This blog disaggregates the announcements of the income tax slabs in Budget 2026, discusses whether the announcements have provided any relief to taxpayers, and how individuals and businesses are supposed to respond on a compliance basis.

Did Budget 2026 include any Income Tax Cuts?

The most significant lesson is simple – the Budget 2026 made no adjustments to changes in income tax slab rates. The new tax regime left the previous slab structure to be used in the assessment year 2026-27 by the government.

This is an implication that taxpayers were not given new rate cuts or even changes in the threshold, even after anticipating relief. It has also been reported that the budget did not bring any substantial slab-based tax relief to the middle-income earners.

The new tax regime that is in default remains in place unless otherwise requested by taxpayers.

New Income Tax Slabs 2026

New Tax Regime

Up to ₹4,00,000 — Nil

₹4,00,001 – ₹8,00,000 — 5%

₹8,00,001 – ₹12,00,000 — 10%

₹12,00,001 – ₹16,00,000 — 15%

₹16,00,001 – ₹20,00,000 — 20%

₹20,00,001 – ₹24,00,000 — 25%

Above ₹24,00,000 — 30%

Also, the rebate allowances imply that taxable income to a point of Rs.12 lakh is practically liable to zero taxation, with conditions and deductions as usual deductions.

Old Tax Regime (unchanged)

Up to ₹2,50,000 — Nil

₹2,50,001 – ₹5,00,000 — 5%

₹5,00,001 – ₹10,00,000 — 20%

Above ₹10,00,000 — 30%

The old regime still has a higher exemption threshold in the case of senior citizens.

The taxpayers still have a choice of regimes to adopt in a year (except where there is a limitation on business income).

Other Income Tax Compliance amendments in Budget 2026

Despite the fact that there were no changes in slabs, some updates associated with compliance were provided:

1. Deadline Extension of Revised Return

The deadline for the submission of an altered income tax return has been set to March 31, which creates more time to make corrections.

2. Introduction of the New Income Tax Act Framework

In April 2026, a new framework of the income tax legislation is to be introduced that will replace the decades-old law and will attempt to streamline the tax provisions.

3. Reduction in TCS Rates

The occurrences affecting cash flow are:

• Tour packages abroad – cut to 2 per cent.
• Education and medical remittances outside the country- cut down to 2%

These changes will help minimise the initial tax outlays on some transactions.

The Implication of This to the Taxpayers

From a practical standpoint:

• No immediate reduction in income tax liability from slab revisions.
• Still depending on deductions and plans.
• More attention should be paid to the selection of the appropriate tax regime.
• Minor compliance relief because of long filing periods.

For a person with a complex financial structure or multiple sources of income, business and professional tax planning is important to make the most of savings.

How Kanakkupillai Helps Taxpayers?

It can be difficult to cope with budget alterations and select an appropriate tax strategy. Kanakkupillai supports people, organisations, and companies by:

• Tax planning and filing of income tax.
• Comparative and optimisation of regimes.
• Compliance advisory
• Return support and documentation.
• Ongoing tax consultation

Our specialists assist taxpayers in aligning their financial decisions with regulatory changes to ensure compliance and reduce unnecessary tax dispensation.

Conclusion

Budget 2026 has not introduced any cuts to the income tax slabs; therefore, taxpayers need to work under the current rate regime. Nevertheless, the slight compliance advantages are delivered by procedural softening and TCS modifications.

Without reduction of the rates, strategic tax planning, use of deductions and proper selection of the regime are the best means of dealing with the tax liability. Expert advice can help individuals and companies to make informed decisions that are consistent with changing tax rules.

FAQs

1. Does Budget 2026 alter income tax slabs?

No, the government did not make new rate cuts to cancel the current slab structure.

2. Is defaulter still the new tax regime?

Yes, the new regime of taxes still remains as the default regime unless the taxpayers choose to be in the old regime.

3. Tax Relief: What did the taxpayers get in Budget 2026?

The procedural modifications, including extended revised return filing dates and lowering TCS rates on some transactions, were the primary relief.

4. Is it possible for taxpayers to change the regimes?

Yes, the people who have no business income are able to change regimes each year according to the suitability.

5. What can be done to minimise liability in the absence of slab changes?

It is possible to optimise tax results with the help of deductions, rebates, investment planning, and professional advisory support.

The post Budget 2026 Highlights: New Income Tax Slabs for Salaried & Individuals appeared first on Kanakkupillai Learn.

Understanding these changes, especially for enterprises, MSMEs, traders, importers, exporters, and even regular consumers, will help you plan purchasing decisions, pricing strategies, and compliance ahead of the coming financial year.

Why Price Changes Matter After Budget 2026?

Price changes triggered by Budget decisions have a real financial impact on businesses and households. Customs duty cuts can reduce import costs and production expenses, while higher taxes can increase input costs, affect retail prices, or change profit margins for traders and manufacturers.

This article summarises what is expected to get cheaper, and what may become costlier, along with practical implications.

Items Likely to Get Cheaper

Here’s a detailed list of goods and services that are expected to become more affordable in Budget 2026:

1. Medicines and Healthcare Supplies

• 17 cancer drugs and medicines for seven rare diseases are now exempt from basic customs duty.
• Medicines and food for certain special medical purposes imported for personal use are also duty-free.

This is expected to reduce the cost of critical healthcare products.

2. Import-Dependent Goods

• Microwave ovens’ exemption on specified components used in manufacturing may reduce prices.
• Solar energy equipment & inputs duty reductions on solar glass and related materials support cheaper renewable investments.
• Electric vehicle (EV) components, including lithium-ion batteries, are likely to see duty reduction to boost adoption and local manufacturing.
• Aircraft parts and certain capital goods face reduced duties, easing production costs for aviation and strategic sectors.
• Goods imported for nuclear power projects and critical minerals may also benefit from exemptions.

All of these moves aim to boost domestic manufacturing and reduce reliance on fully imported finished goods.

