India Taxation

11/08/2026

📌 CARO 2020 Applicability – Quick Decision Framework Updated for Revised Small Company Limits w.e.f. 01.12.2025

*① Absolute Exemptions*

CARO 2020 does not apply to:
• Banking Companies
• Insurance Companies
• Section 8 Companies
• One Person Companies (OPCs)

*② Small Company Test – Section 2(85)*

Revised limits (w.e.f. 01.12.2025):
• Paid-up Share Capital ≤ ₹10 crore, AND
• Turnover ≤ ₹100 crore in the immediately preceding FY

➡️ If both conditions are satisfied → CARO Not Applicable

*③ Private Company Financial Threshold Test*

Applicable only if the company is Private Limited and not a subsidiary/holding company of a Public Company.

*All three conditions must be satisfied:*

1. Paid-up Capital + Reserves & Surplus ≤ ₹1 crore
(as at Balance Sheet date)
2. Bank/FI Borrowings ≤ ₹1 crore
(at any point in the FY)
3. Total Revenue ≤ ₹10 crore
(including discontinuing operations)

➡️ All three conditions satisfied → CARO Not Applicable
➡️ Even one condition breached → CARO Applicable

*🔑 Key Points*

• Small Company route and Private Company threshold route are independent — not cumulative.

• A Small Company is outside CARO 2020 regardless of the private-company thresholds.

• CARO 2020 does not apply to Consolidated Financial Statements, except Clause 3(xxi).

11/08/2026

*TReDS in simple terms*

An MSME supplies goods worth ₹10,00,000 to a large company. Payment terms are 60 days. Sale is done, but cash is stuck for two months.

Instead of waiting, the MSME uploads the invoice on TReDS, an RBI regulated platform. The buyer confirms it digitally, and banks or NBFCs bid to finance it.

Say the winning rate is 10% per annum. For 60 days, that is roughly ₹16,438 in discount cost. MSME gets ₹9,83,562 in the account within a day or two.

After 60 days, the buyer pays the full ₹10,00,000 directly to the financier. No loan account, no EMI, no impact on credit limits with other lenders.

One grey area still debated, how GST input credit timing works when invoices are discounted early.

Five TReDS operators are RBI approved now, but *RXIL, M1xchange and Invoicemart remain the most used.*

Simple takeaway, unlocking cash you are already owed can matter more than chasing new sales.

11/08/2026

MSMED (Amendment) Bill, 2026 Passed by Parliament 🇮🇳

The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 has been passed by Parliament — Rajya Sabha on 3 August 2026 and Lok Sabha on 7 August 2026.

Key amendments include:

• Faster resolution of delayed payment disputes
• Time-bound mediation and arbitration
• Stronger recovery mechanisms for MSME dues
• Mandatory TReDS routing for CPSE invoice settlements
• Flexibility to establish multiple MSE Facilitation Councils
• Decriminalisation with graded civil penalties
• Strengthening the institutional framework for promotion, formalisation and scaling-up of MSMEs

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2296358®=48&lang=2

09/08/2026

*UPI will remain free for you.* The government has clearly stated that consumers making payments will face no transaction charges, and all person to person transfers will continue to be free of charge as always.

➡️ *So why amend the Payment and Settlement Systems Act?*
It is only an enabling provision, not an immediate charge. If a merchant fee called MDR is ever introduced, it will apply only to a limited set of high value merchant transactions above a certain threshold, at a nominal rate, far lower than card MDR. The vast majority of merchant transactions stay free too.

Once Parliament passes the Taxation and Other Laws Amendment Bill 2026, the UPI and Services Steering Committee led by NPCI will decide on this, if needed at all.

For context, UPI processed 2366 crore transactions worth 29.9 lakh crore rupees in July 2026 alone, and is now live in 11 countries.

Link:

The Government of India wishes to categorically state: No charges for users: Consumers maki

06/08/2026

Kind Attention Taxpayers!

The Excel Utility for ITR-6 for Assessment Year 2026–27 is now available on the Income Tax e-Filing portal.

Visit:

e-Filing of Income Tax Return or Forms and other value added services & Intimation, Rectification, Refund and other Income Tax Processing Related Queries

22/07/2026

*CBIC has formed an 11 member panel to examine centralised GST administration for businesses with multiple registrations under the same PAN across different states.*

The proposal aims to reduce compliance burden, simplify administration and improve ease of doing business.

The panel will submit recommendations, including an implementation roadmap, within 30 days.

16/07/2026

*Foreign Assets/Income Information Report is now available under the Reports tab on the Compliance Portal for Calendar Year 2022, 2023 & 2024.*

Do check it before your file your Income Tax Return (ITR)

15/07/2026

GSTAT BREAKING NEWS: GSTAT has provided a significant relief for taxpayers and professional filing appeals for past periods.

If you're unable to complete the filing of a GSTAT appeal by 31st July 2026, don't miss generating a Token on or before the due date. The token records your intent to file the appeal and will be treated as compliance with the statutory due date. Once the token is generated, you will have 60 days from the date of token generation to complete the actual filing of the appeal.

Key points to remember:Generate the token on or before 31st July 2026. A separate token is required for each appeal. Complete the appeal within 60 days of token generation. Token generated with incomplete or incorrect details may be treated as invalid. The token cannot be used after the 60-day period.

13/07/2026

With the latest EPF Scheme, 2026 changes now in effect, it's worth understanding the tax implications of EPF withdrawals.

The 5-year rule is probably the most talked-about EPF tax rule.
But that's only one part of the picture.

This guide also explains:

✅ What happens if you withdraw your EPF before completing 5 years?

✅ Does TDS mean your EPF withdrawal is taxable?

✅ Can Form 121 help you avoid TDS?

✅ Does changing jobs affect the 5-year rule?

✅ Is interest on EPF always tax-free?

✅ What happens if your EPF contribution exceeds ₹2.5 lakh in a financial year?

✅ What are the key withdrawal-related changes under the EPF Scheme, 2026?

I've brought together all the important EPF tax rules into one comprehensive guide with practical examples, FAQs, illustrations and a quick reference summary.

📌 Detailed article link is in the first comment.

10/07/2026

Kind Attention Taxpayers!

The Excel Utility for ITR-7 for Assessment Year 2026–27 is now available on the Income Tax e-Filing portal.

Visit: https://www.incometax.gov.in/iec/foportal/