appeal application is submitted on the GST portal. Missing this step results in the appeal not being recognised as accompanied by the mandatory pre-deposit, exposing the taxpayer to deemed non-prosecution of the appeal.

Court

P&H HC — Retrospective GST registration cancellation void if ground not in SCN. The Punjab & Haryana High Court has held that an order cancelling GST registration with retrospective effect is invalid if the Show Cause Notice did not propose retrospective cancellation as a ground. The principle of natural justice requires that the taxpayer must be given an opportunity to respond to each specific ground — including the retrospective date — proposed in the notice.

Direct Tax

Income Tax — ITA 2025 Transition

Circular

CBDT TDS/TCS rates circular for FY 2026-27 issued under ITA 2025 section numbering. Rates are largely unchanged, but section references are updated to the new Act. Update payroll, billing, and TDS filing software to reflect revised section numbers before 01 Apr 2026.

New Law

ITR forms for Tax Year 2025-26 notified — first forms under the ITA 2025 framework. New "Tax Year" terminology replaces Assessment Year/Previous Year. Structure broadly similar to prior ITRs but requires review before use.

Deadline

31 Mar 2026 — last date for tax-saving investments under the old regime (80C / 80D / 80CCD(1B)) for FY 2025-26. Applicable only to taxpayers who opted out of the new tax regime for FY 2025-26. Confirm regime election for each client.

Court

ITAT Mumbai — RSU FTC claim upheld for NRI repatriate. DTAA Article 15 (dependent services) covers RSU vesting income derived from services rendered in India during the vesting period. FTC on US taxes paid on RSU income — allowed proportionately. Key ratio for NRI-ESOP practice.

Portal

PAN validation API updated. Legacy batch-validation utility deprecated effective 01 Apr 2026. Entities using the old API for bulk TDS return validation or KYC PAN checks must migrate to the new REST-based API. CBDT has issued technical specifications.

New Law

Income-tax Rules, 2026 notified — effective 01 April 2026. CBDT notified the full procedural framework for the new Income-tax Act, 2025 on 20 March 2026. Over 150 new forms (Form 33 onwards) replace existing ITR/TDS forms. Key changes: HRA — 8 metros at 50% salary (Bengaluru, Hyderabad and Pune now included); mandatory landlord-relationship disclosure; revised perquisite valuation rules; SFT reporting threshold for insurance premiums reduced to ₹5L/₹2.5L. Every client filing from 1 April is affected.

Portal

CBDT SAKSHAM nudge notices — s.139(8A) updated return deadline 31 Mar 2026. CBDT's SAKSHAM compliance campaign is sending system-generated nudge notices to taxpayers in the restaurant and F&B sector who have not yet filed an updated return under s.139(8A). The deadline for filing ITR-U for AY 2023-24 (with 50% additional tax) is 31 March 2026. After this date, the 25%/50% additional tax option lapses and the window closes.

MCA

Corporate Affairs

Portal

MGT-14 now V3-only; DSC compatibility check required. Form MGT-14 (board resolutions with MCA) is now available exclusively on the V3 portal. Verify DSC compatibility before March-end filing rush — V3 requires Class 3 DSC with updated drivers.

Deadline

31 Mar 2026 — Q4 board meeting (Oct–Mar half-year) must be held. s.173 Companies Act mandates one board meeting every quarter with not more than 120-day gap. Companies with last meeting in November/December must convene before month-end.

New Law

Companies (Audit & Auditors) Amendment Rules 2026. New paragraph required in auditor's report for companies transitioning to ITA 2025 — disclosure of deferred tax computation methodology under new Act. Applicable from FY 2025-26 audit reports.

New Law

MCA — AS 22 amended for OECD Pillar Two (GSR 169(E), 10 Mar 2026). Companies (Indian Accounting Standards) Amendment Rules 2026 notified. AS 22 amended to provide a temporary mandatory exception from recognising deferred taxes arising from Pillar Two income taxes. Separate disclosures required in notes for entities in scope of Pillar Two framework. Effective for FY 2025-26.

Deadline

Director KYC (DIR-3-KYC) overhauled — effective 31 March 2026. Annual DIR-3-KYC replaced by triennial filing (once every 3 years). Only DIR-3-KYC-Web form is now prescribed — the e-form DIR-3-KYC is discontinued. Event-based updates (mobile, email, address changes) required within 30 days. Directors already compliant: next KYC due June 2028. Action required before 31 Mar for those with lapsed or pending KYC.

Portal

MCA Advisory — Name Reservation & Incorporation (13 Mar 2026). Updated advisory on RUN, SPICe+, and FiLLiP applications. Names must be distinctive — NOC insufficient for similar/identical names. Regulatory approvals required for restricted words (Bank, Insurance, Architect, professional designations). Even minor name changes (hyphen removal) require formal RUN/RUN-LLP approval. Time limits prescribed for reuse of names from struck-off or dissolved entities.

New Law

Union Cabinet — IBC + Companies Act + LLP Act amendments approved (10 Mar 2026). Cabinet cleared three landmark amendments: IBC — creditor-initiated insolvency resolution, group insolvency framework, cross-border insolvency; Companies Act + LLP Act — form rationalisation, decriminalisation of 12+ offences, ease of compliance. Bills to be introduced in Parliament for passage.

SEBI

Capital Markets

Live

AMFI large-cap / mid-cap universe updated — effective 01 Apr 2026. Bi-annual rebalancing as per SEBI categorisation circular. Companies shuffling between large-cap and mid-cap segments. Fund houses must realign portfolios within 30 days of April 1st.

Markets

F&O weekly expiry shifts to Tuesdays from April 2026 series. SEBI directive to stagger index option expiries. Nifty/BankNifty weekly options moving to Tuesday from the current Thursday. Clients with weekly option strategies must update calendars.

Deadline

31 Mar 2026 — SCORES 2.0 compliance officer designation update. Listed companies and intermediaries must update their designated SCORES 2.0 compliance officer information. Non-updation results in investor grievance escalations bypassing the entity.

Data

SIP inflows: ₹26,000 crore in February 2026 — a new all-time high per AMFI data. Monthly SIP book crossing ₹26,000 crore mark for the first time. Domestic equity flows continue to cushion FII selling pressure in Indian markets.

New Law

SEBI LODR Amendment Regulations — Corrigendum issued (12 Mar 2026). SEBI issued a corrigendum to the SEBI (Listing Obligations and Disclosure Requirements) Amendment Regulations 2026. Listed companies and compliance officers should review the corrected provisions — the corrigendum modifies specific requirements in the earlier amendment. Compliance teams must update their LODR compliance checklists accordingly.

