The Income Tax Department of India has officially notified ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) for the Assessment Year 2025-26 (FY 2024-25), simplifying return filing for salaried individuals, small businesses, and HUFs. 🔍 Key Highlights of the …
Non-Resident Indians (NRIs) investing in Indian mutual funds might legally avoid paying capital gains tax if certain Double Taxation Avoidance Agreement (DTAA) conditions are met. Let’s break down the important points you should know: DTAA and the Residual Clause: How …
In a significant judgment, the Gujarat High Court has ruled that an Assessing Officer (AO) cannot pass a best judgment assessment under Section 144 of the Income Tax Act without assigning proper reasons for rejecting an assessee’s detailed response. Failure …
If you’re a tenant paying monthly rent above ₹50,000, you’re likely aware of the requirement to deduct TDS under Section 194-IB of the Income Tax Act. This tax is paid via Form 26QC, which acts as both a challan and …
In a significant ruling, the Delhi High Court has clarified that the charitable status of a trust cannot be revoked solely on the grounds of reasonable payments made to related parties for services rendered. The verdict reaffirms the position that …
The Bombay High Court, in a significant ruling, held that the Income Tax Department acted in violation of the Standard Operating Procedure (SOP) under Section 144B of the Income Tax Act, 1961. The failure to follow due procedure and provide …
The clock is ticking for taxpayers! The Vivad Se Vishwas Scheme 2024, launched by the Income Tax Department to resolve long-standing tax disputes, is set to close on April 30, 2025. This is a golden opportunity for individuals and businesses …
In a significant judgment reinforcing procedural safeguards under income tax law, the Delhi High Court has quashed the second reassessment notice issued under Section 148 of the Income Tax Act for being beyond the prescribed limitation period of four years. …
In a significant ruling, the Chhattisgarh High Court has held that penalty under Section 271(1)(c) of the Income Tax Act cannot be imposed in cases of voluntary disclosure and bona fide errors. The court clarified that mistakes made without any …
In a landmark ruling, the Kerala High Court has clarified that any compensation or enhanced compensation received by an assessee for the compulsory acquisition of landed property will be treated as income under the head ‘Capital Gains’ under the Income …
A recent research study has uncovered a massive disparity between the reported income and actual wealth of India’s super rich individuals. Titled “Do the Wealthy Underreport Their Income? Using General Election Filings to Study the Income–Wealth Relationship in India”, the …
In a significant judgment dated March 24, 2025, the Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favour of a taxpayer, redefining how long-term capital gains (LTCG) are calculated on real estate transactions. The Tribunal held that the date of …
The court ruled that, cash purchases, if duly recorded in the books and supported by relevant documents, cannot be disallowed merely due to the mode of payment. In a significant tax ruling, the Delhi High Court has upheld the decision …
The taxation of alimony in India is a complex issue due to the absence of explicit provisions under the Income Tax Act. While lump sum alimony is generally tax-free, periodic alimony is taxable under “Income from Other Sources.” Alimony, also …
The Rajasthan High Court has ruled that an Assessing Officer (AO) cannot issue a reassessment notice under Section 148A of the Income Tax Act without mentioning the name of the bank where the alleged transactions took place. If the AO …
Centre’s Power to Relax Conditions Under Rule 9C : Delhi High Court Ruling Discretionary power to relax Rule 9C conditions is limited and guided by specified factors. Courts will not interfere unless the decision is unreasonable or contrary to law. …
The Bench reiterated that the issue of proper notice is a factual matter requiring examination of evidence, which is beyond the scope of a writ petition under Article 226. The Kerala High Court has ruled that the question of ‘whether …
Some CIT(A) rulings have supported the taxpayer’s interpretation that the 87A rebate should apply to total income, including capital gains. However, until a clear judicial or legislative resolution is established, the issue remains contentious. A major controversy has emerged surrounding …
The Delhi High Court ruled that the dues of a secured creditor take precedence over the tax dues owed to the Income Tax Department. In a significant ruling, the Delhi High Court has held that the Income Tax Department cannot …
The High Court ruled that irrespective of whether the delay was caused by the assessee or the department, the assessee was entitled to interest at a rate of 6% per annum. In a significant ruling, the Gujarat High Court has …