Section 270A of the Income-tax Act, 1961, introduced with effect from Assessment Year 2017-18, aims to penalize cases of under-reporting and misreporting of income. It replaced the older Section 271(1)(c), streamlining the penalty mechanism with fixed rates and detailed categorization. However, despite its clarity …
In a significant ruling, the Kerala High Court has held that reassessment proceedings initiated under Section 148A of the Income Tax Act are unsustainable if the alleged escaped income is less than ₹50 lakhs and the notice is issued beyond …
In a significant judgment, the Delhi High Court reaffirmed the principle that deployment of funds by a charitable organization in a wholly owned subsidiary for regulatory compliance, and not with the intention to earn income, does not amount to an …
In a significant ruling safeguarding taxpayer rights and reinforcing judicial scrutiny over reassessment proceedings, the Calcutta High Court in Vikas Rungta v. ITO quashed the reassessment initiated under Section 148 of the Income Tax Act, 1961. The Court observed that the reopening …
In a recent ruling, the Calcutta High Court clarified that the time granted to the assessee to respond to a notice under Section 148A(b) of the Income Tax Act must be excluded while calculating the limitation period for passing the …
In a significant judgment, the Chhattisgarh High Court has ruled that assessment proceedings pending before the Income Tax Appellate Tribunal (ITAT) shall be deemed to be pending before the Assessing Officer (AO) for the purpose of granting retrospective benefit under …
In a significant ruling, the Telangana High Court held that insolvency proceedings under IBC cannot be used to escape tax scrutiny. It clarified that reassessment under Section 147 of the Income Tax Act remains valid even after CIRP approval, especially …
In a landmark ruling, the Gujarat High Court quashed multiple income tax penalties against Technovaa Plastic Industries, reinforcing legal protection for companies under approved IBC resolution plans. This judgment highlights critical safeguards against arbitrary penalties, particularly under Section 270A of …
With the ITR filing deadline extended to September 15, 2025, for non-audit cases, taxpayers must exercise caution while claiming deductions. The Income Tax Department is adopting a zero-tolerance approach towards false or ineligible claims in the Income Tax Return (ITR). Avoiding such errors …
A Section 8 Company, registered under the Companies Act, 2013, is formed for charitable or not-for-profit purposes such as promoting commerce, art, science, education, sports, research, social welfare, etc. While these companies are non-profit in nature, they are not automatically …
In a significant ruling, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has clarified that a reference to the District Valuation Officer (DVO) under Section 142A of the Income Tax Act, 1961, can only be made during the …
Section 80GG of the Income Tax Act, 1961, provides a deduction for individuals who pay house rent but do not receive House Rent Allowance (HRA) from their employer. This benefit is available to both salaried individuals (without HRA) and self-employed …
Paying rent for accommodation? You may be eligible to claim tax exemption on the House Rent Allowance (HRA) received from your employer under the Income Tax Act, 1961. HRA is a common component of salary, designed to help employees meet …
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, offering attractive interest rates and tax benefits. Parents can open the account anytime before the girl turns 10. It provides tax deduction under Section 80C, tax-free interest, …
The Union Budget 2024 has introduced a significant change in the taxation of capital gains arising from the sale of immovable property. As per the announcement, indexation benefits will no longer be available for properties purchased on or after 23rd …
The Income Tax Department has released updated guidelines explaining how certain Income Tax Returns (ITRs) are selected for scrutiny. These latest directions aim to bring more transparency to the scrutiny process and help taxpayers understand the reasons behind receiving scrutiny …
Capital gain tax in India is levied on profits earned from the sale of capital assets such as property, shares, gold, or mutual funds. Gains are classified as short-term or long-term, depending on the holding period. Short-term capital gains (STCG) on listed shares …
In a remarkable instance of efficient governance, an individual recently shared an extraordinary experience of getting two Income Tax Returns (ITRs) processed and refunds credited within just three hours of filing. The incident highlights the Income Tax Department’s ongoing efforts …
The Income Tax Department has notified ITR forms for FY 2024-25 (AY 2025-26), with significant changes aimed at simplifying filing and enhancing compliance. ITR-1 and ITR-4 were released with new Excel utilities requiring detailed HRA, TDS, and deduction disclosures. LTCG …
Knowing the correct ITR form is crucial for accurate income tax return filing. Using the wrong form can lead to rejection of the return, delays in processing, penalties, or even legal scrutiny. Each ITR form is designed for specific categories …