Ravi Ryan & Associates

Ravi Ryan & Associates A practicing Chartered Accountant, In rich experience in the field of:
1. Affiliate Marketing Indust

Update 03/06
03/06/2026

Update 03/06

Update 02/06
02/06/2026

Update 02/06

Update 01/06
01/06/2026

Update 01/06

25/05/2026

Update 25/05

NGO update;

1. The Income Tax Act, 2025 replaces the 1961 Act from 1 April 2026 and overhauls taxation of NGOs, Trusts, and Section 8 Companies. The biggest shift: all charitable and religious entities are now under a single framework called “Registered Non-Profit Organisations” or RNPOs.

2. New RNPO Concept:

a. Chapter XVII Part-B of the 2025 Act is a dedicated section titled “Special Provisions for Registered Non-Profit Organisations”.

b. “Charitable purpose” is defined u/s 2(23) to include: relief of the poor, education, yoga, medical relief, preservation of environment, monuments/objects of artistic/historic interest, and advancement of any other object of general public utility.

c. Only entities constituted in India for wholly charitable/religious purposes with assets held for public benefit under irrevocable trust qualify. Permitted forms: Public Trusts, Registered Societies, Section 8 Companies, govt-funded institutions, etc.

3. Old vs New Section Mapping:

a. Registration: Erstwhile Sections 12A/12AA/12AB are now covered u/s 332 as RNPO registration.
b. Income & Taxation: Sec 11-13 regime replaced by Sec 334-337. Income is now split into 3 types:

c. Regular Income – Sec 335: Exempt if 85% applied/accumulated for charitable purposes. Includes activity income, property income, voluntary contributions, and incidental business.

d. Specified Income – Sec 337: Taxed at 30%. Includes anonymous donations, benefits to related persons, income applied outside India, investments violating Sec 350, misapplied accumulations.

e. Residual Income – Sec 355(J): Taxed at normal slab rates. Covers income not fitting other categories, like activities outside objects or prior period income.

f. Donor Approval: Separate 80G approval merged into the RNPO framework. No standalone 80G now.

4. Key Reliefs and Compliance Changes:

a. Automatic Transition: Existing registrations under 12A, 12AA, 12AB, 10(23C) are valid and deemed RNPOs. No fresh registration needed immediately. Validity continues for the balance period.

b. Single Regime: Dual regimes of 10(23C) and 11-13 ended. New applications under 10(23C) stopped after 1 Oct 2024. On expiry, entities must register under the second regime.

c. Application Rules: 85% of donation to other RNPO counts as application. Corpus reinvestment, loan repayment within 5 years allowed as application.

d. Deemed Application: Shortfall below 85% can be treated as deemed application if applied in current or next tax year. Due date was relaxed to the ITR filing date, not 2 months before.

e. Simplification: All NPO provisions consolidated into one chapter to reduce complexity for smaller organisations.

5. Updated Forms Under 2025 Act:

a) Income-tax Rules, 2026 and new simplified Forms notified on 20 March 2026.
b) ITR-7 updated for AY 2025-26 for trusts/NGOs with rationalised capital gains reporting.

6. Important for NGOs, Trusts, Section 8 Companies:

a) You don’t need to re-register now if you hold valid 12A/12AB/10(23C) approval.
b) Track income buckets: misclassifying as “specified income” triggers 30% tax.
c) Ensure 80G donor compliance is met within RNPO registration; the separate 80G approval process is gone.
d) Use new ITR-7 and updated forms from 1 April 2026.

23/05/2026

Update 23/05

1. ITAT Chennai, cancelled a penalty of Rs 10 lakh imposed on a salaried taxpayer who had failed to declare ESOPs, his foreign company shares, in his income tax return. The employee had been posted abroad by his Indian employer and was granted ESOPs — or shares — of the foreign parent company as part of his job.

​2. The assessee filed his return of income for AY 2016–17 on 22.02.2018, wherein he failed to disclose the said foreign assets in Schedule FA. Schedule FA is the section of the income tax return where details of foreign assets and income must be filled in.

​3. This omission triggered a penalty. Accordingly, penalty proceedings under Section 43 of the BMA for non-disclosure of foreign assets in Schedule FA were initiated, and a penalty of Rs 10 lakh was levied.

​4. GST Advisory to Taxpayers and Stakeholders – Enhancements in the e-Way Bill (EWB) Portal
date : May 21st, 2026. As part of the ongoing efforts towards strengthening data quality, traceability, and operational efficiency in the E-Way Bill (EWB) system, certain functional enhancements are proposed to be introduced in the EWB portal.

​5. The advisory covers the following proposed changes: a)Mandatory capture of “Ship-To GSTIN” in Bill-To Ship-To transactions for improved traceability and data accuracy; and
b)Introduction of EWB Closure functionality to enable taxpayers to voluntarily close E-Way Bills in specified scenarios.

​6. The advisory also includes the proposed implementation timelines and necessary action points for stakeholders to undertake requisite system changes and preparedness activities.

22/05/2026

Update 22/05

​1. ITAT Chennai, cancelled a penalty of Rs 10 lakh imposed on a salaried taxpayer who had failed to declare ESOPs, his foreign company shares, in his income tax return. The employee had been posted abroad by his Indian employer and was granted ESOPs — or shares — of the foreign parent company as part of his job.

