Why CBDT Notifications Matter for Businesses
Central Board of Direct Taxes (CBDT) notifications shape compliance via circulars, orders, clarifications. FY 2025-26 (AY 2026-27) emphasizes scrutiny transparency, TDS relief, digital filings amid Income Tax Act 2025 rollout (Apr 1, 2026).
Key 2025-26 updates reduce litigation (low-value appeals withdrawal), ease TDS (seniors Rs50K), mandate scrutiny categories. Businesses must track incometaxindia.gov.in for penalties avoidance.
1. Mandatory ITR Scrutiny Guidelines FY 2025-26 (Circular Jun 2025)
CBDT mandates complete scrutiny (Sec 143(2)) for high-risk returns—no CASS discretion.
Compulsory Categories:
- Search/survey (Sec 132/133A) post-incriminating material.
- Exemption claims ITR-7 (charity/education).
- Reassessments u/s 147.
- Repeated issues (high adjustments).
Faceless Process: NaFAC digital; respond notices timely or ex-parte risk. Impacts businesses with exemptions/losses.
2. TDS Relief for Senior Citizens (Circular 2025)
No TDS u/s 194A on interest <Rs50K aggregate FY for seniors (60+). Banks deducting despite limit—CBDT clarified compliance.
Business Impact: Proprietors/partners seniors benefit; Form 15H suffices. Thresholds unchanged otherwise.
3. Advance Tax Schedule FY 2025-26 Confirmed
Installments unchanged despite slab tweaks:
| Installment | Due Date | Cumulative % |
|---|---|---|
| 1st | 15 Jun 2025 | 15% |
| 2nd | 15 Sep 2025 | 45% |
| 3rd | 15 Dec 2025 | 75% |
| 4th | 15 Mar 2026 | 100% |
Liability >Rs10K post-TDS. Penalty 1%/month short.
4. Low-Value Appeals Withdrawal Directive (Jul 2025)
FM Sitharaman order: Withdraw CBDT appeals:
- ITAT: <Rs25L
- HC: <Rs50L
- SC: <Rs1Cr.
Clears litigation; 3-month timeline. Businesses gain refunds/closures on small disputes.
5. ITR Forms AY 2026-27 & Pre-Filled Expansion
Notified May 2025: Threshold assets Rs1Cr (from 50L). Detailed 80C/HRA fields, TDS section columns. Pre-filled May 2026 (Aadhaar OTP).
Business Tip: Verify AIS/26AS before filing.
6. TDS Rates & Thresholds FY 2025-26
Section-wise stable; seniors interest relief key. Quarterly returns Q4 May 31.
| Section | Rate | Threshold |
|---|---|---|
| 194C – Contractors | 1% – 2% | Rs 30,000 (single) / Rs 1,00,000 (annual) |
| 194J – Professional | 10% | Rs 30,000 |
| 194A – Interest | 10% | Rs 40,000 (Banks) / Rs 50,000 (Senior Citizens) |
7. Income Tax Act 2025 Rollout (Notification Jan 2026)
Effective Apr 2026; FB 2026 aligns provisions. Faceless assessments 6 months max.
8. Startup Angel Tax Clarification Sustained
No scrutiny for DPIIT startups u/s 56(2)(viib); accept claims summarily. Abolition confirmed.
9. CII 376 for FY 2025-26 (Jul 2025)
Capital gains indexation base. Pre-Jul24 property choice 20% indexed. [Prior knowledge aligned]
10. Other Key Notifications
- Notification 16/2026 (Jan 30): University trusts statement prep.
- Notif 15/2026 (Jan 27): Retrospective AY24-25 to 25-26 applications.
- Draft Rules 2026: Procedural overhaul.
Compliance Roadmap for Businesses
Q1 2026:
- Advance tax Mar15.
- ITR Jul31.
Ongoing:
- TDS quarterly.
- Scrutiny response 30 days.
Tools: e-filing portal alerts, Form 26AS.
Impact on Business Operations
Scrutiny focus reduces surprises; TDS relief aids cash flow. Startups venture boost.
Recent Case Impacts
CBDT withdrawal frees resources; seniors TDS refunds.
Stay updated—non-compliance risks penalties 100-300% tax.
Contact +919034263307.
🌐 Visit: https://taxationlegaladvisor.in
