Decoding the Applicability of New TDS Provisions on Sale of Securities
Transactions involving the sale of shares by non-resident shareholders have traditionally been subject to withholding tax under the Income-tax Act, 1961 (“IT Act”), provided that the gains arising from such sales are taxable in India. However, for resident sellers, there was previously no requirement to withhold tax on gains from the sale of shares or […]
New Tax Filing Rules: One Return for Six Years
Individuals and businesses facing income-tax searches will be able to file a single return covering six years plus the part-year in which investigation is done, instead of filing separate returns for each year concerned, according to a government official. This aligns with the block-assessment scheme introduced last year for search and requisition cases. This took […]
Government to Introduce Digital Tracking Provisions in New I-T Bill Following WhatsApp Chats Uncovering Rs 200 Crore Scandal
The government has proposed new legal provisions to track and investigate digital assets under the Income Tax Bill, 2025. The existing Income Tax Act lacked adequate legal backing for probing digital transactions, prompting the government to introduce specific measures, Finance Minister Nirmala Sitharaman announced on March 25. While addressing the Lok Sabha during discussions on […]
New ITR Mismatched Section 143(1) Tax Returns Rule From April 2025
From April 2025, the Income Tax Department will compare your current ITR with previous years’ filings to identify discrepancies. Income Tax Department is set to introduce a change in tax return processing from April 2025. The update aims to improve accuracy and minimise discrepancies in filings. An amendment to section 143(1) of the Income Tax […]
Who Needs a Tax Residency Certificate?
Filing Form 10F and obtaining a Tax Residency Certificate (TRC) ensures that Non-Resident Indians (NRIs) and foreign nationals benefit from Double Taxation Avoidance Agreement (DTAA) provisions, avoiding double taxation. It enables access to lower Tax Deducted at Source (TDS) rates, smooth tax processing, and compliance with both Indian and foreign tax regulations. A Tax Residency […]
Highlights of Direct Tax proposals in FINANCE BILL, 2025
Finance Minister Nirmala Sitharaman presented her record 8th consecutive Union Budget 2025-26 today (on February 1, 2025) of Modi 3.0 Government. Key highlights of direct tax proposals are as under: Total Income Rate of Tax Upto Rs. 4 Lakh Nil More than Rs. 4 Lakh to Rs.8 Lakh 5% More than Rs. 8 Lakh to […]
Why Income Tax Return Filing is Important
Filing an Income Tax Return (ITR) is not just a legal obligation but also a reflection of your financial discipline. It plays a significant role in maintaining transparency between individuals, businesses, and the government. Yet, many people tend to avoid filing their ITR, unaware of its importance. Whether you are a salaried employee, a business […]
Say no to cash transactions” says Government
In its endeavour to convert the country into a cashless economy the government has been introducing very stringent provisions in the Income Tax Act, 1961 to curb cash transactions. Undoubtedly, a number of western economies have become cashless to the extent that stores on High Street do not accept cash payments at all, even the […]
Amounts payable to Micro and Small Enterprises to be allowed only on payment
In the budget presented on 1st of February 2023, the Hon’ble Finance Minister of the country has proposed that any sum which is payable to micro and small enterprises will be allowed as a deduction for computing the taxable income of the assessee in the year of payment, in case the same is not paid […]
Buy Back of Shares by Company
The Finance Bill, 2024 introduced by the Hon’ble Finance Minister in Parliament on 23rd July, 2024 has proposed total revamping of provisions with respect to taxability of buyback of shares by a company. In accordance with the provisions contained in Section 115QA of the Income Tax Act, 1961 the scheme of taxation of transactions with […]