3. Personal Imports

Customs duty on personal imports by international travellers has been reduced from 20 % to 10 %, making items you bring home from abroad comparatively cheaper.

4. Travel and Overseas Education

Tax Collected at Source (TCS) on overseas tour packages and foreign remittances for education and medical expenses has been reduced to 2 %, significantly lowering upfront costs for travellers and students.

5. Exports and Related Inputs

• Duty reliefs and extended export realisation periods for textiles and leather improve cost competitiveness for exporters.
• Fish caught by local fishermen and shoe uppers for exporters enjoy duty exemptions, reducing raw material costs.

Items Likely to Get Costlier

Some goods and services are expected to become more expensive due to duty increases or new tax structures:

1. Imported Consumer Goods

• Low-cost imported umbrellas and some telecom equipment may see higher customs duties, increasing retail prices.
• ATM/Cash dispenser machines and parts are expected to be costlier due to duty hikes.

2. Trading and Financial Costs

Securities Transaction Tax (STT) on futures has increased from 0.02 % to 0.05 %, and on options to 0.15 %, impacting traders’ costs.

These higher levies may slightly increase trading costs for active stock market participants.

3. Tobacco and Sin Goods

Sin taxes on products like chewing tobacco, gutkha, and similar items have increased significantly, raising the National Calamity Contingent Duty and making these items more expensive.

This is part of a broader public health policy.

4. Certain Industrial Inputs

Inputs like potassium hydroxide, fertiliser inputs (ammonium or nitro-phosphate fertilisers), and naphtha will cost more due to higher basic customs duty.

These changes could raise costs for specific industrial and manufacturing segments.

Practical Impact: What Businesses Should Know?

These price shifts can have different implications for businesses:

• Manufacturers & Traders: Lower import duties on inputs can reduce production costs, while higher duties on certain imported equipment or parts may increase operating expenses.
• Exporters: Duty exemptions on export-linked inputs can improve cost competitiveness and profitability.
• Hospitality & Healthcare: Cheaper medical imports may reduce procurement costs; however, costlier equipment (e.g., coffee machines) might affect café and service businesses.
• Travel & Education Services: Lower TCS rates reduce cost pressures on customers booking overseas services or remitting funds abroad.

How Kanakkupillai Helps You Navigate Budget Changes?

At Kanakkupillai, we help businesses understand and act on Budget 2026 changes affecting pricing, imports, GST, and compliance. Our support includes:

• Customs duty and tax advisory
• GST registration & filing
• Import-export compliance consulting
• Business structuring for tax efficiency
• Pricing strategy advisory for traders and manufacturers

Whether you’re an importer looking to adjust pricing, a manufacturer planning procurement strategy, or a business adapting to duty changes, our experts help you make data-informed decisions while staying compliant.

Frequently Asked Questions (FAQs)

1. Which products will become cheaper after Budget 2026?

Products such as key medical drugs (including cancer and rare disease medicines), microwave ovens, solar equipment components, EV and strategic imports, and personal imports by travellers are expected to be cheaper.

2. Why are some items becoming costlier?

Certain goods, like imported umbrellas, ATMs, and some industrial inputs, face higher customs duty or taxes to promote domestic production and generate revenue.

3. How does a reduced TCS on foreign travel help consumers?

TCS reduction to 2 % lowers upfront costs for overseas travel bookings and foreign remittances for education and medical treatment, making them more affordable.

4. Will these changes affect GST?

While this article focuses on customs duty and TCS changes, many price impacts combine GST with customs changes; businesses should ensure correct tax treatment in returns.

5. Can Kanakkupillai help me plan pricing after these changes?

Yes. We provide pricing strategy and tax compliance support tailored to your business, helping you adapt to changes effectively.

6. How soon will these price changes take effect?

Most duty and TCS changes will be effective from the start of the new financial year (April 1, 2026), subject to official notifications.

The post Budget 2026: Full List of Cheaper and Costlier Items in India appeared first on Kanakkupillai Learn.

This article provides a simple, user-friendly summary of the major government schemes to be announced in the Union Budget 2026 and how they can be used to your advantage.

Why Union Budget 2026 Is Important to You?

Each Union Budget is an indicator of how companies will run, how people will save tax and how new companies will approach the government. Nonetheless, not all taxpayers and entrepreneurs can determine which state of budget announcements is applicable to them.

The budget of the union 2026 is centred on growth, employment, digitalisation, support for the MSMEs, and social security. Although schemes are announced with a good spirit, failure to remember the required eligibility criteria or the schedule of compliance may cost an individual benefits. That is why it is necessary to see those schemes through the prism of practicality and decision-making.

Summary of Government Schemes to be Announced in the Union Budget 2026

The Finance Minister in the Union Budget 2026 introduced and increased a number of schemes in the major sectors. These schemes have a wide-ranging approach to:

• Startups and MSMEs
• Work and talent acquisition
• Infrastructure and housing
• Digital economy and fintech
• Rural development and agriculture
• Financial inclusion and social welfare

An organised summary of the key categories of schemes announced or reinforced in Budget 2026 will be as follows.

Major Government Plans Announced in the Union Budget 2026

1. Start-up and MSME Support Schemes

Budget 2026 maintained its high emphasis on startups and MSMEs by providing credit support, reducing compliance, and encouraging innovation.

Key highlights include:

• Increased coverage of credit guarantee to MSMEs.
• Ongoing incentives in the Startup India framework.
• Technology adoption and digitisation.
• Quickened loan processing using online channels.

These plans are to help small businesses limit funding limits and compliance burden.

2. Employment and Skill Development Plans

In order to curb the unemployment rate, the government established schemes that were aimed at creating jobs and enhancing skills.

Major areas covered:

• Rewards to the employers who would generate new jobs.
• Industry-based skill development programs.
• Provision of apprenticeship and vocational training.

These plans are particularly useful when starting a business, production facility, or service-based company that is hiring more employees.

