Income Tax

18 Jan 25

Section 115JB of The Income Tax Act, 1961: Special Provisions for Payment of Tax by Certain Companies

Section 115JB of the Income Tax Act, 1961, often referred to as the Minimum Alternate Tax (MAT) provision, was introduced to ensure that companies with substantial book profits but low or no taxable income still pay a minimum level of tax. It applies primarily to companies that, due to certain…

07 Jan 25

Industry-wise Expectations from Budget 2025

The Union Budget 2025 comes at a critical juncture, reflecting India’s aspirations for robust economic growth, fiscal prudence, and inclusive development. As the nation strives to consolidate its post-pandemic recovery, this budget is anticipated to address pressing challenges across industries, enhance social welfare measures, and pave the way for sustainable…

19 Dec 24

Section 269ST of the Income Tax Act, 1961: A Comprehensive Guide

Section 269ST of the Income Tax Act, 1961, was introduced to prevent the practice of large cash transactions, curb money laundering, tax evasion, and promote transparency in financial dealings. The provision specifically addresses the receipt of cash exceeding certain limits for a single transaction and aims to ensure that high-value…

19 Dec 24

Section 269SS of the Income Tax Act: Comprehensive Guide

Section 269SS of the Income Tax Act, 1961, was introduced to curb the practice of accepting loans or deposits in cash, particularly to prevent tax evasion and unaccounted income in the informal economy. This provision mandates that loans or deposits above ₹20,000 should not be accepted in cash but through…

19 Dec 24

Understanding the Dispute Resolution Committee (DRC) under Section 245MA of the Income-tax Act

The Dispute Resolution Committee (DRC), introduced under Section 245MA of the Income-tax Act, 1961, is a progressive initiative aimed at simplifying tax dispute resolution for small and medium taxpayers. The committee plays a crucial role in reducing litigation and fostering a taxpayer-friendly environment, which aligns with the government’s commitment to…

14 Dec 24

Switzerland Suspends MFN Clause in DTAA with India

In a significant development, Switzerland has announced that it will suspend the application of the Most Favoured Nation (MFN) clause under its Double Tax Avoidance Agreement (DTAA) with India. Effective from January 1, 2025, this decision is poised to impact the tax landscape for Indian entities operating in Switzerland, potentially…

28 Nov 24

J&K High Court Ruling: Penalty Notices Under Section 271(1)(c) Must Specify Grounds

The Jammu & Kashmir and Ladakh High Court delivered a crucial verdict in the case of Commissioner of Income Tax vs. J&K Power Development Corporation Limited (ITA 7/2019), emphasizing that penalty notices under Section 271(1)(c) of the Income Tax Act, 1961, must clearly state whether the penalty proceedings are for…

26 Nov 24

PAN Version 2.0: A Transformative Step in Taxation

The Government of India has introduced the PAN 2.0 Project, an initiative approved by the Cabinet Committee on Economic Affairs (CCEA) under the leadership of Prime Minister Narendra Modi. This ambitious project, spearheaded by the Income Tax Department, aims to revolutionize the Permanent Account Number (PAN) system, aligning with the…

05 Nov 24

Delhi High Court Upholds Reassessment by Jurisdictional AO – Distinguishes from Hexaware Ruling

The case concerns a writ petition challenging the reassessment initiated under Section 148 by the Jurisdictional Assessing Officer (JAO). The central question was whether a notice issued by the JAO complied with the requirements of the Faceless Scheme of Assessment, introduced under Sections 144B and 151A – T.K.S. Builders Pvt.…

22 Jun 24

SC Uphold Validity of I-T Provisions on Interest-Free Loans to Bank Employees Under Rule 3(7)(i)

The appeals filed by staff unions and officers’ associations of various banks, impugning judgments which dismiss their writ petitions, where the vires of Section 17(2)(viii) of the Income Tax Act, 19611 or Rule 3(7)(i) of the Income Tax Rules, 19622 , or both, were challenged The applicants along with the…

09 Jun 24

Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) is a tax effectively introduced in India by the Finance Act of 1987, vide Section 115J of the Income Tax Act, 1961 (IT Act), to facilitate the taxation of ‘zero tax companies’ i.e., those companies which show zero or negligible income to avoid tax. The Minimum…

11 Feb 24

Non Payment of Income Tax cannot be termed as Tax Evasion – Madras HC

The Madras High Court has quashed the prosecution initiated by the income tax department under section 276C(2) of the Income Tax Act, 1961 by holding that there is no willful evasion of tax. Section 276C (2) of the Income Tax Act, 1961 provides that if a person willfully attempts to…

