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Major Shifts in the Income-tax Act, 2025: Analysis and Practical Implications
1. Introduction and Rationale for the New LegislationBackground and Purpose of OverhaulThe Income-tax Act, 2025 supersedes the Income-tax Act, 1961 after more than sixty years, addressing the complexi...
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Foreign Tax Credit (FTC) in the Absence of Indian Tax Liability: Legal Position and Practical Insights
Background and ContextFor a long time, Indian enterprises with international income sources have navigated uncertainty concerning cross-border tax credits. The recent pronouncement by the Delhi Bench...
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Reframing Evidentiary and Procedural Standards: ITAT Mumbai's Key Rulings in Search-Based Reassessments
OverviewThe Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), in the case of Veda Real Estate Corporation (P.) Ltd. v. Dy. CIT ([2025] 180 taxmann.com 331; order dated October 28, 2025), has d...
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Analyzing Search and Seizure Powers in Income Tax Law: The Intersection with Digital Privacy
Introduction to the Income Tax Act, 2025: A New EraThe Income Tax Act, 2025, represents a comprehensive revamp of the longstanding Income Tax Act, 1961. This new legislation is not merely an update bu...
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Supreme Court Clarifies Taxation of Non-Compete Fees: Capital or Revenue Expenditure?
OverviewThe classification of non-compete fees under the Income-tax Act, 1961 has long been a contentious issue, with frequent disputes arising over whether such amounts represent capital expenditure—...
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Investment of Charitable and Religious Institution Funds: Navigating Income-tax Act and Other Regulatory Laws
Overview of Statutory Investment Requirements for Charitable OrganisationsCharitable and religious entities in India are obligated to invest or deposit their funds following specific regulations set f...
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Tiger Global Case: A Watershed Moment in India's Tax Treaty Jurisprudence
Comprehensive Analysis of Supreme Court's Landmark Ruling on Treaty Abuse and GAAR 1. Introduction and Factual MatrixThe Supreme Court of India, through a division bench comprising Justice J.B. Pardiw...
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Reassessment and Non-Speaking Assessment Orders
1. Introduction: Reassessment and Non-Speaking Assessment OrdersThe Income-tax Act, 1961, underlines the process and requirements for assessment and reassessment proceedings. A recurring issue is whet...
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Impact and Continuity of Provisions: Transition from Income-tax Act, 1961 to Income-tax Act, 2025
The historic Income-tax Act, 1961, which served as India’s primary tax legislation for nearly sixty years, has been replaced by the Income-tax Act, 2025, effective from April 1, 2026. The transition i...
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Evolution of Trust Taxation under the Income Tax Act, 2025 – A Comparative Overview with the 1961 Law
1. IntroductionThe Income Tax Act, 2025 represents a major overhaul of the direct tax landscape in India, replacing the six-decade-old Income Tax Act, 1961. Its primary objective is to simplify, moder...
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Taxation of Capital Gains for Charitable Trusts: Comparative Analysis of Income Tax Act, 2025 and Income Tax Bill, 2025—Key Impacts and Practical Insights
OverviewCharitable trusts and the treatment of capital gains have long been a focal point in Indian tax jurisprudence, given the interplay between exemptions and the legal structure governing trusts....
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Supreme Court Defines 'Temporary Lull' Versus 'Business Cessation': Implications for Non-Resident Assessees and Multinational Enterprises
IntroductionThe Supreme Court of India, in its recent decision in Pride Foramer S.A. v. CIT ([2025] 179 taxmann.com 464/307 Taxman 371/481 ITR 1, dated 17 October 2025), has provided crucial guidance...
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Limitation on the Authority to Remand Cases for Fresh Determination under Indian Income Tax Law
1. OverviewIt is a relatively common practice for appellate bodies, whether courts or statutory authorities, to remit matters to lower forums for reconsideration or retrial. However, the ability to re...
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Distinguishing Between Capital Assets and Business Assets: A Tax Perspective
1. Overview: Why Asset Classification Drives Tax OutcomesThe distinction between capital assets and business assets is a recurring and critical issue in Indian tax law. This classification influences...
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Reassessing Allowable Deductions: Air Conditioners and Travel Expenses in Capital Gains Computation
Overview and Contexti) Background of Capital Gains and Improvement CostsThe Income Tax Act, 1961, under Section 48, specifies the computation method for capital gains. When an assessee sells a capital...
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The Bombay High Court’s Guidance Post-Supreme Court Recall in Benami Law
1. Introduction: Context of Legal Flux in Benami AdjudicationThe recent decision of the Bombay High Court in Ganesh Sopan Satkar (2025) emerges as a significant appellate response following the Suprem...
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Comprehensive Guide to Taxation of Virtual Digital Assets (VDAs) in India: A Detailed Analysis
In recent years, digital assets such as cryptocurrencies and Non-Fungible Tokens (NFTs) have shifted from niche interests to mainstream investment choices for Indian assessees. Understanding the intri...
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Chhattisgarh High Court: No Coercive Measures in Fake ITC Investigations When Assessees Cooperate
Background and Key Ruling(i) Overview of the Court’s DecisionThe Chhattisgarh High Court, in the matter of Harsh Wadhwani & Anr. v. Additional Director General Directorate General of GST Intelligence,...
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How the Indian Government Already Knows Your Income Before You Submit Your Income Tax Return
Introduction: The Reality of Pre-Filed Financial DataAssessees often believe that only after they file their Income Tax Return (ITR) does the Income Tax Department become aware of their income details...
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Major Income Tax Updates Introduced by the Finance Act, 2025
OverviewThe Finance Act, 2025 marks a transformative phase in India’s income tax system, focusing on greater simplicity, reduced litigation, and alignment with the nation’s evolving economic landscape...