3. The Housing Schemes and Infrastructure

The budget 2026 of the union has allocated a lot of budget towards infrastructure to promote long-term economic growth.

Announced or extended schemes are:

• Low-cost housing programs.
• City and country infrastructure development programs.
• Incentives of public-private partnership.

The schemes make construction firms, contractors, and real estate developers open.

4. Fintech Schemes, Digital Economy

In Budget 2026, as it became more digitised, schemes that urged the adoption of a digital-first economy were enhanced.

Focus areas include:

• Online payment infrastructure.
• Funding fintech startups.
• Digital publics growth.
• Efforts at cybersecurity and data protection.

These measures favour businesses in the technology, finance, and online services sectors.

5. Rural Development Schemes and Agriculture

Several schemes were announced for farmers and agribusinesses to boost rural incomes and food security.

Key areas covered:

• Credit support for farmers
• Storage and logistical infrastructure.
• Marketing of agro-technology and value-added agriculture.

These plans are advantageous to agribusinesses, food processing units, and rural businesspeople.

6. Financial Inclusion Schemes and Social Welfare

Another 2026 priority area of the Union Budget was inclusive development through fortification of social security and welfare programs.

Major objectives include:

• Low-income groups’ financial inclusion.
• Pension and insurance cover.
• Female empowerment and youth empowerment.

These schemes are useful in enhancing financial stability among various sectors in society.

7. Who Can Be the Beneficiary of these Schemes?

The plans stated in the Union Budget 2026 apply to:

• Startups and MSMEs
• In the case of new employees being hired.
• Service providers and professionals.
• Infrastructure and real estate businesses.
• Financial and technological organisations.
• Agricultural entrepreneurs and farmers.

Nevertheless, the eligibility depends on turnover, business operation, location, and compliance status.

8. Importance of Learning about Budget Schemes

Most companies fail to gain advantages because of:

• Lack of awareness
• Incorrect documentation
• Missed deadlines
• Failure to adhere to tax/ regulatory rules.

Budget schemes may need to be registered, filed and compliance done. Good planning will result in maximum gain with minimum risk.

How Kanakkupillai Helps You Take Advantage of Budget 2026 Schemes?

Kanakkupillai offers full-service support to those who need it and companies to exploit government schemes announced in the Union Budget 2026.

Our services include:

• Relevant scheme eligibility evaluation.
• Registration and structuring of business.
• Tax and compliance advisory
• Documentation and application support.
• Continuing regulatory compliance.

Under the guidance of experts, you are able to work on the expansion as we manage the legal and compliance issues.

Practical Example

Startups that intend to further grow their operations in 2026 can take advantage of MSME credit schemes, employment boosters, and tax reliefs as mentioned in the budget. Through proper registration and compliance, the startup will be able to minimise costs and enhance cash flow by having Kanakkupillai professionally help him.

Conclusion

The Union Budget 2026 presents numerous state programs that help drive growth, employment, and inclusive development. But the true advantage is the knowledge of the schemes that apply to yourself and the fulfilment of all compliance requirements. By having the professional advice of Kanakkupillai, businesses and individuals can comfortably plan on the Budget 2026 provisions and make sound decisions to achieve sustainable growth.

Frequently asked questions about government schemes

1. Will every scheme ever announced in the Union Budget 2026 be applicable to everyone?

No. All schemes possess definite requirements for eligibility depending on the business type, turnover, business sector or income level.

2. Should startups be registered individually to take advantage of budgetary allowances?

Yes, the majority of the schemes will need to be properly registered, filed and documented to be able to claim benefits.

3. Are there also advantages to the Union Budget 2026 schemes for individuals?

Ok, there are a number of schemes intended for social welfare, financial inclusion, and job creation.

4. Do these plans automatically get implemented by filing income taxes?

Not always. Different schemes need individual applications and approvals.

5. What is the case in the event of failure to meet eligibility conditions in future?

Failure to comply may result in benefits withdrawal or punishment.

6. What is the role of Kanakkupillai in the Budget 2026 plans?

Kanakkupillai helps in eligibility checks, documentation, applications and continued compliance.

The post Union Budget 2026: Complete List of Government Schemes Announced appeared first on Kanakkupillai Learn.

For MSMEs, startups, and traditional small businesses, it is important not only to understand these announcements for informational purposes but also for business expansion, compliance decisions, and financial planning.

This blog discusses the major Budget 2026 announcements for MSMEs, their implications, and how companies may utilise them.

The Importance of the Union Budget 2026 to MSMEs

The challenges that face the MSMEs may include:

• Inaccessibility to cheap funding.
• Sluggish payment and working capital pressure.
• High compliance costs
• Inability to scale their operations.

By introducing specific funding assistance, liquidity and compliance help, the Union Budget 2026 is a suitable budget for both new and existing businesses.

1. Rs 10,000 Crore SME Growth Fund

Among the major announcements made is the establishment of a Rs.10, 000 crore SME Growth Fund. This fund is aimed at assisting eligible MSMEs to raise funds to expand their operations, upgrade their technology and achieve long-term growth.

Practical Impact –

• Helps increase MSMEs out of conventional bank loans.
• Promotes formality and expandability.
• The proponent of business becoming export-ready/technology-driven.

The fund is particularly beneficial to MSMEs with stable operations but requiring capital to scale their operations.

 2. Self-Reliant India Fund Top-Up of Micro Enterprises

The government has announced an increase in the Self-Reliant India Fund to help microenterprises and other businesses in their early stages.

Why This Matters:

• Micro businesses, in most cases, find it difficult to raise equity.
• Less reliance on high-interest loans.
• Non-recourse over a long period.

This step will assist small business owners to invest in expansion and compliance at a tender age.

3. Better Liquidity under TReDS Reforms

Delays in payments are one of the most significant issues facing MSMEs. Budget 2026 reinforces the Trade Receivables Discounting System (TReDS) in order to enhance access to working capital.