New Law

SEBI (Mutual Funds) Regulations 2026 — effective 01 April 2026. New regulations introduce TER (Total Expense Ratio) rationalisation across fund categories and introduce performance-linked fee structures for certain schemes. Fund houses must restructure fee arrangements before April 1. For investors — expense ratios on some fund categories will reduce, improving net returns. Relevant to Sanchayak fund selection framework.

ICAI

Professional Standards

Standards

Technical Guide on ITA 2025 released by ICAI. Covers section-wise mapping from ITA 1961, computation differences, deduction re-numbering, and transition guidance for audit reports. Mandatory reading before FY 2026-27 practice. Available at icai.org/publications.

UDIN

UDIN mandatory for Form 15CB from AY 2026-27. CBDT and ICAI circular: all Form 15CB certificates (remittance abroad — tax clearance) must carry a UDIN from Tax Year 2026-27 onwards. Generating UDIN post-issue is not permissible — must be generated at the time of signing.

Peer Review

PRB Phase III application window open. Peer Review Board's Phase III roll-out for firms not yet covered under mandatory peer review. Eligible firms (statutory audits of entities > ₹10 crore) must apply within the window. Certificate issuance takes 3–6 months.

Deadline

31 Mar 2026 — 20 structured CPE hours for FY 2025-26. Check credit count at ICAI SSP (ssp.icai.org). Random CPE audits are conducted; non-compliance affects practice certificate renewal. Online CPE webinars still count for structured hours.

Standards

GN on Audit of Banks — 2026 Edition released (AASB, Mar 2026). Updated with RBI circulars up to 28 Feb 2026. Covers digital banking assurance, cybersecurity risk, treasury operations, GST compliance in banks, and revised illustrative audit report formats. Mandatory reference for bank statutory and branch auditors for FY 2025-26 audits beginning April.

Standards

11 ISAS (Information Systems Audit Standards) launched — Feb 2026. First such IS audit framework by any professional accountancy body globally. Mandatory for ICAI members undertaking IS audit assignments. Covers ERP controls, cloud systems, algorithm-driven processes, and digital personal data protection. Developed in coordination with SEBI and RBI.

Standards

Practitioner's Guide on Modified Opinions in Audit Reports (AASB, 11 Feb 2026). Comprehensive guidance on drafting qualified, adverse, and disclaimer opinions with illustrative examples by scenario. Essential reading ahead of FY 2025-26 audit reporting season.

Publication

Guidance on New Labour Codes (AASB, 09 Feb 2026). Audit and assurance considerations under the four consolidated Labour Codes (Wages, Industrial Relations, Social Security, Occupational Safety). Covers PF compliance verification, payroll audit procedures, and statutory audit implications for entities covered by the Codes.

Publication

Handbook on Key Compliances for Private Limited Companies — CA 2013 (Corporate Laws, 06 Feb 2026). Practical reference: incorporation, post-incorporation obligations, annual filing trackers, statutory registers, and all CA 2013 exemptions available to private limited companies. Context: 96% of India's 30+ lakh registered companies are private limited.

Publication

GST Publications — ICAI Indirect Taxes Committee (Feb 2026). Three publications: (1) Significant Judicial & Advance Rulings in GST — 2nd Edition (50+ SC/HC rulings, topic-wise, 09 Feb); (2) Revised Handbook on Composition Scheme under GST (17 Feb); (3) Handbook on Applicability of GST on Agricultural Sector (25 Feb). All available at idtc.icai.org/publications.php.

Technical Reference

GST

Goods & Services Tax

A Judicial — ITC on Works Contract for Plant & Machinery ▾

Delhi HC — ITC on works contract for plant & machinery permissible.
The Delhi High Court has held that the ITC restriction under s.17(5)(d) CGST Act — which blocks credit on works contracts relating to "construction of immovable property" — does not extend to works contracts for installation and commissioning of plant & machinery. The restriction applies to buildings, structures, and similar immovables that become part of the earth. Plant & machinery — even when embedded in a concrete foundation — retains its character as movable property for tax purposes.

The Court applied the principle that provisions blocking credits must be construed strictly, and that the ejusdem generis rule limits "immovable property" in this context to structures similar to buildings. Civil work done as part of P&M installation (including foundations poured to manufacturer's specifications) is inextricably linked to the machinery and follows its ITC character.

Practice note: This ruling directly benefits manufacturing, pharmaceutical, and renewable energy clients who have been denied ITC on civil works for plant foundations. Review all past years where such credits were reversed on the instructions of the department. File rectification applications or claims in pending refund proceedings citing this ratio. Distinguish from cases involving civil structures for storage or administrative purposes — those remain blocked.

B Portal — HSN Validation & E-Way Bill Mismatch Notices ▾

6-digit HSN validation at IRP stage (e-invoicing): GSTN has tightened validation at Invoice Registration Portal level. E-invoices are now rejected at source if the 6-digit HSN code does not match the product description in the system's HSN master. Common failure modes: (a) generic descriptions like "goods" or "services" where a specific commodity description is required; (b) HSN code and description belonging to different chapters; (c) previously accepted 4-digit codes now being rejected where 6-digit is mandated. Entities must audit their ERP item masters and update descriptions to conform to HSN schedule nomenclature.

E-way bill vs GSTR-3B mismatch — automated DRC-01C equivalent notices: GSTN analytics is now cross-referencing e-way bill data (Part A — supply details) against declared values in GSTR-3B. Significant divergences are triggering system-generated notices demanding explanation or differential tax payment. The mechanism focuses on outward supply understatement. Taxpayers with a high volume of e-way bills (logistics, manufacturing, FMCG distribution) are at greatest exposure. The March 2026 GSTR-3B — being the final return of FY 2025-26 — will be particularly scrutinised.

Action before 20 March filing: Pull e-way bill data from the GSTN e-way portal for Feb 2026. Cross-verify total taxable value and IGST/CGST/SGST against GSTR-3B. Where divergences exist, check if any e-way bills relate to non-taxable movements (job work, own stock transfer, sample). If genuine taxable understatement — pay DRC-03 with interest before filing to avoid penalty exposure.

C CGST (Amendment) Act 2025 — Commencement from 01 Apr 2026 ▾

Commencement notification issued this week. The CGST (Amendment) Act 2025 — passed in the Winter Session — has been notified to come into force on 01 April 2026. Key provisions taking effect:

(a) Post-sale discount — s.15 & s.34 CGST: Pre-existing agreement requirement removed. Post-sale discounts may now be deducted from taxable value and credit notes issued irrespective of whether the discount arrangement was documented before the supply.

