NICAI Update
CA Raj Chawla
Quotes of the day:
1. All fingers are not of the same length. But when they bend all stands equal. This life becomes easy when we bend and adjust to all situations.
2. Best Relation Depends Not On Any Promise, Term Or Condition. lt just Depends On Two Wonderful People, One Who Can Trust, And Another Who Can Understand
NICAI Update
1. Union Budget 2026 marks a decisive shift in how individual taxpayers engage with the income-tax return (ITR) framework. Moving beyond rate-centric reforms, the government has focused on re-designing the compliance lifecycle spanning original filing, revision, updated return, and post-assessment corrections so that the tax compliance framework becomes more adaptive, less adversarial, and aligned with modern data flows. These changes, applicable largely from FY 2025-26 onwards, materially alter how taxpayers should plan timelines, documentation, and error-management strategies.
2. Extended revision window: correcting returns with certainty
A key reform is the extension of the time limit for filing revised returns. Until now, revised and belated returns shared a common deadline of 31 December following the end of the financial year. This effectively denied the opportunity of filing a revised tax return by those taxpayers filing belatedly, especially on or closer to 31st December.
3. Goods and Services Tax, Government of India issued Advisory on Interest Collection and Related Enhancements in GSTR-3B dated 30th January,2026.
4. From January-2026 tax period onwards, the interest calculation in table 5.1 of GSTR-3B on portal has been enhanced, providing the benefit of the minimum cash balance available in the Electronic Cash Ledger of the taxpayer from the due date of return filing until the date of tax payment (offset) in line with the proviso to Rule 88B(1) of the CGST Rules, 2017. The said change shall be applicable on the delayed returns filed for January 26’ tax period for which interest shall be auto-populated in February 26’ tax period’s GSTR-3B. The revised interest computation formula is mentioned below for better understanding of the taxpayers.
5. Revised Interest Computation Formula
Interest = (Net Tax Liability – Minimum Cash Balance in ECL from due date to date of debit) × (No. of days delayed / 365) × Applicable Interest Rate
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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