📰 Business News & Regulatory Updates

Finance Minister Nirmala Sitharaman announced sweeping income tax relief in Union Budget 2026. The new regime now offers zero net tax for incomes up to ₹12 lakh via enhanced Section 87A rebate. Standard deduction increased to ₹75,000. New slabs: 5% for ₹4-8L, 10% for ₹8-12L, 15% for ₹12-16L, 20% for ₹16-20L, 25% for ₹20-24L, 30% above ₹24L. This will benefit approximately 80% of salaried taxpayers.

Central Pollution Control Board (CPCB) has escalated EPR enforcement in FY 2025-26. Over 3,000 companies across India received show-cause notices for E-Waste, Battery and Plastic EPR non-compliance. Penalty under Environment Protection Act 1986: up to ₹1 crore. Customs Commissionerates instructed to verify EPR certificates for all electronic imports. CPCB has also started blocking import consignments at major ports including Nhava Sheva, Chennai and Mundra.

Directorate General of Foreign Trade (DGFT) has issued final reminder for IEC (Import Export Code) Annual Update for FY 2025-26. Deadline: April 30, 2026. IEC holders who have not updated for 2 consecutive years will face automatic deactivation without any prior notice. Reactivation requires additional documentation and delay. Over 50,000 IECs were deactivated in 2024-25 for non-compliance. DGFT advises all exporters to complete the free annual update immediately on dgft.gov.in.

CBIC has made Input Matching System (IMS) mandatory for all GST taxpayers effective April 1, 2026. Taxpayers must now accept or reject purchase invoices uploaded by suppliers in GSTR-1. ITC can only be claimed on accepted invoices. Rejected or pending invoices will not be eligible for Input Tax Credit in GSTR-3B. This impacts procurement decisions and requires active management of GST portal. Late acceptance leads to deferred ITC claims and potential GSTR-3B mismatch notices.

Ministry of Corporate Affairs has activated the new CAMS (Central Application Management System) portal. From FY 2025-26, companies with paid-up capital of ₹5 crore or more must file financial statements in XBRL (eXtensible Business Reporting Language) format on the CAMS portal. Deadline: 60 days from AGM. Non-compliance: ₹200 per day penalty. Companies below this threshold continue to file on MCA21 V3 portal. The move aims to standardize financial reporting and improve data analysis.

Central Public Works Department has implemented stricter contractor enlistment criteria under Enlistment Rule 2024. Key changes: (1) Work completion documentation requirement doubled — contractors must now submit approximately double the number of work completion certificates compared to Enlistment Rule 2023, (2) Road construction companies are now mandatorily required to include building work in their portfolio to qualify for enlistment beyond Class II, (3) Performance evaluation minimum standards remain unchanged at 60% per parameter and 70% overall. Monitrix strongly advises contractors to seek expert guidance before applying under the new rules.

In a landmark relief for startups, Budget 2026 has completely abolished Angel Tax (Section 56(2)(viib)). Previously, investment received by unlisted companies above Fair Market Value was taxable as income — deterring angel investors and disrupting funding rounds. Now, DPIIT-recognized startups can receive investment from ANY investor category (including angel investors, HNIs, non-institutional investors) without Angel Tax implications. This is expected to significantly boost early-stage startup funding across India, including Tier 2 cities like Hisar.

CBIC has reduced the GST e-invoice threshold from ₹10 crore to ₹5 crore annual turnover, effective April 1, 2026. All B2B (business to business) invoices above ₹500 by taxpayers with turnover ≥₹5 crore must now be generated through the Invoice Registration Portal (IRP) and carry an IRN (Invoice Reference Number). E-invoices are mandatory for GSTR-1 filing and ITC claims. Businesses not complying face blocked ITC for their customers and GST notices. Software and billing systems must be updated accordingly.