(b) IGST s.13(8)(b) omission — Intermediary place of supply: The clause treating location of supplier as place of supply for intermediary services is being omitted. Indian intermediaries serving overseas principals should qualify for zero-rating of their service exports going forward.

(c) Provisional refunds for inverted duty structure: Provisional refund facility extended to IDS cases — easing working capital for textiles, footwear, fertiliser, and other inverted-duty sectors.

Transition prep: Update credit note SOPs for post-sale discounts from April. Brief sales teams that the pre-existing agreement requirement is gone — but credit notes must still satisfy s.34 conditions (recipient reversal of ITC). For intermediary service exporters — coordinate with clients on LUT/refund strategies from April onwards.

D GSTN Advisory — DRC-03A Pre-Deposit Linkage for GST Appeals ▾

GSTN Advisory: Form DRC-03A must be filed before submitting a GST appeal. When a taxpayer makes the mandatory pre-deposit (10% of disputed tax for first appellate authority under s.107 CGST) through the electronic cash ledger, the payment must be linked to the appeal by filing Form DRC-03A before the appeal application is submitted. This step is required to ensure the portal recognises the payment as the pre-deposit accompanying the appeal.

Consequence of missing this step: If the appeal is submitted without filing DRC-03A first, the system may not tag the pre-deposit amount to the appeal. The Appellate Authority may treat the appeal as not accompanied by the mandatory deposit — rendering it liable to be dismissed on a threshold ground without hearing the merits.

Applicability: This advisory applies to all appeals filed before the first appellate authority (GST officer / Commissioner (Appeals)) and before the GST Appellate Tribunal (GSTAT) where pre-deposit is mandated. For GSTAT filings — 20% pre-deposit requirement under s.112 CGST.

Practice action: Update your firm's GST appeal filing SOP. The sequence must be: (1) Make pre-deposit payment via PMT-06 / cash ledger; (2) File Form DRC-03A to link payment to the demand order; (3) Then file the appeal application. Clients who have pending appeals filed without DRC-03A should be reviewed to confirm the pre-deposit has been correctly recognised.

E P&H HC — Retrospective Cancellation Void if Ground Not in SCN ▾

Punjab & Haryana High Court ruling — significant protection for taxpayers facing retrospective cancellation. The Court held that an order cancelling GST registration with retrospective effect is invalid and liable to be quashed if the Show Cause Notice (SCN) issued under Rule 22 CGST Rules did not specifically propose retrospective cancellation as a ground. The principles of natural justice require that a party must be put to notice of every specific ground on which adverse action is contemplated — including the date from which cancellation is proposed.

Ratio: The power to cancel registration retrospectively under s.29(2) CGST Act is not automatic — it must be expressly proposed in the SCN and the taxpayer must have an opportunity to respond. Where the SCN only proposes prospective cancellation (or is silent on the date), the cancellation order cannot travel beyond the date of the order itself.

Practice impact: This ruling directly assists clients who have received orders cancelling registration from a backdated effective date — which voids all invoices raised, ITC claimed by recipients, and e-way bills generated during the retrospective period. Such orders can be challenged by writ where the SCN was silent on retrospectivity.

Immediate action: Review all clients who have received retrospective GST registration cancellation orders in the past 2–3 years. Check whether the corresponding SCN proposed retrospective cancellation. If not, there is a strong basis for writ petition under Article 226 seeking quashing of the order to the extent of the retrospective period. Limitation under the GST Act does not apply to constitutional remedies.

F Filing Deadlines — GSTR-3B February 2026 ▾ ▾

Monthly filers (turnover > ₹5 crore): Due 20 March 2026. Tax payment must precede filing. Cash ledger must be pre-funded via PMT-06 if not already done. Delay triggers s.50 CGST interest at 18% p.a. from the due date.

QRMP scheme — Group B filers: Due 22 March 2026. Group B states (Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, J&K, Ladakh, Chandigarh, Delhi) — deadline is 22nd of the following month.

February 2026 is the penultimate GSTR-3B before March year-end. Ensure GSTR-2B auto-populated ITC from GSTN is reconciled before filing. ITC claimed in 3B must not exceed GSTR-2B availability — excess claiming in Feb will need reversal in March 3B.

II.

Direct Tax

Income Tax — ITA 2025 Transition Week

A CBDT TDS/TCS Circular FY 2026-27 — ITA 2025 Section Mapping ▾

CBDT has issued the annual TDS/TCS rates circular for FY 2026-27 — the first such circular under the Income Tax Act, 2025 framework. The rates themselves are substantively unchanged from FY 2025-26 for most categories. However, the section references have been updated to ITA 2025 numbering — for example, former s.194C (contractor payments) maps to its equivalent under ITA 2025 and carries a new section number.

Key implications for payroll and billing systems: (a) Any software that hard-codes section references (e.g. payroll, billing, TDS return utilities) must be updated before the first payment in April 2026. (b) Form 26Q, 27Q and 24Q templates will carry new section numbers from Q1 FY 2026-27. (c) TRACES and the new ITD portal are expected to be updated before 01 April — verify that the section code dropdown reflects ITA 2025 numbers before filing first Q1 TDS return.

Firm action: Circulate the CBDT circular to all client finance teams handling payroll and vendor payments. Flag that section references will change but rates largely remain. Advise that failure to use correct section codes may lead to TDS return processing errors.

B ITR Forms Tax Year 2025-26 Notified ▾

ITR forms for Tax Year 2025-26 (erstwhile AY 2026-27) notified via CBDT notification. These are the first forms under the ITA 2025 framework. Key structural changes in the forms: (a) "Assessment Year" replaced with "Tax Year" throughout; (b) Schedule references updated to ITA 2025 chapters; (c) New Schedule for Section 80U (disability deduction) restructured; (d) Foreign asset schedules (Schedule FA, Schedule FSI) updated for ITA 2025 section cross-references; (e) Schedule for VDA (crypto) income expanded.

Filing due dates under ITA 2025 (Tax Year 2025-26): Non-audit individuals/HUF — 31 July 2026. Companies and audit cases — 31 October 2026. Transfer pricing reports — separate due date per new rules (to be confirmed by CBDT). Updated return (ITR-U) — available up to 48 months from end of relevant Tax Year.

NRI and international practice note: Schedule FA, FSI, and Form 67 fields under ITA 2025 must be carefully reviewed. The foreign tax credit mechanism under ITA 2025 retains the substance of Rule 128 but section references change. Verify that your international client ITR preparation checklist reflects the new form structure.

