ITR Filing Deadline
The income tax landscape for the Assessment Year 2025-26 is marked by specific deadlines that taxpayers must adhere to in order to ensure compliance and avoid
potential penalties. The December 31 deadline has passed, and filing belated returns and revised returns would still have to be done as per the relevant tax laws. This has implications for several aspects, including tax refunds, which might be delayed if revised ITRs aren't filed by the due date. The number of updated returns filed by December 31, was 22.4 lakh, and revised returns reached 26 lakh within the same period.
PAN-Aadhaar Linking
The deadline for linking PAN with Aadhaar was also the same as the ITR deadline, as December 31 has passed. It's imperative for taxpayers to link their PAN and Aadhaar numbers to avoid potential consequences. Individuals who failed to comply may face implications with their financial transactions and various tax-related processes. Individuals who are exempt from this linking, like NRIs, senior citizens, and minors, are those who may have different compliance requirements, but they must also adhere to timelines. The focus here is to ensure all financial operations are conducted smoothly.
GST Returns Due
Similar to income tax and PAN-Aadhaar compliance, the deadline for filing GST returns also fell on December 31. Those registered under the Goods and Services Tax regime must ensure timely filing to avoid penalties. The GST collection data for December 2025 showed a rise of 6.1% year-on-year, amounting to Rs 1.74 lakh crore, indicating the significance of these filings. Also, the BCAS urged the GST council to extend the due dates for GSTR-9 and GSTR-9C for the fiscal year 2024-25, highlighting ongoing efforts to ease compliance for taxpayers. Also, the MCA extended FY25 annual filings to January 31 without late fees amid portal glitches, providing some relief.
Excise Duty Hike
A significant change impacting consumers is the rise in excise duty on products like cigarettes and pan masala, set to take effect from February 1. This change is expected to increase the prices of these items, potentially influencing consumer spending habits. The government's decision to increase excise duties after a seven-year freeze underlines its evolving fiscal policies. The market witnessed certain effects of this rise: the ITC stock declined to a 21-month low on block deals and the tariff rise. Also, various tobacco products will be getting costlier, affecting consumers across the country. Specific products and the extent of the price increase per stick will be clarified closer to the implementation date, so it's advised to keep an eye on these updates.
Tax Refund Delays
Taxpayers should be aware that if they haven't filed a revised ITR by the specified deadline, their income tax refunds may be delayed. It is essential to correctly file all required tax returns and make sure you have all necessary documents handy. It is best to avoid any potential snags and ensure a seamless tax refund process. Taxpayers are advised to review and update any details as required before the deadline. ICICI Bank launched the Capital Gains Account Scheme to help taxpayers claim exemptions and earn interest, providing a useful resource for tax-efficient investments.
Financial Market Outlook
The Indian stock market has shown positive trends, with a record IPO boom expected to continue into 2026, according to Goldman Sachs and JPMorgan. The factors behind market movements, like the rise in Sensex and Nifty on January 2, should be taken into consideration. This positive outlook is reflected in the interest of investors in the primary market. India's forex reserves saw an increase of $3.3 billion, reaching $696.61 billion, which is a positive sign for the economy. Also, Sebi's new rule has made IPO document reading easier for retail investors.
Other Key Updates
Several developments across different sectors are noteworthy. For example, the government cleared 22 proposals for electronics component manufacturing, with investments of Rs 41,863 crore. Also, the RBI's currency strategy includes a plan to stop using Rs 500 notes from ATMs by March 2026. Moreover, changes in the EPFO withdrawal rules have been released, which will affect the handling of PF money. Taxpayers should stay informed about these kinds of developments.
