New Financial Year 2026-27: Compliance Checklist for Indian Businesses

As we transition into Financial Year 2026-27 (April 1, 2026 to March 31, 2027), the compliance landscape has never been more critical. With stricter enforcement, digital tracking systems, and severe penalties for missed deadlines, businesses can't afford to wing it anymore. One missed filing can trigger lots of problems: frozen bank accounts, director disqualification, GST registration cancellation, and damaged credibility with investors and banks.
 

This comprehensive compliance checklist covers everything Indian businesses must do as FY 2026-27 begins—from GST renewals and income tax planning to ROC filings and payroll compliance. Whether you're a startup, SME, or established enterprise, this guide ensures you start the new financial year clean, compliant, and penalty-free.
 

Before March 31, 2026: Year-End Actions

1. GST Compliance: Final Returns and Reconciliation

• GSTR-3B for March 2026: File by April 20, 2026 (monthly filers) or April 22-24, 2026 (quarterly filers under QRMP scheme).
• GSTR-1 for March 2026: File by April 11, 2026 (monthly) or April 13, 2026 (quarterly).
• Critical Action: Reconcile your GSTR-2B with GSTR-3B for the entire FY 2025-26. Mismatches can block Input Tax Credit (ITC), leading to cash flow issues. If suppliers haven't filed their GSTR-1, contact them immediately to rectify discrepancies before year-end.
• ITC Verification: Ensure all eligible ITC for FY 2025-26 is claimed. Any ITC not claimed by the due date for September 2026 return (for FY 2025-26 purchases) will be lost permanently.

2. Income Tax: Final Advance Tax Installment

Deadline: March 15, 2026 (already passed for FY 2025-26)

If you missed this deadline or underpaid, you'll face interest under Section 234B and 234C at 1% per month. Calculate your actual tax liability for FY 2025-26 immediately and be prepared to pay the shortfall with interest while filing your ITR.

3. Section 43B(h): MSME Vendor Payments

This is critical. Any amount due to MSME vendors (registered on Udyam portal) must be paid within 45 days of receiving goods or services. If not paid by March 31, 2026, the expense will be disallowed as a deduction in FY 2025-26.

Action Required:

• List all MSME vendors and verify their Udyam registration status
• Check all invoices from July 2025 onwards and calculate 45-day payment deadlines
• Prioritize payments to those crossing the 45-day mark before March 31
• Maintain proper payment proof (bank statements, NEFT/RTGS receipts)

Many businesses lose lakhs in deductions due to this provision. Don't let poor payment tracking cost you money.

4. TDS Deposit and Form 26AS Verification

TDS for February 2026: Pay by March 7, 2026 TDS for March 2026: Pay by April 7, 2026

Download Form 26AS or the Annual Information Statement (AIS) before March 31 and verify:

• All TDS deducted matches your books
• Vendor PANs are correctly linked to Aadhaar (unlinked PANs mean double TDS rates from April 1)
• No discrepancies that could trigger scrutiny during ITR assessment

5. Payroll Compliance: EPF, ESI, and Professional Tax

• EPF for March 2026: Pay by April 15, 2026
• ESI for March 2026: Pay by April 15, 2026
• Professional Tax: Check state-specific deadlines (most states: April 30, 2026)
• Critical: Reconcile your PF and ESI challans with employee contributions for the entire year. Mismatches can lead to penalties and employee grievances.

April 1, 2026 Onwards: New Financial Year Compliance

6. GST: Start Fresh Invoice Series

Every GST-registered business must reset and start a new invoice series from April 1, 2026. Invoice numbers must be unique within each financial year for each GSTIN.

Action:

• Start your invoice numbering from 1 or a new series identifier (e.g., FY27/001)
• Update your billing software or accounting system
• Ensure your e-invoicing system (if applicable) reflects the new series

Continuing old invoice series creates reconciliation nightmares during audits.

7. GST: Renew Letter of Undertaking (LUT)

If your business exports goods or services without paying IGST, you must file a fresh LUT for FY 2026-27.

Deadline: Before the first export transaction in FY 2026-27 (recommended: file by April 5, 2026) Form: LUT on the GST portal (Services → User Services → Furnish Letter of Undertaking) Cost: Completely free

Consequence of Not Filing: All exports will be treated as taxable supplies, requiring you to pay IGST upfront and then claim refunds—a major cash flow burden.

8. GST Composition Scheme: Opt-In Deadline

Small businesses with turnover up to ₹1.5 crore (₹75 lakh for service providers) can opt for the Composition Scheme, which simplifies compliance with flat tax on turnover.

Deadline: March 31, 2026 (file Form CMP-02 before this date for FY 2026-27 eligibility)

If you switched from regular GST to Composition Scheme, you must reverse all Input Tax Credit claimed in the previous regime by filing Form ITC-03 by May 30, 2026.

9. E-Invoicing Compliance: Check Your Turnover Threshold

Businesses whose Aggregate Annual Turnover (AATO) exceeded ₹5 crore in FY 2025-26 must mandatorily generate e-invoices from April 1, 2026 onward via the Invoice Registration Portal (IRP).

