Many employers in India provide a Flexible Compensation Structure (Flexi Pay), which allows employees to design part of their salary by choosing from different allowances and reimbursements. The objective is to optimize tax savings while meeting personal and professional needs. However, not all …
In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, in the case of Gujarat Technological University vs. DCIT (order dated 19 August 2025), held that a mere procedural lapse such as delay in filing Form 10 and Form 10B cannot be the sole …
Leave encashment is a monetary benefit received by an employee for the leave days not availed during the period of service. The Income-tax Act, 1961 provides exemption on such receipts under Section 10(10AA). The scope of exemption depends upon the nature …
Gratuity is a retirement benefit payable by an employer to an employee in recognition of long and continuous service. To provide relief to employees, the Income-tax Act, 1961 grants exemption on gratuity receipts under Section 10(10). The extent of exemption depends …
In India, life insurance and health insurance are not just tools for financial protection but also provide significant tax-saving opportunities under the Income-tax Act, 1961. Life insurance safeguards the financial security of dependents in case of an unfortunate event, while …
In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, held that a trust cannot be denied registration under Section 12AB of the Income-tax Act, 1961 merely on the ground that it was created for the benefit of a particular caste …
In a significant relief to real estate developers, the Pune Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Section 43CA of the Income Tax Act, 1961 cannot be invoked when the agreement value at the time of booking exceeds the stamp …
India has emerged as one of the world’s fastest-growing startup ecosystems, with the government actively promoting innovation and entrepreneurship through the Startup India initiative. Recognizing that newly established businesses face funding challenges and high compliance costs, the Income-tax Act, 1961 provides …
Retirement brings financial security in the form of pensions. However, many retirees and their families are often unsure about how pensions are taxed in India. The Income-tax Act distinguishes between different types of pensions—uncommuted pension, commuted pension, and family pension—and …
The Income Tax Appellate Tribunal (ITAT), Surat Bench, in its order dated 31 July 2025, delivered an important ruling on the scope of Section 69A of the Income-tax Act, 1961. The Tribunal held that no addition can be made under Section 69A in …
The Income Tax Appellate Tribunal (ITAT), Mumbai, in the case of Navketan Premises Pvt. Ltd. vs. DCIT (AY 2015-16), delivered a significant ruling on 6 August 2025 clarifying the scope of Section 43CA of the Income-tax Act, 1961. The dispute revolved around whether undervaluation provisions under …
The Central Board of Direct Taxes (CBDT) has notified important changes to the Income-tax Rules, 1962 through Notification No. 136/2025 (G.S.R. 566(E)), dated 21st August 2025. The amendment specifically impacts Rule 21AIA, which deals with procedures relating to the income of certain investment funds. The …
The Central Board of Direct Taxes (CBDT) has brought welcome relief for salaried employees by revising the income limits for taxation of certain perquisites (benefits provided by employers, like free housing, cars, education, or medical facilities). Until now, the thresholds were outdated and caused …
The Central Board of Direct Taxes (CBDT) has released Instruction No. 01/2025, dated 18 August 2025, easing compliance requirements under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The move brings relief to taxpayers holding minor undisclosed foreign assets by …
On 20 August 2025, the Enforcement Directorate (ED) of India’s Hyderabad unit arrested Sharad Chandra Toshniwal, a Chartered Accountant, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The arrest is connected to the ongoing probe involving Capital Protection Force …
The Income Tax Bill, 2025 has undergone major revisions between the February Draft and the August Draft, with significant implications for corporate taxpayers, LLPs, NPOs, and professionals. While the August draft addresses several concerns raised earlier, it also expands the tax net in some …
The Income Tax Appellate Tribunal (ITAT), Lucknow Bench, has recently clarified an important issue concerning “entry providers” and the scope of additions under Section 68 of the Income-tax Act, 1961. In the case of ITO Vs Status Vyapaar Pvt Ltd, the Tribunal …
On 21 August 2025, the Income-Tax (No. 2) Bill, 2025 officially received the President’s assent, becoming the Income-Tax Act, 2025 — a landmark overhaul of India’s tax code. This modernized legislation is slated to commence from 1 April 2026, ushering in a new unified Tax Year system and supplanting …
The Calcutta High Court, in its landmark judgment dated 28 July 2025 in the case of Asian Financial Services Ltd. v. CIT, settled a long-standing controversy regarding the tax treatment of losses incurred from trading in derivatives. The Court categorically held that such losses …
The Chhattisgarh High Court has clarified that the Income Tax Department cannot file appeals before the High Court solely on the basis of monetary thresholds. Even if the tax demand exceeds the prescribed limit, the appeal must be supported by substantive legal grounds. In a …