The Central Board of Direct Taxes (CBDT) has made significant revisions to the monetary limits for condoning delays in filing returns of income, specifically for claiming refunds or carrying forward losses. In Circular No.7 of 2023, dated 31.05.2023, the CBDT has partially modified its earlier Circular No.9/2015 to address this matter. Under the revised guidelines, …
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Introduction The Income Tax Act plays a vital role in establishing a fair and transparent taxation system. Among its provisions, Section 154 of income tax holds significant importance, as it enables taxpayers to rectify mistakes made in their tax filings or any other documents submitted to the tax authorities. In this article, we will delve …
The Central Board of Direct Taxes (CBDT) has issued Notification No. 31/2023 on May 24, 2023, announcing a significant change in the exemption limit for leave encashment under Section 10(10AA) of the Income-tax Act, 1961. Non-government employees receiving leave encashment on retirement will now enjoy an exemption limit of Rs. 25,00,000 (twenty-five lakhs rupees), effective …
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In the case of Anil Ratanlal Bohra v. Assistant Commissioner of Income Tax (ACIT), the issue at hand revolved around the denial of credit for Tax Deducted at Source (TDS) to the taxpayer due to the non-furnishing of a declaration by the deductee to the deductor as required by the proviso to Rule 37BA(2). The …
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Introduction As the financial year has ended, many individuals and businesses find themselves concerned about filing their Income Tax Returns (ITRs) for the financial year 2022-23. Tax obligations can be complex and overwhelming, but understanding the process and taking proactive steps can alleviate much of the stress associated with ITR filing. This article aims to …
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The Ahmedabad ITAT has upheld the order of the CIT(A), which resulted in the deletion of an addition of Rs. 86.75 crore under Section 69A as unexplained income for the assessee. The ITAT held that the cash deposited in the bank account cannot be considered unexplained since the revenue department itself accepted in the remand …
The case at hand revolves around the applicability of Section 69C of the Income Tax Act, which deals with unexplained expenditure. The assessee-firm in question was involved in the import of rough diamonds, as well as the manufacturing and export of polished diamonds. The Assessing Officer (AO) noticed that there was an excess consumption of …
The method of accounting that an assessee chooses to use can significantly impact the computation of their income under the heads of business or profession (Section 28) and income from other sources (Section 56). While the choice of method lies with the assessee, it is essential to note that they must demonstrate that they have …
Any expenditure that is incurred solely and necessarily in relation to the transfer of a capital asset can be deducted from the full value of consideration. This means that only expenses that are directly connected to the transfer of the asset can be claimed as a deduction. It is important to note that the expenditure …
Under the Income Tax Act, a non-resident Indian can be assessed directly or through an agent. Section 160(1)(i) defines a “representative assessee” as an agent of the non-resident Indian, including a person who is treated as an agent under Section 163. An agent of a non-resident Indian, as per the provisions of Section 163, includes …
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