Padmanabh Joshi & Co. CAs

Padmanabh Joshi & Co. CAs Chartered Accountants firm

01/10/2025

The Income Tax Department has issued an advisory saying that you can only file TDS and TCS correction statements for Q4 of FY 2018-19 to Q3 of FY 2023-24, until March 31, 2026. So, if there is any correction / rectification pending, you need to ask for a correction by March 31, 2026 . If you don’t settle your tax liability, you may end up receiving a tax notice.

Synopsis
Income Tax Department said that March 31, 2026 is the deadline for TDS, TCS correction statements. This applies to FY 2018-19 Q4 to FY 2023-24 Q3. Deductors, collectors must correct errors before deadline. New rules shorten correction window.

These are the details as per the official Income Tax Advisory:
• The Income Tax Act 1961 stands repealed w.e.f 01.04.2026 by virtue of section 536 of Income Tax Act 2025.
• Further, as per Section 397(3)(f) of Income Tax Act, 2025, deductor/collector may deliver a correction statement in such form and verified in such manner as may be prescribed, to the prescribed authority within two years from the end of the tax year in which such statement is required to be delivered under the said clauses or under section 200 of the Income-tax Act, 1961.
• Consequent to the above, correction statements for FY 2018-19 (Qtr. 4), FY 2019-20 to 2022-23 (Qtr. 1 to Qtr. 4) and FY 2023-24 (Qtr. 1 to Qtr. 3) shall be accepted only up-to 31st March 2026. The same are time barred by limitation on 31.03.2026 and would not be accepted from 01.04.2026 onwards.
Deductors /Collectors and other Stakeholders may kindly take note of the same and they are advised to take necessary steps to ensure all corrections for the above period, if any, are carried out in time as filing of the same for above period would be barred by limitation on 31.03.2026.

CA. Pritesh Joshi
[email protected]
+91 22 4971 0400

01/10/2025

Key GSTR Filing Changes from October 1, 2025

The Goods And Services Tax Network has introduced significant changes to the GST return filing process, effective October 1, 2025. Here are the key updates:

Changes to ITC Auto-Population :
Manual Generation of GSTR-2B:
GSTR-2B will no longer be auto-generated. Taxpayers must log in to the Invoice Management System (IMS), accept or reject invoices, and generate GSTR-2B manually.

ITC Claim:
Only accepted invoices will be eligible for ITC claims. Rejected invoices will be excluded from GSTR-2B, and pending invoices won't populate GSTR-3B until cleared .

Revised Credit Note Taxability :
Supplier's Output Tax Liability: If a recipient rejects a credit note in IMS, the supplier's output tax liability won't be reduced unless the recipient reverses the ITC related to that credit note.

GSTR-3B Filing Requirements :
No GSTR-3B Filing without GSTR-2B:
As per Section 39(1), GSTR-3B can't be filed unless GSTR-2B is generated. Taxpayers must ensure timely acceptance or rejection of invoices in IMS to avoid delays .

Non-editable Auto-populated Tax Liability
- Auto-populated liability in GSTR-3B will be non-editable.
- Any amendments must be routed via GSTR-1 / GSTR-1A for the relevant tax period.

CA. Pritesh Joshi
[email protected]
+91 22 4971 0400

09/06/2025

Know This In Advance Before Paying Advance Tax

Many taxpayers are unsure about what advance tax is. Let me explain the same for our taxpayers and also inform if any advance tax is to be paid in the current month?
Advance tax is the income tax paid in installments throughout the year, rather than a lump-sum payment at the end of the year. Also referred to as "pay-as-you-earn" tax, it is paid in advance based on due dates set by the income tax department. 15th June 2025 is the due date for the payment of First Installment of Advance Tax for the AY 26-27. The taxpayers are required to pay 15% of their total estimated tax liability for the year in the first installment.
How should the taxpayer assess his tax liability for the calculation of advance tax?
There are two practical methods used for the purpose of calculating Advance Tax Liability. First method been the calculation of required percentage on the basis of last years total tax liability. For example, 15% of the last years total tax liability for the first installment. Second Method been the estimation of current years total income, calculating total tax on such income and then paying 15 % of the total tax estimated.
The use of first method based on last years tax would be inappropriate for the current year as there has been significant changes in the slab rates for Individuals and HUFs which will affect the current years total tax liability. The taxpayers may take last year’s income as a base and then calculate total tax liability as per new slabs for the purpose of calculation of Advance Tax.
What should the partners of partnership firms keep in mind before paying advance tax?
CBDT have introduced New Section 194T for TDS deduction at the rate of 10% on salary, bonus, commission, remuneration and interest on capital, if the amount exceeds Rs. 20,000 in a financial year w.e.f 1st April 2025. Earlier the partner had to assess or estimate the total income of the above nature, for including them in their total income for the year, while calculating the advance tax liability.
Now with TDS being deducted on these payments, the partners advance tax liability would reduce significantly as the burden is now on firms to deduct and deposit the taxes on such payments.
Who are exempt from the requirement of paying Advance Tax?
The following persons are exempted from the payment of Advance Tax:
1. Persons with total income upto Rs. 10,000 in a financial year.
2. People aged 60 years or more who do not have income from any business or professional during the financial year.
3. Persons who have opted to pay tax under the Presumptive Taxation Scheme in Sec 44AD or 44ADA. They are required to pay the entire tax liability for the year in one installment by 15th March of the Current Financial Year.

