The Mumbai ITAT has delivered an important taxpayer-friendly ruling in Sophia Rick v. ITO, holding that an employee cannot be denied credit of TDS merely because the employer deducted tax from salary but failed to deposit the same with the Government. The case involved AY 2019-20, salary income of about ₹18.41 lakh, TDS credit claimed…
In Narayanan Sundaramahalingam Rajkumar v. ACIT, ITAT Chennai held that agricultural land falling within the prescribed population and aerial-distance limits under section 2(14)(iii)(b) is taxable as a capital asset, even if it is agricultural in revenue records. The Tribunal also gave relief on alleged on-money by restricting the addition to the admitted cash component and…
Union Budget 2026-27 has brought an important compliance shift through direct tax proposals for rationalising penalty and prosecution. The official PIB release states that assessment and penalty proceedings are proposed to be integrated, pre-payment is proposed to be reduced from 20% to 10% of core tax demand, and updated returns may be allowed even after…
The ITR filing season for AY 2026-27 is important because the Income Tax Department has made simplified return forms more useful for eligible taxpayers. The return for AY 2026-27 covers income earned during FY 2025-26, and the official transition FAQ clarifies that such filing continues under the Income-tax Act, 1961. The major change is that…
SEBI has approved a major set of capital market reforms at its Board meeting held on 19 June 2026. The official SEBI press-release listing records the item as PR No. 35/2026. (Securities and Exchange Board of India) The biggest reform is the reintroduction of open market buybacks through stock exchanges from 1 August 2026. Under…
A timing mismatch between income recognition and TDS deduction has long created practical hardship for taxpayers. In many cases, an assessee offers income to tax in one assessment year, but the deductor deducts and deposits TDS in a subsequent year. As a result, credit appears in Form 26AS/AIS for a different year, while the income…
Cryptocurrency taxation in India is now governed through the framework of Virtual Digital Assets. The term is wide enough to cover crypto tokens, NFTs and similar digital assets that are transferable, storable or tradeable electronically. Indian currency and foreign currency are excluded from this definition. The core tax rule is simple but strict: income from…
Supreme Court on Reopening u/s 147/148: Sanand Properties Ruling and the Dilution of “Change of Opinion” Defence Landmark Ruling: Sanand Properties P. Ltd. vs JCIT — 2026 INSC 472 The Hon’ble Supreme Court in Sanand Properties P. Ltd. vs Joint Commissioner of Income Tax, Range 6 & Ors., Civil Appeal No. 9107 of 2012 with…
Auditor Withdrawal and Bona Fide Belief: Kerala High Court Condonates 676-Day Delay in ITAT Appeal Background of the Case – Mallelil Industries Pvt. Ltd. v. Principal CIT, Kottayam, ITA No. 51 of 2026, Delay condonation in tax appeals often involves a difficult balance. On one side is the law of limitation. On the other side…
ITAT Delhi deletes bogus purchase additions in Ahluwalia Contracts case, holding that third-party statements cannot override genuine purchase records without cross-examination.
RBI FLA Mutual Fund Survey 2025-26: Due Date, Filing Process and Compliance Checklist
The Kerala High Court has provided significant clarification on the distinction between non-service of notice and lack of knowledge of service of notice, emphasizing the implications for the principles of natural justice. Justice Bechu Kurian Thomas delivered this observation in the case titled M/s Ramanattu Motor Corp. v. State of Kerala (WP(C) No. 23872 of 2024), which involved a dispute…
The Delhi High Court has recently raised alarm over the mounting backlog of appeals at the National Faceless Appeal Centre (NFAC), a body established to streamline tax assessments. With a staggering 540,000 appeals awaiting resolution, the court has urged immediate action to tackle the growing delays. Judicial Concern A division bench, led by Chief Justice…
The 53rd GST Council Meeting introduced significant measures to simplify tax processes, reduce litigation, and provide targeted tax reliefs. Here are the key takeaways: Waiver of Interest and Penalties: Extended Deadline for Input Tax Credit: Monetary Limits for Appeals: Reduced Pre-Deposit for Appeals: Appeal Filing Period Adjustment: Interest Relief on Delayed Returns: Anti-Profiteering Sunset Clause:…
The New Income Tax Regime, introduced in the 2020 budget by Finance Minister Nirmala Sitharaman under Section 115BAC of the Income Tax Act, offers an alternative to the traditional tax system. Designed to simplify tax calculations and provide benefits to taxpayers, this regime features altered tax slabs and reduced rates, but eliminates various exemptions and…
The Income Tax Department has recently unveiled detailed criteria for the mandatory scrutiny of Income Tax Returns (ITRs). These guidelines, released by the Central Board of Direct Taxes (CBDT) on May 3, 2024, specify how ITRs will be selected for close examination for the financial year 2024-25. These annual circulars have been a consistent effort…
Starting a business in India has become more flexible and secure with the introduction of Limited Liability Partnerships (LLPs). This business structure, governed by the Ministry of Corporate Affairs and the Limited Liability Partnership Act, 2008, offers a unique blend of advantages from both partnerships and private limited companies. In this article, we’ll explore what…
In recent months, significant strides have been made in the administration and enforcement of the Goods and Services Tax (GST) in India. These changes encompass new directives from the Central Board of Indirect Taxes and Customs (CBIC), critical judicial rulings, and the operationalization of the GST Appellate Tribunal. Despite GST being a relatively young system,…
Freelancers, the dynamic pioneers of self-employment, revel in their autonomy to choose projects and forge unique business ventures. However, amidst this entrepreneurial freedom lies the responsibility of navigating tax obligations effectively. Income earned through freelancing, a manifestation of one’s creative or professional prowess, falls under the ambit of ‘profit and gains from business and profession‘…
The process of filing income tax returns has begun, but many salaried taxpayers are unable to file their returns due to not receiving Form 16. This form provides information about your income and the amount of tax deducted. Therefore, it becomes crucial for filing Income Tax Returns (ITR). Similarly, Form 16A and 27D are also…
The Income-tax Appellate Tribunal recently ruled that the difference between the proceeds received upon redemption of unlisted non-convertible debentures (NCDs) and their purchase cost should be classified as ‘interest income‘ and subjected to taxation under the category of ‘income from other sources‘ for the investor. Consequently, the ITAT (Mumbai bench) also disallowed tax benefits available…
Starting from the year 2024-25, there’s a new rule for companies. They must pay any pending bills to small businesses within 45 days. If they don’t, they’ll have to pay more tax for the years 2023-24. This is because they can only claim deductions for payments they make in that year. Companies need to follow…
The Indian Government has implemented several measures to provide relief to Cooperative Societies under the Income Tax Act. Here are some key steps: In summary, these measures aim to strengthen dairy cooperative societies, enhance financial inclusivity, and support farmers in their agricultural endeavors.
The Income Tax Act, 1961 in India had various provisions related to cash transactions to curb black money and promote transparency in financial transactions. Please note that tax laws and limits can change over time, here were some important cash transaction limits and provisions under the Income Tax Act: