Key Changes in Direct Tax Compliance for AY 2026-27
17 Jul 2026 · 3 min read
The Assessment Year 2026-27 brings several significant changes to direct tax compliance that every business and individual taxpayer must be aware of. These changes affect return filing procedures, TDS rates, and compliance requirements across the board.
The Central Board of Direct Taxes (CBDT) has introduced revised ITR forms with additional disclosure requirements. Businesses must now report more granular details about international transactions, related party dealings, and capital asset movements.
TDS rates have been rationalised for several categories of payments. The threshold limits for TDS applicability have been revised upward for some categories, while new TDS provisions have been introduced for certain digital economy transactions.
For companies, the compliance calendar now includes additional reporting requirements under Section 285B for large transactions. This requires businesses to maintain more detailed records throughout the year rather than compiling information only at year-end.
Key areas covered:
- Revised ITR forms with additional disclosure requirements
- Rationalised TDS rates across multiple payment categories
- New threshold limits for TDS applicability
- Additional reporting under Section 285B for large transactions
- Changes in capital gains computation methodology
- Updated rules for presumptive taxation under Section 44AD
