Priya Sharma

TDS on property sale under the Income-tax Act, 2025: resident seller 1% TDS under Section 393(1) [Sl. 3(i)] above Rs 50 lakh; NRI seller TDS under Section 393(2) [Sl. 17] — no threshold, 12.5% LTCG / slab STCG plus surcharge. Form 141 replaces Form 26QB; Section 395 / Form 128 lower-TDS.

Form 101 under Rule 171(2) of the Income-tax Rules, 2026 replaces Form 6D — an AO-triggered Cost Accountant inventory valuation under Section 268(5)(ii) of the Income-tax Act, 2025. Six-month clock, structured schedules, and direct exposure for manufacturing, real estate and trading clients.

Section 146 of the Income Tax Act, 2025 carries forward the 30% deduction on additional employee cost (old Section 80JJAA) for three tax years. Form 34 (Rule 68) is the new prescribed CA-certified report, mandatory for assessees liable to audit under Section 63. Effective Tax Year 2026-27.

NFRA powers under Section 132 of the Companies Act, 2013: debarment up to 10 years, penalties (Rs. 1L/5x fees individuals; Rs. 10L/10x fees firms), civil-court powers, who falls under NFRA jurisdiction, and what every audit professional must do now.

Section 87A rebate AY 2026-27 (FY 2025-26): Rs. 60,000 up to Rs. 12 lakh new regime per FA 2025, Rs. 12,500 up to Rs. 5 lakh old regime. Marginal relief math, why STCG 111A and LTCG 112A are excluded, and 8 worked examples decoded.

Tax audit applicability AY 2026-27: Section 44AB (Rs. 1 Cr / Rs. 10 Cr under 5% cash test), 44AB profession Rs. 50 L, 44AD presumptive Rs. 2 / 3 Cr, 44ADA Rs. 50 / 75 L, new-regime BEL Rs. 4 lakh per FA 2025, plus the 44AD(4) five-year lock-in rule and flowchart corrections.

Not all ITC can be retained. Rule 37 reverses credit when you don't pay the supplier within 180 days. Rules 42 and 43 reverse proportionate credit used for exempt supplies and capital goods. A practitioner's reference on when reversal is mandatory, how to calculate, and where to report.

ITR-U is the wrong tool more often than practitioners realise. Decision tree covering revised returns, belated returns, rectification u/s 154, Section 148A interaction, and the 139(8A) provisos. When doing nothing is the right call.

Section 140B ladder for ITR-U: 25/50/60/70% of tax + interest, slab set by month of filing from end of AY. Three worked examples, the Part B-ATI base, challan 280 heads, and when doing nothing beats filing.

Complete step-by-step guide to filing an ITR-U (updated return) under Section 139(8A): decision checklist, numbers to keep ready, choosing the ITR form, Part A reason codes, Part B head-wise adjustment, Section 140B additional tax, challan 280 payment, JSON upload, and verification.