Key Benefits:

• Reduced the turnaround time of unpaid invoices.
• Less reliance on short-term lending.
• Better cash flow of MSMEs that provide to big consumers.

Compulsory involvement of big players increases reliability and punctuality in payments.

4. Corporate Mitras: Compliance Support of MSME

Small businesses have to contend with complicated compliance with GST, company law and other regulations that are expensive to comply with. In a bid to solve this, the government has suggested Corporate Mitras- trained professionals who help MSMEs with compliance matters.

How This Helps MSMEs:

• Money-saving compliance services.
• Increased availability of GST filing, accounting, and documentation assistance.
• Less danger of fines, because of non-compliance.

The initiative is specifically helpful to MSMEs working in Tier- II and Tier-III cities.

5. Targets Industrial Clusters and Key Sectors

Another area that the budget is based on is rebuilding the traditional industrial clusters and assisting other sectors like textile, manufacturing, and natural fibre industries.

Impact on Small Businesses:

• Better facilities and infrastructure.
• Increased productivity and creation of jobs.
• Expansion prospects of sector-specific MSMEs.

6. Trade Promotion and Market Access

Union Budget 2026 still focuses on the enhancement of market accessibility and export competitiveness of MSMEs. Making the export processes simpler and assisting with the logistics and compliance can enable small businesses to grow out of their markets within their home countries.

This is especially helpful with MSMEs that are involved in manufacturing, trading, and exports of e-commerce.

How Kanakkupillai Helps MSMEs and Small Businesses?

We serve MSMEs at both ends of the life cycle at Kanakkupillai, i.e. registration to compliance and growth consultation. Our services include:

• Udyam (MSME) Registration and Renewal.
• GST Registration, Filing and Compliance.
• Company, LLP, Startup Incorporation.
• TReDS, GeM, and MSME advisory
• Annual compliance, licensing and registrations.

You can be sure that you follow the regulations when making suitable decisions, whether you need to know the benefits of Budget 2026, maximise compliance, or conduct business expansion plans, Kanakkupillai will keep you within the regulations.

Frequently Asked Questions (FAQs)

1. What are the key benefits announced for MSMEs in the Union Budget 2026?

The most important ones are the SME Growth Fund, further support of the micro enterprises, better TReds liquidity activities, Corporate Mitras compliance support and sector-specific support.

2. Who is eligible for the SME Growth Fund?

This fund may be used by MSMEs that are already established, have growth potential, are formally operated, and are ready to comply with the relevant laws to expand or modernise the business.

3. What are the benefits of TReeds to small businesses?

TReDS enables MSMEs to get their payments faster, which occurs through a discounted invoice, which enhances cash flow and alleviates the pressure on working capital.

4. Do the micro enterprises feature in Budget 2026?

Yes, the focus has been made on micro enterprises with the help of equity support and compliance assistance measures.

5. What will MSMEs do to comply with the Budget benefits?

To prevent compliance problems, it is necessary to make proper registration, submit GST filing on time, ensure proper documentation, and obtain professional advisory support.

The post Union Budget 2026: Key Announcements for MSMEs & Small Businesses appeared first on Kanakkupillai Learn.

For businesses, this Budget is less about tax savings and more about how smoothly operations, cash flow, and compliance will function going forward. Enterprises that understand these changes early will be better placed to avoid penalties, manage working capital, and stay audit-ready.

Reasons as to why Enterprises need to be concerned about Budget 2026

The problems faced by most businesses nowadays are:

• Frequent GST notices and audits
• ITC mismatches due to supplier non-compliance
• Delayed refunds are affecting cash flow
• Multiple overlapping statutory compliances.

Budget 2026 directly addresses these pain points by pushing for data accuracy, system-based compliance, and faster processing while also reducing unnecessary manual intervention for genuine taxpayers.

 1. More powerful GST Data Matching and Automation

Among the largest lessons to be acquired in Budget 2026 is the desire of the government to make more use of automated data matching in the context of GST.

What This Means in Practice

• GST returns will be more system-based.
• There will be minimal manual corrections and adjustments.
• ITC claims will be made stricter in terms of invoice-level matching.
• Non-conformant vendors will have a direct effect on your ICT eligibility.

Impact on Enterprises:

Companies that have many vendors need to intensify due diligence and periodical reconciliation of vendors, ICT reversals, and notices can increase.

2. ITC Under Higher Scrutiny

Input Tax Credit is one of the key areas of interest. Budget 2026 strengthens the purpose of clean and eligible ITC, which should be defended by having proper documentation and compliance with suppliers.

Practical Implications

• ITC can be limited when the suppliers are slow or default in their filing of returns.
• Increased significance of GSTR-2B reconciliation.
• Poor documentation may result in reversals, interest and fines.

Businesses must switch to the practice of regular active ITC audits as opposed to reactive audits.

 3. Rapid GST Refunds With System-Based Processing

Cash flow has long been impacted by the delayed GST refunds, particularly among exporters and businesses with an inverted duty structure. Budget 2026 is expected to correct this by becoming more automated and having fewer manual checks.

What Businesses Can Expect

• Faster and more competitive processing of eligible refunds.
• Fewer follow-ups and clarifications.
• Increased liquidity control of compliant businesses.

Nevertheless, the speed of refunds will increase only if the filings are correct and similar.

­­­­­­­­­­­­­­­­4. Decreased Physical Interface, Risk-Based Scrutiny

The 2026 Budget further advances the trend of risk-based evaluation rather than blanket evaluation.

Why This Matters

• Those businesses that have a good track record of compliance can receive fewer audits.
• Less face-to-face contact with tax officers.
• Identify high-risk cases with data mining.

In the case of enterprises, this is a good move, given that internal compliance systems are sound.

5. Business Compliance on Technology

In addition to GST, the Budget supports the use of technology in the general business compliance, such as:

• A combination of GST data with other regulatory systems.
• Increased monitoring of filings and statutory requirements.
• Greater demonstration of compliance gaps.

This implies that businesses need to keep proper records both in GST and company regulations and other legislative systems.

