The Income-tax Department is increasingly relying on AI-based verification and automated reconciliation systems to detect discrepancies in ITR filings. Mismatches between AIS, Form 26AS, bank records, and ITR disclosures may lead to scrutiny or notices.
Form 157 under the Income-tax Act, 2025 is not required for every person leaving India. The requirement applies only in limited cases involving tax investigations, financial irregularities, or large outstanding tax arrears.
The article explains how gems and jewellery businesses must distinguish compliances governed by the Income-tax Act, 1961 and the new Income-tax Act, 2025 during May 2026. It highlights important TDS, TCS, and reporting deadlines applicable during the transition period.
Many tax-saving investments carry hidden costs like STT, expense ratios, and exit loads. The analysis highlights that these charges significantly reduce effective returns despite tax benefits.
The new Income-tax Act, 2025 replaces the 1961 law and introduces structural changes such as a single “Tax Year.” Key updates include revised return deadlines, higher STT, and new rules for buybacks and deductions.
CBDT amended Income-tax Rules to include crypto-assets and digital financial products in CRS reporting. The move expands disclosure obligations for financial institutions and enhances tax transparency.
The draft Income-tax Rules, 2026 consolidate perquisite valuation into a single framework and significantly raise exemption limits. Employees gain clearer rules and higher tax-efficient benefits.
The Bill retains corporate tax rates while rationalising MAT and offering targeted incentives for IT, cloud services, and global investors. The key takeaway is stability combined with strategic reforms to boost competitiveness.
Jewellery imports now follow weight-based limits instead of value caps, offering relief amid rising gold prices. Transfer of Residence limits are also increased with an updated list of modern household items.
Budget 2026 focuses on easing compliance and expanding export opportunities for MSMEs. Simpler tax rules and removal of export caps aim to unlock growth and competitiveness.
