RBI
07 Mar 2026
India's CAD widens to $13.2 billion in Q3 FY2025-26 on higher trade deficit
India's Current Account Deficit (CAD) widened to $13.2 billion (1.5% of GDP) in Q3 FY2025-26, up from $10.4 billion in Q2. The primary driver was a sharp rise in the merchandise trade deficit to $78 billion, as imports grew faster than exports. Gold imports surged significantly during the quarter. However, the invisible account (services + remittances) provided a partial offset, with IT services exports remaining resilient at $30+ billion for the quarter.
Net services surplus stood at $41.5 billion, supporting the balance of payments
Private transfer receipts (remittances) remained strong at $29 billion
FPI inflows turned positive in late Q3, providing forex buffer
RBI's forex reserves stood at $636 billion, providing 10+ months of import cover
CA Relevance: Importers and exporters must review their FEMA compliance, Form 15CA/15CB requirements, and hedging strategies. Companies with ECB (External Commercial Borrowings) should track RBI guidelines on rollover.
SEBI
06 Mar 2026
SEBI revamps mutual fund categories — major restructuring for investors
SEBI has overhauled the mutual fund categorisation framework for the first time since 2017. The new circular introduces stricter portfolio mandate definitions, 4 new thematic sub-categories (Digital India, ESG Enhanced, Manufacturing, and Infrastructure), and revised caps on sector concentration. All AMCs have been given 90 days to realign their schemes.
Large-cap definition tightened: top 100 companies by full market cap (previously free-float)
Flexi-cap funds must hold minimum 25% each in large, mid, and small-cap
New ESG Enhanced category requires third-party ESG scoring validation
Fund houses can now launch only 1 scheme per sub-category (stricter limit)
Switching between schemes due to reclassification will not be treated as redemption for taxation purposes (SEBI-CBDT coordination pending)
CA Relevance: HNI clients holding large MF portfolios should review fund mandates post-reclassification. Tax implications on forced switches need careful review. Advisors should update client portfolio reviews for Q4 FY2025-26.
GST
02 Mar 2026
GST collection rises 8.1% to ₹1.83 lakh crore in February 2026
India's gross GST revenues reached ₹1,83,646 crore in February 2026, up 8.1% YoY. This is the 6th consecutive month above ₹1.75 lakh crore. CGST collected was ₹33,510 crore, SGST ₹41,202 crore, IGST ₹95,178 crore (including ₹43,514 crore on imports), and Cess ₹13,756 crore. Refunds of ₹19,615 crore were issued, leading to net revenue of ₹1,64,031 crore (up 9.3% YoY).
E-invoicing enforcement for businesses above ₹5 crore turnover contributing to better compliance
GSTR-2B auto-population accuracy improved after IMS (Invoice Management System) rollout
Higher imports led to increased IGST on imports by 12.3%
GST department increasing scrutiny of businesses with high ITC claims vs output tax
QRMP scheme taxpayers: PMT-06 challan due by 25th of every month
CA Relevance: Ensure GSTR-1 vs GSTR-3B reconciliation is up to date. Review ITC eligibility for any blocked credits. Watch for GST notices for FY 2022-23 as scrutiny period is active.
Income Tax
01 Mar 2026
CBDT notifies all ITR forms for AY 2026-27 — key structural changes
The Central Board of Direct Taxes (CBDT) has notified ITR-1 through ITR-7 for Assessment Year 2026-27 (FY 2025-26) via Notification No. 18/2026. E-filing is expected to open from 1st April 2026. The forms incorporate all Budget 2026 amendments including new tax slabs, revised TDS schedules, and VDA reporting requirements.
ITR-1 & ITR-4: New field for agricultural income above ₹5 lakh (for surcharge computation)
ITR-2: Mandatory Schedule VDA for crypto/virtual digital assets income; Schedule FA for foreign assets expanded
ITR-3: New Schedule 115BBH for VDA from business; presumptive income under 44ADA raised to ₹75 lakh
Schedule 112A: Revised for grandfathering of LTCG on listed securities — FMV as on 31 Jan 2018 mandatory
New Regime default: Taxpayers must actively opt for Old Regime in ITR; once switched to new, cannot go back for business income
ITR-U (Updated Return): Window for AY 2023-24 closes 31 Mar 2026 — file before deadline
CA Relevance: Start collecting client data for FY 2025-26 now. Crypto holders, foreign asset holders, and those with capital gains need early preparation. Verify Form 26AS, AIS, and TIS for each client before filing.
RBI
07 Feb 2026
RBI cuts repo rate by 25 bps to 6.25% — first rate cut in nearly 5 years
The RBI Monetary Policy Committee (MPC) unanimously voted to cut the repo rate by 25 basis points to 6.25% in its February 2026 meeting — the first reduction since May 2020. The Standing Deposit Facility (SDF) rate now stands at 6.00% and the Marginal Standing Facility (MSF) rate at 6.50%. The MPC maintained an 'accommodative' stance, signalling further cuts are possible if inflation remains below 4.5%.
