Income Tax

1. Why demat holdings create tax questionsThe dematerialised holding framework was created to remove the practical limitations of physical share certificates and to make ownership, transfer and settle...

The Delhi Bench of the Income-tax Appellate Tribunal, in Ranjan Sen Jain v. ITO [2026] 188 taxmann.com 645 (Delhi - Trib.), has reiterated an important principle for claiming exemption under sections...

1. Why Clause 12(d) should not be treated casuallyThe tax audit mechanism under section 63 of the Income-tax Act, 2025 is designed to place before the tax authorities a structured set of financial and...

1. Why HUF planning is relevant for high-income familiesAs personal incomes rise, many taxpayers quickly move into the highest slab rates, particularly where salary, professional income, rent, dividen...

1. The core idea: law cannot demand the impossibleTax statutes impose several duties on taxpayers—filing returns, furnishing documents, responding to notices, uploading forms, participating in reasses...

1. Clause 46 is a reporting clause, not a computation clauseClause 46 of Form 26 is concerned with verification of statutory information-reporting compliances under the Income-tax Act, 2025 and the In...

Scrutiny assessments often lead to substantial tax demands, especially where the dispute arises from legal interpretation, disallowance of expenditure, treatment of loans or cash credits, unexplained...

The controversy surrounding tax deduction at source on the foreign salary component of expatriate employees was authoritatively considered by the Supreme Court in CIT v. Eli Lilly and Company (India)...

1. Why this ruling mattersIn tax litigation, obtaining relief from an appellate authority is only one part of the process. The relief must also be implemented through a valid Order Giving Effect, comm...

A recurring dispute under capital gains taxation is whether a gain computed as short-term capital gain under Section 50 of the Income-tax Act, 1961, corresponding to Section 74 of the Income-tax Act,...

1. Assessment is a determination, not a speculationAn income-tax assessment is not meant to be an exercise in approximation without foundation. Once an assessment is completed, it determines the tax l...

1. The issue in briefThe updated return facility was brought into the Income-tax Act to give taxpayers an opportunity to voluntarily report income that was omitted or incorrectly disclosed earlier. A...

1. Why Section 271AAE MattersThe compliance environment for charitable and religious trusts registered under the Income-tax Act, 1961 has become far more rigorous in recent years. A major shift came t...

1. Why convertible instruments matterConvertible securities are widely used in private equity, venture capital, strategic investment, acquisition financing and structured funding transactions. They al...

Introduction: Evolution of Allowance Provisions in Indian Income Tax LawThe framework governing exemptions for certain employee allowances has undergone significant changes with the introduction of th...

1. Central propositionInterest under sections 234A, 234B and 234C of the Income-tax Act, 1961 is not a discretionary levy. Once the statutory conditions are satisfied, the levy follows automatically....

This guide explains the key return-filing rules applicable for Assessment Year 2026-27, i.e., income earned during Previous Year 2025-26. It covers due dates, return forms, changes in ITR utilities, o...

The repeal of the Income-tax Act, 1961 by the Income-tax Act, 2025 does not mean that everything done under the old law disappears. Section 536 of the 2025 Act is designed to prevent that result. It i...

Demerger is one of the most frequently used modes of corporate reorganisation in India. It allows a business undertaking to be separated and housed in another entity while preserving tax neutrality, c...

1. Why the ruling mattersThe Gujarat High Court decision in Paras Chandreshbhai Koticha v. Income Tax Officer reported in [2026] 182 taxmann.com 204/485 ITR 628 (Gujarat) is an important ruling on the...