11 Feb 24

Tax Evasion VS Tax Avoidance VS Tax Planning

People always think of how to reduce Tax liability or to avoid tax payment. Payment of Direct Tax reduces their saving or purchasing capacity. But Tax evasion & Tax avoidance are used interchangeably to describe such acts. They are different terms and they have same motive to reduce Tax liability…

17 Dec 23

Step-by-step guide to ‘Faceless Assessment Proceedings’ under Section 144B

Indian government introduced the concept of faceless assessments, whereby scrutiny assessments are carried out in a faceless manner, that is, without any physical meeting or submission of physical documents. The National Faceless Assessment Centre (NFAC), along with other centres and units, have been established by the Central Board of Direct Taxes…

17 Dec 23

Faceless Income Tax Assessments U/S 144(B) of Income Tax Act

After filling Income Tax Return, Income Tax authorities may select certain tax returns for detailed scrutiny and request that the individual submit documents evidencing the claims made in the return of income, referred to as an assessment. Earlier, the assessments were carried out by personal representations/visits to tax offices and…

12 Nov 23

ITR U – What is ITR-U Form and Its Provisions

Budget 2022 has introduced the new section 139(8A) in Income Tax Act, 1961. Refer budget update @ Introduction of new Income Tax ‘Updated’ Return Type. Section 139(8A) enables the filing of “Updated Return” (aka ITR-U) by the taxpayers. Section 139(8A) has come into effect from 01st Apr 2022 Section 139(8A) under…

19 Jul 23

Capital Gain Exemption Allowable On Construction Of Residential House Completed Within 3 Years: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), has held that the claim of capital gain exemption under Section 54 of the Income Tax Act, 1961 on construction of residential house completed within 3 years is allowed and removed the penalty levied under Section 271(1)(c) of the Income…

18 Jul 23

Bombay High Court Quashes Reopening Income Tax Assessment After 4 Years Merely On The basis of Change Of Opinion

The Bombay High Court has quashed the reopening of income tax assessments after 4 years merely on the change of opinion of the Assessing Officer (AO). The bench of Justice K. R. Shriram and Justice Firdosh P. Pooniwalla observed that the Assessing Officer had in his possession all primary facts,…

17 Jul 23

No TCS on foreign remittances up to Rs 7 lakhs, W.E.F October 1, 2023

When people send money abroad for remittances, travel expenditures, asset purchases, shopping, and investments, they are subject to TCS, or Tax Collected at Source. Such transfers are made possible under the LRS (Liberalised Remittance Scheme). The TCS rate for the majority of remittances (apart from those for medical and educational…

17 Jul 23

Consequences of Not Filling IT Return or Late Filling IT Return

Income Tax return filing is mandatory if the Total Income of an Individual exceeds the maximum amount which is not chargeable to income-tax i.e. Rs.2,50,000 for individuals whose age is less than 60 Years under old tax regime and Rs. 3,00,000 under new tax regime It is also mandatory to…

Industry-wise Expectations from Budget 2025

Section 269ST of the Income Tax Act, 1961: A Comprehensive Guide

Section 269SS of the Income Tax Act: Comprehensive Guide

Understanding the Dispute Resolution Committee (DRC) under Section 245MA of the Income-tax Act

Switzerland Suspends MFN Clause in DTAA with India

J&K High Court Ruling: Penalty Notices Under Section 271(1)(c) Must Specify Grounds

PAN Version 2.0: A Transformative Step in Taxation

Delhi High Court Upholds Reassessment by Jurisdictional AO – Distinguishes from Hexaware Ruling

SC Uphold Validity of I-T Provisions on Interest-Free Loans to Bank Employees Under Rule 3(7)(i)

Minimum Alternate Tax (MAT)

Non Payment of Income Tax cannot be termed as Tax Evasion – Madras HC

Tax Evasion VS Tax Avoidance VS Tax Planning

Step-by-step guide to ‘Faceless Assessment Proceedings’ under Section 144B

Faceless Income Tax Assessments U/S 144(B) of Income Tax Act

ITR U – What is ITR-U Form and Its Provisions

Capital Gain Exemption Allowable On Construction Of Residential House Completed Within 3 Years: ITAT

Bombay High Court Quashes Reopening Income Tax Assessment After 4 Years Merely On The basis of Change Of Opinion

No TCS on foreign remittances up to Rs 7 lakhs, W.E.F October 1, 2023

Consequences of Not Filling IT Return or Late Filling IT Return

Budget 2025: Sectoral Breakdown and Economic Parameters

Section 115JB of The Income Tax Act, 1961: Special Provisions for Payment of Tax by Certain Companies

Industry-wise Expectations from Budget 2025

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