Tax Brothers

28/05/2026

ITR-2 is the income tax return form used by individuals and HUFs who do not have income from business or profession but may have income from salary, capital gains, multiple house properties, foreign assets, etc.

Who should file ITR-2?

You can file ITR-2 if you have:

Salary or pension income

Income from more than one house property

Capital gains from shares, mutual funds, property, crypto, etc.

Foreign income or foreign assets

Agricultural income above ₹5,000

Income above ₹50 lakh

Director in a company

Unlisted equity shares investments

NRI/RNOR status

Who cannot file ITR-2?

You cannot use ITR-2 if you have:

Proprietorship business income

Professional income (CA, doctor, advocate, freelancer, consultant etc.)

Presumptive business income under 44AD/44ADA/44AE

In such cases, generally ITR-3 or ITR-4 is applicable.

Important for AY 2026-27

Online filing and Excel utility for ITR-2 are now live on the Income Tax portal.

Due date for non-audit taxpayers: 31 July 2026.

New updates include simplified capital gains reporting and additional disclosure fields.

Documents generally required

PAN & Aadhaar

Form 16

AIS/TIS & Form 26AS

Capital gain statements

Bank interest certificates

Home loan interest certificate

Foreign asset details (if any)

Tax Brothers
096693 36755

26/05/2026

25/05/2026

🚨 Major Update in e-Way Bill Portal by GSTN

The Goods and Services Tax Network has introduced two important functional enhancements in the e-Way Bill system to improve transparency, traceability, and compliance in goods movement. These changes are proposed to go live by 15 June 2026.

✅ 1. Mandatory “Ship-To GSTIN” in Bill-To / Ship-To Transactions

In all Bill-To / Ship-To cases, taxpayers must now compulsorily mention the GSTIN of the actual delivery location (Ship-To party) while generating the e-Way Bill.

📌 If the consignee is unregistered, enter “URP” in the Ship-To GSTIN field.

Why this change?

Better tracking of actual goods destination

Improved reconciliation between invoices & EWB data

Stronger fraud detection and analytics

Greater transparency in drop shipment & third-party logistics models

✅ 2. New Voluntary EWB Closure Facility

GSTN has also introduced a new feature allowing stakeholders to voluntarily “Close” an e-Way Bill once goods are successfully delivered.

The EWB can be closed by:

Supplier

Recipient

Transporter

Driver / Authorized person

Benefits of EWB Closure

Creates complete end-to-end delivery trail

Improves logistical accountability

Helps prevent fake movement of goods

Strengthens GST compliance monitoring

⚠️ Businesses using ERP/API integrations should start updating their systems and workflows to comply with these upcoming changes.

25/05/2026

🚨 ITR Due Dates for FY 2025-26 (AY 2026-27) – Don’t Miss the Deadline! 🚨

The Income Tax Department has notified different due dates based on taxpayer category and ITR form. Filing on time helps avoid penalties, interest, and loss of benefits.

📌 Important Due Dates:

✅ 31 July 2026
• ITR-1 & ITR-2
• Salaried Individuals / Investors
• No audit cases

✅ 31 August 2026
• ITR-3 & ITR-4
• Business / Professional (Non-Audit)
• Freelancers, traders, consultants, small businesses

✅ 31 October 2026
• Audit Cases
• Companies
• Firms / LLPs requiring audit
• ITR-3, ITR-5, ITR-6, ITR-7

✅ 30 November 2026
• Transfer Pricing Cases
• International / Specified Domestic Transactions

📌 Additional Points: • Belated Return Last Date: 31 December 2026
• Revised Return Last Date: 31 March 2027
• Late fees u/s 234F up to ₹5,000
• Interest u/s 234A/B/C may apply
• Loss carry forward benefit may be denied if return filed late

⚠️ Foreign assets/income disclosure is mandatory wherever applicable.

File your ITR on time & stay compliant
📞 096693 36755

23/05/2026

What is ITC Reversal?

Under GST, if you use purchases/services partly for:

Taxable supplies and

Exempt supplies

then full ITC cannot be claimed. The exempt-use portion must be reversed.

---

Rule 42 – Inputs & Input Services

Applies when:

Goods/services are used for both:

taxable supplies

exempt supplies

Example from image

Exempt turnover = ₹20,00,000

Total turnover = ₹1,00,00,000

Common ITC = ₹2,00,000

Calculation:

(20,00,000 / 1,00,00,000) \times 2,00,000
= ₹40,000

So: ✅ ITC to reverse = ₹40,000

Important

Monthly provisional reversal required

Final adjustment done annually

---

Rule 43 – Capital Goods

Applies to:

Capital goods used for both taxable and exempt supplies.

Examples:

Machinery

Computers

Furniture

Equipment

Key points

Useful life considered = 5 years (60 months)

ITC distributed monthly

Reversal continues during the full period

Example understanding

If machine ITC = ₹6,00,000

Monthly ITC:

6,00,000 / 60 = 10,000

If exempt turnover ratio is 20%:

20\% \times 10,000 = ₹2,000

Monthly reversal = ₹2,000

---

Rule 38 – Banks & NBFCs

Special option available for:

Banks

NBFCs

Financial institutions

Instead of detailed calculations, they may: ✅ Reverse 50% of total ITC

Benefits:

Simpler compliance

No complex turnover calculations

Remaining 50% available as credit

---

When ITC Reversal Commonly Applies

Exempt supplies

Mixed-use businesses

Real estate

Educational/health exempt services

Banks & NBFCs

---

Important Practical Point

Wrong ITC claim or non-reversal can lead to:

Interest

GST notices

Penalties

So businesses should:

Maintain proper segregation

Track exempt turnover carefully

Perform monthly and annual reconciliation

22/05/2026

TAX AUDIT APPLICABILITY – FY 2025-26 (AY 2026-27)

📢 Know When Tax Audit Becomes Mandatory!

