Income Tax

1. Overview of Cost of ImprovementWhen an assessee sells a capital asset, any profits or gains from the sale are taxable under the head ‘Capital Gains’. The calculation of capital gains is done by ded...

1. Introduction to Tax Compliance RequirementsTax compliance represents a fundamental obligation for all assessees operating within the Indian taxation framework. The adherence to prescribed timelines...

Introduction: Shifting the Landscape for IFSC OperationsIndia’s aspiration to position itself as an international financial powerhouse has taken a significant leap with the issuance of Notification No...

Key Statutory Provisions(i) Section 147: Reassessment of Escaped IncomeSection 147 empowers the Assessing Officer (AO) to assess, reassess, or recompute income, loss, depreciation, or any deduction fo...

1.1. Introduction to Cross-Border Share BuybacksWith the globalization of investment portfolios, both Indian residents and non-residents increasingly hold equity in companies incorporated outside Indi...

Overview of Recent Scrutiny Noticesi) Large-Scale Issuance of NoticesThe Income Tax Department has recently dispatched approximately 1.65 lakh scrutiny notices under Section 143(2) of the Income Tax A...

Overview of Form 27Q(i) Applicability of Form 27QTax Deducted at Source (TDS) return in Form 27Q is specifically required for all payments (other than salary) made to non-resident assessees, as per th...

Introduction: Navigating Faceless AssessmentsFaceless income tax scrutiny assessments represent a major shift towards transparency and digitalization in Indian tax administration. This system requires...

Determining NRI Status: Residential Criteria for FY 2024–25(i) Understanding the Definition of NRIUnder the Income-tax Act, an individual is considered a resident in India if they are physically prese...

Foreign Tax Credit (FTC) in India: A Guide for NRIs and Foreign Income EarnersIntroduction: Understanding the Need for Foreign Tax CreditThe increasing mobility of Indian professionals and freelancers...

1. Background and ContextThe Central Board of Direct Taxes (CBDT) has issued Circular No. 07/2025 dated 25th June, 2025, addressing processing delays for income tax returns filed under condonation ord...

1. Introduction: Digital Donations and the Question of Anonymity(i) Historical Context and Modern ShiftTraditionally, donations to charitable organisations in India were made in cash, often through ph...

IntroductionMany individuals in India follow the tradition of gifting property to their daughters, especially during marriage. A recent Hyderabad Tribunal decision in the case of Income Tax Officer v....

1. OverviewThe deductibility of employees’ contributions to Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) under section 36(1)(va) of the Income-tax Act, 1961, has been a subjec...

Introduction: Enhanced Data Integration and Its ImplicationsThe Income Tax Department has significantly broadened its mechanisms for collecting and integrating financial data through various channels...

1. Introduction: Understanding the DistinctionTax avoidance and tax planning have long stood at the crossroads of direct tax law in India. Tax avoidance refers to strategies that reduce tax liability...

Overview of the Legal Landscape Post-Pandemic(i) COVID-19 and Its Legal RepercussionsThe outbreak of COVID-19 in late 2019 led to global disruptions, including in India, where government-imposed lockd...

Assessees frequently lose out on significant tax refunds each year due to errors in filing their Income Tax Returns (ITR) and by not making full use of all eligible deductions. Excess tax paid via Tax...

Overview and Legal Frameworki) Rationale and Legislative Background:The effectiveness of India’s fiscal system is closely tied to a clear and robust tax regime. The Income Tax Act, 1961, is India’s pr...

Introduction: The Significance of Tax Treaties in a Globalized EconomyIn the context of expanding international trade and cross-border investments, economies worldwide have become increasingly interco...