India Finance News: 11–17 May 2026
SEBI's $7 billion overseas-investment cap is near exhaustion, sending Axis Mutual Fund (and earlier Kotak, Nippon) to halt fresh subscriptions in international funds. ITR-1 and ITR-4 filing opens for AY 2026-27 with a 31 July deadline. EPFO inches closer to UPI-based instant PF withdrawals. Three Must Know, four Good to Know, and links to all 17 articles published on ekcrore this week.
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> The week in your money. Big movements for international fund investors, ITR filing season opens for salaried Indians, and EPFO inches toward UPI-based instant PF withdrawals. Three things you should know, four worth knowing, one number to remember, and links to everything we published this week.
Must Know
1. ITR filing season is open: ITR-1 and ITR-4 are live for AY 2026–27
On Thursday 15 May, the Income Tax Department enabled online filing and Excel utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) on the e-filing portal for Assessment Year 2026–27. For most salaried readers, ITR-1 is the form you need.
Who uses ITR-1. Resident individuals (and pensioners) with total income up to ₹50 lakh, where income comes from salary or pension, one house property, and standard "other sources" like savings-bank interest. If you have capital gains above ₹1.25 lakh from equity, two or more house properties, foreign income, or income as a director of a company, you cannot use ITR-1 and will need ITR-2 (not yet live as of this Sunday).
Who uses ITR-4. Professionals and small businesses opting for presumptive taxation under Section 44ADA / 44AD.
Deadline. 31 July 2026 for non-audit cases. That's 75 days from today. Start early. The AIS (Annual Information Statement, the tax department's own record of your incomes from third parties like banks and brokers) takes time to fully populate, and reconciling your numbers against it is the step most people miss in a last-week rush.
Primary source: Income Tax Department e-Filing portal, 15 May 2026 release notes.
2. Axis Mutual Fund halts fresh subscriptions in 3 international funds. The bigger story: SEBI's $7 billion overseas cap is almost full.
Effective 3:00 PM on 13 May 2026, Axis Mutual Fund suspended all fresh lumpsum purchases, switch-ins, and new SIP / STP registrations in three international fund-of-funds: Axis Global Equity Alpha FoF (AUM ₹2,290 crore), Axis Global Innovation FoF (₹831 crore), and Axis Greater China Equity FoF (₹3,858 crore).
Why this matters even if you don't hold Axis funds. The reason is regulatory, not fund-specific. SEBI's industry-wide cap of $7 billion on overseas investments by Indian mutual funds (set in 2008, unchanged since) is near exhaustion. Kotak and Nippon India had already restricted inflows into their international schemes earlier this year for the same reason. If you have an active SIP into any international fund at any AMC, check whether yours is still accepting fresh money this week.
What changes for existing investors. Liquidity is unaffected: you can still redeem existing units normally. Already-registered systematic transactions that ran before the 3 PM cutoff on 13 May continue. Installments scheduled after that, in the suspended schemes, will be paused until SEBI raises the cap or the schemes get fresh headroom through redemptions.
Source: Axis Mutual Fund Addendum, 5 May 2026 (secondary coverage; verify on axismf.com).
3. CBDT publishes corrections to Income Tax Rules 2026
This week, the Central Board of Direct Taxes (CBDT) issued a notification rectifying drafting errors and clarifying terms in the new Income Tax Rules 2026. These are the operational framework under the Income Tax Act 2025 (the new Act that replaced the 1961 Act, with effect from 1 April 2026). The corrections are technical: they do not change any substantive rate, slab, deduction, or filing requirement. They do, however, clean up several cross-references that practising CAs and the e-filing portal use day-to-day, which should mean fewer validation errors during this filing season.
What you need to do: nothing. Your ITR utility and your CA will pick up the corrected rules automatically. The takeaway is that the new IT Act framework is now operationally stable for FY 2025–26 returns.
Primary source: Income Tax Department Notifications page.