Action:

• Calculate your AATO for FY 2025-26
• If it crossed ₹5 crore for the first time, register on the IRP immediately
• Update your ERP/billing software for e-invoice generation
• Train staff on the new process

Consequence: Non-compliance can result in ITC denial for your buyers and blocked GST return filing for you.

ROC (Registrar of Companies) Annual Filings

10. Annual General Meeting (AGM)

Deadline: Within 6 months from the end of the financial year (by September 30, 2026 for FY 2025-26)

First AGM Exception: Newly incorporated companies can hold their first AGM within 9 months from the close of their first financial year.

The AGM must approve:

• Audited financial statements
• Director's report
• Auditor's report
• Declaration of dividends (if applicable)
• Appointment/reappointment of auditors

All other ROC deadlines flow from the actual AGM date, so plan this strategically.

11. Form AOC-4: Financial Statements Filing

Deadline: Within 30 days of the AGM

If your AGM is on September 30, 2026, your AOC-4 deadline is October 30, 2026. However, if you hold the AGM earlier (e.g., August 15), your deadline moves up accordingly.

Required Documents:

• Balance Sheet
• Profit & Loss Statement
• Cash Flow Statement (except for small companies and OPCs)
• Auditor's Report
• Director's Report
• Notes to accounts

Important: Small companies (paid-up capital ≤ ₹10 crore AND turnover ≤ ₹100 crore as per December 2025 notification) can use simplified formats.

Late Fee: ₹100 per day with no upper limit. A 90-day delay means ₹9,000 penalty over and above normal filing fees.

12. Form MGT-7/MGT-7A: Annual Return

Deadline: Within 60 days of the AGM

If AGM is on September 30, 2026, the MGT-7 deadline is November 29, 2026.

MGT-7A vs MGT-7: Small companies and One Person Companies (OPCs) can file the simplified MGT-7A, which doesn't require Company Secretary certification. Regular companies must file MGT-7.

Content:

• Registered office details
• Business status and activities
• List of directors and key managerial personnel
• Shareholding pattern
• Details of debenture holders (if any)
• Changes in directorship or shareholding during the year

Late Fee: ₹100 per day with no upper cap.

Critical Consequence: Non-filing of annual returns for 3 consecutive years leads to automatic director disqualification for 5 years under Section 164(2)(a). Over 3 lakh directors across India have faced this penalty.

13. Form ADT-1: Auditor Appointment

Deadline: Within 15 days of the AGM

File this form to inform the ROC about the appointment or reappointment of your company's auditor for FY 2026-27.

14. DIR-3 KYC: Director Identification Number Verification

Deadline: September 30, 2026

Every director holding a DIN as of March 31, 2026 must file DIR-3 KYC annually (previously it was annual, but it has changed to once every 3 years under recent amendments; verify the current status for FY 2026-27).

Late Fee: ₹5,000 per director

Consequence: DIN gets deactivated if not filed, preventing the director from signing any MCA forms.

Income Tax Compliance for FY 2026-27

15. Advance Tax Installments

For companies, LLPs, and professionals with tax liability exceeding ₹10,000:

June 15, 2026: 15% of estimated tax

September 15, 2026: 45% of estimated tax (cumulative)

December 15, 2026: 75% of estimated tax (cumulative)

March 15, 2027: 100% of estimated tax

Tip: Estimate your FY 2026-27 income conservatively to avoid interest charges. It's better to overpay and get a refund than underpay and pay interest.

16. Income Tax Return Filing for FY 2025-26

Deadline for Companies: October 31, 2026 (if no tax audit required), November 30, 2026 (if tax audit applies)

Deadline for Individuals/Firms: July 31, 2026

Form for Companies: ITR-6 (must be filed with Digital Signature Certificate)

Ensure all Form 26AS TDS credits, AIS income disclosures, and financial statements are reconciled before filing to avoid notices.

17. Tax Audit

Tax audit under Section 44AB is mandatory if:

• Business turnover exceeds ₹1 crore (₹10 crore for digital transactions with less than 5% cash)
• Professional receipts exceed ₹50 crore

Deadline: September 30, 2026 (for filing the tax audit report with the ITR)

Labour Law and Payroll Compliance

18. Form 16 Issuance to Employees

Deadline: June 15, 2026

Employers must issue Form 16 (TDS certificate for salary income) to all employees for FY 2025-26. This helps employees file their individual ITRs.

19. Monthly TDS and Payroll Compliance

TDS Deposit: By the 7th of the following month

EPF Contribution: By the 15th of the following month

ESI Contribution: By the 15th of the following month

Quarterly TDS Returns:

• Q1 (Apr-Jun 2026): File by July 31, 2026
• Q2 (Jul-Sep 2026): File by October 31, 2026
• Q3 (Oct-Dec 2026): File by January 31, 2027
• Q4 (Jan-Mar 2027): File by May 31, 2027

20. Annual EPF Return (ECR Reconciliation)

Ensure all monthly ECR (Electronic Challan-cum-Return) for FY 2025-26 is reconciled with actual employee contributions. Discrepancies must be corrected before filing annual returns.

