What Tax Professionals and CAs need to prepare for before April 2026

The financial and regulatory landscape in India has been changing rapidly. To remain compliant and prepared, it is needed that the professionals stay updated with the latest legislative, accounting, and auditing developments. Below is a checklist of the key changes and reforms that should be on our purview prior to April 1, 2026:

• New Income-tax Act, 2025 -The Act aimed to consolidate and amend the income-tax law, which received the presidential assent on August 21st, 2025. This new law is proposed to be implemented from April 1, 2026. Despite not too many changes in the Act as compared to the erstwhile regime, there are a few changes including-

1. Ease in compliance,
2. Clearer provisions on virtual digital asset
3. Stronger framework for dispute resolution through technology.

• New GST reforms - GoM established for the GST rationalisation has recommended the removal of 18% and 28% slab, among other reforms. These are aimed at streamlining the rate structure and improve the ease of doing business in India. Can also read an in-depth article on the proposed GST reforms.
• Guidelines on limiting the number of tax audits - The Institute of Chartered Accountants of India ("ICAI") is going to enforce guidelines from April 1, 2026 to limiting the number of tax audits to 60 for each partner in each financial year. This will ensure no lopsided usage of the unused limit by some partners of the firm.
• Ind-AS amendments -NFRA has approved the amendments of seven Ind-AS to align it with global practices which are proposed to be applicable from April 1, 2026, a brief description of the main amendments is provided below:

1. Ind AS 1 -clearer guidance on when the right to defer liability settlement exists
2. Ind-AS 7 and 107 -New disclosures on Supplier finance arrangements
3. Ind-AS 109 -guidance on derecognition of financial liability from electronic payment systems and reclassification of financial assets based on business model changes.
4. Ind AS 12 - mandatory exception and related disclosures for Pillar two income taxes aligning with the OECD's global tax rules.

• Auditing standards - Subject to Central Government's assent, NFRA has recommended several changes to the auditing standards (SAs) to align more to the global audit standards. These are proposed to be applicable from April 1, 2026 post the Central Government's approval

1. SA600 - where the principal auditors' responsibility has increased towards the group audits
2. SA299 - Joint auditors may now be held jointly and severally liable.
3. Renaming of the SAs to "IndSAs"
4. Further, around 40 existing SAs and SQMs to apply to Limited Liability Partnerships (LLPs)