What Changed in 2026–2027 Laws?

Compare exact statutory text alterations enacted in the Finance Act 2026, CBDT circulars, CBIC indirect tax notifications, and MCA corporate regulatory amendments.

Key Gazetted Amendments (FY 2026–2027)

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CBDTOfficial Source Verified ✓

Section 115BAC(1A) & (2)Finance Act 2026 (Act No. 12 of 2026), Section 48

Rationalization of New Tax Regime Slabs & Enhanced Standard Deduction

Effective: FY 2026–2027 (AY 2027–2028)

Practical Compliance Impact:

Salaried individuals earning up to ₹7.75 Lakhs incur zero income tax under Section 115BAC (₹7,00,000 rebate + ₹75,000 standard deduction). High earners save up to ₹17,500 in base tax compared to earlier tax brackets.

Earlier Provision (Pre-Amendment)Superseded

Old Slabs (Pre-amendment): - Up to ₹3,00,000: Nil - ₹3,00,001 to ₹6,00,000: 5% - ₹6,00,001 to ₹9,00,000: 10% - ₹9,00,001 to ₹12,00,000: 15% - ₹12,00,001 to ₹15,00,000: 20% - Above ₹15,00,000: 30% - Salaried Standard Deduction: ₹50,000 - Section 87A Full Rebate Limit: Up to ₹7,00,000

Current Enacted ProvisionActive Law

Amended Slabs (Operative FY 2026–2027): - Up to ₹3,00,000: Nil - ₹3,00,001 to ₹7,00,000: 5% (Expanded lower slab) - ₹7,00,001 to ₹10,00,000: 10% - ₹10,00,001 to ₹12,00,000: 15% - ₹12,00,001 to ₹15,00,000: 20% - Above ₹15,00,000: 30% - Salaried Standard Deduction: ₹75,000 (Enhanced by ₹25,000) - Section 87A Full Rebate Limit: Up to ₹7,00,000 with marginal relief

Official Source: Finance Act 2026 (Act No. 12 of 2026), Section 48Verify Official Gazette

CBDTOfficial Source Verified ✓

Section 194Q & Section 206C(1H)CBDT Circular No. 04/2026 & Gazette Notification S.O. 982(E)

Withholding Clarification on Digital Marketplace Transactions & Thresholds

Effective: FY 2026–2027

Practical Compliance Impact:

E-commerce merchants and enterprise buyers no longer need to track dual withholding compliance. Clean exemption certificates are automated via PAN-GSTIN integration.

Earlier Provision (Pre-Amendment)Superseded

Ambiguity existed regarding the priority of deduction when an e-commerce platform facilitator (under Section 194-O) and buyer (under Section 194Q) both engaged in the same supply chain. Buyers were frequently subjected to double compliance.

Current Enacted ProvisionActive Law

Statutory proviso inserted: Where a transaction is subjected to TDS by an e-commerce operator under Section 194-O, no secondary deduction under Section 194Q or collection under Section 206C(1H) shall be mandated for the same invoice, eliminating overlapping withholding liabilities.

Official Source: CBDT Circular No. 04/2026 & Gazette Notification S.O. 982(E)Verify Official Gazette

CBICOfficial Source Verified ✓

CGST Act Section 16(4) & Rule 48(4)CBIC Notification No. 18/2026-Central Tax

Mandatory E-Invoicing Expansion to ₹5 Crore B2B Turnover & ITC Timelines

Effective: FY 2026–2027 (Effective 1st May 2026)

Practical Compliance Impact:

Small and medium enterprises with turnover between ₹5Cr and ₹10Cr must generate IRN (Invoice Reference Numbers) via IRP portal for all B2B and export invoices. Non-compliant invoices are invalid for buyer ITC claims.

Earlier Provision (Pre-Amendment)Superseded

E-invoicing under Rule 48(4) was mandated for registered persons whose aggregate turnover in any preceding financial year exceeded ₹10 Crores. ITC under Section 16(4) was strictly barred after 30th November following the end of the financial year.

Current Enacted ProvisionActive Law

E-invoicing threshold reduced to ₹5 Crores aggregate turnover in any preceding financial year from 2017-18 onwards. Section 16(4) amended to provide automated reconciliation window for bona fide retrospective credit matching with GSTR-2B.

Official Source: CBIC Notification No. 18/2026-Central TaxVerify Official Gazette

MCAOfficial Source Verified ✓

Companies Act, 2013 — Section 233 & Rule 25MCA Notification G.S.R. 214(E), Companies (Compromises, Arrangements and Amalgamations) Rules

Fast-Track Merger Relaxation for Holding & Wholly Owned Subsidiary (WOS)

Effective: FY 2026–2027

Practical Compliance Impact:

Corporate reorganizations, internal holding simplifications, and small company amalgamations can now be completed within 90 days without NCLT court litigation.

Earlier Provision (Pre-Amendment)Superseded

Fast-track merger approval required mandatory separate regional director orders and lengthy physical NOCs from official liquidators with no deemed approval timeframes.

Current Enacted ProvisionActive Law

Deemed approval timeline of 60 days introduced. If the Central Government / Regional Director does not raise statutory objections within 60 days of application by eligible small companies or holding-WOS combinations, the scheme shall be deemed approved and registered automatically.

Official Source: MCA Notification G.S.R. 214(E), Companies (Compromises, Arrangements and Amalgamations) RulesVerify Official Gazette

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Statutory & General Information Notice• Updated for FY 2026–2027

The information, acts, rules, circulars, notifications, tax rates, and calculators provided in this Knowledge Bank are intended strictly for general educational and informational purposes. Laws, statutory rules, rate matrices, procedures, and statutory due dates may change through subsequent government notifications, official circulars, parliamentary amendments, or judicial rulings.

Taxpayers are strongly advised to verify the latest official gazette publication or consult a qualified Chartered Accountant / legal counsel before executing financial decisions or statutory submissions based on this data.