C ITAT Mumbai — RSU FTC Claim Under DTAA Article 15 ▾

ITAT Mumbai ruling — key ratio for NRI-ESOP practice. The Mumbai bench of the Income Tax Appellate Tribunal has upheld a Foreign Tax Credit (FTC) claim by an NRI repatriate on RSU (Restricted Stock Unit) vesting income, applying the India–USA DTAA.

Facts: The assessee was a returning NRI who had been employed in the US during the vesting period of RSUs granted by a US-listed employer. On repatriation and subsequent vesting in India, the employer deducted US withholding tax on the RSU income. The AO denied FTC on the ground that RSU income on Indian vesting is taxable only in India under Article 15 of the India-US DTAA.

ITAT held: RSU vesting income must be apportioned between the country of service (US, during vesting period) and the country of vesting (India). DTAA Article 15 (dependent personal services) applies to remuneration for employment — RSUs are deferred compensation for services rendered over the vesting period. US taxes paid on the US-service-period portion of RSU income are creditable in India under Rule 128 / Form 67. The portion attributable to Indian service period is solely taxable in India.

Practice impact: This is a landmark ratio for NRI clients returning from the US with unvested stock awards. Apply this apportionment principle in Form 67 computations — do not claim FTC on the full RSU income; apportion on a time-based basis (US vesting period months / total vesting period months). Ensure DTAA relief is properly documented with vesting schedules and grant agreements.

D Income-tax Rules, 2026 Notified — Effective 01 April 2026 ▾

CBDT notified the Income-tax Rules, 2026 on 20 March 2026 — the complete procedural and computational framework for the Income-tax Act, 2025 (which replaces the Income-tax Act, 1961 from 01 April 2026). The rules run to over 150 new forms numbered from Form 33 onwards, replacing the existing suite of ITR, TDS, and compliance forms. Every taxpayer filing from Tax Year 2026-27 (erstwhile AY 2026-27) onwards will use this new framework.

HRA — enhanced metro list: Eight cities now qualify for the 50% of salary HRA exemption: Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Pune, and Ahmedabad. Importantly, Hyderabad, Pune and Ahmedabad are newly added to the 50% bracket (previously at 40%). All other locations remain at 40%. Additionally, taxpayers claiming HRA exemption must now mandatorily disclose the relationship with the landlord — a new compliance requirement intended to curb fictitious rent arrangements.

Perquisite valuation — revised rules: The rules carry updated perquisite computation provisions for accommodation, EV/vehicle perquisites, stock options, and other non-monetary benefits. The ESOP/ESPP/RSU perquisite valuation framework is carried forward under ITA 2025 numbering. Employers must update payroll systems for the new rules before first April payroll processing.

SFT reporting — insurance threshold reduced: Under the Statement of Financial Transactions (SFT) framework, insurers must now report premium receipts above ₹5 lakh where PAN is available, and above ₹2.5 lakh where PAN is not available. This is a significant reduction from the earlier threshold and will bring more high-value insurance policyholders into the SFT reporting net.

Capital gains / derivatives exchange qualification: Stricter conditions for stock exchanges to qualify as recognised platforms for derivatives trading — SEBI approval required, plus maintenance of detailed client-level transaction records (PAN, unique IDs), 7-year audit trail, and monthly reporting to the tax department. This affects computation of capital gains on derivatives transactions from Tax Year 2026-27.

CA firm action — immediate: (a) Download and study the Income-tax Rules, 2026 notification. (b) Prepare a form-mapping chart: old form → new form equivalent. (c) Brief all clients in payroll-intensive industries on the April 1 changeover. (d) Review HRA claims for clients in Hyderabad, Pune, Ahmedabad — they may now claim higher exemption. (e) Update ESOP/RSU perquisite computation templates to new ITA 2025 numbering. (f) Alert high-value insurance clients about enhanced SFT reporting.

E CBDT SAKSHAM Campaign — s.139(8A) Updated Return Deadline 31 Mar ▾

CBDT SAKSHAM compliance campaign — targeted nudge notices. CBDT has launched the SAKSHAM (Systematic and Knowledgeable Approach to Khadya Sector and Hospitality Adherence Mechanism) campaign targeting taxpayers in the restaurant, hotel, F&B, and hospitality sector. System-generated nudge letters and portal notices are being issued to PAN-linked entities in this sector who have not yet filed an updated return under s.139(8A) ITA 1961.

The 31 March 2026 deadline: An updated return (ITR-U) for AY 2023-24 (FY 2022-23) can be filed until 31 March 2026 by paying an additional tax of 50% of the aggregate tax and interest. After 31 March, this window permanently closes — the 25% and 50% additional tax options are time-locked by the Act. There is no extended deadline possible beyond the statutory 24-month window.

Why F&B sector: CBDT's data analytics has identified significant underreporting in the restaurant sector based on cross-referencing GST GSTR-1 turnover data with ITR income. The campaign is a pre-enforcement nudge — responding to the nudge voluntarily is significantly more cost-effective than facing scrutiny assessment.

Practice action: For restaurant/hospitality clients — review their AY 2023-24 ITR against GST GSTR-1 turnover for FY 2022-23 immediately. If there is a divergence (higher GST turnover vs. lower ITR income), seriously consider filing ITR-U before 31 March with the 50% additional tax. Compare cost of ITR-U payment vs. potential scrutiny notice penalty (200% concealment + interest). The economics generally favour voluntary disclosure.

F Tax-Saving Deadline & PAN API Deprecation ▾ ▾

Tax-saving investments — 31 March 2026

FY 2025-26 is the last year under the old ITA 1961 for AY 2026-27 purposes. Taxpayers who opted out of the new tax regime (i.e. those in the old regime for FY 2025-26) can claim deductions under s.80C (₹1.5 lakh — ELSS, PPF, life insurance premium, home loan principal, etc.), s.80D (health insurance — ₹25,000/₹50,000 for senior citizens), and s.80CCD(1B) (NPS — additional ₹50,000) provided investments are made on or before 31 March 2026. Ensure all clients are reminded — particularly salaried individuals who did not make adequate investments during April–February payroll processing.

PAN Validation API deprecation

Legacy PAN batch-validation utility deprecated from 01 April 2026. The older SOAP/XML-based PAN validation API used by banks, NBFCs, fintech entities, and large CA firms for bulk TDS return validation is being replaced by a new REST-based API with OAuth2 authentication. Entities currently using the legacy API must have migrated their integration before 01 April. Post-deprecation, legacy API calls will return errors. CBDT has published the new API specifications and sandbox environment — no fee change for existing registered users.

