Tax & Compliance Updates — India & UAE
Curated summaries of the latest Income Tax, GST, VAT and Corporate Tax developments — plus direct links to the official government portals so you can always verify the source yourself.
Verify Directly with Official Government Portals
For your peace of mind, every update below is based on public information from these official sources. We always recommend cross-checking directly before making decisions.
Income Tax Department, India
Official portal for e-filing, notifications, circulars & the Income-tax Act.
GST Portal, India
Official GST registration, returns, e-way bill & council notifications.
Federal Tax Authority, UAE
Official VAT, Corporate Tax & Excise Tax portal for the UAE.
Ministry of Corporate Affairs (MCA), India
Official ROC filings, company & LLP compliance, notifications and circulars.
Latest Updates
A running list of recent amendments and deadlines relevant to our India and UAE clients.
New Income-tax Act, 2025 now in force
The Income-tax Act, 2025 has replaced the six-decade-old 1961 Act from 1 April 2026, simplifying the law from 819 sections to 536 sections. Applicable from FY 2026-27 onward.
Tax-free income up to ₹12 lakh
The new tax regime’s basic exemption limit has been raised so income up to ₹12 lakh is tax-free, along with the 50% HRA exemption now extended to four more cities.
E-Way Bill / e-Invoice API changes put on hold
GSTN has deferred the previously announced Ship-to GSTIN and e-Way Bill enhancements that were due to take effect 1 August 2026; no system changes are required until further notice. Official GSTN advisory ↗
GSTR-3B auto-populates tax liability breakup
The GST portal now auto-populates the “Tax Liability Breakup, As Applicable” for any interest or tax from a previous period being discharged in the current GSTR-3B.
ITC-side locking on the way
The GST Council’s next step is restricting Input Tax Credit strictly to what’s reflected in GSTR-2B — businesses should keep vendor reconciliation tight.
TDS exemption on lease rent paid to IFSC ship & aircraft leasing units
CBDT Notifications No. 74/2026 and 75/2026 remove the requirement to deduct TDS on lease rent paid to eligible IFSC units engaged in aircraft and ship leasing, with retrospective effect from 1 April 2026. Income Tax Department ↗
TDS exemption widened for IFSC Units on interest, dividend & fee income
CBDT Notification No. 80/2026 (10 July 2026) exempts specified payments — interest, dividends, professional fees, commission and brokerage — made to 14 categories of eligible IFSC units from TDS, subject to Form 1(N) verification. Income Tax notifications ↗
New ITR-BN form for block assessment cases
CBDT Notification No. 97/2026 (Income-tax Third Amendment Rules, 2026) introduces Form ITR-BN, the new return format for block assessment cases arising from search and requisition proceedings under the Income-tax Act, 2025, effective from 1 April 2026. Income Tax notifications ↗
AOC-4 — Annual Financial Statements filing
Must be filed within 30 days of the AGM. Late filing attracts ₹100/day additional fee with no cap. MCA Annual e-Filing ↗
MGT-7 / MGT-7A — Annual Return filing
Due within 60 days of the AGM. MGT-7A applies to small companies and OPCs. MCA Annual e-Filing ↗
DIR-3 KYC — Director/Partner KYC
Moving to a triennial cycle (once every 3rd FY), but active DIN holders as of 31 March 2026 must file by 30 Sept 2026 — missing it deactivates the DIN and blocks filings. MCA Portal ↗
LLP Annual Filings — Form 11 & Form 8
Form 11 (Annual Return) and Form 8 (Statement of Account & Solvency) are mandatory for every LLP, even with nil activity. MCA Portal ↗
New RoC territorial jurisdictions notified
MCA reorganised Registrar of Companies offices with new zone-wise jurisdictions across Delhi, UP, Maharashtra, West Bengal and more. MCA Notifications ↗
Companies (Incorporation) Amendment Rules, 2026
Proposed changes aim to streamline incorporation and reduce compliance burden under the Ease of Doing Business framework. MCA Notifications ↗
CCFS-2026 validity extended to 31 August 2026
MCA has extended the Companies Compliance Facilitation Scheme (CCFS-2026) — which lets companies clear pending annual filings at normal fee plus only 10% additional fee — from 15 July to 31 August 2026, citing MCA21 data-centre restoration work. MCA Circulars ↗
Corporate Tax return & payment deadline
For businesses with a calendar year-end (31 December 2025), the Corporate Tax return and payment are due by 30 September 2026. Rate remains 9% above AED 375,000 taxable income.
VAT credit refund — 5-year rule
VAT credit balances older than 5 years expire. If your credit expired just before or within a year after 1 Jan 2026, the FTA is giving a fresh one-year window to claim it back.
New penalty framework for VAT & Excise
The UAE Cabinet’s reformed penalty regime aligns VAT and Excise Tax penalties with Corporate Tax penalties for more consistent enforcement.
Reverse charge — no more self-invoices
Businesses using the reverse charge mechanism no longer need to issue separate self-invoices — regular supporting documentation is now sufficient evidence.
E-invoicing mandate begins rollout
A voluntary e-invoicing pilot starts July 2026, becoming mandatory for businesses with revenue above AED 50 million from January 2027, with smaller businesses phased in after.
FTA increasing audits & enforcement
The FTA’s focus has shifted from onboarding to active auditing, with particular attention on businesses that filed an initial Corporate Tax return and then went quiet.
VAT Public Clarification No. 40 — Executive Regulation amendments
The FTA’s largest VAT Executive Regulation overhaul since 2018 clarifies composite supplies, profit margin scheme costs, export zero-rating evidence, and input VAT recovery on employee medical insurance. Read VATP040 on tax.gov.ae ↗
FTA publishes summary of Private Clarifications (up to May 2026)
The Federal Tax Authority has consolidated its Corporate Tax private clarifications into a single FAQ-style reference covering common taxpayer queries on Free Zones, exemptions and compliance. Read the FTA summary (PDF) ↗
FTA clarifies downward transfer pricing adjustments
Public Clarification CTP011 confirms taxpayers may make downward transfer pricing adjustments under Article 34(1) on a self-assessment basis without prior FTA approval, provided they are fully disclosed with benchmarking, reconciliation and evidence of a symmetrical adjustment by the related party. Read CTP011 on tax.gov.ae ↗
FTA Directive on converting digital currency to AED for VAT
Directive on Tax Transactions No. 3 of 2026 sets out the method for converting the value of consideration received in digital currencies into AED for VAT purposes. Read Directive No. 3/2026 on tax.gov.ae ↗
FTA directive on valuing deemed supplies of services
Directive on Tax Transactions No. 5 of 2026 clarifies the method to determine the value of deemed supplies of services for VAT purposes. Read Directive No. 5/2026 on tax.gov.ae ↗
FTA issues Basic Tax Information Bulletin for Small Business
The Federal Tax Authority published a new Corporate Tax Business Bulletin summarising key obligations and reliefs for small businesses. View on tax.gov.ae ↗
FTA Decision No. 12 of 2026 on Top-up Tax registration
The Federal Tax Authority set registration and deregistration timelines for entities subject to the domestic Top-up Tax under Cabinet Decision No. 142 of 2024, effective for fiscal years starting on or after 1 January 2025. View FTA Legislation on tax.gov.ae ↗
New FTA Directive on VAT adjustments after exiting a Tax Group
Directive on Tax Transactions No. 2 of 2026 clarifies that a business which exits a UAE VAT Tax Group but remains VAT-registered must account for related output tax and input tax adjustments in its own VAT return. FTA VAT legislation \u2197
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