HENCY R SHAH AND ASSOCIATES

 🎆 PM’s “Double Diwali” Promise — Next-Gen GST Coming Soon  on 79th Independence Day 🇮🇳 Prime Minister Narendra Modi has promised “next-generation” GST reforms as a Diwali gift — signalling a major overhaul aimed at lowering taxes on everyday items and simplifying the GST structure.  What the announcement says Timeline: Reforms promised by Diwali (October 2025) . Objective: Cut tax burden on common items, simplify slabs and compliance for consumers, businesses and MSMEs.  Process: Government has drafted proposals and sent them to the Group of Ministers (GoM) / GST Council for consideration.  Why it matters Consumer relief: Lower GST on everyday goods raises disposable income and demand. MSME & business impact: Simpler slabs and lower rates can reduce compliance cost and boost formal demand. Fiscal trade-off: Rate cuts could mean short-term revenue loss — will need calibrated compensation or broader base measures. What to watc...

🇺🇸➡️🇮🇳 How US Tariffs Hit Indian Business The imposition (or threat) of tariffs by the United States creates ripple effects for Indian companies — from exporters to manufacturers and service providers. Here’s a tight, practical rundown of the main impacts and smart responses. Key impacts 📉 Export pressure — Tariffs make Indian goods less price-competitive in the US, reducing volumes and margins. 🧩 Supply-chain disruption — Higher input costs or rerouting needs (new suppliers, longer lead times). 💸 Cost pass-through & margin squeeze — Firms either eat costs or raise prices, hurting demand. ⚖️ Regulatory and compliance burden — More documentation, origin-of-goods checks and legal costs. 🔁 Shift in trade patterns — Buyers may re-source from other countries or seek tariff-friendly supply hubs. 📉 Investment uncertainty — Slower FDI decisions or re-allocation as investors price trade risk. 🚀 Opportunities for diversification — Push for ...

 💡 𝗧𝗼𝗽 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗔𝘂𝗴𝘂𝘀𝘁 𝟮𝟬𝟮𝟱: 𝗨𝗣𝗜 𝗥𝘂𝗹𝗲𝘀, 𝗥𝗕𝗜 𝗥𝗲𝗽𝗼 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 & 𝗖𝗿𝗲𝗱𝗶𝘁 𝗖𝗮𝗿𝗱 𝗣𝗼𝗹𝗶𝗰𝘆 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 India's financial ecosystem is evolving rapidly this August with several reforms impacting digital payments, interest rates, and banking products. Here's what you need to know: 🔄 𝟭. 𝗡𝗲𝘄 𝗨𝗣𝗜 𝗥𝘂𝗹𝗲𝘀 𝗧𝗮𝗸𝗲 𝗘𝗳𝗳𝗲𝗰𝘁 (𝗳𝗿𝗼𝗺 𝗔𝘂𝗴𝘂𝘀𝘁 𝟭, 𝟮𝟬𝟮𝟱) NPCI has rolled out multiple changes to improve UPI’s efficiency and fraud prevention. Key updates include: ✅ 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆 𝗖𝗮𝗽: Limited to 50 per UPI app per day; issuer banks must display remaining balance post-transaction  🕒 𝗔𝘂𝘁𝗼𝗽𝗮𝘆 𝗧𝗶𝗺𝗶𝗻𝗴𝘀: Scheduled mandates will run only during non‑peak hours—before 10 AM, 1–5 PM, and after 9:30 PM  𝗶️ 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗦𝘁𝗮𝘁𝘂𝘀 𝗖𝗵𝗲𝗰𝗸𝘀: Restricted to 3 attempts with a 90‑second gap each  🏦 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗟𝗶𝗻𝗸𝗶𝗻𝗴 𝗟𝗶𝗺𝗶𝘁: Capped...