CA firm relevance: Some large practices use PAN validation utilities integrated into TDS filing software. Confirm with your software vendor that the PAN validation module has been updated to the new API before the April TDS cycle begins.

III.

MCA

Corporate Affairs

A MGT-14 — V3 Portal Mandatory; DSC Compatibility ▾

Form MGT-14 (filing of board resolutions and agreements with the ROC under s.117 Companies Act) is now exclusively available on the MCA V3 portal. The V2 portal option has been disabled. Filing a MGT-14 within 30 days of the board resolution is a mandatory compliance for specified resolutions (related party transactions above threshold, mergers, appointment of MD/WTD, etc.).

DSC compatibility on V3: MCA V3 requires Class 3 DSC certificates from certified CAs. DSCs issued by older CAs (pre-2022) may require driver updates. The V3 portal uses emSigner 2.7+ — older emSigner versions will fail silently. Ensure all directors and authorised signatories have: (a) Class 3 DSC with PAN-linked Aadhaar; (b) emSigner version 2.7 or higher installed; (c) DSC linked and verified on the V3 MCA portal under 'My Profile'. Do this before the March-end filing surge to avoid last-minute failures.

Firm action: For client companies with Q3/Q4 resolutions requiring MGT-14 filing before 31 March — collect board resolution copies this week and prepare drafts. Where DSC issues are flagged by directors, allow 48 hours for resolution before the deadline date.

B Q4 Board Meeting — 31 March Requirement ▾

s.173(1) Companies Act 2013 requires every company to hold at least one board meeting in each quarter. For the Oct–Mar half-year / Q4 quarter (January–March 2026), companies that held their last board meeting before January 2026 must convene a board meeting on or before 31 March 2026. The 120-day gap limit between two consecutive meetings also applies — any company with a December board meeting has until 29 April; but those with October or November meetings must meet before 31 March.

Notice requirements: s.173(3) mandates 7 days' written notice to every director at their registered address. For Q4 board meeting on or before 31 March — notices must have been issued by 24 March at the latest. For shorter notice, unanimous consent of all directors is required under the proviso to s.173(3).

Typical Q4 board agenda for private companies: (a) Review of unaudited Q4 financials; (b) Approval of related party transaction disclosures for MCA; (c) Director KYC status confirmation; (d) CSR committee update (if applicable); (e) Auditor status and upcoming annual accounts timeline. Prepare draft minutes for efficient processing.

C AS 22 Amended — OECD Pillar Two Deferred Tax Exception (GSR 169(E)) ▾

MCA notified the Companies (Indian Accounting Standards) Amendment Rules 2026 vide GSR 169(E) dated 10 March 2026. AS 22 (Accounting for Taxes on Income) has been amended to align with the IASB's International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12), effective for FY 2025-26 financial statements.

Key amendment — mandatory exception: The amendment introduces a temporary mandatory exception from recognising and disclosing deferred tax assets and liabilities arising from Pillar Two income taxes. This exception is applicable regardless of whether the entity is subject to Pillar Two top-up taxes or not — the exception prevents premature deferred tax recognition on the basis of uncertain Pillar Two compliance obligations.

Disclosure requirements: Even though deferred tax recognition is excepted, entities that are in scope of Pillar Two (Indian entities that are part of MNE groups with global revenue exceeding €750 million) must disclose: (a) that they have applied the exception; (b) the known or reasonably estimable information about their exposure to Pillar Two top-up taxes; (c) the jurisdictions where Pillar Two applies to the group.

Applicability for your practice: Primarily relevant for statutory audits of subsidiaries and associates of large multinational groups. For pure domestic companies — the exception is a non-event but must still be mentioned in audit notes. Review audit planning memos for all FY 2025-26 engagements involving MNE groups. Update deferred tax computation templates to flag Pillar Two scope assessment.

D Director KYC Overhauled — Triennial DIR-3-KYC, Effective 31 March 2026 ▾

MCA notified Companies (Appointment and Qualification of Directors) Amendment Rules, 2025 vide GSR 943(E) dated 31 December 2025, effective from 31 March 2026. The major change: annual DIR-3-KYC is replaced by a triennial filing (once every three consecutive financial years).

New filing framework: Every individual holding a DIN (Director Identification Number) as on 31 March of a financial year must file DIR-3-KYC once every third consecutive financial year, with filing completed by 30 June of that year. Only Form DIR-3-KYC-Web is now prescribed — the earlier e-form DIR-3-KYC (requiring DSC-based filing) and the dual-option system are both discontinued.

Event-based updates: Any change in a director's mobile number, email address, or residential address must now be reported through DIR-3-KYC-Web within 30 days of the change. This is a new mandatory obligation — previously event-based updates were not explicitly required between annual KYC cycles.

Transition: Directors who have completed KYC up to date: next triennial filing due by 30 June 2028. Directors with deactivated DIN due to non-KYC: must reactivate by filing DIR-3-KYC-Web (with fee) before 31 March 2026.

Firm action: Audit all DINs for your company clients before 31 March. Identify directors with deactivated DINs and initiate reactivation. Confirm that event-based update procedures are built into client onboarding for new director appointments/resignations. Update company secretarial checklists for the new triennial cycle.

E MCA Advisory — Name Reservation & Incorporation (13 Mar 2026) ▾

MCA issued a comprehensive advisory on 13 March 2026 on name reservation and incorporation for companies and LLPs. The advisory consolidates and updates guidance for RUN (Reserve Unique Name), RUN-LLP, SPICe+, and FiLLiP form applicants. It follows a pattern of increased name rejections and resubmissions that MCA has observed on the V3 portal.

Name distinctiveness — key rule: Proposed names must be distinctive and not closely resemble existing company/LLP names. A No Objection Certificate (NOC) from an existing similarly-named company is not sufficient where the proposed name is identical or nearly identical — MCA may still reject the name. The phonetic and typographic similarity test is being applied strictly.

Restricted words — NOC and approvals: Names incorporating regulated words — "Bank", "Insurance", "Architect", "Engineer", "Chartered Accountant", "Doctor", "Hospital", "University", and professional/regulatory designations — require prior regulatory approval or NOC from the relevant regulator (RBI, IRDAI, BCI, ICAI, etc.) before SPICe+ can be processed. MCA will not provisionally approve such names pending regulatory clearance.

