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Significant Revisions in Individual Income Tax – Effective April 1, 2025
Default Option - New Tax RegimeStarting from the Financial Year 2025–26, the new tax regime is established as the default choice. Although assessees can still select the old regime, the government has...
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Audit Reports for Computation of MAT & AMT: Understanding Forms 29B & 29C
1. IntroductionThe concept of Minimum Alternate Tax (MAT) under Section 115JB and Alternate Minimum Tax (AMT) as per Section 115JC of the Income Tax Act, 1961 play crucial roles in ensuring that entit...
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Tax Benefits for Contributions to Political Parties: Sections 80GGB and 80GGC
Key Elements of Sections 80GGB and 80GGC(i) Eligible Assessee: As per Section 80GGB, Indian companies can claim deductions, subject to the provisions of Section 182 of the Companies Act, 2013. Under S...
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Strategic Tax Planning for Non-Resident Indians Returning from Tax Havens
OverviewThe global economy's interconnected nature often leads Non-Resident Indians (NRIs) to work in countries with low tax rates, commonly referred to as tax havens (such as the UAE, Singapore, Berm...
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Guide on Declaring Overseas Income and Assets in Your Income Tax Return in India
Indian residents face potential penalties reaching ₹10 lakh annually if they fail to declare their foreign assets on their Income Tax Returns (ITR). Understanding the nuances of reporting overseas inc...
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Alert from Income Tax Department on Tax Non-Deduction on Rent Payments
Income Tax Notification on Rent Tax Deduction for Assessees under Section 194IB of the Income Tax Act, 1961The Income Tax Department has begun contacting assessees regarding their failure to deduct ta...
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New Procedure for Block Assessments Under the Income-tax Act, 1961
1. Definition of Block Period: Scope and DurationSection 158B(a) of the Income-tax Act defines the 'block period' as:(i) The six assessment years preceding the fiscal year of the search or requisition...
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TDS on Payments to Partners: Section 194T
OverviewThe Finance (No. 2) Act of 2024 introduced Section 194T, which comes into effect on April 1, 2025. This section mandates that firms must withhold tax at source (TDS) at a rate of 10% on compen...
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Revised Regulations for Taxation on Gold ETFs & Gold Mutual Funds in India
Overview: From April 1, 2025, new regulations will impact the taxation of Gold Exchange-Traded Funds (ETFs) and Gold Mutual Funds (Gold MFs). Gold ETFs function like market-traded stocks linked to rea...
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Delhi High Court Orders Against Coercive Measures by GST Authorities: An Analysis
1. IntroductionThe High Court of Delhi, on February 13, 2025, in the case 'Nitin Goel v. Directorate General of GST Intelligence, Delhi' (W.P. (CRL) 532/2025), ruled that GST officials must adhere to...
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Bombay High Court Takes Firm Stance on Tax Evasion Strategies in the Case of Buniyad Chemicals
Case Overview and Historical BackgroundIn a pivotal tax ruling, the Bombay High Court made its stance clear on issues surrounding 'accommodation entries' and 'unexplained credits in bank accounts'. Th...
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Diving into Dividend Taxation
1. The Evolution of Dividend Taxation in IndiaThe mechanism of dividend taxation in India has undergone several transformations over the years:(i) Early Years to 1997: Before June 1, 1997, dividends w...
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Allowable Deductions Under Section 57: Income Tax Act, 1961
1. Deductions for Dividends and Interest (Section 57(i))Explanation: This clause allows for the deduction of any reasonable expenses, such as commissions or fees paid to a banker or any individual, to...
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Taxation of Online Gaming
OverviewThe online gaming sector in India has witnessed tremendous expansion recently, thanks to the widespread availability of the internet, economical smartphones, and a young, tech-oriented demogra...
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Reconsideration of Allowing Section 40(b) Deductions for Firms Opting for Section 44AD
1. Legal Contexti. Provisions of Section 40(b)According to section 40(b), any firm paying salary, bonus, commission, or remuneration to a non-working partner cannot claim deductions on these payments....
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Income Tax Audit Forms 10B & 10BB: Updates and Deadline for Submission
IntroductionThe submission of Form 10B plays a pivotal role under the Income Tax Act, 1961, primarily affecting charitable and religious organizations that seek exemptions under Sections 11 and 12. Th...
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India Enforces Tax Compliance on Crypto Transactions Using Offshore Platforms
Indian crypto investors attempting to circumvent tax responsibilities by trading on international platforms like Binance are facing increased scrutiny from the Income Tax department. This move comes i...
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Reevaluating Assurance: Challenges of the Principal Purpose Test in the Context of BEPS Action 6 and the Multilateral Instrument
Introduction to the Uncertainties of Taxation Taxes, much like death, are uncertain in their nature. Despite Benjamin Franklin's 1789 assertion that taxes are one of life's only certainties, the unpre...
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Revised Rates for TDS and TCS Starting April 1, 2025
Updated Tax Deduction at Source (TDS) RatesChanges to TDS effective from April 1, 2025, encompass diverse income streams like salaries, interest, rents, commissions, and gambling winnings. Assessees f...
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Property Co-Ownership: Does It Imply Joint Taxation Liability?
Overview: While joint property ownership is not uncommon in India, especially within families, it doesn't inherently result in shared tax obligations. This was elucidated in the 2025 ruling of the Mum...