Additional Compliance Requirements

21. MSME/Udyam Registration Updates

If your business investment or turnover changed significantly in FY 2025-26, update your Udyam Registration certificate to reflect the correct classification (Micro/Small/Medium).

The new MSME thresholds from April 1, 2025 are:

• Micro: Investment ≤ ₹2.5 crore, Turnover ≤ ₹10 crore
• Small: Investment ≤ ₹25 crore, Turnover ≤ ₹100 crore
• Medium: Investment ≤ ₹125 crore, Turnover ≤ ₹500 crore

22. Import Export Code (IEC) Update

If you're engaged in import/export activities, verify your IEC is active and update it with any changes in business details.

Deadline: June 30, 2026 (annual update window)

23. FEMA Reporting (for companies with foreign investments/borrowings)

FLA (Foreign Liabilities and Assets) Return: Due by July 15, 2026

Companies with foreign direct investment or external commercial borrowings must file the annual FLA return with the Reserve Bank of India.

24. POSH Compliance (Prevention of Sexual Harassment)

Organizations with 10 or more employees must:

• Constitute an Internal Complaints Committee (ICC)
• Conduct awareness programs
• File an annual return with the district officer

Deadline: Varies by state (typically within 30-60 days of year-end)

25. Trademark and IP Renewals

Check if any of your registered trademarks are due for renewal in FY 2026-27. Trademark registration is valid for 10 years and must be renewed 6 months before expiry.

Common Mistakes That Cost Businesses Dearly

Mistake 1: Assuming Dormant Companies Don't Need to File

Even zero-revenue companies must file AOC-4, MGT-7, and ITR with nil returns. Non-filing attracts the same penalties.

Mistake 2: Missing the ITC Claim Window

ITC for FY 2025-26 can only be claimed until the September 2026 GSTR-3B filing deadline. After that, it's gone forever.

Mistake 3: Not Updating Director KYC

Deactivated DINs can halt all MCA filings, freezing your company's compliance status.

Mistake 4: Ignoring Small Compliance Items

A ₹200 filing can balloon to ₹20,000 with late fees in just 200 days. Small misses create big problems.

Mistake 5: Waiting Until Deadlines

Last-minute filings lead to errors, which lead to notices, which lead to penalties and reputational damage.

Why Professional Compliance Management Matters

Compliance isn't just about avoiding penalties—it's about:

• Maintaining clean records for investor due diligence
• Securing bank loans (banks verify ROC and ITR filings)
• Participating in government tenders (compliance is mandatory)
• Building business credibility and trustworthiness
• Protecting directors from personal liability and disqualification

Managing 50+ deadlines across GST, income tax, ROC, labour laws, and sector-specific regulations while running your business is virtually impossible without expert help.

Companify: Your Complete Compliance Partner

At Companify, we understand that entrepreneurs should focus on growing their businesses, not drowning in compliance paperwork. Our comprehensive compliance management services ensure you never miss a deadline, never face penalties, and always maintain clean records.

Our Services Include:

GST Compliance: Monthly/quarterly return filing, reconciliation, LUT filing, composition scheme support, e-invoicing setup, ITC optimization

Income Tax Management: Advance tax planning, ITR filing (all forms), tax audit coordination, TDS filing, Form 16 preparation, notice handling

ROC Filings: AGM planning, AOC-4/MGT-7 filing, DIR-3 KYC, ADT-1, all MCA forms, board resolution drafting

Payroll Compliance: EPF/ESI management, TDS on salary, Form 16 issuance, professional tax filing

Annual Compliance Calendar: Customized deadline tracking, automated reminders, pre-deadline preparation

Beyond Compliance:

• Company Registration
• MSME/Udyam Registration
• Trademark Registration
• ISO Certification
• Business Licenses and Permits

Why Choose Companify?

• Dedicated compliance manager for your account
• Transparent pricing with no hidden costs
• Expert team of CAs, CSs, CMAs and tax professionals
• Quick turnaround times
• Ongoing advisory and support

Take Action: Start FY 2026-27 Right

Don't let compliance be an afterthought. Every year, thousands of businesses face avoidable penalties, director disqualifications, and damaged reputations simply because they lacked a systematic compliance approach.

Contact Companify today for a free compliance audit. We'll:

• Review your current compliance status
• Identify pending filings and potential penalties
• Create a customized compliance calendar for FY 2026-27
• Provide transparent quotes for our services
• Ensure you start the new financial year clean and compliant

Call us now to schedule your consultation. Because your business deserves expert compliance management that lets you sleep peacefully knowing everything is handled correctly and on time.

Let Companify be your compliance partner so you can focus on what you do best—running and growing your business.

Disclaimer: This compliance checklist provides general information for FY 2026-27 as of April 2026. Specific deadlines and requirements may vary based on business type, state regulations, and recent government notifications. Always verify current requirements with official sources or consult with qualified professionals.