Home loan rates expected to fall by 20-25 bps in 1-2 months for floating rate borrowers
Business loans (MCLR-linked) will see reduction in next quarterly reset cycle
FD rates likely to decline — lock in existing long-term FD rates before banks revise downward
Debt mutual funds (longer duration) may see NAV appreciation — favourable for investors
Working capital loans for MSMEs expected to become cheaper from Q1 FY2026-27
CRR kept unchanged at 4%; GDP growth forecast maintained at 6.8% for FY2025-26
CA Relevance: Review client loan portfolios for refinancing opportunities. For companies with fixed vs floating mix, reassess borrowing strategy. For HNI/HUF clients — review FD maturity schedule and reinvestment strategy.
Budget 2026
01 Feb 2026
Union Budget 2026 — Zero tax up to ₹12 lakh; revised slabs under New Tax Regime
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on 1st February 2026. The most significant personal tax announcement was the nil tax on income up to ₹12 lakh under the New Tax Regime via enhanced Section 87A rebate of ₹60,000. For salaried individuals, effective zero-tax threshold is ₹12.75 lakh (including ₹75,000 standard deduction).
Revised New Regime slabs: 0% (up to ₹4L), 5% (₹4-8L), 10% (₹8-12L), 15% (₹12-16L), 20% (₹16-20L), 25% (₹20-24L), 30% (above ₹24L)
Standard deduction for salaried employees: ₹75,000 (unchanged)
Section 87A rebate: ₹60,000 for income up to ₹12 lakh (New Regime only)
Old Regime slabs and deductions (80C, 80D, HRA) remain unchanged
NPS employer contribution deduction raised to 14% of basic (from 10%) for private sector
ULIP maturity proceeds: if annual premium exceeds ₹5 lakh, taxable at 12.5% LTCG rate
CA Relevance: All salaried clients should be advised to compare Old vs New regime for FY 2025-26. Those below ₹12.75L (salaried) should opt New Regime. Update payroll TDS calculations immediately for clients.
Budget 2026
01 Feb 2026
Budget 2026: Comprehensive TDS & TCS amendments — effective 1 April 2026
Budget 2026 introduced the most comprehensive overhaul of TDS and TCS provisions in recent years. The amendments rationalise thresholds, reduce compliance burden for small taxpayers, and align TCS on foreign remittances with revised LRS limits. All changes are effective from 1st April 2026 (FY 2026-27).
TDS u/s 194I (Rent): Threshold raised from ₹2,40,000 to ₹6,00,000 per annum
TDS u/s 194J (Professional/Technical fees): Threshold raised from ₹30,000 to ₹50,000 per annum
TDS u/s 194C (Contractors): Single payment limit raised to ₹30,000 (from ₹20,000); annual limit ₹1 lakh
TCS on LRS (Section 206C(1G)): Threshold for foreign remittance raised to ₹10 lakh (from ₹7 lakh); rate remains 20% above threshold for non-education/medical
TDS on dividends (194): Threshold raised to ₹10,000 per company per year (from ₹5,000)
Section 206AB/206CCA: Non-filers with TDS/TCS above ₹50,000 (raised from ₹50,000 — unchanged) subject to higher rate
New TDS section 194T introduced for partnership firm drawings above ₹20,000 per month to partners
CA Relevance: Update all client TDS working from April 1, 2026. Payroll software, ERP systems, and vendor payment workflows must be updated. Partnership firms must implement TDS on partner drawings from FY 2026-27.
MCA
15 Jan 2026
MCA mandates enhanced disclosures in Board's Report for FY 2025-26
The Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules, 2014 via notification dated 15 January 2026, requiring additional disclosures in the Board's Report for all companies for FY 2025-26. The amendments also modify Schedule III (Financial Statements format) to align with IFRS convergence roadmap.
CSR disclosure: Companies must disclose unspent CSR amount, ongoing project-wise breakup, and impact assessment reports (mandatory for companies spending above ₹1 crore)
Cybersecurity policy: Board's Report must include a statement on cybersecurity framework, incidents during the year, and corrective measures
ESG disclosures: Top 1000 listed companies must include BRSR Core with limited assurance from FY 2025-26 onwards
Related Party Transactions: Enhanced disclosure of RPT rationale, pricing basis, and arm's length certification required
Schedule III: Crypto/VDA holdings must be separately disclosed in Balance Sheet; ageing of borrowings added
Director's Responsibility Statement: New para on internal financial controls over financial reporting (ICFR) for all listed companies
CA Relevance: Audit committees and statutory auditors must update engagement checklists. Board's Report templates need revision for all company clients. BRSR Core assurance is now a billable audit deliverable for top 1000 listed companies.
