Direct TaxAY 2026-27 (FY 2025-26)

Revised slab rates under the default new tax regime (s.115BAC)

The new tax regime under section 115BAC continues as the default. Slab thresholds and the standard deduction available to salaried taxpayers under the regime have been revised by the latest Finance Act. Taxpayers must opt out explicitly to use the old regime.

Exam relevance

High — computation questions in the Nov 2026 paper will use the revised slabs. Memorise the new-regime slabs and the standard deduction figure; expect a full computation requiring regime comparison.

Direct Tax1 April 2025

TDS/TCS rationalisation — revised thresholds and rates

Several TDS/TCS sections have had their threshold limits raised and a few rates trimmed to reduce compliance burden, including changes to thresholds on interest, rent and professional fees.

Exam relevance

Medium — frequently tested as 4-6 mark practical problems. Know the revised thresholds; ICAI expects the correct post-amendment rate, not the old one.

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Direct Tax23 July 2024 onwards

Capital gains — holding period and rate restructuring

Holding-period categories for long-term vs short-term were simplified to two buckets and the rates on certain long-term capital assets were revised, along with changes to indexation availability.

Indirect Tax (GST + Customs)Per relevant rate notifications, FY 2025-26

GST rate changes notified for Nov 2026 applicability

A set of CGST/IGST rate notifications revised GST rates on specified goods and services. The applicable rates as on the cut-off date for Nov 2026 must be used in all computation answers.

Indirect Tax (GST + Customs)FY 2025-26

Input Tax Credit (ITC) — section 16 conditions tightened

Conditions for availing ITC under section 16, including the time limit and the supplier-compliance linkage (GSTR-2B based availment), have been amended. The eligibility test for blocked credits under section 17(5) was also clarified.

Indirect Tax (GST + Customs)FY 2025-26

Customs — revised baggage rules and duty rates

Baggage allowance limits and the effective rate of duty on specified imported goods were revised by customs notifications relevant to the Nov 2026 syllabus.

Financial ReportingAnnual periods beginning on/after 1 April 2025

Amendments to Ind AS notified by MCA

MCA notified amendments to certain Ind AS (including disclosure-focused changes and a clarificatory amendment on classification). These are applicable for financial statements of periods beginning on or after the notified date.

Financial ReportingFY 2025-26

ICAI Guidance Note update relevant to FR

An updated ICAI Guidance Note refines the accounting treatment / disclosure for a specified area. The revised position supersedes the earlier guidance for Nov 2026 candidates.

AccountsFY 2025-26

Schedule III (Division I & II) disclosure amendments

Schedule III to the Companies Act, 2013 was amended to require additional disclosures (e.g. ageing schedules, ratios, and specified note disclosures) in the financial statements. Both Division I (AS) and Division II (Ind AS) formats are affected.

AccountsFY 2025-26

Companies Act, 2013 — recent amendments affecting accounts

Selected provisions of the Companies Act relevant to accounting (e.g. CSR, declaration/payment of dividend, and maintenance of books) were amended. Candidates must apply the current provisions.

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