Krishna and Associates — Tax Insights

  Labour Law · ESI Compliance ESI Applicability Redefined — What Employers Must Know After 21st November 2025 By Krishna and Associates  ·  March 2026  ·  ESI, Labour Law, Payroll Compliance The Code on Social Security, 2020 has come into force w.e.f. 21st November 2025, repealing the ESI Act, 1948 . With this, the definition of "wages" for ESI purposes has fundamentally changed — and so has ESI applicability for a large number of employers and employees across India. What Has Changed and Why It Matters Until 20th November 2025, ESI contributions were calculated on " Gross Wages " as defined under Section 2(22) of the ESI Act, 1948. The coverage threshold was ₹21,000 per month on gross salary. Employers routinely structured salary packages with a higher proportion of allowances — such as HRA, conveyance, and special allowances — to keep the gross figure below the ₹21,000 threshold or to reduce the ESI contribution base. With the implementation of the Code on So...

TDS Compliance How to Resolve TDS Outstanding Defaults After 31st March 2026 By Krishna and Associates  ·  March 2026  ·  TDS, Income Tax, Compliance With the correction window for TDS returns permanently closing on 31st March 2026, many deductors will find themselves with unresolved outstanding defaults for prior financial years. This article explains the only available path forward — how to approach, quantify, and settle these defaults through the Assessing Officer route after the deadline has passed. The Position After 31st March 2026 Once the 31st March 2026 deadline passes, the TRACES portal will no longer accept correction statements for any prior financial year TDS or TCS return. This means defaults that could earlier have been resolved by revising the return — such as wrong PAN, wrong section, or short deduction — can no longer be corrected at the data level. The return stands frozen as last filed. However, the closure of the correction window does not e...