Here’s a quick guide to Tax Audit limits under Section 44AB and presumptive taxation provisions:

✅ Business Audit – Section 44AB(a)
• Tax Audit applicable if turnover exceeds ₹1 Crore.

✅ Digital Transaction Benefit
• Audit limit increases to ₹10 Crore if cash receipts and cash payments are not more than 5% of total transactions.

✅ Professionals – Section 44AB(b)
• Tax Audit required if gross receipts exceed ₹50 Lakhs.

✅ Presumptive Business – Section 44AD
• If profit declared is below 6%/8% and total income exceeds basic exemption limit, Tax Audit may apply.

✅ Presumptive Profession – Section 44ADA
• Audit applicable if profit declared is less than 50% of gross receipts and income exceeds exemption limit.

✅ Transporters – Section 44AE
• Audit may apply when income shown is lower than presumptive income.

📌 Important Points: • Audit Report to be filed in Form 3CA/3CB & 3CD
• Due Date for Tax Audit: 30th September 2026*
• Turnover includes all business receipts

⚠️ Avoid penalties and ensure timely compliance.

━━━━━━━━━━━━━━━
📞 TAX BROTHERS
📱 9669336755
🤝 Your Trusted Tax Partner
━━━━━━━━━━━━━━━

18/05/2026

🚨 WHICH ITR FORM SHOULD YOU FILE FOR A.Y. 2026-27? 🤔📄

Filing the wrong ITR can lead to notices, defective returns, or refund delays.
Here’s a simple guide to choose the correct Income Tax Return (ITR) form for AY 2026-27:

✅ ITR-1 (SAHAJ)
For salaried individuals with: • Salary/Pension income
• One house property
• Income up to ₹50 lakh
• Interest income

❌ Not for business income or major capital gains.

━━━━━━━━━━━━━━

✅ ITR-2
For Individuals/HUF having: • Capital gains (Shares, Mutual Funds, Property, Crypto etc.)
• More than one house property
• Foreign income/assets

❌ Not for business/professional income.

━━━━━━━━━━━━━━

✅ ITR-3
For: • Business owners
• Freelancers/Professionals
• F&O / Intraday traders
• Proprietorship businesses

✔ Includes salary, capital gains & other incomes too.

━━━━━━━━━━━━━━

✅ ITR-4 (SUGAM)
For presumptive taxation under: • Section 44AD
• Section 44ADA
• Section 44AE

✔ Simplified return for eligible small businesses/professionals.

━━━━━━━━━━━━━━

✅ ITR-5
For: • Partnership Firms
• LLPs
• AOP/BOI

━━━━━━━━━━━━━━

✅ ITR-6
For Companies
(Except companies claiming exemption u/s 11)

━━━━━━━━━━━━━━

✅ ITR-7
For: • Trusts
• NGOs
• Charitable Institutions
• Political Parties
• Other exempt entities

━━━━━━━━━━━━━━

📌 Quick Rule: 👉 Salary only → ITR-1
👉 Capital gains/property → ITR-2
👉 Business/Freelancing/F&O → ITR-3
👉 Presumptive taxation → ITR-4

Need help with ITR filing?
🌐 Tax Brothers – Your Tax Partner

📞 096693 36755

17/05/2026

16/05/2026

🚨 ITR-1 & ITR-4 NOW LIVE FOR AY 2026-27 🚨

The Income Tax Department has enabled online filing of ITR-1 (Sahaj) and ITR-4 (Sugam) on the e-Filing portal. ✅

📌 Who can file ITR-1? ✔ Salary/Pension income
✔ One house property
✔ Interest income
✔ Total income up to ₹50 lakh

📌 Who can file ITR-4? ✔ Small businesses under presumptive taxation
✔ Professionals/Freelancers under 44ADA
✔ Businesses under 44AD/44AE
✔ Income up to ₹50 lakh

⚠ Important Before Filing: • Verify AIS/TIS & Form 26AS
• Match TDS details properly
• Check bank account validation
• Capital gains/foreign assets may require ITR-2 or ITR-3

📅 Due Date (Non-Audit Cases):
31 July 2026

💻 File your return today and avoid last-minute rush.
📞 9669336755

06/05/2026

TDS & TCS Compliance 2026 | Important Penalties Every Taxpayer Should Know

Non-compliance in TDS/TCS can lead to interest, late fees, disallowance of expenses, and tax notices. Here are some important consequences every business and taxpayer must know:

• Failure to Deduct TDS
Interest @ 1% per month from the date on which tax was deductible till actual deduction.

• TDS Deducted but Not Deposited
Interest @ 1.5% per month from the date of deduction till date of payment.

• Late Filing of TDS/TCS Return
Late fee of ₹200 per day under Section 234E, subject to total TDS amount.

• Non-Compliance with TDS Provisions
Can result in disallowance of expenses under the Income Tax Act.

• Incorrect Reporting or Mismatch
May trigger notices, reassessment, penalties, and additional compliance burden.

Important Compliance Tips:
✔ Deduct TDS on time
✔ Deposit tax within due dates
✔ File quarterly returns timely
✔ Verify PAN details properly
✔ Reconcile with Form 26AS/TRACES regularly

Small compliance mistakes can become costly later.

Tax Brothers

📞 096693 36755