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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

Tax Relief, But Tighter Compliance

From FY 2026–27, taxpayers may benefit from higher rebates and revised exemptions, but they will also need to be more careful with documentation. From 1 April 2026 (FY 2026–27), India’s direct tax system will move into a new phase with the enforcement of the Income-tax Act, 2025 and the Income-tax Rules, 2026. From a chartered accountant’s perspective, the intent behind these changes is clear: to make tax laws easier to understand, reduce procedural complexity, and improve compliance. For the...

Tax Relief, But Tighter Compliance

From FY 2026–27, taxpayers may benefit from higher rebates and revised exemptions, but they will also need to be more careful with documentation. From 1 April 2026 (FY 2026–27), India’s direct tax system will move into a new phase with the enforcement of the Income-tax Act, 2025 and the Income-tax Rules, 2026. From a chartered accountant’s perspective, the intent behind these changes is clear: to make tax laws easier to understand, reduce procedural complexity, and improve compliance. For the common taxpayer — especially salaried individuals — the new framework is expected to bring greater clarity, a more streamlined filing process, and a rationalisation of tax benefits that could have a direct impact on take-home income and tax planning.   One of the most important structural changes is the introduction of a single “tax year”, which replaces the earlier distinction between the financial year (FY) and the assessment year (AY).   From a practical standpoint, this is expected to remove confusion, reduce interpretational issues, and make compliance smoother, particularly in return filing and assessment-related procedures. Allowance Relief Another notable change under the old tax regime is the significant upward revision in several allowance limits. The Children Education Allowance has been increased to Rs 3,000 per month per child, subject to a maximum of two children, compared with the earlier Rs 100. Likewise, the Hostel Expenditure Allowance now stands at Rs 9,000 per month per child, up from Rs 300. The tax-exempt limit for employer-provided meal vouchers has also been raised to Rs 200 per meal, while the exemption for non-cash gifts has been enhanced to Rs 15,000 per annum.   Further, the threshold for taxing interest-free or concessional loans provided by employers has been raised substantially from Rs 20,000 to Rs 200,000, easing the tax burden on employees who avail of such benefits. The transport allowance for employees in the transport sector has also been increased to Rs 25,000 per month. In addition, higher conveyance allowance limits have been prescribed for differently-abled employees, with separate slabs for metro and non-metro areas.   In the case of House Rent Allowance (HRA), a particularly important change is the extension of the 50% salary-based exemption to more urban centres, including Bengaluru, Pune, Hyderabad and Ahmedabad. This is a welcome move for salaried employees in these cities, where rental costs are relatively high. At the same time, the benefit now comes with tighter reporting norms, such as mandatory disclosure of the landlord’s PAN and a declaration of the relationship between the employee and the landlord. These additional requirements are clearly aimed at strengthening audit trails and curbing the scope for misuse. Rebate Benefit It is important to note that the income tax slab rates remain unchanged, with the new tax regime continuing as the default option. However, the increase in the rebate under Section 87A to Rs 60,000 effectively makes income up to Rs 12 lakh tax-free under the new regime. For salaried taxpayers, this limit rises to Rs 12.75 lakh after factoring in the standard deduction of Rs 75,000 available under the new regime. Under the old regime, the standard deduction remains at Rs 50,000. Compliance Changes From a compliance standpoint, the new tax framework also brings in a few important procedural changes. Form 16 and Form 16A have now been replaced by Form 130 and Form 131, respectively, in line with the revised reporting structure. At the same time, the discontinuation of Aadhaar-only PAN applications, along with the introduction of Form 93, points to a shift towards more structured and category-specific documentation requirements. The new framework also carries several other amendments, including changes in provisions relating to Tax Collected at Source (TCS), Securities Transaction Tax (STT), and the taxation of certain transactions such as share buybacks. Broadly, these measures appear aimed at widening the tax base while also improving transparency, reporting, and overall accountability in the system.   Overall, the tax reforms coming into effect from April 2026 reflect an attempt to strike a balance between simplification and tighter compliance. On the one hand, the rationalisation of allowances and the higher rebate offer clear relief to taxpayers. On the other, stricter documentation and reporting requirements make it equally clear that the government is seeking to strengthen transparency and the overall integrity of the tax system. From a chartered accountant’s perspective, the new framework should bring greater clarity in interpretation, while also calling for more careful compliance and more informed tax planning and advisory support. (The writer is a Chartered Accountant based in Thane. Views personal.)

Dangerous Departures

Updated: Oct 30, 2024

Dangerous Departures

In yet another shocking incident adding to Mumbai’s infamous tryst with stampedes, chaos erupted at Mumbai’s Bandra Terminus following a weekend stampede that left at least ten persons injured, two critically so. A crowd surged toward the Gorakhpur-bound train with nearly 1,500 people vying for seats in 22 unreserved compartments, leading to the stampede. Several others narrowly avoided tragedy, with some even pushed onto the tracks. This is not a unique episode but rather a recurring theme in Mumbai’s bedevilled crowd management, one that has haunted the city’s public spaces, particularly as festive seasons magnify the crowds.


Mumbai is no stranger to stampedes. A horrifying incident in 2017 at Elphinstone Road Station left 23 people dead and nearly 50 injured. The cause was a familiar one: an overwhelming crowd confined to a narrow footbridge during peak rush hour. The tragedy sparked an outcry, with promises from authorities to upgrade infrastructure and enhance safety protocols. Yet seven years on, crowd-related incidents continue to be a constant danger. Today’s incident reveals a similar lapse—a lack of foresight in managing the thousands who gather on platforms ahead of Diwali, eager to return to family. That the Gorakhpur Express was unreserved and heavily crowded was predictable.


The issue lies beyond simply crowd density; it is emblematic of deeper systemic negligence. The Brihanmumbai Municipal Corporation (BMC), responsible for local public safety, along with the Railways Ministry, bear responsibility for ensuring order at such high-risk hubs. Although the BMC acknowledged the “festive rush,” it appears little was done to pre-empt it. Swift action could have been taken to either disperse the crowd or reroute passengers. Instead, chaos prevailed.


Political reaction has been swift but uninspiring. Aaditya Thackeray, son of Uddhav Thackeray, launched a scathing attack on the Union Railways Minister, Ashwini Vaishnaw, branding the incident a result of the minister’s “incapable” leadership. This hardly addresses the immediate need: a substantive plan to manage crowds and prevent similar incidents.


Mumbai’s transport infrastructure remains sorely outdated. Platforms are undersized, signalling systems frequently falter, and crowd control mechanisms are grossly inadequate. Despite repeated accidents, there has been little investment in comprehensive crowd management systems or the deployment of personnel trained in emergency response. While railway footbridges were widened after the Elphinstone tragedy, Bandra’s incident demonstrates that such incremental changes are insufficient. Mumbai, which sees a swelling populace during festivals, demands a robust strategy to address its vulnerabilities. This should include technology-driven crowd monitoring, clear communication channels to inform passengers of platform conditions, and additional security and medical staff on high-demand days. It is essential that crowd management training for personnel becomes a priority rather than a reaction to tragedies.

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