 What Companies Should Do after Budget 2026?

Enterprises ought to take the initiative, as opposed to waiting to be informed:

• Enhance GST reconciliation.
• Check ITC eligibility and vendor compliance.
• Automate documentation and filing of returns.
• Make readiness towards audits by good records.
• Integrate GST compliance with corporate compliance.

Not only is it a safer way, but it is also a more efficient way of operation.

How Kanakkupillai Helps Enterprises Stay Compliant?

Kanakkupillai assists businesses in adjusting to changing GST and compliance needs with ease. Our services include:

• Registration of the GST, Filing and Reconciliation of Return
• ITC Review, Advisory and Risk Assessment.
• Audit Support and Handling of GST Notices.
• Corporate, LLP and Company Law Compliance.
• Licensing, Registrations and Annual Filings.

Our team would make sure that your business would be up to date, with audit preparations and not subject to unwarranted penalties, particularly in a more stringent post-Budget compliance environment.

Frequently Asked Questions (FAQs)

1. Are there significant changes in the GST rates in the Budget 2026?

Budget 2026 emphasises improvements in systems and compliance as opposed to the GST rates.

2. After Budget 2026, will ITC claims be harder?

The ITC claims will involve more documentation and compliance by the supplier, and the regular reconciliation is therefore necessary.

3. What is the contribution of Budget 2026 in minimising GST-related disputes?

The Budget seeks to minimise irrelevant litigation through the encouragement of automation, data matching and risk-based scrutiny.

4. Budget 2026: Will GST refunds be quicker?

Yes, system-based processing of refunds is bound to be done more efficiently, given that the returns are correct.

5. What ought to be done to enable enterprises to be more compliant?

Timely filings, clean ITC reconciliation, vendor checks and professional compliance support should be a priority of the enterprises.

6. Is Kanakkupillai helpful in post-Budget GST compliance?

Yes, Kanakkupillai is an end-to-end GST and business compliance services provider based on the needs of the enterprise.

The post Budget 2026: GST & Business Compliance Changes for Enterprises appeared first on Kanakkupillai Learn.

Many online sellers are unsure whether they can claim ITC, especially because eCommerce transactions involve intermediaries, Tax Collected at Source (TCS), and multiple compliance requirements.

This article explains whether eCommerce sellers can claim ITC, the conditions attached to it, and the common challenges faced in practice.

What is Input Tax Credit (ITC)?

Input Tax Credit: This is the GST credit for GST paid on purchases of goods or services used in business. This credit is allowable to be offset against the GST on outward supplies, which prevents the cascading effect of tax.

For example, when a seller pays GST on packaging materials, advertising services, or inventory purchases that are subject to GST, it can claim ITC, provided it complies with the provisions of the GST laws.

GST Registration and ITC Eligibility of eCommerce Sellers

Most sellers in eCommerce must obtain GST registration, regardless of their turnover, when supplying goods through an eCommerce operator. After being registered under GST, the seller will be able to claim ITC, provided the statutory requirements are met.

The prerequisite is GST registration. In the absence of it, no ITC can be claimed, despite the business expenses paid to GST.

Conditions for Claiming ITC

To claim Input Tax Credit, e-commerce sellers must meet the conditions stipulated in the CGST Act. The seller should possess a valid tax invoice or debit note from a registered supplier. The commodities or services are supposed to have been received, and the supplier should have paid the tax to the government.

Also, the seller should have submitted the corresponding GST returns, and the details of invoices are to be registered in the records of the GST portal of the seller. Any of these conditions not being met can result in the rejection or reversal of ITC.

Input Tax Credit – Common Expenses on eCommerce Sellers

eCommerce sellers may deduct ITC on a number of expenses concerning business, but it must be incurred in the course or furtherance of business. This encompasses GST on the purchase of inventory, packaging materials, warehousing costs, logistics costs, professional fees, software subscription, advertising and marketing costs and office costs.

GST charged on Amazon or other platform fees, including referral fees or fulfilment fees, can also be claimed in ITC with proper documentation and reflection in returns.

Impact of TCS on ITC

Tax Collected at Source (TCS) is a peculiarity of eCommerce transactions: an eCommerce operator is expected to collect TCS on net taxable supplies transacted via their platform and remit the money to the government.

TCS is not ITC in the real meaning of the word, but it is displayed as a credit in the electronic cash ledger of the seller. In this amount, sellers are able to pay their GST liability. Reconcilment of TCS statements with sales data is important, however, since inconsistencies can influence the filing of returns and the use of ITC.

Blocked Credits for eCommerce Sellers

Not all GST paid can be claimed as ITC. Certain expenses are specifically blocked under the GST law. For example, ITC cannot be claimed on personal expenses, food and beverages provided for personal consumption, or goods lost, stolen, or destroyed.

eCommerce sellers must carefully segregate business and non-business expenses to avoid wrongful ITC claims, which can attract penalties and interest.

Significance of Invoice Matching and Reconciliation

Invoice reconciliation is one of the most significant problems of e-commerce sellers. ITC can be claimed only on the basis that the invoice details published by the supplier are correct and are reflected in the seller’s GST records.

There should be a regular reconciliation between the purchase invoice, the platform statement, and the GST returns. Any discrepancy ought to be fixed in good time to avoid ITC reversals or tax authority notices.

Effects of ITC Claims that are Wrongly Made

Making claims for ineligible or excess ITC may have severe repercussions, such as the reversal of credit, interest charges, and penalties. Suspension or cancellation of GST registration can also result from non-compliance over a period.

Given the high volume of transactions in eCommerce businesses, maintaining accurate records and ensuring compliance becomes even more critical. 

Conclusion

Yes, e-commerce sellers are allowed to claim Input Tax credit, provided they are registered under GST and meet the terms stipulated by law. ITC is essential for minimising operational costs and enhancing cash flow for online vendors.