​2. The assessee filed his return of income for AY 2016–17 on 22.02.2018, wherein he failed to disclose the said foreign assets in Schedule FA. Schedule FA is the section of the income tax return where details of foreign assets and income must be filled in.

​3. This omission triggered a penalty. Accordingly, penalty proceedings under Section 43 of the BMA for non-disclosure of foreign assets in Schedule FA were initiated, and a penalty of Rs 10 lakh was levied.

​4. GST Advisory to Taxpayers and Stakeholders – Enhancements in the e-Way Bill (EWB) Portal
date : May 21st, 2026. As part of the ongoing efforts towards strengthening data quality, traceability, and operational efficiency in the E-Way Bill (EWB) system, certain functional enhancements are proposed to be introduced in the EWB portal.

​5. The advisory covers the following proposed changes: a)Mandatory capture of “Ship-To GSTIN” in Bill-To Ship-To transactions for improved traceability and data accuracy; and
b)Introduction of EWB Closure functionality to enable taxpayers to voluntarily close E-Way Bills in specified scenarios.

​6. The advisory also includes the proposed implementation timelines and necessary action points for stakeholders to undertake requisite system changes and preparedness activities.

21/05/2026

Update 21/05

1. The Income Tax Department these days uses a lot of data analytics and automated matching systems to compare the details you mention in your ITR with the information available in your Annual Information Statement (AIS), Form 26AS, TDS records and other financial databases. Even a small mismatch can attract scrutiny, delay your refund or attract an income tax notice.

2. AIS consolidates financial information reported by banks, employers, brokers, registrars and other institutions, making it a key compliance document during return processing. As the July ITR filing deadline approaches, taxpayers should carefully reconcile AIS with Form 26AS, Form 16, bank statements and investment records to avoid unnecessary scrutiny.


3. Rule 3 of the NFRA Rules, 2018 defines the classes of companies and bodies that shall be governed by the National Financial Reporting Authority (NFRA). The Statutory Auditors of these companies and bodies are mandated to file an annual return (Form NFRA-2) with NFRA as per Rule 5 the Rules. Filing of Form NFRA-2 is a mandatory regulatory requirement, and all auditors concerned are under obligation to ensure timely and accurate submission thereof in compliance with applicable provisions. The due date of filing Form NFRA-2 is 30th November next to the reporting year, i.e. for the Financial Statements as on 31.03.2024, audit report signed off in year 2024-25 (reporting year), the last date of filing Form NFRA-2 shall be 30.11.2025.

4. As per MCA Notification GSR 456(E) dated 17.06.2022, Rule 13 of the Rules, prescribes the punishment for non-compliance as follows: “Whoever contravenes any of the provisions of these rules shall be punishable with a fine not exceeding five thousand rupees, and where the contravention is a continuing one, with a further fine not exceeding five hundred rupees for every day after the first during which the contravention continues.

5. NFRA issued a Provisional List of 1314 Audit Firms Missing NFRA-2 Filings for 2024-2025.

6. Central Board of Indirect Taxes & Customs (CBIC) issued Circular No. 25/2026-Customs dated 14-05-2026 to extend multiple trade facilitation measures granted earlier due to maritime disruptions from the closure of the Strait of Hormuz.

20/05/2026

Update 20/05

1. GSTAT has issued an important Office Order dated 14.05.2026 regarding constitution of GSTAT Benches and category-wise hearing system for GST appeals. GST appeals have now been divided mainly into three categories:

Category-I
ITC, classification, valuation, section 73/74 matters etc.
Category-II
Registration, cancellation, refund, recovery matters etc.
Category-III
Penalty, seizure, confiscation, provisional attachment matters etc.


2. An important clarification has also been made that cases involving tax effects below Rs. 50 lakhs and not involving any question of law may be heard by a Single Bench. However, all matters shall first be placed before the Division Bench and only thereafter may be transferred to Single Bench, if no question of law is involved.

3. Delhi government has announced a sharp reduction in Value Added Tax (VAT) on aviation turbine fuel (ATF), bringing it down from 25 per cent to 7 per cent for the next six months. The decision was cleared during a Cabinet meeting led by Chief Minister Rekha Gupta. It also comes a day after the Maharashtra government announced a similar reduction in VAT for aviation fuel.

4. The move comes as airlines continue to face rising operational costs and uncertainty caused by the ongoing West Asia crisis. Why has Delhi reduced VAT on ATF The Delhi government believes the tax reduction will support the aviation sector, improve connectivity and encourage business activity linked to tourism and trade. In a post shared on X, the Delhi Chief Minister’s Office said the reduced VAT rate is intended to provide relief to passengers and make air travel “more convenient and affordable”. The government also said the move is expected to support trade, investment and employment growth in the national capital.

Update 19/05
19/05/2026

Update 19/05

Update 18/05
18/05/2026

Update 18/05

Address

Sapphire Apartment, Tower-1, Ward No. 8, Mehrauli
Delhi
110030

Telephone

+919818424794

Website

Alerts

Be the first to know and let us send you an email when Ravi Ryan & Associates posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category