PRAJAPATI_s & P

29/09/2026

Interest Income From Loans and Deposits Exempt Under Entry 27 of Notif. 12/2017-CT(R) as per GST Act: GSTAT

Read the (Raipur) GSTAT Order: (GSTAT-RAIPUR)

29/09/2026

Writ Relief Denied as MSME Borrower Belatedly Invoked RBI MSME Framework After Pursuing SARFAESI Remedy: HC

Read the (Calcutta) High Court Order: https://taxmann.social/JjW3Y
Citation: [2026] 190 taxmann.com 570 (Calcutta)

FEMA, BANKING & INSURANCE: Where MSME-borrower had not invoked RBI Framework for stressed MSMEs at appropriate stage, instead pursued one-time settlement negotiations and a statutory remedy under Section 17 SARFAESI, they could not subsequently claim benefit of MSME protection to challenge NPA class...

22/09/2026

GST implementation of MDR on UPI

19/09/2026

tax or charges by on transaction from Rs.2000/- (it just like govt vasooli from Aam Janta)

The proposed UPI MDR could improve revenue for banks and payment apps, but it also raises concerns. With ₹8 on every ₹2,000 transaction, costs ultimately fall on merchants, potentially hurting small businesses.

Dividing MDR among seven participants may also make the system more complex. *Sustainability should not come at the cost of UPI’s affordability and adoption.*

For a ₹2,000 transaction, the proposed MDR is ₹8:
• Issuing bank: ₹3.20
• Acquiring bank: ₹2.40
• Third party app: ₹1.60
• Processing bank: ₹0.80

19/09/2026

*FREE FOR ALL CA MEMBERS* 🎯

ICAI's Committee for Capacity Building is offering a *Class 3 Digital Signature Certificate (2-year validity) absolutely FREE* to all members with a valid ICAI Membership Number — one copy per member, no extra charges.

*Key Highlights:*
• Market value: ₹1,500–₹3,000 — now fully waived
• Usable across MCA21, Income Tax, GST, E-Tendering, EPFO, DGFT & other govt portals
• Free training + technical support included
• Nominal renewal fee only after 2 years

*Objective:* Boost digital compliance and ease cost burden for small/medium CA firms.

📌 *Register via ICAI SSP Portal or your empanelled Certifying Authority.*

PRAJAPATI_s & P Paarvati Prajapati

19/09/2026

*Rule Decoded: 6 When 99% Does Not Apply*

*COMPLETE UPDATE - RULE 86B EXCEPTIONS*

Rule 86B restricts utilization of Input Tax Credit (ITC) to 99%, requiring 1% output tax liability to be paid in cash when monthly turnover exceeds Rs. 50 lakh. However, the restriction does not apply in the following cases:

*1. Income Tax Exception:*
If the proprietor, karta, managing director, any two partners, whole-time directors, or members of managing committee / board of trustees, as applicable, have paid more than Rs. 1 lakh as income tax in each of the last two financial years for which the due date under section 139(1) has expired.

*2. Refund Under Section 54(3)(i):*
Where the registered person has received refund of more than Rs. 1 lakh in the preceding financial year on account of unutilised ITC for zero-rated supplies made without payment of tax.

*3. Refund Under Section 54(3)(ii):*
Where refund of more than Rs. 1 lakh has been received in the preceding financial year on account of unutilised ITC due to inverted duty structure.

*4. 1% Cumulative Cash Payment Exception:*
Where the registered person has already discharged output tax liability in cash in excess of 1% of total output tax liability, applied cumulatively up to the relevant month in the current financial year.

*5. Entity Exception:*
Applicable to Government Department, Public Sector Undertaking, Local Authority, or Statutory Body.

*6. Rule 31D Carve-Out:*
A registered person other than a manufacturer is exempt from Rule 86B only in respect of goods specified under Rule 31D on which tax has been paid by the supplier on the basis of retail sale price.

*Commissioner Discretion:*
The Commissioner or an officer authorised by him may remove the 1% cash payment restriction after such verifications and safeguards as deemed fit.

*Practical Takeaway:*
Rule 86B is only a restriction on ITC utilization, not a blanket 1% cash payment rule. Always check turnover limit, cumulative cash payment history, refunds received, income-tax payment history, and other exceptions before applying the restriction.

PRAJAPATI_s & P

19/09/2026

RULES: WHAT CHANGES FOR EMPLOYEES? 🇮🇳

According to the infographic:

• Basic Salary: 30% → Minimum 50% of CTC
• Gratuity: 5 years → 1 year
• Salary Credit: By 10th → By 7th of every month
• Overtime: Double wages beyond 8 hours/day
• Work Week: Up to 60 hrs → 48 hrs
• Full & Final Settlement: 30–60 days → Within 2 working days

Big changes in salary structure, working hours & employee benefits.

Paarvati Prajapati PRAJAPATI_s & P

13/09/2026

📢 Update

Online –TCS Return is now live on the TRACES Portal.