“Pay as you Earn” is the policy followed by our tax systems, where the tax on the total income is to be deposited in 4 installments during the current year itself. The taxpayers shall take note of the recent changes in the tax slab rates and also related provisions before assessing their advance tax liabilities and shall promptly pay the required percentage on the same before the due date to avoid interest liabilities.

CA. Pritesh Joshi
[email protected]
+91 98690 33062

17/04/2025

Due date of filing GSTR-4, Annual Summary of Outward & Inward supplies by Composition taxpayer, has been extended from FY 24-25 onwards, to 30 June instead of 30 April earlier. Notification No. 12/2024 – CT of 10 July, 2024

CA Pritesh Joshi
[email protected]
±91 98690 33062

07/04/2025

When Rent Crosses ₹50,000, Even Individuals Become Deductors!!

A taxpayer, is paying ₹51,000 per month as rent for his residential flat and is not engaged in any business or profession. Based on these facts, is he required to fulfill any tax deduction obligations (such as TDS) on the rent payments?

Yes. Section 194-IB of the Income Tax Act, 1961 which was introduced from 1st June 2017 requires an individual or a Hindu Undivided Family (HUF) to deduct TDS at the rate of 2%, whose total sales or turnover from business doesn’t exceed ₹1 crore, or receipts from profession doesn’t exceed ₹50 lakh, in the previous financial year and is paying monthly rent exceeding ₹50,000 to a resident.

This provision ensures that even high value rent payments by individuals and HUFs who are outside the scope of business and profession are covered under tax compliance.

The good part is that the tenant doesn’t need to deduct the TDS every month. Tax needs to be deducted just once, either in the last month of the financial year or the last month of tenancy, whichever is earlier.
What is meant by "last month of the financial year or tenancy"?

In case taxpayer is occupying a rented property from April 2024 to March 2025, and is paying monthly rent of ₹55,000, then Tax is to be deducted in March 2025 the last month of the financial year. But if taxpayer’s tenancy ends earlier, say in November 2024, then Tax must be deducted on the rent till November, as it is the last month of tenancy. This ensures that TDS compliance is fulfilled either at the financial year-end or tenancy-end, whichever happens earlier.

In case Taxpayer also receives House Rent Allowance (HRA) from his employer, and he submits rent receipts every year. Does he still need to deduct TDS under Section 194IB at the rate 2%?

Yes. Claiming HRA for salary purposes is separate from taxpayer’s compliance with section 194IB. If taxpayer is claiming HRA, and his monthly rent exceeds ₹50,000 even by a single rupee, then he must deduct TDS at the rate of 2%.

The deducted tax must be deposited through Form 26QC, which is a challan-cum-statement. It must be filed within 30 days from the end of the month in which TDS is deducted. After filing Form 26QC, the tenant must also issue Form 16C, which is a TDS certificate, to the landlord.

How is "rent" defined under this section?

The term "rent" includes any payment, by whatever name called, made under a lease, sub-lease, tenancy, or any other agreement or arrangement, for the use of land, building, or both.

What if the landlord does not have a PAN?

In such cases, Section 206AA becomes applicable. The tenant must deduct TDS at a higher rate of 20% if the landlord fails to provide a valid PAN. However, the TDS amount should not exceed the rent amount for the month of march or the last month of tenancy.

Not all tax rules are for businessmen. Some apply to common individuals too, especially when the rent is high. The compliance is easy, and it keeps taxpayer safe from issues. It’s easier to follow the rule now than deal with trouble later.
CA. Pritesh Joshi
[email protected]
+91 98690 33062

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Mumbai

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+912249710400

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