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    Key Payroll & Compliance Changes Indian Employers Should Prepare for in 2026
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February 27, 2026
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Basic salary threshold changes require employers to restructure pay and update payroll systems under new laws.
New labour codes and the Income Tax Act 2025 require employers to reconfigure compensation structures so Basic Pay meets the prescribed threshold, increasing provident fund, social security, gratuity and leave liabilities; update payroll systems and TDS reporting to new rules and forms; effect prompt final wage settlement on separation via automated HRMS workflows; maintain fully digitized statutory records for real time inspections; and extend proportionate statutory benefits to fixed term employees, prompting reassessment of project and seasonal workforce liabilities.
February 26, 2026
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Free trade agreement strengthens market access and builds on earlier economic reforms enabling sustained growth potential.
Economic reforms liberalised foreign exchange, dismantled bureaucratic restrictions and opened the Indian market to foreign investors, stabilising public finances and enabling prolonged economic growth. The recently concluded free trade agreement with the European Union is presented as a further deepening of market integration that builds on those reforms and enhances bilateral market access.
February 26, 2026
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Executive tariff authority struck down; bilateral trade negotiations paused pending legal text to implement tariff reductions.
Presidential tariff authority was found invalid, prompting immediate temporary tariff adjustments and delaying bilateral trade negotiations because the interim framework reducing duties must be converted into a legally binding text before implementation. Chief negotiators' meetings were postponed pending clarity on tariff legality and future orders, and India indicated it will resume talks once tariff treatment is clarified.
February 26, 2026
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Money laundering probe prompts extended questioning and attachment of assets in alleged bank fraud matter.
Allegations of large scale bank fraud and resultant money laundering underpin the probe: extended questioning under the Prevention of Money Laundering Act concerns alleged diversion of funds through foreign subsidiaries and offshore entities tied to a group company. Investigative measures include constitution of a specialized investigation team, attachment of assets under anti money laundering provisions, searches, arrests of former executives, and parallel criminal case registrations alleging bank cheating in separate loan transactions.
February 26, 2026
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Simultaneous insolvency proceedings allowed against principal debtor and guarantor, enabling creditors to pursue parallel recovery routes.
There is no statutory bar under the Insolvency and Bankruptcy Code to initiating concurrent CIRP proceedings against a principal debtor and its corporate guarantor for the same debt; a creditor's right to realize a guarantee must not be frustrated by requiring sequential insolvency processes, the IBC does not exempt guarantors during pendency of another process, and adjudicating authorities must examine such applications independently, consistent with the principle that a surety's liability is co-extensive with the principal debtor.
February 26, 2026
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Prosecution sanction requirement in PMLA cases accelerates trial after agency files requisite approvals before the special court.
Enforcement Directorate placed competent prosecution sanction and an equivalent CrPC sanction order before the Special PMLA Court to remedy procedural defects identified by the Supreme Court and to expedite trial in two money laundering prosecutions arising from the Aircel Maxis and INX Media matters. The agency's action validates earlier ED chargesheets and aims to overcome delays caused by challenges to PMLA sanction requirements.
February 26, 2026
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Free Trade Agreement negotiations between India and Israel progress, covering goods, services, rules of origin, and digital trade.
Negotiations commenced under a signed Terms of Reference to establish a structured framework for an ambitious Free Trade Agreement between India and Israel, with the first round of talks addressing core chapters-trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers, customs procedures, intellectual property rights and digital trade-and agreeing continued virtual engagements and a further in person round in Israel.
February 26, 2026
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Recovery of real estate regulatory dues intensified, with stricter property-tracing and revenue recovery measures to enforce orders.
The government will intensify recovery of unpaid dues under the Real Estate Regulatory framework by directing district collectors to expedite recoveries, identify and attach defaulting developers' properties across districts, and trace assets using land records, stamp and registration data, property tax rolls, company registrations, vehicle registration records and, where necessary, tax authority assistance; recovery will be pursued through statutory revenue-recovery mechanisms and overseen via periodic reviews by senior administrators.
February 26, 2026
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Tribunal accountability undermined as technical members outsource judgments, prompting urgent tenure and vacancy reforms and oversight action.
Tribunal functioning and accountability are the central concerns: tribunals have become a "no-man's land" lacking accountability and producing questionable orders. Structural defects in the appointment and tenure regime allow technical members to assume chairpersonship and, in some instances, outsource drafting of judgments. The court directed the executive to expedite vacancy-filling mechanisms and granted interim tenure extensions for chairpersons while urging reforms to appointment, training, and accountability processes.
February 26, 2026
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Consumer financing enables AC purchases on Easy EMI, improving affordability but requires checking eligibility and costs.
Guidance advises matching AC capacity and inverter technology to room conditions to avoid high bills and uneven cooling, factoring installation and maintenance costs into total ownership, and prioritising warranty, spare parts, and after sales support. Easy EMI financing options with online eligibility checks, Insta EMI card facilitation, zero down payment offers, and variable promotional terms are available, but buyers must verify precise loan limits, service availability, and partner store conditions before purchase.
February 26, 2026
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Bank fraud allegations prompt fresh probe into diversion of loan funds and related money laundering inquiries.
