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Faceless Income Tax Procedures: A Comprehensive Guide

In the era of digital governance, the Income Tax department has introduced the ‘e-proceeding’ facility, revolutionizing the traditional assessment proceedings. This initiative aims to simplify communication between the assessing authority and taxpayers through electronic means, eliminating the need for physical visits to Income-tax offices. Understanding E-Proceedings: A Game-Changer The ‘E-Proceedings’ functionality is a key feature …

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Declare Income in a year, notice TDS mismatch in the next? Correct it now with Form 71.

Introduction: As the complexities of income tax regulations continue to evolve, so do the mechanisms for ensuring accuracy and transparency in tax assessments. A recent development in this realm is the provision under sub-section (20) of section 155, which empowers taxpayers to rectify errors related to the credit of tax deducted at source in the …

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Intimation under Section 143(1) of Income Tax Act

In the realm of income tax filing, understanding the intricacies of Section 143(1) and the subsequent intimation process is crucial. In this blog post, we’ll explore frequently asked questions to shed light on what intimation under Section 143(1) entails. What is Intimation under Section 143(1)? Intimation involves the meticulous processing of income tax returns by …

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Tax Benefits and Deductions for Small Business Owners in the Financial Year 2024-25

Introduction Small business owners play a vital role in the economy by contributing to job creation and economic growth. To support and incentivize their efforts, governments often provide various tax benefits and deductions. In the financial year 2024-25, the Indian government has introduced a range of provisions aimed at helping small business owners reduce their …

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Residential Status in India for Income Tax Purposes A Comprehensive Overview

In India, determining an individual’s income tax liability hinges significantly on their residential status. This complex subject has several categories and conditions that determine whether someone is considered a resident or non-resident for tax purposes. To unravel this intricate web, we’ll delve into each category in detail. 1. Indian Citizens Visiting India with Income Less …

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Sale Consideration is not Income Chargeable to Tax: A Crucial Distinction

Brief: In a significant ruling, the Madhya Pradesh High Court has quashed reassessment proceedings initiated against an assessee, Mr. Nitin Nema, based on a sale consideration of Rs. 72.05 lakhs for the assessment year 2016-17. The High Court held that the actual income chargeable to tax may be lower than the threshold for reopening assessments …

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Nostro Account maintenance charge not interest under Section 2(28A); Section 195-TDS inapplicable

The Mumbai Income Tax Appellate Tribunal (ITAT) has ruled that the maintenance charges for Nostro Accounts are not liable to be treated as interest under Section 2(28A) of the Income Tax Act. Additionally, the ITAT determined that Section 195, which pertains to Tax Deducted at Source (TDS), is not applicable to these charges. The case …

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Deadline for Filing Income Tax Returns Remains Same: No Extension Expected

The Ministry of Finance has recently announced that there will be no extension in the deadline for filing income tax returns. This decision comes amidst the approaching deadline of July 31 for filing income tax (I-T) returns for the financial year 2022-23 (assessment year 2023-24). Revenue Secretary Sanjay Malhotra clarified that there is no proposal …

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Tax Victory for IBM India Employees: ITAT Hyderabad Decides Foreign Assignment Allowance is Non-Taxable in India

The Hyderabad Income Tax Appellate Tribunal (ITAT) has ruled in favor of employees of IBM India Pvt. Ltd., stating that the foreign assignment allowance topped up to their Travel Currency Card by IBM India is not taxable in India. The ITAT decision was based on the co-ordinate bench ruling in Bodhisattva Chattopadhyay v. CIT (2019) …

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Panaji ITAT Upholds Disallowance of Interest on Loan for Family Settlement Payment

The Panaji ITAT upheld the CIT(A) order confirming the disallowance of interest paid on a loan used to compensate the Assessee’s family members as per an arbitral award on a family settlement. The Assessee claimed a deduction of the interest against the long-term capital gains (LTCG) arising from the sale of a capital asset. However, …

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