But with the presence of the eCommerce operators, TCS provisions and multiple transactions, compliance may be complex. Maximising ITC benefits without staying out of the regulations requires proper documentation, timely filing of returns and frequent reconciliation. Professional advice should assist e-commerce sellers in not going wrong and maximising the GST system.

The post Can eCommerce Sellers Claim Input Tax Credit (ITC) Under GST? appeared first on Kanakkupillai Learn.

This blog discusses the various forms of directors’ removal in India, the legal provisions governing each form, and the compliance standards relating to directors’ removal.

Introduction

Managers and directors are the foundation of a firm’s management and decision-making structure. Their functions include laying strategic direction, statutory compliance, and putting the best interests of the company and its stakeholders. Although directors are normally hired on a stable term, their extension does not hold absolute and unconditional terms.

The Company law in India is aware that there can be situations when the board of directors does not require the presence of a particular director. In an effort to deal with such a scenario, the Companies Act, 2013, puts down modes of removal of directors that serve to maintain corporate discipline while promoting procedural fairness. These clauses will help maintain corporate discipline while promoting procedural fairness and transparency.

Different Modes of Removal of Directors

1. Shareholder Removal of Director

The collective decision by shareholders is one of the most important ways of removal of a director. Section 169 of the Companies Act, 2013, states that shareholders can remove a director before the expiry of his term by an ordinary resolution at a general meeting.

This starts by issuing a special notice by qualified members suggesting the removal. Once the notice is received, the company should notify the respective director and distribute the notice to all the shareholders. The director is entitled by the statute to make a written representation and may be heard during the general meeting.

The given mechanism also keeps the shareholders, who are the ultimate owners of the given company, in control of the board composition and protects the right of the director to defend his/her position.

2. Dismissal of the Director by the Board of Directors

The Board of Directors itself, in some cases, can remove a director without the shareholders’ approval. This usually extends to the directors who were not elected by the shareholders but by the board, i.e., further directors, alternate directors, and nominee directors.

The power of removal of such cases is bound to the provisions of the Articles of Association and the relevant statutory rules. Board-level removal can be frequently used in cases where the appointment of the director was conditional or temporary.

This mode enables companies to solve their operational issues or governance issues, and that is where urgent board restructuring is needed.

3. Statutory Disqualification through Automatic Removal

An automatic removal of a director may take place if he or she incurs disqualification as per Section 164 of the Companies Act, 2013. These disqualifications cause vacation of office in statutory provisions, without a separate resolution.

The usual reasons behind the disqualification are the inability to submit financial statements or annual returns within a continuous period, conviction for known offences, committing fraud, or not fulfilling the statutory requirements. The disqualification brings about an operation of law termination to the office of the director.

4. Dismissal on the Ground of Retirement of a Director

Directors’ leave from the company is most often done through resignation, which is a voluntary way of termination. A company can have a director resign by handing in a written notice to the company.

The resignation is effective on the date of the notice or the date on which the company obtains the resignation, whichever is later. Upon the resignation, the company has to file the same with the board and submit the prescribed form — the DIR-12 form filing — with the Registrar of Companies within the required time.

Even though resignation is not a forced removal, it leads to the end of the director’s job, but it should be documented and reported appropriately to ensure that it is not outside the law.

5. Central Government or Tribunal Removal

Directors can be dismissed by the Central Government or the National Company Law Tribunal (NCLT) in extraordinary situations of severe misconduct, oppression, mismanagement, or actions that are detrimental to the interests of the people.

The said removal is typically after an investigation or legal action under the Companies Act, 2013. This mode is aimed at safeguarding the interests of the shareholders, creditors, and the people of the larger population, especially in cases where corporate governance has been highly threatened.

6. Absence of Board Meetings Removal

An office of a director becomes vacant in the event that one is absent for a period of twelve months without leave of absence. The purpose of this provision is to make the directors interested in the management and decision-making processes of the company.

The persistent absence is a sign of inactivity and irresponsibility, which can have a negative influence on governance. Thus, the law considers long-term non-attendance as a reason to be removed.

7. Removal, according to the Articles of Association

Certain conditions or procedures may be stipulated in a company’s Articles of Association in some situations to remove directors. Such provisions can go together with the statutory processes as long as they do not conflict with the Companies Act.

It is the responsibility of the companies to scrutinise their Articles thoroughly prior to bringing removal proceedings to verify that internal governing documents have been adhered to.

8. Compliance and Filings after Removal

Regardless of the method of removal, some compliance requirements apply after a director has ceased to hold office. These involve updating the register of directors, any required board or shareholder resolutions, and submitting the relevant forms to the Registrar of Companies within the required timelines. Companies must also stay on top of annual compliance for a private limited company to avoid penalties arising from these changes.

Conclusion

The Companies Act, 2013, offers several ways to remove directors, indicating the necessity of flexibility, accountability, and fairness in corporate governance. Regardless of the method used in the removal of the director, which may be through shareholder resolution, board action, statutory disqualification, resignation, or regulatory intervention, due process should be followed.

Companies should ensure that removal procedures are conducted in a legal, transparent, and statutory and contractual manner. Proper documentation and timely filings not only help avoid legal disputes but also enforce corporate governance practices. Professional advice would also assist companies in navigating the challenges surrounding the removal of directors.

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The article discusses the notion of payroll subsidy, its purpose, operation principle, applied eligibility requirements, benefits, restrictions, and applicability in the Indian context in an easy and practical way.

Introduction

Wage expenses are one of the most important and frequent costs of any company in terms of employees. Most employers have problems with paying the payroll on time during economic recessions, financial crises, or any unforeseen disruption. Governments, in this case, usually intervene by instituting policies to cushion jobs and also mitigate the economic strain on companies.

The payroll subsidy is one of such measures. Payroll subsidies provide an example of a tool that is employed by most countries as a method of protecting employment, ensuring a stable workforce, and supporting businesses throughout tough economic periods.