If you have received an email from TDS CPC regarding the processing of defaults in Form 140–143 for of TY 2026–27, and the demand is towards Interest only, you can file the correction online through the New TRACES Portal — without requesting a Conso File.

🔗 Portal: http://www.tdscpc.gov.in

📌 : Defaults → Request for Correction → Pay / Allocate Interest

⚠️ Important: The interest should already be paid and reflected in the challan before filing the correction.

Website for TRACES (TDS Reconciliation Analysis and Correction Enabling System), Income Tax Department

13/09/2026

*97% of parents don't know their 's investment income gets in THEIR hands.*

The government calls it .

Most people investing in their minor child's name are walking into a tax trap without realising it.

Here's how to invest smartly AND legally avoid it

*1.* Why invest in your child's name at all? A child born today has 18 years before they need money for college or a career.

₹5,000/month invested for 18 years at 12% CAGR = ₹37 lakhs+

The math is insane. Time is the only asset that cannot be bought later. Start now.

*2.* Before investing, open a Minor Bank Account.

➡️ Child is the account holder
➡️ You (parent) act as guardian
➡️ Documents: Child's birth certificate + your PAN and Aadhaar

This is the foundation. Everything else sits on top of this.

*3.* Best safe instruments for a minor:

➡️ PPF via guardian - EEE status, fully tax free
➡️ Sukanya Samriddhi Yojana - daughters under age 10 only, higher interest than PPF

*PPF trap:* The ₹1.5 lakh annual limit is COMBINED for you and your child together. Most parents don't know this.

*4.* For long term wealth building:

➡️ Mutual Funds Growth option - child must be SOLE holder, no joint holding allowed
➡️ NPS Vatsalya - open at birth, minimum ₹1,000/year, converts to regular NPS at 18

Pro tip: Set up a SIP directly from your bank account into the minor's mutual fund folio.

*5.* Now the trap most parents fall into.

Under Section 99(1A) of the Income Tax Act 2025 [earlier Section 64(1A)]: any income earned from investments in your child's name gets clubbed with YOUR income.

➡️ That FD interest? Taxed in your hands.
➡️ That mutual fund dividend? Taxed in your hands.

Shocking but true.

*6.* There is a small relief though.

₹1,500 per child per year is exempt from clubbing. Available under BOTH Old and New Tax Regime.

Maximum for 2 children = ₹3,000 per year. Small number. But worth claiming every year without fail.

*7.* The smartest way to beat clubbing legally? Choose GROWTH over INCOME.

➡️ FDs generate interest every year = clubbing every year
➡️ Growth Mutual Funds compound silently, no annual payout
➡️ Tax only triggers when you sell

Hold until they turn 18. Clubbing stops entirely at that point.

*8.* Clubbing does NOT apply when:

➡️ Income earned through the minor's OWN skill or talent (YouTube, sports, acting)
➡️ Child has disability under Section 154 of Income Tax Act 2025 [earlier Section 80U]

One catch: If skill income is reinvested, returns from that reinvestment ARE still clubbed.

*9.* On their 18th birthday everything changes.

➡️ No more clubbing with your income
➡️ They get their own basic exemption limit
➡️ Long term gains redeemed in their name attract zero or very low tax

18 years of silent compounding. Redeemed at their slab. Not yours. That is the real strategy.

*10.* To summarise:
✅ Open minor bank account first
✅ PPF + SSY for safe tax free growth
✅ Growth MFs as the core long term vehicle
✅ Avoid FDs and dividend plans during minority
✅ ₹1,500 exemption per child under both regimes
✅ Skill income of child is never clubbed
✅ At 18 everything shifts to their hands

Found this useful? Share it so every parent sees this.

PRAJAPATI_s & P Paarvati Prajapati

13/09/2026

*Tax Audit Exemption Under Section 44AB: The ₹10 Crore Limit Is Not as Automatic as Most Businesses Assume*

Many growing businesses assume that staying under ₹10 crore turnover automatically exempts them from tax audit. This is true only if two conditions hold together for the entire financial year:

➡️ Cash receipts must not exceed 5% of total receipts
➡️ Cash payments must not exceed 5% of total payments

A business doing ₹8 crore turnover, almost entirely through UPI, NEFT, and bank transfers, comfortably qualifies for this exemption. But a single significant cash transaction, an old due settled in cash, or a supplier paid in cash, can push either figure above 5% for the year.

The moment that happens, the enhanced limit stops applying. The business reverts to the standard ₹1 crore threshold and audit becomes mandatory, regardless of turnover.

This is not a point in time check. The 5% test runs on the full year's transactions, so businesses between ₹2 crore and ₹8 crore turnover are most exposed, often assuming the higher limit protects them by default.

Skipping the audit when it applies attracts a penalty under Section 271B, 0.5% of turnover or ₹1.5 lakh, whichever is lower, in addition to the audit still being required.

if your turnover falls between ₹1 crore and ₹10 crore, track cash receipts and payments monthly rather than reviewing them only at year end.

Paarvati Prajapati PRAJAPATI_s & P