Minor name changes require formal RUN: Even cosmetic changes such as removing a hyphen, adding/removing punctuation, or changing "&" to "and" are treated as name changes requiring formal RUN/RUN-LLP approval. This clarifies a common misconception that such changes could be made informally.

Reuse of names: Names of struck-off, dissolved, or liquidated companies/LLPs can be reused only after the time limits prescribed in the advisory. Applicants must confirm the prior entity's status before applying for a similar name.

Practical guidance: When filing RUN or SPICe+ for a new incorporation, run a thorough MCA name search (including phonetic variants) before applying. If the client's preferred name includes any regulated word, obtain the regulatory NOC first — this can add 2–8 weeks to the incorporation timeline. Budget for this in client onboarding timelines.

F Union Cabinet — IBC + Companies Act + LLP Act Amendments (10 Mar 2026) ▾

Union Cabinet approved three major corporate law amendments on 10 March 2026. These are Cabinet approvals for Bills to be introduced in Parliament — not yet enacted — but signal the legislative direction with high certainty of passage.

IBC (Amendment) Bill: (a) Creditor-initiated insolvency resolution process — financial creditors can initiate a streamlined resolution process for smaller defaults without full CIRP proceedings; (b) Group insolvency framework — co-ordinated resolution across related entities within a corporate group; (c) Cross-border insolvency — framework for recognising foreign insolvency proceedings; (d) Clarification on secured creditor status — contractual arrangement required for state/central authority claims to rank as secured.

Companies Act + LLP Act amendments: Focus on ease of doing business — rationalization of forms (reducing number of filings), decriminalization of additional offences (converting imprisonment-based penalties to monetary penalties), and compliance process simplification. Continuation of the decriminalization drive that began with the 2020 Companies Amendment Act.

Monitor for passage: Once these Bills are introduced and passed in Parliament and notified by MCA, there will be practice implications — particularly the IBC group insolvency provisions for restructuring advisory and the Companies Act form rationalization for compliance workflows. Track MCA notifications for effective date announcements.

G Companies (Audit & Auditors) Amendment Rules 2026 ▾ ▾

New auditor's report paragraph for ITA 2025 transition. The MCA has notified amendments to the Companies (Audit and Auditors) Rules 2014. With ITA 2025 replacing ITA 1961 from Tax Year 2026-27, auditors are required to include a specific paragraph in audit reports for FY 2025-26 disclosing: (a) the deferred tax computation methodology adopted by management in light of the ITA 2025 transition; (b) any material uncertainty in deferred tax asset/liability recognition arising from the change in Act; (c) whether the company has assessed the impact of section re-numbering on its tax computation software.

Scope: Applicable to all companies required to have their accounts audited under the Companies Act 2013 — i.e., all companies including small/private companies, not just listed entities. The paragraph is an "other matter" paragraph under SA 706 framework.

Audit planning: Update your firm's audit report template for FY 2025-26 to include this paragraph. During management discussions, ask clients: (a) Has their accounting software updated section references for deferred tax? (b) Has the deferred tax working been re-computed under ITA 2025 provisions? (c) Are there any timing differences that change character under the new Act? Document responses in the engagement file.

IV.

SEBI

Capital Markets

A AMFI Universe Rebalancing — Large-Cap / Mid-Cap from 01 Apr 2026 ▾

AMFI releases the updated list of large-cap and mid-cap stocks bi-annually (in January and July) based on full market capitalisation rankings. The January 2026 rebalancing list is effective from 01 April 2026. Fund houses have 30 days from April 1st to realign their categorised schemes to the new universe.

Implication for investors: Large-cap, mid-cap, flexi-cap, and multi-cap mutual fund portfolios will undergo rebalancing activity in April–May 2026 as fund managers comply with the universe change. Some previously mid-cap companies may shift to large-cap (or vice versa) — this affects their inclusion in categorised index funds and active funds mandated to stay within specific universe. Temporary elevated volumes and price movements in reclassified stocks are typical during this window.

Advisory note (Sanchayak context): SIP investors need no action — systematic investments continue unaffected. For lump-sum investors, exercise caution on reclassified stocks in the immediate April window as rebalancing flows may create temporary price distortions. Advise clients not to read rebalancing-driven volatility as a fundamental change in company prospects.

B F&O Weekly Expiry — Shift to Tuesdays from April 2026 ▾

SEBI directive on staggering index option expiry days: To reduce concentrated volatility on a single expiry day, SEBI has directed NSE to shift Nifty and BankNifty weekly option expiries from Thursday to Tuesday, effective from the April 2026 options series. The change applies to weekly contracts — monthly expiry (last Thursday of the month) remains unchanged.

Market structure impact: (a) Traders running short-option strategies or calendar spreads must recalibrate their weekly expiry positions; (b) India VIX typically spikes on expiry days — the shift to Tuesday may redistribute weekly volatility patterns; (c) Option chain liquidity may temporarily reduce in the March-April transition period as market participants adjust; (d) Arbitrage desks and algo strategies linked to Thursday expiry triggers must be updated.

Client advisory: Clients with active F&O positions should update their trading calendars. Confirm with their broker platforms that option chain displays correctly reflect the Tuesday expiry from April. Alert HNI clients who have standing instructions for weekly option writing strategies.

C LODR Amendment Regulations — Corrigendum (12 Mar 2026) ▾

SEBI issued a Corrigendum on 12 March 2026 to the SEBI (Listing Obligations and Disclosure Requirements) Amendment Regulations 2026. The corrigendum makes corrections to specific provisions in the earlier LODR Amendment — likely involving errors in cross-references, dates, or specific clause language in the original amendment notification. Listed entities and their compliance officers must review the corrected text against the original amendment.

Action for listed companies: Compare the corrigendum with the original LODR Amendment Regulations to identify which specific provisions have been corrected. Update your compliance calendar and internal policy documents to reflect the corrected version. Where board or audit committee approvals have already been obtained based on the original (uncorrected) text, assess whether re-approval is needed for materially changed provisions.

Compliance officer note: Access the corrigendum on the SEBI website (sebi.gov.in → Legal Framework → Regulations). The SCORES 2.0 system and SEBI's compliance monitoring will reference the corrected LODR provisions — ensure your internal compliance register is updated with the corrigendum-corrected text before 31 March.

D SEBI (Mutual Funds) Regulations 2026 — TER & Performance Fee (Effective 01 Apr) ▾

SEBI (Mutual Funds) Regulations 2026 come into force on 01 April 2026. The new regulations introduce two significant changes: (a) TER rationalisation across fund categories, and (b) performance-linked fee structures for certain scheme types.