Meaning of Payroll Subsidy

A payroll subsidy is a payment the government provides to employers to cover wages paid to employees or payroll expenses. In this system, the government has a portion of the salary costs to pay, whether by reimbursement of the employer or by directly contributing to the compensation paid to the employees.

Depending on the scheme, the subsidy can comprise wages, provident fund contributions, and social security payments, or other costs associated with the payroll. It is not aimed at eliminating the employer’s responsibility but rather at lessening financial strain in difficult times.

Payroll Subsidy Objectives

Payroll subsidies are established with a number of economic and social goals.

Job retention is the most significant goal. Employers can also reduce the wage costs, thereby encouraging them not to lay workers off or downsize them.

Business continuity is another important goal. The small and medium enterprises that, in most cases, operate on low reserves are given the much-needed support to ensure survival.

Payroll subsidies also assist in ensuring the stability of incomes to the employees, which further encourages consumer spending and the overall economic activity.

There are also other uses of these subsidies, such as to encourage formal employment, adherence to labour laws and coverage of social security.

How Does Payroll Subsidy Operate?

The mechanism of a payroll subsidy is based on the government scheme.

Mostly, employers still pay employees full salaries and are later partially reimbursed by the government. Under other models, the government makes direct contributions towards a certain percentage of wages or statutory contributions on behalf of the employer.

The subsidies can be computed either as a fixed rate per employee or as a percentage of wages, capped at a maximum. The subsidy period is normally specified and can have conditions attached to it, like minimum retention or the revenue effect of employees.

Payroll Subsidy Eligibility Criteria

Payroll subsidies are open to different individuals according to the policy or scheme. Most common eligibility requirements, however, include:

• Employers with a lower turnover or who are financially strained.
• Companies within the affected industries or areas.
• Small and medium-sized businesses.
• Employers who retain a certain number of employees.
• Meeting the labour and tax laws.

Workers under the payroll subsidy programs can be full-time workers, part-time workers or contractual workers, depending on the stipulations of the scheme.

Payroll Subsidy within the Indian Scenario

In India, payroll subsidies are usually undertaken by employment incentives and social security contribution subsidies instead of straight wage compensations.

As an illustration, the government has come up with programs that make contributions towards payments to provident funds to eligible employees, hence lessening the payroll burden to the employer. The initiatives are meant to promote formal employment, promote MSMEs and protect jobs in the slowdown of the economy.

Incentives in India that involve payroll are mostly aimed at new jobs, maintenance of the current employees and adhering to the labour laws.

Benefits of Payroll Subsidy

There are several benefits associated with payroll subsidies for various stakeholders.

To the employer, they save on the cost of payroll and alleviate the cash flow limitations. Such financial relief helps the businesses to concentrate on recovery and development instead of focusing on cutting expenses.

Payroll subsidies and income security for the employees ensure that they do not lose their jobs. The fact that one is still working also entails access to social security benefits.

Economically, payroll subsidies are useful for stabilising employment levels, deterring a rise in unemployment, and supporting overall economic stability.

Limitations and Disadvantages of Payroll Subsidy

Payroll subsidies have limitations despite their advantages.

They are normally long-term and temporary. The employers have to adhere to the conditions of documentation, reporting, and retention of employees, and this can be a heavier burden on administration.

The cost of payroll subsidies can be less than the full cost of the salary, and this implies that the employers incur some of the cost. Besides, reimbursement delays may cause temporary cash flow problems.

Misuse is also a risk, especially when schemes are not adequately monitored.

Payroll Subsidy or Wage Subsidy?

Payroll subsidy and wage subsidy are two terms that are usually used interchangeably, though there may exist some differences.

A payroll subsidy usually takes the form of wider support of wages and other payroll expenses, such as the statutory contributions. A wage subsidy usually concentrates solely on actual wage payment.

The two are meant to help in employment, but the implementation and scope could differ according to the policy makeup.

Significance of Payroll Subsidy for Business

Payroll subsidies may be a stimulus to business, particularly start-ups and MSMEs, in periods when all things are uncertain. They enable employers to retain talented workers, save on rehiring expenses and ensure continuity of operations.

Payroll subsidies also help employers stay abreast of labour and tax rules, since eligibility often depends on proper registration and reporting. Payroll Subsidy in Economic Stability.

On the macroeconomic level, payroll subsidies assist governments in overcoming the unemployment risks in times of crisis. These subsidies lower the pressure on the welfare systems and contribute to the long-term recovery of an economy by saving jobs.

They also assist in sustaining the participation of the workforce and avoiding skills loss within the labour market.

Conclusion

A payroll subsidy is a policy initiative by the government aimed at reducing employer payroll costs without losing employees. Payroll subsidies help companies survive financial strain, retain their employees, and maintain economic sustainability by sharing the burden of the wage bill. Temporary and conditional, payroll subsidies remain vital for protecting jobs and sustaining businesses, particularly during difficult economic times.

Related Service

Payroll management

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Amazon confirms sellers’ identities and also requires registration and documents to ensure tax compliance and transparency in online business.

This blog will describe the most important registrations for selling on Amazon India and explain why each is necessary.

1. Business Registration

The initial condition of selling on Amazon India is a recognised business entity. Amazon accepts various sellers, that is, sole proprietors, partnership firms, Limited Liability Partnerships (LLPs), and private limited companies.

Sole proprietorship may be run under the name of the owner or under the name of a trade, and partnerships and companies will be required to furnish incorporation documents. The legal records have to be matched with the business name that is provided upon registering with Amazon as a seller to prevent verification complications.

2. Permanent Account Number (PAN)

PAN is a compulsory detail for all Amazon sellers. It applies as the main tax identification of the business, which is used in the reporting and verification of income taxes.

In the case of proprietorships, the PAN of the individual is applied. When it comes to partnerships, LLPs, and companies, the PAN that is issued in the name of the entity is needed. A seller is not able to do the Amazon onboarding process without a valid PAN.

3. GST Registration

One of the requirements of selling on Amazon India is GST registration. As an e-commerce operator, Amazon requires sellers who supply goods through the company to usually register for GST, irrespective of their turnover.

