India tax and compliance update — September 2026

Current as at 22 September 2026.

September is normally a quiet month on the statute book while everyone concentrates on the tax audit deadline. This year it brought the first substantial amendment of the rules under the new Income-tax Act, a postponed GST Council, and a handful of items from the MCA and Customs. Here is what matters, in plain terms.

Income tax

Income-tax (Fourth Amendment) Rules, 2026 — Notification 120/2026, 17 September

Three points affect the people we advise.

Practitioner and valuer registration. The registration deadline for authorised income-tax practitioners (section 515, rule 256) and registered valuers (section 514, rule 246) has moved from 30 September 2026 to 31 March 2027. Both forms have been replaced. Form 171 for practitioners now asks for educational qualifications with supporting certificates and a disqualification declaration under section 515(4), (5) and (7). Form 169 for valuers asks for qualifications, former employment, practice and valuation experience, a disqualification declaration under rule 247, a separate application for each asset class, and a fee of ₹10,000 — waived for valuers already registered under the Wealth-tax Act, 1957. There is no need to rush a registration this month, but the new forms are the ones to use.

Arrest and detention withdrawn. Arrest of a tax defaulter and detention in prison is no longer a mode of recovery under Indian income-tax law. The amended Finance Bill, 2026 removed it from the 1961 Act with effect from 30 March 2026 and from section 413 of the new Act from 1 April 2026; the explanatory memorandum put the reason simply — "it is proposed to do away with such power as other modes of recovery are considered sufficient". This notification now removes the corresponding procedure from rule 225 (sub-rules 75 to 83 and 91), also from 1 April 2026. Old demands still have to be paid or stayed: the Tax Recovery Officer keeps attachment and sale of movable and immovable property, appointment of a receiver and adjustment of refunds against arrears. What has gone is the threat of civil imprisonment for tax arrears.

Faceless assessment. Electronic records may now be authenticated "by way of an electronic communication" rather than only by digital signature (rule 176).

Tax audit for FY 2025-26 — 30 September stands

The due date for the tax audit report remains 30 September 2026. As at 22 September the CBDT has issued no extension. Some associations have asked for 31 October; the ICAI has said it will not seek one "unless there are compelling or urgent reasons" and has told members to plan for 30 September. Online commentary predicting an extension is speculation — work to the statutory date. The return for audited businesses is due 31 October, and 30 November where a transfer-pricing report applies.

Charitable trusts — Circular 6/2026

Circular 6/2026 (2 July) condones the delay for funds and institutions whose section 80G approval was expiring on 31 March 2026 and who filed Form 10AB between 1 October 2025 and 31 March 2026 instead of by the 30 September 2025 due date. Those applications are to be decided on merits by 31 December 2026, and applications rejected only for being late are to be reconsidered. The circular removes the timing objection; it does not confer approval.

GST

The 57th GST Council meeting, scheduled for 12 September, has been moved to 7 October 2026 because of the BRICS summit in New Delhi, with officers meeting on 5–6 October. Two agenda items are confirmed: a simplified registration route for businesses that pass on more than ₹2.5 lakh of input tax credit a month, and automation of registration cancellation. Nothing on rates, refunds or credit rules has been announced, and the GST 2.0 structure in force since 22 September 2025 continues unchanged. Separately, GSTN's advisory of 30 July keeps the e-way bill enhancements planned for 1 August — the ship-to GSTIN field and the closure facility — on hold until further notice. We will publish a note on the Council's decisions the day after the meeting.

MCA and Customs

The MCA's Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), which let companies regularise pending statutory filings, closed on 15 September after two extensions from its original 15 July end date; companies that missed it now file on the normal basis. Customs has launched the National Assessment Centre portal, giving importers access to assessment decisions, advance rulings and classification and valuation guidance, and is phasing in the Sea Cargo Manifest and Transhipment Regulations port by port from 1 September to 15 October.

Dates to watch

• 30 September — tax audit report, FY 2025-26
• 7 October — 57th GST Council meeting
• 15 October — quarterly TCS statements (July–September)
• 31 October — income tax return for audited businesses; quarterly TDS statements
• 30 November — return for transfer-pricing cases
• 31 December — belated returns for FY 2025-26; decisions due on condoned 80G applications
• 31 March 2027 — practitioner and valuer registration under the new forms

Every date in the year, with one-click calendar entries, is on our compliance calendar.

This note is general commentary on notifications issued up to 22 September 2026 and is not advice on any specific matter. Tax law changes frequently; please confirm the current position with us before acting.

I. H. Khan and Associates
Tax, GST and business setup advisors — Mumbai and Thane. Contact us to discuss your situation.

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