M. K. And Associates

INCOME_TAX_UPDATES
-
-
Income Tax Audit Forms

INCOME_TAX_UPDATES
-
-
TAX AMOUNT AS PER NEW (DEFAULT) TAX REGIME FOR F.Y.2025-26 FOR RESIDENT INDIVIDUAL

(FOR NORMAL TAXABLE INCOME UP TO RS.1 CRORE)

_
_
Tax Audit Applicability!

INCOME_TAX_UPDATES
_
_
Section 194T : Payments to partners of firms:-

Section 194T of the Income Tax Act, effective from April 1, 2025, mandates that partnership firms and LLPs deduct 10% TDS on payments to partners—including salary, remuneration, commission, bonus, or interest. TDS applies if total payments to a partner exceed ₹20,000 in a financial year, deducted upon credit or payment, whichever is earlier.

Key Aspects of Section 194T:-
Effective Date:
April 1, 2025.

Applicability:
All partnership firms and Limited Liability Partnerships (LLPs).

Threshold:
TDS applies if the aggregate payments to a partner exceed ₹20,000 in a financial year.
TDS Rate: 10% on the total amount once the threshold is crossed.

Covered Payments:
Salary, remuneration, commission, bonus, and interest.

Timing:
TDS must be deducted at the time of credit to the partner's account (including capital account) or payment, whichever is earlier.

Compliance Requirements:-
TAN Requirement:
Firms must have a Tax Deduction and Collection Account Number (TAN).

TDS Return:
Quarterly TDS returns (Form 26Q) must be filed.

TDS Certificate:
Partners must be issued Form 16A.

Liability:
If payments are made to partners without deducting TDS after exceeding the threshold, it could result in non-compliance penalties.

Example of Application:-
If a partner receives ₹15,000 as salary and ₹10,000 as interest, the total is ₹25,000, which exceeds the ₹20,000 threshold. Therefore, the firm must deduct 10% TDS on the full ₹25,000.

_
_
_
TDS & TCS Rate Chart – Fully Updated for FY 2025–26 | TY 2026–27

• Clear cross-mapping of Sections & Codes – Old. Act ↔ New Act

• Threshold limits + applicable rates for → AY 2026–27 (Old Act) and→ TY 2026–27 (New Act)

A crisp yet comprehensive snapshot

🔹 TDS (2 Pages) - commonly applicable sections to Individual, HUF, LLP, Firms & Companies

🔹 TCS (1 Page) - All TCS provisions in one compact view

Hope you find this useful for Q4 TDS/TCS returns of FY 2025–26 and for smooth implementation of the New Income-tax Act, 2025 effective from 01.04.2026 onwards.

INCOME_TAX_UPDATES
w.e.f. 01.04.2026
-
-
Major change related to TDS on Property
(Earlier Form 26QB, now form 141)

Cheque Bounce – Complete Process under the Negotiable Instruments Act, 1881

Step-by-step timeline you must know 👇🧵

1. Cheque Issued: -
➡️ A cheque is issued towards discharge of a legally enforceable debt or liability

2. Cheque Presented: -
➡️ Must be presented within 3 months from date on cheque
➡️ Presented to bank for clearing

3. Cheque Dishonoured ❌: -
➡️ Bank returns cheque unpaid due to reasons like:
➡️ Insufficient funds
➡️ Account closed
➡️ Payment stopped

4. Bank Memo Received: -
➡️ Payee receives cheque return memo mentioning reason for dishonour

5. Legal Notice (Within 30 Days) 📩: -
➡️ Demand notice must be sent within 30 days from date of dishonour
➡️ Notice demands payment of cheque amount

6. 15 Days Time to Pay ⏳: -
➡️ Drawer gets 15 days from receipt of notice to make payment
➡️ If paid → matter ends ✅

7. Cause of Action Arises: -
➡️ If payment NOT made within 15 days → offence is triggered

8. Complaint Filing (Within 30 Days) ⚖️: -
➡️ Complaint filed before Magistrate Court
➡️ Must be filed within 30 days from expiry of 15 days

9. Court Process Begins: -
➡️ Court issues summons
➡️ Accused appears and trial starts

10. Punishment 🚨: -
➡️ Imprisonment up to 2 years
➡️ OR fine up to 2x cheque amount
➡️ OR both

⚠️ Key Tip: -
➡️ Even a small procedural delay can kill your case
➡️ Timeline = everything in cheque bounce matters

GST_UPDATEs
-
-
GST BEGINNING-OF-YEAR COMPLIANCE CHECKLIST

Financial Year 2026-27
(1st April 2026 — 31st March 2027)

For More Detailed Information

click here-
https://drive.google.com/file/d/1Nrn-5yyN9Ljdk16RIoM11AQv0y-neEbu/view

GST_UPDATEs
-
GSTN Issued important advisory on GSTR- 3B

🔹 GST Portal will auto-populate tax liability breakup based on document dates reported in GSTR-1 / IFF.

🔹 Before filing GSTR-3B, taxpayers must open the “Tax Liability Breakup” tab and click SAVE on the payment page.

🔹 Ideally, this confirmation should apply only when liability relates to previous tax periods.

⚠️ However, currently the portal requires confirmation in ALL cases, even when liability pertains only to the current period.

✅ Interim Solution:
Simply open the tab → Click “SAVE” → Proceed to file GSTR-3B via EVC/DSC.

📢 GSTN has acknowledged the issue and is working on a resolution.

INCOME_TAX_UPDATES
-
KIND ATTENTION TAXPAYERS!
Clarification has been issued regarding certain email communications sent under the Advance Tax e-Campaign for AY 2026–27 (FY 2025–26)

-
-
A new rule has been inserted in the Income Tax Rules, 2026, which was not present in the earlier Income Tax Rules, 1962.

Rule 166 i.e. Conditions for treating a return as defective return under section 263(7) of the Act