Shubham R K and Associates

The Income Tax Department has enabled filing utilities for ITR-1 and ITR-4 for Assessment Year 2026-27, thereby commencing the return filing process for the financial year 2025-26.

With the filing utilities now available, taxpayers may find it useful to avoid filing returns in haste and first review whether relevant financial information is appropriately reflecting in the tax records. In many cases, details relating to TDS, interest income, securities transactions, high-value transactions, mutual fund investments, and other reportable information may continue to get updated in Form 26AS and AIS/TIS over a period of time.

Accordingly, before proceeding with return filing, taxpayers may review whether tax credits, income details, and other reportable transactions are properly appearing and reconciled with the available records, wherever applicable. In cases where any TDS entry or financial information is not appropriately reflecting, the same may require updating by the concerned deductor or reporting entity.

Recent discussion relating to the Income Tax Act, 2025 and related taxpayer issues on Doordarshan.

Many taxpayers are repeatedly asking us one question these days- what should be done about the IGST set-off done during February 2026?

Briefly, a GSTN advisory issued on 30 January 2026 led to a change in portal behaviour, allowing IGST liability to be set off using CGST and SGST credit in any order after exhausting IGST credit. This functionality was available for a short period and was subsequently rolled back by March 2026, with the system reverting to the sequence prescribed under provisions of the CGST Act.

Post rollback, the position is clear. The utilisation of ITC must strictly follow provisions. There is no flexibility to choose the order between CGST and SGST for payment of IGST liability.

For February 2026, where taxpayers have followed the portal enabled utilisation, a practical view is required. In our professional opinion, immediate reversal may not be necessary in all cases, particularly where the adjustment is revenue neutral. Strong arguments exist. The utilisation was system-driven, backed by an official advisory, and there was no option to alter the sequence.

As always, the final approach should be guided by materiality and risk appetite, with proper documentation in place.

Notification for extension of date of filing of GSTR 3B for the month of March 2026.

GST Portal vs GST Law - Who Bears the Risk?

For Feb 2026 (GSTR-3B), the GST portal allowed utilization of SGST credit against IGST liability (after exhausting IGST ITC) even when CGST credit was available.

Many taxpayers filed accordingly because the system permitted it.

However, for the March 2026 return period, the portal appears to have reverted - now forcing CGST utilization first before allowing SGST set-off.

At the same time, an earlier tutorial suggesting flexibility in utilisation sequence was modified.

The key question here is-

If returns are filed based on portal functionality,
can taxpayers later be held liable for “incorrect” utilisation?

This creates a serious compliance gap:

- Law remains constant
- Portal behavior changes
- Clarity is missing

Form INC-20A Filing – Post Company Incorporation Requirement.

Companies incorporated are required to file Form INC-20A (Declaration for Commencement of Business) within the prescribed time.

Non-compliance may result in penalties and restrictions on business operations.

Proper documentation and timely filing are essential for smooth commencement of activities.

With effect from April 2026, Form 15G and Form 15H are replaced by a single unified declaration - Form 121.

This new form is designed to streamline the process for individuals and senior citizens who wish to avoid TDS on incomes such as interest or dividend, provided their total income remains below the taxable limit.

However, the responsibility remains on taxpayers to ensure that the declaration is accurate and applicable.

Delay in Tax Audit may now attract a fixed fee.

Timely compliance becomes even more important!

Draft Income-tax Rules, 2026 introduce a key change for PAN allotment.

Birth certificate now mandatory for individuals born on or after 1st October 2023.

A similar condition already applies to passport applications.

Compliances are Non-Negotiable!

Happy Holi 🫟