🌍 India–UK FTA Signed: A New Chapter for Bilateral Trade! 🇮🇳🤝🇬🇧 On 24 July 2025 , Prime Ministers Narendra Modi and Keir Starmer inked the long-awaited India–UK Free Trade Agreement (FTA) —a landmark deal hailed as “game-changing” for both nations. Here’s what this means for India and the UK: 🔑 Key Highlights Zero-Tariff Access: Immediate removal of duties on textiles, gems, machinery, and industrial components—unlocking US$34.5 billion in new trade over 5 years. Phased Tariff Reductions: Gradual cuts on automobiles and whisky over 10–15 years, with safeguards to protect India’s domestic automobile sector. No Concessions on Sensitive Sectors: India retains full protection for agriculture and dairy, while UK exporters gain £37.5 billion of market access. Services & Mobility: Enhanced visa pathways for professionals and strengthened co-operation in IT, fintech, and creative industries. 🚀 What’s in It for India? Export Boost: Gujarat’s textile, diamon...

  🛡️ Beware of Wrong Claims: Income Tax Dept Issues Notices in Recent Crackdown 🚨 The Income Tax Department has recently ramped up scrutiny on incorrect deductions and overstated claims , issuing thousands of notices under Sections 139(9), 142(1), and 143(1)(a). This serves as a stark reminder: don’t treat aggressive tax planning as a free pass —the authorities are watching closely! 🔍 What’s Happening? 1️⃣ Invalid 80G Donations: Notices sent to taxpayers whose claimed charitable contributions exceed verified donations. 2️⃣ Excessive 80C Deductions: Over-claiming of ELSS, PPF, and life insurance premiums beyond the ₹1.5 lakh limit. 3️⃣ Inflated Depreciation & R&D Claims: Unjustified write-offs on plant & machinery and bogus research-expense credits. 4️⃣ Dubious HRA & LTA: House Rent Allowance and Leave Travel Allowance claims without valid rent receipts or travel proofs. These actions reflect the ITD’s use of data-analytics to flag anomalies and trigg...

🚨 𝗖𝗼𝗺𝗺𝗼𝗻 𝗠𝗶𝘀𝘁𝗮𝗸𝗲𝘀 𝘁𝗼 𝗔𝘃𝗼𝗶𝗱 𝗪𝗵𝗶𝗹𝗲 𝗙𝗶𝗹𝗶𝗻𝗴 𝗬𝗼𝘂𝗿 𝗜𝗧𝗥 𝗳𝗼𝗿 𝗔𝗬 𝟮𝟬𝟮𝟱-𝟮𝟲 🚨 Filing your Income Tax Return (ITR) can feel daunting, but avoiding a few common pitfalls will help you stay compliant, minimize scrutiny, and even maximize your refund. Here’s your quick guide to steer clear of these errors and file with confidence! 👇 ◼️ 𝘔𝘪𝘴𝘮𝘢𝘵𝘤𝘩𝘦𝘥 𝘐𝘯𝘤𝘰𝘮𝘦 & 𝘍𝘰𝘳𝘮 𝘚𝘦𝘭𝘦𝘤𝘵𝘪𝘰𝘯 Many taxpayers pick the wrong ITR form or under-declare income. Tip: Review your sources—salary, house property, capital gains, business/professional income—and choose the correct ITR (e.g., ITR-1 for salaried, ITR-3 for professionals). ◼️ 𝘐𝘨𝘯𝘰𝘳𝘪𝘯𝘨 𝘍𝘰𝘳𝘮 26𝘈𝘚 & 𝘈𝘐𝘚/𝘈𝘛𝘕𝘴 Overlooking your Form 26AS or Annual Information Statement can lead to under-reporting TDS/TCS or interest income. Tip: Reconcile all tax credits and verify that the income you report matches these statements. ◼️ 𝘔𝘪𝘴𝘴𝘪𝘯𝘨 𝘋𝘦𝘥𝘶𝘤𝘵𝘪𝘰𝘯𝘴 ...