CHECKED ON 19 SEPTEMBER 2026 · EVERY ITEM SOURCED
What changed for CA practices, April 2025 to September 2026
The biggest changes for Indian CA practices since April 2025: the Income-tax Act 2025 in force from 1 April 2026 with new TDS payment codes and renumbered forms; non-audit business returns due 31 August from AY 2026-27; ICAI's limit of 60 tax audits per partner from 1 April 2026 with stricter UDIN checks; GSTR-3B locked to GSTR-1 and monthly IMS actions in GST; DIR-3 KYC once every three years; and the Labour Codes in force from 21 November 2025.
Income tax
- 1 April 2026
The Income-tax Act 2025 replaces the 1961 Act
Income from 1 April 2026 falls under the new Act and its "Tax Year". TDS moves to payment codes under sections 392, 393 and 394, and challans to ITNS 281N. Returns for AY 2026-27 still follow the 1961 Act.
- Tax year 2026-27
Income-tax forms are renumbered
Form 16 becomes 130, 16A becomes 131, 24Q, 26Q and 27Q become 138, 140 and 144, 27EQ becomes 143, 15CA and 15CB become 145 and 146, and the tax audit report becomes Form 26. Old forms stay for periods up to 31 March 2026.
- AY 2026-27
Non-audit business returns are due 31 August
Returns of business or profession cases without tax audit, and of trusts not requiring audit, are due 31 August instead of 31 July. ITR-1 and ITR-2 stay at 31 July. Plan the July and August peaks separately.
- Finance Act 2026
Revised returns allowed for 12 months, with a fee after nine
The window to revise a return grows from nine to twelve months after the end of the year. A fee applies to a revised return filed after nine months.
Source: Finance Bill 2026 memorandumofficial document - 1 April 2026
TCS on overseas tour packages and education or medical remittances cut to 2%
Update TCS rates for travel-agent and authorised-dealer clients.
Source: PIB summary of the Union Budget 2026-27official document - FY 2025-26
New regime: nil tax up to Rs 12 lakh with the section 87A rebate
Slabs of 0-4 lakh nil, then 5% steps to 30% above 24 lakh; rebate up to Rs 60,000 where income is up to Rs 12 lakh. Unchanged for 2026-27. Compare regimes for every salaried client near the threshold.
Source: ClearTaxreported - 1 April 2025
TDS on payments by firms to partners (section 194T)
Firms deduct 10% on salary, remuneration, interest, bonus or commission to partners above Rs 20,000 a year. Every firm and LLP client needs monthly deposits and quarterly returns for it.
- Tax year 2026-27
TCS statements are now due on the TDS dates
Form 143 replaces 27EQ and is due 31 July, 31 October, 31 January and 31 May, the same days as the TDS statements, instead of the 15th of the month. Move TCS filings for collector clients in the calendar.
- 1 April 2025
No-penalty window for a late TDS or TCS statement cut to one month
The penalty of ₹10,000 to ₹1,00,000 for a late statement is waived only if it is filed within one month of the due date, after paying the tax, fee and interest. The window used to be one year.
Audit and ICAI
- 1 April 2026
No more than 60 tax audits per partner in a year
Counted in the year the report is signed, across every firm a partner belongs to; 44AB(c), (d) and (e) audits and revised reports are not counted. Keep a partner-wise register.
- 18 February 2026
UDINs checked on five fields; PAN mandatory for tax audits
The e-filing portal validates membership number, UDIN, year, form number and PAN, and UDIN generation stops at the 60-audit limit. Record the client's PAN and form with every UDIN.
- FY 2025-26 and 2026-27
ICAI formats for non-corporate financial statements become mandatory
Phase I applies from periods beginning 1 April 2025 to entities with turnover above Rs 5 crore; Phase II to all non-corporate entities and LLPs from 1 April 2026. Proprietor, firm, HUF and trust accounts need reformatting.
Source: ICAI Accounting Standards Boardofficial document - 31 December 2026
Peer review Phase IV
Firms with three or more partners doing attestation, and firms seeking public sector bank branch audits, need a peer review certificate. Form 1 applications go through the new peer review portal.