TER rationalisation: Expense ratio limits are being recalibrated across AUM slabs. For many larger AUM categories, TER caps are being reduced — leading to lower expense ratios for investors and higher pressure on AMC profitability. Fund houses with large-AUM schemes benefit their unitholders via lower drag on returns.

Performance-linked fee (Variable Management Fee): SEBI is permitting fund houses to charge a variable management fee linked to fund performance relative to its benchmark. The fee is subject to a cap and is only chargeable when the fund outperforms its benchmark on a rolling basis. This creates an incentive alignment between fund manager and investor — fund manager earns more when they generate genuine alpha.

Action for fund houses: SIDs (Scheme Information Documents), KIMs, and AMFI disclosures must be updated before April 1 to reflect revised TER and the new performance fee structure (if applicable to the scheme). Unitholders must be notified in advance of material changes to TER.

Sanchayak advisory context: Review the updated TERs for all recommended schemes after April 1. Lower TERs on direct plans will improve net return metrics. For performance-linked fee schemes — evaluate whether the fee structure is aligned with the investment objective before recommending to clients. Monitor whether fund houses publish TER changes transparently on their websites.

E SCORES 2.0 & SIP Data ▾ ▾

SCORES 2.0 — compliance officer update by 31 March 2026: SEBI's upgraded investor grievance redressal portal (SCORES 2.0) requires all listed companies and registered intermediaries to designate and update their compliance officer's details on the platform. Without a valid compliance officer on record, investor complaints filed on SCORES 2.0 escalate automatically to SEBI — bypassing the entity. This creates regulatory exposure and damages complaint resolution statistics. Companies and intermediaries must log in to SCORES 2.0 and verify/update the designated officer's name, email, and mobile number.

SIP monthly data — February 2026: AMFI data shows monthly SIP inflows reached ₹26,000 crore in February 2026 — a new all-time high. Total SIP AUM (assets under management) crossing ₹14 lakh crore. The sustained domestic retail inflow has been a critical stabiliser against FII selling (approximately ₹90,000 crore net FII equity outflow since October 2025). This structural shift in Indian equity market ownership — from FII-dominant to domestic-retail balanced — has important implications for market resilience.

ICAI

Professional Standards & Practice

Compliance & Deadlines

A UDIN Mandatory for Form 15CB — From 01 Apr 2026 ▾

Form 15CB (Certificate by CA for remittances abroad exceeding ₹5 lakh under s.195 ITA / Rule 37BB) will require a UDIN from Tax Year 2026-27, i.e., for certificates issued on or after 01 April 2026.

Process change: Generate UDIN on the ICAI UDIN portal at the time of signing — select "15CB" as document type. Mention UDIN on the certificate and communicate to the remitting bank. Post-dated UDIN generation is a disciplinary infraction — UDIN system logs the generation timestamp.

International tax practice: 15CB volumes are high for NRI repatriation (NRO→NRE transfers, property sale proceeds, dividend repatriation). Update firm SOP: UDIN generation is a mandatory step before issuing the certificate.

B PRB Phase III — Application Window Open ▾

PRB Phase III mandatory peer review covers firms conducting statutory audits of any entity with turnover above ₹10 crore. Apply online at the PRB portal. Process: application → reviewer assigned → on-site/remote review of audit files → review report → certificate (valid 3 years). Timeline: 3–6 months from application.

Consequence of non-compliance: Audit reports by non-peer-reviewed firms (where mandatory) may be invalid for regulatory purposes from FY 2025-26. SEBI, RBI, and listed companies are requiring peer review certificates before accepting audit credentials.

C CPE — 20 Structured Hours by 31 Mar 2026 ▾

20 structured CPE hours must be completed by every member in practice for FY 2025-26 by 31 March 2026. Verify count at ssp.icai.org → CPE → My CPE Status. ICAI's online webinar library offers on-demand structured CPE sessions. Non-compliance affects practice certificate renewal — stricter enforcement with penalty provisions from FY 2026-27.

New Publications — Jan–Mar 2026

D GN on Audit of Banks — 2026 Edition · AASB · Mar 2026 ▾

AASB released the Guidance Note on Audit of Banks (2026 Edition), updated with all RBI circulars up to 28 Feb 2026. Authoritative reference for statutory central auditors and branch auditors of banks for FY 2025-26.

Key updates: Digital banking assurance (mobile/internet/API banking); cybersecurity risk assessment and reporting; treasury and investment portfolio audit; GST compliance in banking; updated LFAR format; revised engagement letter and management representation formats. New addition: DPDP Act 2023 implications for bank auditors.

Practice note: Read before accepting any FY 2025-26 bank audit. Focus on updated LFAR guidance and cybersecurity checklist — areas under active RBI audit quality review. Available at icai.org → Publications → AASB.

E 11 ISAS — Information Systems Audit Standards · IS Audit Committee · Feb 2026 ▾

ICAI launched 11 ISAS — the first IS audit standards framework by any professional accountancy body globally. Mandatory for ICAI members undertaking IS audit assignments. Covers: ISAS 110 (Key Concepts) · IS Controls · ERP and automated environment · Cloud systems · Algorithm-driven/AI-assisted processes · Revenue system assurance · Core banking platform audit · DPDP compliance audit · Automated tool use.

Regulatory coordination: Developed with SEBI, RBI, MCA. Applies to SEBI system audits for listed companies, RBI IS audits for banks, and MCA-mandated internal audits for large companies.

Practice note: Issuing IS audit reports without ISAS compliance = professional misconduct. Register on ICAI ISAS portal for implementation guidance.

F Technical Guide on ITA 2025 · Direct Taxes Committee ▾

ICAI Direct Taxes Committee released a comprehensive Technical Guide on the Income Tax Act, 2025. Covers: (a) section-wise mapping ITA 1961 → ITA 2025 for all major deductions, TDS provisions, and procedural sections; (b) structural changes — Tax Year concept, new chapter organisation; (c) substantive computation differences, not just renumbering; (d) transition guidance for audit reports and deferred tax; (e) draft audit report language for FY 2025-26.

Firm recommendation: Every member in practice must read the section mapping chapter before 01 April. Prepare a quick-reference chart of frequently used sections with old→new mapping. Available at icai.org → Publications → Direct Taxes Committee.

G Practitioner's Guide on Modified Opinions · AASB · 11 Feb 2026 ▾

Comprehensive guidance on drafting qualified, adverse, and disclaimer of opinion paragraphs. Covers: conditions for each type of modification; basis for modification paragraphs; impact on Emphasis of Matter and Other Matter paragraphs; interaction with Key Audit Matters; illustrative examples across industries. Essential reading before FY 2025-26 reporting season.

