India Tax Updates

India Tax Updates

Recent updates in India's tax and regulatory landscape include:
- Changes to leave encashment tax exemptions, where non-government employees can claim tax exemption on leave encashment received at retirement, subject to a lifetime limit of Rs 25 lakh.
- ITR filing deadlines, with the deadline for FY 2025-26 being July 31, and penalties for late filing. Taxpayers covered by transfer pricing provisions have a deadline of November 30, 2026.
- Audit requirements, where opting for presumptive taxation may lead to tax audits, and statutory audits are not ceremonial exercises, as upheld by NCLAT.

Key points to note include:
- *Tax exemption on leave encashment*: Non-government employees can claim tax exemption on leave encashment received at retirement, subject to a lifetime limit of Rs 25 lakh.
- *ITR filing deadline*: The deadline for FY 2025-26 is July 31, with penalties for late filing. Taxpayers covered by transfer pricing provisions have a deadline of November 30, 2026.
- *Tax audits*: Opting for presumptive taxation may lead to tax audits.