After registration, sellers should collect GST on subject to products, submit periodic GST returns, and observe invoicing regulations. Amazon also requests that sellers upload their GST information so that it can be verified, and then the product listing can be allowed.

Some exemptions can be enjoyed by service providers or certain categories; however, in the majority of cases, GST registration is compulsory.

4. Business Name Bank Account

To receive payments, Amazon would want the sellers to give their valid bank account information. Preferably, the name of the business entity or owner should be used in the account with the same details of the PAN and GST.

In case of an order filled and delivered with the help of Amazon, the amount is credited to the registered bank account after eliminating charges. The bank information must be correct in order to prevent payment delays or suspension of accounts.

5. Address Proof and Place of Business

Vendors should show evidence of their business address. This address is registered in GST for invoice generation and communication.

Sellers, in most instances, work out of a residential address, a fact that is acceptable so long as the address is duly recorded. During verification, rental contracts, utility bills or property ownership documents might be necessary.

6. Registration of Products and Product-specific Licences

There are extra registrations or licences that are necessary depending on the type of products that are being sold. Indicatively, food products must be registered by FSSAI, cosmetics and drugs must have their approvals by the concerned authorities, and some electronic products must meet BIS standards.

Amazon can demand such documents prior to granting sellers permission to sell items in regulated categories.

7. Registration of Trademarks (Not compulsory, but preferable)

Trademark registration is not required to sell on Amazon, but it offers significant benefits. Registered trademark sellers have the opportunity to join the Amazon Brand Registry, which grants superior brand protection, superior listings, and availability of marketing tools.

Brand registration is also beneficial for ensuring that no unauthorised use of the brand name occurs and for enhancing customer confidence.

Adherence to Amazon Seller Policies

In addition to statutory registration, sellers must adhere to the Amazon seller policies, including pricing, returns, and customer care standards. Failure to comply could lead to the removal of the listing or suspension of accounts.

Keeping good records, issuing GST-compliant invoices, and order fulfilment are all important keys to success in the long term on the platform.

Conclusion

It is not enough to be ready to sell on Amazon India; it needs to comply with legal and tax regulations by making the necessary registrations. The eligibility criteria for sellers are PAN, GST registration, a working business structure, and a functional bank account. In addition to the licences required for the product category, additional licences may be required.

With the necessary registrations in place and remaining compliant, the sellers will be able to run processes on Amazon India without hurdles, establish an online business on a well-scaled basis, and be trusted. To eliminate potential errors and make the registration process hassle-free, one may seek professional guidance in the process.

The post What Registrations Are Required to Sell on Amazon India? appeared first on Kanakkupillai Learn.

This blog describes what an OBC NCL certificate is, who is entitled to it, the step-by-step online application process, the key documents, and the points applicants should highlight and remember.

What is an OBC NCL Certificate?

OBC NCL certificate is awarded to persons in Other Backwards Classes that belong to the Non-Creamy Layer category. The Non-Creamy Layer concept excludes socially and economically well-developed people in the OBC category from enjoying the benefits of reservation.

The certificate is issued as official evidence that the applicant is a member of a qualified OBC community and that he or she meets the income and status requirements set forth by the Government of India.

The Eligibility for the OBC NCL Certificate

An application is required to obtain an OBC NCL certificate; the applicant should be a member of a caste listed under the Central or State OBC, as applicable. On another note, the family income and status should be below the required level.

The income ceiling is calculated based on parents’ income, except for farm income. There are some categories of government servants, and a constitutional post holder automatically falls outside the Non-Creamy Layer regardless of income.

Applicants are expected to check whether they need a Central OBC NCL certificate or a State OBC NCL certificate, as their applicability and use may be barred.

Online Application Documents

Although each state might have slightly different document requirements, the following are normally required:

• Aadhaar Card is one of the identity proofs.
• Address proof
• Caste certificate of the applicant’s parent.
• Income certificate of the parents.
• Self-statement or affidavit.
• Passport-size photograph
• Community verification or local authority certification may also be demanded by some states.

Online Application Process for the OBC NCL Certificate

The vast majority of states offer an online portal in the form of their revenue department or e-governance platform. The overall process of application is to register at the official portal, complete the OBC NCL application form, and upload the necessary documents.

Once an application is submitted, the Tahsildar/ Revenue Officer reviews the application. There are also instances where field verification can be made in order to verify the applicant.

After approval, the OBC NCL certificate may be issued online or picked up at the office prescribed by the state procedures.

Validity of OBC NCL Certificate

The OBC NCL certificate is normally a one-year certificate. To apply for a majority of competitive exams and admissions, one has to provide a certificate issued before a specific period of time stated in the notification.

The applicants should remember to renew in time in order to keep enjoying the benefits of the reservation.

Comparison of OBC Certificate and OBC NCL Certificate

The OBC certificate validates caste status only, but the OBC NCL certificate validates caste status and also eligibility under the Non-Creamy Layer requirements. OBC NCL certificate is specifically required in most central government employment, universities, and national examinations at the national level.

The involvement of an irrelevant or old certificate can result in the rejection of the application or cancellation of the candidature.

Common Mistakes to Avoid

Applicants must ensure that the income details are correct and supported by credible documents. Incorrectly categorising documents or posting ambiguous documents, or furnishing outdated income certificates, can lead to delays or rejection.

Another point to note is that one should apply via the official government portal only, as a way of preventing fraud or misuse of personal data.

Conclusion

The fact that one can apply for an OBC NCL certificate online has made the process easier and more accessible to eligible candidates across India. By knowing the eligibility requirements, preparing the necessary documents, and following the correct online procedure, one can obtain their certificate without any issues.

Because the OBC NCL certificate is vital to applicants’ access to educational opportunities and jobs, applicants must be accurate and timely in the application process. Avoidance of mistakes and time wastage can also be achieved by seeking professional or administrative advice.

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