H Guidance on New Labour Codes · AASB · 09 Feb 2026 ▾

Addresses audit and compliance implications of the four consolidated Labour Codes — Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, Occupational Safety Code 2020. Covers: PF and ESI compliance audit procedures; payroll audit under the new wage definition framework; statutory audit considerations for entities transitioning to the new Codes; disclosures in financial statements.

I Handbook on Key Compliances — Private Limited Companies · Corporate Laws · 06 Feb 2026 ▾

Practical compliance reference for private companies: step-by-step incorporation, post-incorporation obligations, compliance trackers for annual filings and statutory registers, and all exemptions available under CA 2013. Useful for advisory to promoters and for compliance audits. Context: 96% of India's 30+ lakh registered companies are private limited. Available at icai.org → Publications → Corporate Laws Committee.

J GST Publications — Indirect Taxes Committee · Feb 2026 ▾

Significant Judicial & Advance Rulings in GST — 2nd Edition (09 Feb): 50+ curated SC and HC rulings, topic-wise with background, arguments, and conclusion. Useful research tool for drafting replies to GST notices.

Revised Handbook on Composition Scheme under GST (17 Feb): updated to 31 Jan 2026 for all amendments, notifications, circulars, and judicial developments. Updated reference for clients under composition before 31 Mar annual return.

Handbook on Applicability of GST on Agricultural Sector (25 Feb): registration, classification, taxability, RCM, and ITC for agricultural activities. Available at idtc.icai.org/publications.php.

Sorted by deadline · domain as tiebreaker within the same date.

Due Date	Domain	Action Required
20 Mar	GST	File GSTR-3B for Feb 2026 — monthly filers (turnover > ₹5 crore). Pre-fund cash ledger via PMT-06 before filing.
22 Mar	GST	File GSTR-3B for Feb 2026 — QRMP Group B filers. Reconcile GSTR-2B ITC before submission.
24 Mar	MCA	Issue Q4 board meeting notices (7-day notice required under s.173(3)) to ensure meeting happens before 31 Mar.
31 Mar	Direct Tax	ITR-U (s.139(8A)) for AY 2023-24 — last date with 50% additional tax. Restaurant/F&B clients especially: compare ITR income vs GST GSTR-1 turnover now. Window permanently closes 31 Mar.
31 Mar	Direct Tax	Last date for 80C / 80D / 80CCD(1B) investments for FY 2025-26 (old regime taxpayers only). Confirm regime election.
31 Mar	MCA	Director KYC — triennial regime effective 31 Mar 2026. Reactivate deactivated DINs (DIR-3-KYC-Web with fee). Verify all director DINs for company clients.
31 Mar	MCA	Hold Q4 board meeting (Oct–Mar quarter). Mandatory under s.173 — one meeting per quarter, max 120-day gap.
31 Mar	SEBI	Update SCORES 2.0 compliance officer designation for listed companies and registered intermediaries.
31 Mar	ICAI	Complete 20 structured CPE hours for FY 2025-26. Verify count on ICAI SSP (ssp.icai.org). Online webinars qualify.
1 Apr	Direct Tax	Income-tax Rules 2026 effective — 150+ new forms in force. All ITR, TDS, SFT filings from this date use new forms. Update payroll systems, HRA computations (Hyderabad/Pune/Ahmedabad now 50%), and perquisite valuation templates.
1 Apr	Direct Tax	PAN validation API: legacy batch utility deprecated. Confirm with software vendors that migration to new REST API is complete.
1 Apr	Direct Tax	ITA 2025 TDS/TCS circular: update section references in payroll and billing systems. First April payments must use new section codes.
1 Apr	GST	CGST Amendment Act 2025 provisions effective. Update credit note SOPs (post-sale discount) and intermediary service export processes.
1 Apr	SEBI	SEBI (MF) Regulations 2026 effective — TER rationalisation and performance-linked fees. Review updated TERs for all recommended schemes. Fund houses must update SIDs/KIMs.
1 Apr	SEBI	AMFI large-cap/mid-cap universe update effective. Monitor portfolio rebalancing flows in April — fund house realignment within 30 days.
Apr series	SEBI	F&O weekly expiry shifts to Tuesday from April 2026 series. Update trading calendars and alert HNI F&O clients.
Ongoing	GST	DRC-03A: update GST appeal filing SOP — file DRC-03A to link pre-deposit before submitting appeal. Review existing appeals for correct linkage.
Ongoing	GST	P&H HC ratio: review clients with retrospective GST cancellation orders — challenge by writ if SCN did not propose retrospective date.
Ongoing	GST	HSN validation tightened at IRP: audit ERP item masters for 6-digit HSN accuracy and product description matching.
Ongoing	GST	E-way bill vs GSTR-3B mismatch: run reconciliation before March 3B filing. Pay DRC-03 with interest if genuine shortfall found.
Ongoing	Direct Tax	RSU/ESOP NRI clients: apply ITAT Mumbai ratio — apportion FTC on time basis (US service period / total vesting). Update Form 67 workings.
Ongoing	MCA	AS 22 (Pillar Two exception): update deferred tax workings and audit reports for FY 2025-26. Disclose Pillar Two scope assessment in notes for MNE group subsidiaries.
Ongoing	MCA	MCA Name Reservation Advisory: run phonetic name search before SPICe+/RUN. Obtain regulatory NOC for restricted words (Bank, Insurance, etc.) before applying — adds 2–8 weeks.
Ongoing	MCA	IBC/Companies Act/LLP Act amendments: Cabinet-cleared — monitor Parliament passage for effective dates. Relevant for restructuring and compliance workflow planning.
Ongoing	SEBI	LODR Corrigendum: review corrected LODR Amendment provisions — update compliance register and board/audit committee approvals where needed.
Ongoing	ICAI	UDIN mandatory for Form 15CB from 01 Apr 2026. Update firm SOP — UDIN must be generated at time of signing, not post-issue.
Ongoing	ICAI	PRB Phase III window open: initiate application if firm does statutory audits of entities with turnover > ₹10 crore. Timeline: 3–6 months.
Ongoing	ICAI	GN on Audit of Banks 2026 Edition released — read before accepting FY 2025-26 bank statutory or branch audit. Key new areas: digital banking assurance, cybersecurity risk, DPDP Act, updated LFAR format.
Ongoing	ICAI	ISAS 11 Standards now mandatory for IS audit assignments. Non-compliance = professional misconduct. Register on ICAI ISAS portal for implementation guidance.

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