The Permanent Account Number (PAN) is a critical financial identifier for individuals and entities in India, facilitating tax compliance, banking transactions, and investments. However, the Indian government’s mandate to link PAN with Aadhaar—a 12-digit unique identification number issued to Indian residents—has created significant hurdles for Non-Resident Indians (NRIs). While NRIs are technically exempt from this …
Introduction In a crucial judgment, the Income Tax Appellate Tribunal (ITAT) Ahmedabad has ruled in favor of the assessee, Mr. Sudhakar Ratan Shanker Gautam, by holding that severance compensation received due to employment termination is a capital receipt and not taxable under Section 17(3) of the Income Tax Act, 1961. This decision provides clarity on …
The Income Tax Department has recently uncovered significant foreign assets owned by Indian taxpayers. As taxpayers, we all aim to save on income tax through legitimate means, and the funds we pay as tax are used for the creation of assets, both domestic and foreign. When assets are located in India, the rules are more …
This appeal pertains to an order passed by the Ld. CIT(A)/NFAC, Delhi, on 27th May 2024, related to assessment year 2013-14. The case has undergone multiple rounds of litigation, with the current appeal being the second round before the Tribunal. The assessee has filed various details before the Assessing Officer though not according to his …
The much-anticipated Income Tax Bill 2025 has been introduced, ushering in a new era of tax reforms. Scheduled to take effect from April 1, 2026, the new bill aims to simplify and streamline the taxation system in India. With only a year to prepare, taxpayers and professionals such as Chartered Accountants (CAs), Advocates, Company Secretaries …
Continue reading “The Income Tax Bill 2025: A Comprehensive Overview”
The Indian government has finally unveiled the much-awaited Income Tax Bill 2025. Spanning 622 pages, this comprehensive bill introduces various clauses, chapters, and schedules, bringing significant updates to the tax system. The bill is set to become effective from April 1, 2026. While we will be covering various provisions and terms in future blogs, here …
Continue reading “India’s New Income Tax Bill 2025: Key Changes You Need to Know”
The much-anticipated Income Tax Bill 2025 has finally been introduced, aiming to repeal the Income-tax Act, 1961, and replace it with a more streamlined and efficient tax regime with effect from 1st April 2026. This legislative overhaul is designed to modernize India’s direct tax system without incurring significant additional expenditure beyond the existing administrative costs. …
Continue reading “Do You Know Why the New Income Tax Bill 2025 is Introduced? Here’s the Reason”
Tax Deducted at Source (TDS) compliance is an essential responsibility for deductors under the Income Tax Act, 1961. If you are not required to submit the relevant statement, it is advised to submit a declaration via the TRACES portal. However, if filing is mandatory, it is crucial to adhere to the provisions outlined by the …
Continue reading “Understanding TDS Compliance: Filing, Implications, and Actions to be Taken”
Donations made to political parties qualify for deductions under the Income Tax Act, 1961, under Section 80GGC. This provision is sometimes misused by salaried individuals who have limited avenues for tax savings, using it as a means to reduce their taxable income. However, there are also genuine contributions made to political parties that rightfully qualify …
Continue reading “Donation of Political Parties May Now Subject to Scrutiny: Genuine or Bogus?”
Background of the Case The Income Tax Appellate Tribunal (ITAT), Ahmedabad, “C” Bench, delivered its judgment on January 24, 2025, in the case of Kshama Sanjay Tripathi (Appellant) vs. The Income Tax Officer, Ward-4(2)(2), Ahmedabad (Respondent). This judgment pertains to an appeal filed by the assessee for the assessment year 2010-11. The core issues revolved …
