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Analysis of Capital Gains on Split Shares: Resolving the Holding Period Uncertainty
Introduction to Capital Gains Taxation on SharesUnderstanding Cost and Holding Period of SharesIn the context of calculating capital gains tax on the sale of shares, it is essential for an assessee to...
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Year of TDS Credit: Synchronization with Income Recognition
Introduction(i) Overview of TDS Credit Entitlement(a) The right to claim credit for Tax Deducted at Source (TDS) is directly connected to the financial year in which the associated income is recognize...
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Transfer Pricing and the Treatment of Forex Gains/Losses: Should They Influence PLI Calculations?
Introduction: Domestic Case Law vs. Transfer Pricing ContextBackground and Rationale: Transfer pricing regulations aim to ensure that international transactions between associated enterprises (AEs) ar...
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Section 30 of the Insolvency and Bankruptcy Code (IBC): Ensuring Fair Payment to Operational and Dissenting Financial Creditors
Overview of Section 30: Binding Nature of Approved Resolution PlansOnce the Committee of Creditors (CoC) grants approval to a resolution plan, as per Section 30(4) of the Insolvency and Bankruptcy Cod...
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Process of Registering Non-Profit Organisations (NPOs) under the Proposed Income Tax Bill, 2025
Introduction to NPO Provisions in the New LegislationThe Income Tax Bill, 2025 introduces a consolidated framework for Non-Profit Organisations (NPOs) under Chapter XVII-B, which covers Sections 332 t...
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Taxation Aspects of Selling Property Held Jointly in India
Overview of Joint Property Ownership and TaxationJoint property ownership is widely practiced across India, but the sale of such properties brings complex income tax considerations. Co-owners must be...
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Cherry Picking Prohibited in Income Tax Scrutiny: Application of the Doctrine of Appropriation and Reprobation
OverviewThe Income Tax Act empowers the Assessing Officer (AO) with discretion to evaluate the taxable income of an assessee under scrutiny, especially when the explanations or evidence furnished by t...
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Distinguishing DTAA and POEM: Treaty Override Considerations in Indian Tax Law
Overview: Globalisation and the Challenge of Cross-Border TaxationAs companies increasingly operate across borders, jurisdictional questions over the right to tax corporate income have become more com...
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Avoiding Income Tax Notices: Navigating AIS and Form 26AS Discrepancies
OverviewWith the ongoing digital transformation of India's tax administration, the Income Tax Department now has advanced tools to cross-verify the financial disclosures made by assessees. Two critica...
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Determining Cost of Acquisition for Assets Received Upon Liquidation: Navigating the Interplay of Section 49(1)(iii)(c) and Section 55(2)(b)(iii)
Background and Judicial Context(i) Introduction to the IssueThe Madras High Court, in the case of T. R. Balasubramanium vs. ACIT, addressed a significant question regarding the correct methodology for...
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Expanded Tax Benefits Under Section 80-IA: Implications of the Jindal Steel & Power Ltd. Judgment and Related Rulings
Introduction: Enhanced Prospects for Section 80-IA ClaimsThe Supreme Court’s decision in CIT v. Jindal Steel & Power Ltd. (Dec 2023) and subsequent case law have significantly broadened the interpreta...
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Understanding Scrutiny Notices Under Section 143(2) of the Income Tax Act: A Comprehensive Guide for Assessees
OverviewSection 143(2) notices are being issued by the Income Tax Department as part of the scrutiny process for Assessment Year (AY) 2024–25. If you, as an assessee, have received this notice, it is...
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Determining Non-Resident Status: Insights from the Mahadevan Case and Practical Guidance
Introduction to Non-Resident Status under Indian Tax LawIndian tax statutes, specifically Section 6(1)(c) of the Income Tax Act, 1961, lay out the criteria for classifying an individual as a ‘non-resi...
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Delhi ITAT: Essar Com Considered Non-Resident—POEM in Mauritius, Exemption on Capital Gains Under India-Mauritius DTAA
1. Introduction and Case Background(i) Overview of the RulingThe Delhi Income Tax Appellate Tribunal (ITAT) delivered a significant decision regarding the tax residency status of Essar Com, a Mauritiu...
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Income Tax Department’s Pre-Diwali Drive: Crackdown on Fraudulent Deduction Claims
Overview of the Recent Income Tax Raids(i) Nationwide Operation to Curb False Deduction Claims(a) In a significant step towards promoting tax compliance, the Income Tax Department recently conducted a...
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Essential Regulatory Checklist for Setting Up a Foreign Subsidiary in India
Foreign entities intending to establish a private limited company as a subsidiary in India are required to meet several statutory and procedural obligations under Indian law. This article outlines the...
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Ensuring TDS/TCS Compliance: Typical Pitfalls and Their Ramifications
1. Introduction: The Imperative of TDS/TCS ComplianceTax Deducted at Source (TDS) and Tax Collected at Source (TCS) are integral components of India’s tax system, ensuring a steady inflow of revenue t...
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A Guide to Tax Audit Under Section 44AB of the Income-tax Act, 1961: Practical Insights for Audit Professionals
1. Introduction to Tax Audit: Legal FoundationLegal Basis for Tax Audit ObligationsSection 44AB of the Income-tax Act, 1961, sets the framework for mandatory tax audits for certain categories of asses...
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Why Filing Your Own Tax Returns May Result in Expensive Errors
Introduction: The Risks of DIY Tax ComplianceIn popular cinema, it's not uncommon to witness a protagonist removing a bullet from their own body with basic tools, surviving against all odds. While thi...
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Interest on Delayed Deduction of TDS: Provisions, Computation, and Key Points
Overview of Interest on Late TDS Deductioni) Responsibility for Timely TDS Deduction(a) As per the Income Tax Act, assessees are required to deduct Tax Deducted at Source (TDS) by the stipulated deadl...