Nifty Smallcap 100 Plunges to 14,986 Low: Why Mid- and Small-Caps Are Crashing Harder Than the Market in March 2026

  The Indian stock market witnessed intense selling pressure on March 23, 2026, as mid- and small-cap indices tumbled over 4% amid a broader market crash driven by escalating geopolitical tensions in the Middle East. The Nifty Midcap 100 index has now declined around 13% year-to-date in 2026, reflecting sharp corrections in broader market segments that have outperformed in previous years but are now facing heightened volatility. Sharp Intraday Declines in Midcap and Smallcap Indices The Nifty Smallcap 100 index opened at 15,565.30 on Monday but quickly slipped to an intraday low of 14,986, erasing significant ground in early trade. By the afternoon session, the selling intensified, with the index down over 4% at points during the day. Market breadth was overwhelmingly negative—except for isolated performers like Trident (up around 2.85%), virtually every stock in the Nifty Smallcap 100 traded in the red, signaling widespread panic across smaller companies. Similarly, the Nifty M...
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From Refund Delays to Income Tax Act 2025 and New Slabs: 7 Big Income Tax Trends of 2025 to Know as 2026 Begins

As we step into 2026, India's income tax landscape has undergone significant evolution in 2025. From the long-awaited overhaul of the Income Tax Act to revised slabs that offer relief to middle-class taxpayers, these changes aim to simplify compliance, boost disposable income, and reduce litigation. Whether you're a salaried professional or a business owner, understanding these trends can help you optimize your finances and avoid common pitfalls. Here are the 7 major income tax trends from 2025 that everyone should know.

1. Persistent Income Tax Refund Delays

One of the most talked-about issues in 2025 has been the delays in processing income tax refunds. Many taxpayers who filed ITRs for AY 2025-26 (FY 2024-25) waited months for refunds, even after e-verification. The Income Tax Department attributed this to enhanced scrutiny of high-value claims, mismatched data in AIS/Form 26AS, and stricter verification protocols to curb fraudulent deductions. While most straightforward cases were cleared within weeks, "red-flagged" returns faced longer holds. The CBDT aimed to resolve pending refunds by December 2025, with interest payable under Section 244A for eligible delays (at 6% per annum). This trend highlights the need for accurate filing and prompt e-verification to avoid hassles in future years.

2. Introduction of the New Income Tax Act, 2025

The biggest structural change came with the enactment of the Income Tax Act, 2025, replacing the 1961 Act. Passed in August 2025 and effective from April 1, 2026, this modernized law reduces sections from over 800 to 536, uses simpler language, and introduces a "Tax Year" concept (aligning with the financial year). Key features include clearer definitions for Virtual Digital Assets (VDAs like cryptocurrencies), expanded powers for faceless assessments, and digital-first procedures to minimize human interface. While no major policy shifts in rates occurred, the Act focuses on transparency, reduced litigation, and better compliance—marking a step toward a more efficient, trust-based tax system.

3. Relaxed Tax Slabs Under the New Regime

Budget 2025 introduced significant relief in the new tax regime (default since FY 2024-25), making it more attractive. The revised slabs for FY 2025-26 (AY 2026-27) are:

  • Up to ₹4 lakh: 0%
  • ₹4 lakh – ₹8 lakh: 5%
  • ₹8 lakh – ₹12 lakh: 10%
  • ₹12 lakh – ₹16 lakh: 15%
  • ₹16 lakh – ₹20 lakh: 20%
  • ₹20 lakh – ₹24 lakh: 25%
  • Above ₹24 lakh: 30%

With a ₹60,000 rebate under Section 87A, income up to ₹12 lakh is tax-free (up to ₹12.75 lakh for salaried individuals with ₹75,000 standard deduction). This shift provides substantial savings for middle-income earners, encouraging many to opt for the simpler new regime over the old one with deductions.

4. Increased Rebate and Standard Deduction Boost

The rebate under Section 87A was enhanced, ensuring zero tax liability for incomes up to ₹12 lakh in the new regime. Salaried taxpayers also benefit from a higher standard deduction of ₹75,000 (up from previous levels). These measures, combined with the slab revisions, offer meaningful relief to the middle class, increasing take-home pay and stimulating consumption.

5. Rationalized TDS/TCS Thresholds and Compliance Relief

Several TDS thresholds were increased to ease compliance, such as higher limits on rent (from ₹2.4 lakh to ₹6 lakh) and interest payments. Sections 206AB and 206CCA (higher rates for non-filers) were removed, reducing burdens on compliant taxpayers. These changes aim to minimize paperwork and support small businesses/freelancers.

6. Push Toward Digital and Faceless Processes

The new Act reinforces faceless assessments and digital-first mechanisms, allowing authorities to access virtual spaces (e.g., emails, social media, cloud data) during investigations. While this enhances enforcement against evasion, it emphasizes the importance of accurate reporting and digital readiness for taxpayers.

7. Shift Toward the New Regime as the Preferred Choice

With lower rates, higher exemptions, and fewer deductions, the new regime gained traction in 2025. Many taxpayers, especially those without heavy deductions, found it more beneficial. The old regime remains optional for those maximizing exemptions (e.g., under 80C, 80D), but the trend favors simplicity and lower effective tax rates.

These trends reflect the government's focus on taxpayer-friendly reforms while maintaining revenue stability. As 2026 begins, plan ahead—use tax calculators to compare regimes, ensure timely filing, and consult a professional for personalized advice. Staying informed can help you maximize savings and navigate the evolving tax landscape smoothly.

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