Khakhar & Associates

Compliance list for March 2026

💡 Paying high rent? Don’t miss this tax rule.

If your house rent exceeds ₹50,000 per month,
👉 TDS @ 5% is mandatory — even if you’re not audited.

✅ No TAN required
✅ PAN-based compliance
✅ TDS can be paid monthly or once a year
📄 Done through Form 26QC

Many tenants miss this and face interest & penalties later.

📌 Key takeaway:
Section 194R is not about how you receive the benefit, but why you receive it.
If it arises from business or profession, tax implications must be examined before acceptance — not after.

⚠️ Many assessments today are questioning:
• Foreign trips
• High-value gifts
• Dealer / distributor incentives

👉 Better awareness today avoids explanations tomorrow.

ProfessionalInsight ComplianceMatters

Compliance list for the month of January 2026

🔔 TDS Alert for Partners

📌 Section: 194T

📌 Effective from: 1 April 2025

📌 Rate: 10% TDS

📌 Threshold: ₹20,000 per partner per year

📌 Applies to: Salary, remuneration, bonus, commission & interest paid by firm/LLP to partners

“NBFC hai, TDS nahi lagega” — one small assumption, big tax impact ❗
Interest paid to NBFCs does attract TDS under Section 194A.
EMI auto-debit doesn’t mean TDS exemption.
Missed TDS can lead to disallowance under Section 40(a)(ia) and higher tax outgo.
Always verify—assumptions can be costly.

⏰ ITR Deadline Alert – 31st December 2025

Missed filing your return?
Belated ITR can be filed only up to 31st December 2025.
After that, filing is possible mainly through an Updated Return, with additional tax of 25% / 50% / 60% / 70% depending on delay.

👉 File in time. Delays only make compliance costlier.

Big contracts are great — but cash receipts can be costly.
Accepting more than ₹2 lakhs in cash for a single event violates Section 269ST and can invite a 100% penalty.
Success is sweeter when it’s compliant.

TheFinShorts

📢 MSME Classification – Important Update (From 1st April 2025)

Many still believe MSME status is decided only by turnover.
✅ Reality: Classification is based on both Investment AND Turnover.
If either limit is crossed, your category changes.

🔍 Example:

If your turnover is ₹12 Cr, you cannot remain Micro, even if investment is low — you shift to Small category.

📌 Both limits matter. Not just turnover.