Source: ICAI Peer Review Boardofficial document - Deferred
SQM 1 and SQM 2 postponed; SQC 1 continues
The quality management standards due on 1 April 2026 are deferred until further announcement. Keep the existing SQC 1 manual current.
- 1 January 2026
New CPE hours per calendar year
Members under 60 holding a certificate of practice need 40 hours a year, of which 20 structured. Lower requirements apply above 60 and without a certificate of practice.
Source: ICAI CPE Committeeofficial document
GST
- 22 September 2025
GST rates rationalised to 5% and 18%, with 40% on de-merit goods
Remap HSN rates in every client's masters and invoice templates.
Source: GST Council press releaseofficial document - October 2025 period
IMS: act on inward invoices every month
Accept, reject or keep pending each supplier invoice in the Invoice Management System before GSTR-3B; invoices left alone are deemed accepted. Pair it with the monthly 2B reconciliation.
- July 2025 period
GSTR-3B Table 3.1 locked to GSTR-1
Outward liability can no longer be edited in GSTR-3B; correct GSTR-1 through GSTR-1A before filing. Table 3.2 followed from the November 2025 period.
- May 2025 period
GSTR-1: HSN by drop-down and Table 13 mandatory
HSN summary is chosen from a list and split into B2B and B2C, and the documents-issued table must be filled every month.
Source: Taxmannreported - 1 April 2025
E-invoices must reach the IRP within 30 days above Rs 10 crore
Businesses with aggregate turnover of Rs 10 crore or more cannot report an invoice older than 30 days. Watch invoice timing for these clients.
Source: Taxscanreported - 1 April 2025
ISD registration mandatory for shared input services
Clients with several GSTINs under one PAN distribute common input tax credit through an ISD and file GSTR-6 monthly.
Source: TaxGurureported - July 2025 period
Returns more than three years overdue can no longer be filed
Sweep every client for pending GSTR-1, 3B, 4, 6, 7, 8 or 9 returns before they cross the three-year bar.
Source: Tally Solutionsreported - FY 2024-25 onwards
Section 74A replaces the section 73 and 74 split
One demand provision with a 42-month window from the GSTR-9 due date. Track notice limitation dates per client from FY 2024-25.
Source: TaxGurureported
Company law
- 31 March 2026
DIR-3 KYC once every three financial years
Directors file DIR-3 KYC-WEB once in three years instead of every year, and must update changed particulars within 30 days. Track each director's cycle.
Source: TaxGurureported - 14 July 2025
Board's report must disclose POSH complaints and maternity benefit compliance
Collect POSH complaint numbers and a maternity benefit declaration from every company client for the board's report.
Source: Samisti Legalreported - 1 December 2025
Small company limits raised to Rs 10 crore capital and Rs 100 crore turnover
Reclassify company clients: more now qualify as small companies and fall outside CARO and some other requirements.
Source: TaxGurureported - 14 July 2025
All MCA forms moved to the V3 portal
AOC-4, MGT-7, ADT-1, DPT-3, MSME-1 and LLP forms are filed only on V3.
Source: CMA Knowledgereported
Labour and data
- 21 November 2025
The four Labour Codes are in force
Allowances above 50% of pay are added back to wages for PF, gratuity and ESI; fixed-term employees earn gratuity after one year; ESIC covers establishments with ten or more employees. Recheck payroll structures.
Source: KRPR Associatesreported - 1 April 2025
MSME limits raised
Micro up to Rs 2.5 crore investment and Rs 10 crore turnover; small up to Rs 25 crore and Rs 100 crore; medium up to Rs 125 crore and Rs 500 crore. Recheck suppliers' categories for section 43B(h).
- About 14 May 2027
Data protection duties under the DPDP Rules begin
The rules were notified on 14 November 2025; notice, consent, security, breach-reporting and retention duties apply about 18 months later. Firms handling client personal data should prepare now.
Source: SCC Onlinereported
"Official document" links to the regulator's own notification or announcement; "reported" links to a professional publication describing it. This page summarises, it does not replace the notification: read the source before acting. We add changes as they are notified.