HENCY R SHAH AND ASSOCIATES

New TDS Rules Under Income Tax Act 2025: Quick Compliance Guide The Income Tax Act 2025 has consolidated TDS provisions into Sections 392-394, replacing the fragmented old sections (192-194T). Effective 1 April 2026, this structural shift simplifies compliance while retaining core rates and thresholds. Businesses must update software, SOPs, and training to align with the new framework. Core Changes at a Glance Old TDS rules spread across 30+ sections are now grouped logically: Old Structure New Structure Section 192 (Salary) Section 392 – Salaries & Pensions Sections 193-194T (Payments) Section 393 – All Other Payments Section 206C (TCS) Section 394 – TCS Collections Rates and thresholds remain largely unchanged, but section references in returns, certificates, and contracts need revision. Practical Action Items Map payments to new sections in ERP/accounting software Update quarterly returns (Form 138 replaces 24Q/26Q/27Q) Revise vendor contracts with new section ...

 April 1, 2026: The Day India’s Tax Language Changes Forever 📊 From 1 April 2026 , your Chartered Accountant will stop using the familiar terms “ Assessment Year ” and “ Previous Year .” Instead, you will hear a new term everywhere.  “ Tax Year .” It sounds like a small change. In reality, it is part of India’s biggest direct tax structural reform in more than six decades . Here are the changes every taxpayer, professional, and business owner should understand. 1️⃣ One Term Replaces Two The new law replaces two concepts with one single term. Tax Year = 12-month period starting from 1 April. Example: Income earned in Tax Year 2026–27 will be filed for Tax Year 2026–27 . No separate assessment year. No previous year confusion. However, every form, software, return system, and compliance process must now update terminology. Systems that still generate AY or PY references will break after April 1. 2️⃣ All TDS Rules Moved Into One Section Earlier, TDS provisions were scattered a...

🚨 HDFC Bank Chairman’s Exit: What’s Really Going On? 🏦 Atanu Chakraborty ’s sudden resignation as HDFC Bank ’s part‑time chairman, citing a clash of “ values and ethics ”, has come at the worst possible time for India’s largest private‑sector bank by market value   right in the middle of a tough post‑ merger phase and a sharp erosion in market capitalisation .🧩​ What exactly happened? 🧾 Atanu Chakraborty resigned with immediate effect, saying that “certain happenings and practices within the bank… over the last two years” were not in line with his personal values and ethics, while adding there were no other “material reasons” for his exit.📄​ He joined the board in 2021 and oversaw the landmark merger of HDFC Ltd with HDFC Bank, but also noted that the full benefits of the merger are “yet to materialise”.🔍​​ The RBI quickly cleared Keki Mistry (ex‑HDFC Ltd vice‑chairman) as interim part‑time chairman for three months and publicly said it sees no “material concerns” in HDFC Ba...

🚨 Year-End GST Compliance: The One Checklist You Shouldn’t Ignore Before 31st March As the financial year closes, many GST notices don’t come from “big frauds” they come from small mismatches and missed reconciliations that could have been fixed in a few hours. If you are a business owner or finance lead, here are 10 year-end GST checks you should complete before 31st March : 1️⃣ Match Your Sales Reconcile your sales in books with GSTR-1 and GSTR-3B . Any mismatch in outward supplies is a direct trigger for notices and scrutiny. 2️⃣ Recheck Your ITC ( Input Tax Credit ) Match ITC in your books and GSTR-3B with GSTR-2B. Wrong or excess ITC can lead to interest, penalties, and blocked credits later. 3️⃣ Identify Blocked Credits Ensure you have not claimed ITC on blocked items like motor vehicles for personal use, club memberships, personal expenses, or other ineligible credits under Section 17(5). 4️⃣ Review Reverse Charge (RCM) Confirm that RCM liability on services like advoc...

🚨 Don’t Miss Your Last Chance: 15th March Advance Tax Deadline! Every March, we notice the same question popping up —  “Do I really need to pay Advance Tax ?” The honest answer is yes , if your total tax for the year is more than ₹10,000, the Income Tax Act expects you to pay tax in advance instead of waiting till the end of the year. Think of Advance Tax as paying your tax in easy parts rather than one big amount at the end. It spreads out your outflow, keeps you stress-free, avoids the last-minute rush in March, and saves you from paying extra interest later on just because the payment was delayed. It’s a simple habit that can make your overall tax journey far smoother and more predictable. 🔹 Why it matters: Helps you manage your cash flow better through the year instead of facing a large lump-sum payment at once. Avoids interest under sections 234B & 234C that gets charged when you don’t pay enough tax on time. Keeps your tax records clean and compliant, which is especially i...

 💬 "GST filing for just ₹500 per month!" That's what a young professional told me during a recent conversation about GST registration . She had just started working with corporate clients and needed a GST number to stay compliant. Her monthly income was around ₹30,000 — and like many new professionals, she wanted to manage expenses carefully. Still, that ₹500 offer made me pause. I asked, "Do you know what's included in that ₹500?" She smiled and said, "They'll handle my GST filing every month." And right there was an important realization Too often, we confuse filing with compliance . 💡 In most cases, that ₹500 package simply means: uploading numbers to the GST portal. But real compliance? It's much more than clicking "File Return." 🔍 It involves: Reviewing invoices and tax rates Ensuring correct place of supply Verifying input tax credit eligibility Checking turnover classification Handling notices when they arise These de...