A central investigative agency registered a fresh criminal case alleging that the promoter and his telecom group diverted and misutilised sanctioned loan funds, created fictitious related party transactions, manipulated accounts, and layered funds to conceal true flows, leading to the account's NPA classification; the bank's complaint and forensic findings allege systematic diversion through group entities and liquidation of investments to effect payments inconsistent with sanction terms.
February 26, 2026
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Unsecured personal loans: flexible repayment and competitive rates available, subject to credit score, income, and eligibility.
Bajaj Finance markets unsecured personal loans with competitive, credit based interest pricing, flexible repayment tenures chosen to manage EMI burden, minimal documentation, online application and expedited disbursal. Loan amounts cover a range of consumer needs and eligibility is determined by nationality, age limits, employment status and a minimum credit score, with rates and approval conditioned on income, employment type, credit profile and repayment capacity. The lender is a deposit taking institution registered with the Reserve Bank and classified as an NBFC D and NBFC ICC.
February 26, 2026
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Regulatory approval for stake acquisition with holding cap and time bound conditions, and prior approval required for increases.
RBI approved SBI Mutual Fund's acquisition of up to 9.99 per cent of Bandhan Bank's paid-up share capital or voting rights, subject to compliance with the Banking Regulation Act, 1949, RBI Directions 2025, FEMA, and SEBI regulations. The approval expires if the specified major shareholding is not acquired within one year, the aggregate holding must not exceed the approved cap at any time, and any increase to or beyond 5 per cent after falling below that level requires prior RBI approval.
February 26, 2026
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Trade facilitation advances India's digital customs reforms and TFA Plus measures, enhancing MSME integration into global value chains.
India has implemented comprehensive trade facilitation reforms to fulfil and extend WTO Trade Facilitation Agreement commitments by advancing TFA Plus measures under the National Trade Facilitation Action Plan 3.0. Core elements include a Single Window Interface, Customs Automated System, Risk Management System, pre-arrival processing, electronic exchange of origin data, electronic cargo tracking and coordinated border management. Capacity building through recognised institutions and partnerships supports other countries' implementation, while measures such as advance rulings, an Authorised Economic Operator programme and trust-based processes aim to reduce compliance burdens for MSMEs and facilitate e commerce exports.
February 26, 2026
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Bilateral trade agreement negotiations progress amid recent U.S. tariff policy adjustments affecting tariff treatment and transitional arrangements.
Senior-level discussions between India's commerce minister and U.S. commerce officials focused on advancing the legal text for the first phase of a bilateral trade agreement and expanding economic partnership. The talks were contextualized by a recent U.S. tariff policy adjustment-imposition of a uniform temporary tariff-which was noted as relevant to negotiations on tariff treatment, transitional arrangements, and safeguards in the prospective agreement.
February 26, 2026
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Aadhaar-enabled attendance strengthens identity-verified workforce accountability through certified biometric terminals and streamlined government procurement.
Aadhaar-enabled biometric attendance systems address attendance verification failures by replacing manual registers with identity-verified entries. The T502F Mini, listed on the Government e Marketplace for streamlined procurement, offers multi-modal biometric authentication (face recognition and fingerprint), real-time data sync, STQC-certified fingerprint sensor, SafetyNet compliance, and multiple connectivity options to operate across diverse network environments, supporting government mandates for Aadhaar-integrated attendance and enhancing tamper-resistant accountability in public sector and related institutional settings.
February 26, 2026
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Tax analytics modernization enables AI-driven tax administration, integrating secure cloud and citizen-facing portals to improve compliance and governance.
The program will deploy a secure cloud environment powered by NVIDIA AI infrastructure with LTM's BlueVerse as the intelligence backbone to consolidate analytics, simplify workloads, and deliver real-time insights. The integrated platform supports a smart citizen portal, automated campaign management, enhanced case workflows, and AI-driven helpdesk assistance to improve governance, reduce leakages, and strengthen taxpayer compliance and service experience.
February 26, 2026
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Trust-based customs processes drive digital governance and trade facilitation with new SWIFT rollout and procedural reforms.
CBIC is convening a National Symposium and International Customs Day to advance trust-based customs processes, digital governance and trade facilitation through presentations, stakeholder consultations and the launch of digital infrastructure, including a new single-window platform, the Customs Integrated System, a Digital Travellers Guide and a revamped traveller app. The programme also highlights courier, fisheries and baggage/personal import reforms, publication releases and the recognition of officers with Certificates of Merit, stressing procedural simplification, transparency and partnership with trade.
February 26, 2026
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Free Trade Agreements expand market access and call for global engagement to bolster resilient diversified supply chains.
India emphasises that Artificial Intelligence will transform jobs and increase demand for higher value skills in cybersecurity, data protection and system governance. The government highlights concluded Free Trade Agreements covering 38 nations that provide preferential market access and support integration into global value chains. Aatmanirbhar Bharat is presented as resilient, diversified supply chain building through global engagement, with calls to leverage FTAs to benefit MSMEs, farmers, exporters and fisheries and to enhance talent mobility for deeper global integration.
February 26, 2026
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Money laundering allegations in relatives' petition before High Court over Enforcement Directorate's tracing of rotated funds.
Challenge to an Enforcement Directorate complaint alleging relatives of an accused engaged in laundering by rotating funds through four accounts and reverting them to the principal accused; petitioners sought quashing of the complaint claiming false implication due to kinship, while the ED relied on transaction mapping and the identified money trail as the operative factual matrix implicating the accused and his spouse.

