The Indian Income-tax Act, 1961, not only levies tax on income but also provides relief to taxpayers by allowing the set-off and carry forward of losses. These provisions ensure that taxpayers are taxed only on their net income after adjusting eligible losses. The …
The processing of income tax refunds for Assessment Year (AY) 2025-26 has seen noticeable delays compared to previous years. While refunds are usually credited within a few weeks of e-verification, several systemic, procedural, and compliance-related factors have slowed down the …
Key Highlights of the CBDT Instruction 1. What Changed? The CBDT has amended its own instruction (originally issued on March 15, 2022) to align with the statutory changes made by the Finance (No. 2) Act, 2024. The update specifies that prosecution under Sections 49 and/or …
The Chhattisgarh High Court recently affirmed the order of the Income Tax Appellate Tribunal (ITAT) granting registration under Section 12AA of the Income-tax Act, 1961 to a trust created for the benefit of pharmaceutical dealers. The ruling underscores that at the stage …
The Supreme Court, in its judgment dated 28 August 2025, delivered a significant ruling in the field of tax prosecutions by quashing criminal proceedings initiated by the Income Tax Department against an assessee under Section 276C(1) of the Income Tax Act, …
The Bombay High Court in Gateway Terminals India Pvt. Ltd. v. DCIT & Ors. (26 August 2025) has delivered a significant ruling on the scope of deductions under Section 80-IA of the Income-tax Act, 1961. The issue before the Court was whether interest …
The issue before the Income Tax Appellate Tribunal (ITAT), Ahmedabad, in its order dated 19 August 2025, revolved around the rejection of a trust’s application for registration under section 12AB of the Income-tax Act, 1961. The Commissioner of Income Tax (Exemptions) [CIT(E)] …
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 …