1 April 2026 marks a major transition date due to:
- Implementation of Income Tax Act, 2025
- Multiple GST compliance deadlines ending on 31 March 2026
- System-level changes on both portals
This article covers ALL critical changes applicable from 1 April 2026 for professionals, businesses, and taxpayers.
🟡 PART 1: GST CHANGES FROM 1 APRIL 2026
🔸 1. Composition Scheme – Deadline Over
- Normal taxpayers cannot opt for composition scheme now
- Last date: 31 March 2026
👉 From 1 April:
- Fresh option not available
- Only next FY option possible
🔸 2. LUT (Letter of Undertaking) for Exporters
- LUT for FY 2026-27 must be freshly filed
- If not filed:
- Export will be treated as taxable
- GST payment required
⚠️ Action:
- File LUT immediately to avoid blockage of working capital
🔸 3. GTA Forward Charge Option
- GTA option to pay tax under Forward Charge and to file Annexure V:
- Last date: 31 March 2026
👉 From 1 April:
- Default = Reverse Charge
🔸 4. Rule 14A (ITC Restriction) – Withdrawal Impact
- If Form GST DRC-32 filed after 1 April 2026:
- Only 1 month GST return filing required
👉 Earlier burden reduced — important relief
🔸 5. New Invoice Series Mandatory
- New financial year = New invoice numbering
- Required for:
- GST compliance
- Audit trail
🔸 6. E-Invoicing Applicability
- Mandatory if turnover exceeds ₹5 crore
👉 Check:
- FY 2025-26 turnover
- If crossed → E-invoicing compulsory from 1 April 2026
🔸 7. Books of Accounts Closure
- Ensure:
- Books closed till 31 March 2026
- No backdated entries
- Audit trail
🔸 8. Turnover Calculation Check
Important for:
- E-invoicing applicability
- Audit requirements
- Composition eligibility
👉 Include:
- All GSTIN-wise PAN turnover
🔸 9. GST Rate Verification
- Ensure correct rates applied
- Especially:
- Items with recent changes
🔸 10. MRP-Based Valuation (Tobacco Products)
- Effective from 1 Feb 2026
👉 Check:
- Whether valuation shifted to MRP-based
- Applicable compliance done or not
🔸 11. ITC Reconciliation
Must reconcile:
- Books vs GSTR-2B
- Vendor filings
👉 Avoid:
- ITC mismatch notices
🔸 12. ITC Reversal & Reclaim Tracking
- New statements available on portal
👉 Check:
- Reversal done correctly
- Eligible reclaim taken
🔸 13. Additional Important GST Points (Often Missed)
✅ HSN Code Update Check
- Ensure correct HSN reporting in invoices
✅ RCM Liability Review
- Check pending RCM liabilities
✅ Annual Return Preparation (GSTR-9/9C)
- Start reconciliation early
✅ E-Way Bill Compliance
- Check transporter & distance rules
🔵 PART 2: INCOME TAX CHANGES FROM 1 APRIL 2026
🔸 1. Income Tax Act, 2025 Now Applicable
- Old Income Tax Act replaced
- New framework effective from:
👉 1 April 2026
🔸 2. New ITR Forms & Rules
- New forms notified under new Act
- Available on portal
👉 Key impact:
- Changed disclosures
- Updated reporting formats
🔸 3. New Challan System
- New tax payment structure introduced
👉 Important:
- Use correct challan for:
- Advance tax
- Self-assessment tax
🔸 4. Income Tax Portal Updated
- New UI (User Interface)
- New navigation system
👉 Includes:
- New form selection
- Updated filing workflow
🔸 5. Updated Return (ITR-U) Restriction
- FY 2020-21:
❌ Now time-barred
👉 Cannot file updated return from 1 April 2026
🔸 6. TDS/TCS Correction Statements Time-Barred
As per Section 397(3)(f):
- Not allowed after 31 March 2026 for:
- FY 2018-19 (Q4)
- FY 2019-20 to 2022-23 (Q1–Q4)
- FY 2023-24 (Q1–Q3)
👉 From 1 April 2026:
❌ No correction possible
ITR filing New Dates
🔸 7. Additional Important Income Tax Points
✅ AIS / TIS Reconciliation
- Must match with books
✅ Advance Tax Planning
- New Act may impact calculations
✅ Carry Forward Loss Check
- Ensure properly reported
✅ Capital Gains Adjustments
- Verify new rules applicability
🏦 PART 3: RBI & BANKING CHANGES (IMPORTANT FROM 2026)
🔸 1. Digital Fraud Compensation (BIG RELIEF)
RBI has introduced a new protection framework for customers:
👉 If you become a victim of digital fraud:
- Compensation = 85% of loss OR ₹25,000 (whichever is lower)
- Applicable for small-value frauds up to ₹50,000
- Available only once in lifetime
⚠️ Conditions:
- Fraud must be reported within 5 days
- Must report to:
- Bank
- Cyber Crime Portal
👉 Banks must:
- Credit amount within 5 days
📌 Practical Impact:
- First time ever strong customer protection framework
- Increases trust in digital payments
UPI Withdrawal = ATM Free Limit
-
- UPI transactions are counted in ATM free withdrawal limits
👉 What actually happens:
- ATM withdrawal limits apply only to:
- ATM transactions
- UPI is separate digital channel
Enhanced Facilities for Zero Balance Accounts (BSBDA)
RBI has strengthened the framework for Basic Savings Bank Deposit Accounts (BSBDA) — commonly known as zero balance accounts.
✅ Key Improvements:
👉 1. No Minimum Balance Requirement
- Continues as earlier
- No penalty for non-maintenance
👉 2. ATM / Debit Card Facility
- Now more widely enabled
- Includes:
- ATM withdrawals
- Digital transactions
👉 3. Increased Free Transaction Limits (in practice)
- Minimum:
- 4 free withdrawals per month (including ATM + branch)
👉 4. UPI & Digital Banking Access
- Full access to:
- UPI
- Mobile banking
- AEPS
👉 Promotes financial inclusion
👉 5. No Charges on Basic Services
- No charges for:
- Deposits
- Basic withdrawals
- Account maintenance
👉 6. Passbook / Statements
- Free passbook facility available
👉 7. Overdraft Facility (Bank-specific)
Small overdraft limits (subject to conditions)
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