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 Assessment 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…

13 Jul 23

Which Income Tax Return Forms require for AY 2023-2024

The following tables will help you understand which ITR forms are taxpayers supposed to fill based on the nature of their income for the Assessment Year 2023-2024 (Financial Year 2022-23) Nature of income ITR 1* ITR 2 ITR 3 ITR 4* Salary Income Income from salary/pension (for ordinarily resident person)…

07 Jul 23

Know your Residential Status under the Income-tax Act

At the time of filling Income Tax Return, every assessee need to check residence status to apply provisions of Income Tax and to determine tax liability for that assessment year. There are two types of taxpayers—resident in India and non-resident in India. Indian income is taxable in India whether the…

07 Jul 23

Taxation for NRIs

Taxation in India is a crucial element for the economy of the nation. Various taxes are levied on services and products being availed by the citizens of India. Taxes are meant to add a better shade to the services and products that are used by consumers. Income tax, service tax, property tax and…

06 Jul 23

Tax rebate under section 87A of Income Tax Act

For the old tax regime, an individual, who is resident in India, is allowed a tax rebate under section 87A if the total income of such individual does not exceed Rs. 500,000. The rebate is allowed to the extent of Rs. 12,500. Thus, if the total tax (excluding health &…

06 Jul 23

Intimation received under Section 143(1) of Income Tax Act

Every Indian Citizen needs to file Income Tax Return if there annual income is more than the specified Income Tax Exemption Limit and other situations specified by Income Tax Act as mentioned below: In any of the following situations (as per the Income Tax Act), you must file an Income Tax Return in India:…

01 Jul 23

Form 15G & 15H to Save TDS on Interest Income

The interest you receive from bank accounts and deposits is fully taxable. Thus, the bank is supposed to deduct TDS from it every year if your interest exceeds Rs 40,000. The limit is Rs 50,000 for senior citizens. But what if your total taxable income in a financial year is less than…

30 Jun 23

Save Tax on Sale of Commercial Property

Indians always think of saving capital gain tax which is required to be paid on sale of commercial property. Capital Gain tax can be Long Term Capital Gain Tax or Short Term Capital Gain Tax. Land is a Capital Asset and and as an appreciated asset, a landowner can make…

30 Jun 23

Sec 54 Capital Gain under Income Tax Act

Selling or transferring a capital asset like property, capital gains arise which are taxable in the hands of the assessee/ taxpayer. Under Section 54 of the Income Tax Act, an individual or HUF selling a residential house property can claim exemption from such capital gains if they invest the proceeds…

30 Jun 23

Investment to claim exemption u/s 54 can be made till the date of filing Revised Return or Belated Return

There is a dispute whether exemption under section 54 or 54F to be allowed in regard to the amount invested in purchase or construction of the Residential House till the date of filing of return of Income under section 139(1) or section 139(4) of the Income-tax Act, 1961. Let us discuss the provisions of section 54…

Income Tax

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 Assessment 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

Which Income Tax Return Forms require for AY 2023-2024

Know your Residential Status under the Income-tax Act

Taxation for NRIs

Tax rebate under section 87A of Income Tax Act

Intimation received under Section 143(1) of Income Tax Act

Form 15G & 15H to Save TDS on Interest Income

Save Tax on Sale of Commercial Property

Sec 54 Capital Gain under Income Tax Act

Investment to claim exemption u/s 54 can be made till the date of filing Revised Return or Belated Return

GST Council waives interest, penalty on tax demands between FY18 and FY20

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

Tax Exemption for Startups under Section 80 IAC under Income Tax Act

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