Compliance updates: what changed, and what to do about it
The rule changes that matter most to Indian companies right now, newest first. Each one says what changed and the action to take.
At a glance
Eight changes since July 2025
New income-tax law, new return and audit dates, a three-year bar on old GST returns, three-yearly director KYC, new labour codes, two-slab GST, bigger "small company" limits, and all MCA filings on V3.
Finance Act 2026 set 31 August as the return date for business or professional income without an audit, including firms and their partners; 31 July now applies only to filers without business income. For returns filed in 2026, the CBDT extended the tax audit report to 21 October and audit-case returns, including companies, to 21 November. Transfer pricing cases keep 31 October for the accountant's report and 30 November for the return.
What to do
Companies and audit cases: file the audit report by 21 October and the return by 21 November 2026.
Non-audit businesses and firms: plan for 31 August from next year.
Source: Finance Act, 2026; CBDT press release of 28 September 2026.
Income tax
The Income-tax Act, 2025 replaces the 1961 Act
"Tax year" replaces previous year and assessment year, and the Income-tax Rules, 2026 renumber most forms. Form 16 becomes Form 130, Form 16A becomes Form 131, Form 26AS becomes Form 168, and the quarterly TDS returns become Forms 138 (salary), 140 (resident non-salary) and 144 (non-resident), with Form 143 for TCS.
What to do
Update payroll and TDS software to the new forms for payments from April 2026.
Keep using the old forms for FY 2025-26 returns and the Form 16 issued in June 2026.
Expect the first Form 130 in June 2027, for tax year 2026-27.
DIR-3 KYC is now filed once every three financial years, by 30 June, instead of every year by 30 September. Every DIN holder is covered, including LLP designated partners and foreign directors. Filing on time is free. Missing it deactivates the DIN, and filing late, including to reactivate it, costs ₹5,000. Each later change of contact details costs ₹500.
What to do
Check which directors fall due in the current cycle.
Update any change of mobile, email or address within 30 days.
Source: MCA amendment to Rule 12A (G.S.R. 943(E), 31 December 2025); fees amended April 2026.
GST
GST bars returns more than three years old
The GST portal now blocks GSTR-1, GSTR-3B and GSTR-9 filed more than three years after their due date; unbarring needs an officer's approval. Purchase credit flows only for invoices your suppliers report, and invoices you don't act on in the Invoice Management System (IMS) count as accepted.
What to do
Review purchases in IMS every month before filing GSTR-3B, and reject wrong invoices.
Clear any old unfiled returns before they pass the three-year limit.
Start a new invoice series each financial year; exporters file a fresh LUT.
Source: Finance Act, 2023 (Notification 28/2023-Central Tax); GSTN advisory of 29 October 2025.
ROC / MCA
More companies qualify as "small companies"
The limits rose to paid-up capital up to ₹10 crore and turnover up to ₹100 crore, from ₹4 crore and ₹40 crore. Small companies hold fewer board meetings, file the shorter MGT-7A annual return and pay lower penalties.
What to do
Check your status against the 31 March figures before this year's annual filings.
Source: Companies (Specification of Definitions Details) Amendment Rules, 2025 (G.S.R. 880(E)), in force 1 December 2025.
Labour
The four labour codes come into force
The Codes on Wages, Social Security, Industrial Relations and Occupational Safety replaced 29 older laws. Wages for PF, gratuity and bonus now follow one definition, with allowances above 50% of pay added back. Fixed-term staff earn gratuity after one year, and employees in covered establishments must get an appointment letter. The Centre notified its final rules on 8 May 2026.
What to do
Review salary structures for the 50% rule; PF and gratuity costs may rise.
Issue appointment letters to all staff, including fixed-term staff; contractors issue them to contract workers.
Follow existing state rules until each state notifies its own.
Source: Ministry of Labour and Employment notifications, 21 November 2025.
GST
GST 2.0: two main rates
The four slabs of 5%, 12%, 18% and 28% became two: 5% for essentials and 18% for most goods and services, plus a 40% rate for luxury and sin goods.
What to do
Check the rate on every item in your invoicing and billing software.
Review prices and contracts written before 22 September 2025.
Source: 56th GST Council meeting, 3 September 2025.
ROC / MCA
All company and LLP filings move to MCA V3
Every Companies Act and LLP form is now a web form on MCA V3, with real-time validation that can stop a filing at submission. Annual forms for FY 2025-26 use the redesigned V3 versions.
What to do
Make sure every director's DSC is valid and linked to their V3 login.
Source: MCA V3 portal advisories.
Summaries are general information as of 9 October 2026, drawn from official notifications and professional commentary. Some details, including labour code rules in individual states, are still being finalised. Confirm the position for your company before acting, or ask us.
Rules will keep changing. We keep your filings up to date.