Income Tax

1. Business connection as India’s source-tax ruleThe taxation of a non-resident’s business profits in India depends upon whether India has sufficient source nexus with those profits. Section 9 of the...

India has already crossed an important threshold in electronics manufacturing. The country is no longer trying to prove that it can assemble electronic products at scale. That capability is now visibl...

Payments made by an employer or a former employer in connection with employee stock options often create a difficult tax question. If the options have vested but have not been exercised, and the emplo...

1. Why the ruling mattersThe Karnataka High Court’s judgment dated August 6, 2026, in Jindal Thermal Power Company Limited, earlier known as Jindal Tractebel Power Company Ltd., v. Deputy Commissioner...

1. Why pre-exercise ESOP monetisation creates a tax problemEmployee Stock Option Plans, commonly known as ESOPs, are now a regular feature of compensation structures in India as well as in multination...

Background and Legislative History of Section 14ASection 14A of the Income-tax Act, 1961, was inserted via Clause 11 of the Finance Act, 2001, with retrospective effect from 1 April 1962. The provisio...

Background and SignificanceThe Delhi High Court, in Principal Commissioner of Income Tax, Delhi-7 v. Vitasta Estates Pvt. Ltd. — (2026) TaxCorp(LJ) 38566 (HC-DELHI) — Delhi High Court, has reaffirmed...

1. Why the Siyaram arrangement is noteworthyA company with large accumulated reserves generally has a few familiar choices: declare dividend, issue equity bonus shares, undertake buy-back, or retain t...

1. Meaning and practical relevance of a WillA Will is a written legal expression of a person’s intention regarding the manner in which his or her property should be dealt with after death. The person...

The taxation of gifts in India has moved through two distinct legislative phases. Earlier, gifts were taxed under the Gift-tax Act in the hands of the donor. After the Gift-tax Act was abolished in 19...

1. The controversy in briefThe procedural dispute around reassessment notices under the Income-tax Act, 1961 has largely centred on one question: when action is taken under section 148 or section 148A...

Indian tax residents are required to be transparent about assets, financial interests, income and beneficial ownership held outside India. This disclosure is made through Schedule FA in Income-tax Ret...

Background and Case ReferenceA recent ruling by the Income Tax Appellate Tribunal, Chennai, offers instructive lessons for both taxpayers and tax authorities regarding the consequences of quoting a Hi...

Background and ContextDuring the return filing season for Assessment Year 2026-27, Section 10(14)(i) of the Income-tax Act, 1961 has become one of the most widely — and often incorrectly — invoked pro...

1. The central holdingIn Navinchandra Mafatlal v. Commissioner of Income-tax, AIR 1955 SC 58, the Supreme Court settled an important constitutional question: the word “income” in Entry 54 of List I of...

1. Introduction: A Tax Law with a Wider Economic PurposeThe Taxation and Other Laws (Amendment) Act, 2026, referred to as “TOLA 2026”, is not merely a set of technical amendments to the Income-tax Act...

1. The issue: ESOPs do not always follow the standard pathEmployee stock options, commonly referred to as ESOPs or stock options, are not simple tax instruments. In their usual form, they pass through...

1. Why optional convertibles require separate analysisOptionally Convertible Preference Shares (“OCPS”) and Optionally Convertible Debentures (“OCDs”) are frequently used in private equity, venture ca...

1. Deeming as a legislative deviceThe expression “deemed” is one of the most powerful drafting tools in legislation. It allows the legislature to direct that, for the purposes of a statute, a thing sh...

Indian employees working for subsidiaries of multinational groups often receive stock options from the foreign parent company. These options may vest over time, but the employee may not immediately ex...