With the Income-tax Act, 2025 effective from 1 April 2026, there are important TDS/TCS and other income-tax compliance obligations for May 2026 that businesses in the gems and jewellery industry should be mindful of, along with how compliances are to be determined between the Income-tax Act, 1961 and the new Income-tax Act, 2025 during the transition period.
The Income-tax Act, 2025 (ITA 2025) has been notified and brought into force with effect from 1 April 2026 along with the Income-tax Rules, 2026, thereby providing a new direct tax framework for compliances arising on or after that date. Consequently, all compliance obligations commencing from 1 April 2026 onwards are required to be governed by the provisions of the ITA 2025 read with the Income-tax Rules, 2026.
However, compliances pertaining to the financial year ending 31 March 2026 shall continue to be governed by the provisions of the Income-tax Act, 1961 read with the Income-tax Rules, 1962. This transitional distinction assumes particular importance for businesses in the gems and jewellery industry, considering the sector’s extensive dealings involving TDS/TCS compliances, high-value transactions, reporting obligations, bullion and jewellery purchases, and vendor-based withholding requirements. Accordingly, for May 2026, businesses in the gems and jewellery sector should carefully segregate their compliance obligations between the two legislative frameworks, depending upon the relevant financial year and nature of transaction.
Key compliances under the Income-tax Act, 1961 r.w Income-tax Rules, 1962 for FY 2025–26
| Particulars | Due Date |
| Issue of TDS certificates for deductions under sections 194-IA, 194-IB and 194M for March 2026 | 15 May 2026 |
| Quarterly TCS statement for the quarter ended 31 March 2026 | 15 May 2026 |
| Furnishing of Form 24G for April 2026 where tax has been paid without challan | 15 May 2026 |
| Issuance of TCS certificates for the fourth quarter of FY 2025–26 | 30 May 2026 |
| Furnishing of statement under section 285B | 30 May 2026 |
| Quarterly TDS statement for the quarter ended 31 March 2026 | 31 May 2026 |
| Furnishing of Form 10BE and Form 10BD relating to donations | 31 May 2026 |
| Furnishing of Statement of Financial Transactions (Form 61A) under section 285BA | 31 May 2026 |
For jewellery businesses, reporting obligations such as Form 61A may assume significance in cases involving specified high-value transactions and receipts. Similarly, TCS compliances remain relevant for entities engaged in sale transactions attracting collection provisions under the earlier law for FY 2025–26.
Key compliances under the Income-tax Act, 2025 r.w Income-tax Rules 2026 from FY 2026–27
For transactions and obligations arising from FY 2026–27 onwards, the new ITA 2025 framework becomes applicable. Important May 2026 compliances include:
| Particulars | Due Date |
| Deposit of tax deducted or collected for April 2026 | 7 May 2026 |
| Declaration under section 394(2) for obtaining goods without collection of tax | 7 May 2026 |
| Filing of challan-cum-statement of tax deduction under section 393(1) for specified transactions for April 2026 | 30 May 2026 |
These compliances are particularly relevant for gems and jewellery businesses dealing in bullion, precious stones, wholesale trading, and high-value procurement arrangements where withholding and collection obligations frequently arise. Accordingly, businesses in the sector should ensure that compliance systems, ERP mappings, accounting classifications, and statutory references are updated appropriately to distinguish obligations governed by the erstwhile Income-tax Act, 1961 from those now regulated under the Income-tax Act, 2025.
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