Paresh Parekh & Company, Chartered Accountants

TDS On Electricity Purchase

Capital Gain Taxation in India

Gratuity Calculation as per new Labour Codes

📢 Important Update for Firms & LLPs! 📢

The New Income Tax Act introduces Section 194T, effective from April 1, 2025. If your firm pays salary, interest, or commission to partners, here is what you need to know:

✅ Applicability: All Firms & LLPs
✅ Rate: 10% TDS
✅ Threshold: Aggregate payments > ₹20,000 per FY
✅ Includes: Salary, Bonus, Commission, Remuneration, and Interest on Capital.

Make sure to update your accounting systems to ensure timely compliance and avoid interest/penalties! 💼📑

TDS & TCS Comparative Snapshot

KIND ATTENTION TAXPAYERS!

Income-tax Rules, 2026 have been notified and published in the e-Gazette.
The notification may be accessed on:
egazette.gov.in/(S(umnhz12fnma…

egazette.gov.in

Today it's Restaurants. Tomorrow it could be Your Industry.

The Income Tax Department recently detected ₹408 Crore of suppressed sales in restaurants using Al-driven data analytics.

- Bills deleted.

- Sales mismatches.

- GST vs ITR differences.

63,000 restaurants are now being asked to review their returns before 31 March 2026.

*_Important Lesson:_*

This is not just about restaurants.

Data analytics is now being used across all industries.

If your GST, books, and Income Tax returns don't match, your business could be next.

The right time to review your compliance is NOW.

Let's ensure your business stays prepared, compliant, and stress-free.

Connect with us for a Tax & GST Compliance Health Check.

SEBI's New Gold and Silver Valuation Rules:

Enhancing Transparency for Investors. SEBI has announced a significant update for gold and silver investments in mutual funds. Effective April 1, 2026, mutual funds will be required to value physical gold and silver based on spot prices from Indian stock exchanges, specifically for physical delivery contracts. This move eliminates the reliance on London Bullion Market prices adjusted for customs, taxes, and other extras. Consequently, gold and silver Exchange-Traded Funds (ETFs) will have Net Asset Values (NAVs) that closely align with prevailing Indian market prices, thereby reducing discrepancies and tracking errors. This regulatory change is poised to enhance the reliability of these investment instruments. Does this development signal a positive shift for India's financial market?

US puts 126% duty on Indian solar panels. What does this mean?

The US has imposed a 126% preliminary duty on solar panels imported from India, saying Indian manufacturers are receiving heavy government subsidies and selling too cheaply in the US market.

Why is this important?

Indian solar exports to the US had grown almost 9 times in just two years. That kind of growth clearly made American manufacturers uncomfortable.

If an Indian company was selling a panel for $100, a 126% duty pushes the effective price to around $226. At that level, the US market becomes almost impossible for Indian exporters.

This is also interesting because the US Supreme Court recently struck down Trump’s broader tariffs. Now instead of blanket tariffs, we are seeing sector specific action through countervailing duties and anti dumping investigations.

In simple words, if one door closes legally, another one opens strategically.

An anti dumping probe is also underway. If that confirms that Indian companies were underpricing to capture market share, duties can go even higher.

Markets reacted quickly. Solar stocks like Waaree Energies, Vikram Solar and Premier Energies saw sharp declines.

The larger takeaway is simple. Trade agreements can be negotiated. Courts can intervene. But when domestic industry and political pressure rise, governments act to protect their own.

Protectionism is not disappearing. It is just becoming more targeted and calculated.

VERY IMPORTANT !

RBI Amendment – Impact on Stock Brokers

Effective 1 April 2026.

1. Only 100% secured funding for brokers
Limited carve-outs like intra-day settlement timing facilities

Earlier: Rs.100 bank guarantees could be taken with Rs.50 FD + Rs.50 unsecured (PG / corporate guarantee)

2. Bank Guarantees in favour of exchanges/clearing: Minimum 50% collateral required, and out of that 25% must be cash.

3. Equity collateral
Minimum 40% haircut wherever equity shares are accepted as collateral

4. No bank funding for prop trading
Exceptions only for market making, limited debt warehousing etc

5. All exposure count as capital market exposure
Banks’ overall limits for capital market exposure apply -- basically lending appetite may reduce

6. Ongoing collateral monitoring + margin call provisions
Collateral cover must maintained on an ongoing basis &
facility agreements to have explicit provisions for margin calls in case of shortfalls

OVERALL IMPACT
- Leverage reduces
- Higher capital blockage
- Bank Guaranteee cost likely to increase
- Promoter guarantee alone no longer sufficient

Quick heads-up for tax & finance teams - many Income-tax form numbers have changed.

With the Income-tax Act, 2025 and IT Rules, 2026, several commonly used forms have been renumbered. This affects day-to-day work like tax audits, TDS returns, trust compliances, foreign remittances, and appeals.

A few important ones you'll run into often:

•Tax Audit: 3CA / 3CB / 3CD → Form 26

Transfer Pricing Audit: 3CEB → Form 48

TDS Returns: 24Q / 26Q / 27Q / 27EQ → Forms 138-144

Trust & NGO compliances: Forms 104-114

• Foreign remittances: 15CA / 15CB → Forms 145 & 146

Why this matters in practice

Using old form numbers can easily lead to filing errors, rejections, or unnecessary follow-ups especially during peak compliance periods.

I've put together a simple, print-ready table of the Top 30 frequently used forms for quick reference and team sharing.

Feel free to save this or share it with your finance team.