Good to Know
EPFO UPI/ATM withdrawals expected by end of May. Multiple reports from Labour Ministry sources indicate EPFO 3.0 will allow up to 75% PF balance withdrawal via UPI or any UPI-enabled ATM, using a UMANG-generated QR code linked to your Aadhaar-verified UAN. EPFO has not yet released the final operational guidelines, so the late-May launch date should be treated as tentative. BusinessToday coverage.
Form 121: new TDS self-declaration for PF withdrawals from FY 2026–27. EPFO has introduced Form 121 as the updated TDS self-declaration mechanism, replacing earlier declarations. Relevant only if you plan to withdraw EPF before completing 5 years of continuous service.
CNG prices rise across Delhi-NCR (17 May). CNG now costs ₹80.09 per kg in Delhi and ₹88.70 per kg in Noida-Ghaziabad. For a typical 25 km daily commute on a CNG car, this adds roughly ₹250–300 per month to your fuel bill.
IRDAI flags compliance issues at 8 health insurers. Routine inspections by the insurance regulator have identified concerns at 8 health insurers around implementation of the May 2024 Health Insurance Master Circular: specifically the 1-hour cashless approval mandate, the 3-hour final discharge rule, and the 30-day claim settlement window. If you are due for a hospital admission soon, ask your insurer or hospital desk to confirm cashless approval timelines in writing.
Number of the week
$7 billion. SEBI's industry-wide cap on overseas investments by Indian mutual funds. Set in 2008 and unchanged since, it has now been nearly fully consumed by India's appetite for global equity exposure. Until SEBI raises the limit, or assets are redeemed and free up room, retail investors cannot put fresh rupees into international funds across most AMCs. This is why Axis (this week), Kotak, and Nippon have all paused fresh inflows.
From Zero to One this week
Cluster 1 of the Zero to One curriculum is now live: Why is my in-hand salary so much less than my CTC? Four of five lessons published this week, walking you from "what's actually in a ₹20L offer letter" to HRA exemption rules and the legal way to claim HRA when paying rent to your parents. Lesson 5 (how to increase in-hand without changing CTC) goes live tomorrow morning, 8 AM.
→ Start the cluster: If my CTC is ₹20 LPA, how much will I get in hand?
New on ekcrore (11–17 May)
Zero to One curriculum: Cluster 1 (Personal Finance)
- If my CTC is ₹20 LPA, how much will I get in hand?
- Why your basic salary percentage affects your EPF, HRA, and gratuity more than the number itself
- How HRA is calculated: the three-part formula and when HRA is fully taxable
- Can I pay rent to my parents and claim HRA exemption legally?
Tax
- New Tax Regime: How It Works
- New Tax Regime vs Old Tax Regime: Which Is Better for You?
- New Tax Regime Deductions You Can Still Claim
- Standard Deduction in New Tax Regime: ₹75,000 for Salaried Employees
- New Tax Regime for Salaried Employees: What You Actually Pay
- Section 87A Rebate: Zero Tax up to ₹12 Lakh in the New Regime
- New Tax Regime Slabs and Rates for FY 2025-26
- HRA Exemption in the New Tax Regime: What You Need to Know (live this evening)
- EPF vs PPF vs NPS: which retirement savings option is better for salaried Indians in FY 2025-26?
Investing
- How does an SIP work? What ₹10,000/month actually grows to over 10, 15, and 20 years
- Index funds vs actively managed funds in India: which gives better returns over 10 years?
Insurance
- How much term life insurance do you need in India? A salary-based calculation guide
- Why your employer's group health insurance is not enough: what it doesn't cover and what to buy instead
Credit Cards
Salary
> For informational purposes only. ekcrore is not a financial advisor and does not recommend specific funds, insurance products, tax strategies, or investments. Tax rules change frequently: verify current rules at incometax.gov.in before acting. Consult a SEBI-registered investment advisor or practising CA for advice tailored to your situation.
Last verified: 17 May 2026.
Up next: India Finance News, 18–24 May 2026, publishing Sunday 24 May around 8 PM IST.
Content on Ek Crore is for educational purposes only. Nothing here is financial advice. Always consult a SEBI-registered advisor, CA, or qualified professional before making investment or tax decisions.