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Realtime Biometrics Launches Aadhaar-Enabled face recognition & fingerprint Biometric Attendance System T502F Mini

February 26, 2026

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NEW DELHI, India — Public sector offices and PSUs across India are confronting a critical administrative challenge, the inability to reliably verify the physical presence of personnel. For decades, dependence on manual registers and non-integrated systems has left government institutions vulnerable to proxy marking and data manipulation. The impact goes far beyond administrative inconvenience which leads to significant public money losses and creates barriers to financial transparency and accountability. The transition to Aadhaar-enabled attendance systems presents a structured solution to these longstanding inefficiencies, ensuring that every attendance entry is tied to a verified identity, directly supporting India's vision for a transparent, digital-first government.

As India advances toward a $5 trillion economy, the demand for accountability in public service delivery has never been greater. The Indian biometric market is witnessing a significant transformation, as institutions move away from paper-based registers toward automated, identity-verified attendance solutions, a shift driven in large part by government mandates requiring Aadhaar-integrated systems to ensure that the individual drawing a salary is the same physically present at the workplace.

To address the growing demand for a reliable Aadhaar-Enabled Biometric Attendance System (AEBAS), Realtime Biometrics has launched the T502F Mini, a secure, identity-verified terminal developed specifically for India's public sector. The device offers a dependable mechanism for attendance recording through face recognition and fingerprint authentication, ensuring that every entry is biometrically verified and free from the possibility of data manipulation.

While the primary focus of this launch is government offices and public sector undertakings, the underlying technology has demonstrated value across a broad range of industries. In restricted facilities, these terminals restrict unauthorized access to sensitive or hazardous zones. In healthcare settings, touchless face recognition enables medical personnel to record attendance without physical contact, maintaining hygiene standards critical to clinical environments. In educational institutions, the system provides administrators and parents with accurate, real-time records of staff presence, reinforcing accountability at every level.

The T502F Mini is engineered to deliver reliable performance across India’s diverse connectivity environments. It is currently listed on the Government e-Marketplace (GeM), enabling direct and streamlined procurement for government departments and PSUs.

Key Highlights of the New Aadhaar-Enabled Device (T502F Mini): • Aadhaar-enabled Face & Fingerprint Attendance • AEBAS compatible for Government & PSU use • 5.5-inch touch display • High-performance fingerprint scanner (AST300) • Supports Face Recognition & Fingerprint modalities • Connectivity options: 4G/5G, Wi-Fi, TCP/IP, Bluetooth, GPS, USB Link • USB Type-C charging • STQC Certification for AST300 & SafetyNet compliance • Designed for high accuracy, fast authentication & real-time data sync As verified identity becomes central to both governance and workplace accountability in India, the integration of biometric technology with the Aadhaar ecosystem represents a meaningful step forward in digital governance. With over a decade of domain expertise and an extensive partner network across the country, Realtime Biometrics is actively supporting India's public sector in its transition from paper-based processes to verified, tamper-proof attendance infrastructure.

Realtime Biometrics was founded in 2010 by Mr. Ravander Singh, Director, with a mission to bridge the gap between enterprise-grade security technology and the operational needs of Indian organizations. With a presence across India, the United Kingdom, and Hong Kong, the company has established itself as a trusted partner for thousands of organizations seeking to modernize their workforce management and security infrastructure.

"Our goal has always been to make professional-grade security accessible to every organization, regardless of size. We believe that the same technology trusted in high-security environments should be equally available to a local school or a small municipal office, because building a culture of accountability begins with getting the basics right." — Mr. Ravander Singh, Director, Realtime Biometrics (Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the same.). PTI PWR

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