Income Tax

Introduction: Judicial Perspective and Legislative IntentThe Supreme Court, in the landmark case of ITO v. Ch. Atchaiah (1996) 218 ITR 239 (SC), established that the rightful assessee is obligated to...

1. OverviewThe Finance Bill, 2026, introduces significant reforms in how unexplained income is taxed in India. While the Bill is recognized for its decriminalization measures, its proposed modificatio...

OverviewThe Supreme Court’s decision in GKN Driveshafts (India) Ltd. v. ITO fundamentally reshaped the process of reassessment under the Income Tax Act, 1961, and has continued to influence the framew...

Introduction: The Importance of Commercial Substance in Tax LiabilityIn cross-border tax cases, the real substance of business activities often outweighs how transactions are described in legal agreem...

Introduction: The Changing Face of Gift TaxationThe Indian tax regime governing gifts has undergone notable changes, especially in light of recent judicial pronouncements. Traditionally, a registered...

IntroductionRecent Judicial Pronouncement: The Bombay High Court, in the matter of Bax India Ventures (P.) Ltd. v. Central Processing Centre ([2026] 183 taxmann.com 395), addressed the issue of whethe...

IntroductionForeign enterprises often aim to tap into the Indian market by deploying their personnel at early stages, sometimes even before setting up an official entity. This is a prevalent strategy...

1. Introduction to Section 115BBH and Tax on Virtual Digital AssetsSection 115BBH of the Income Tax Act, 1961, lays out the special provisions regarding taxation on income generated from the transfer...

1. OverviewThe Income-tax Act, 2025 was enacted to streamline and modernize India’s direct tax law framework. However, further improvements continue with the Finance Bill, 2026, which introduces strat...

OverviewShare buybacks have traditionally served as an attractive alternative to dividend distribution for companies, enabling them to repurchase their own shares either via the stock market or throug...

1. Overview of Tax Exemption for Foreign Companies Engaging Indian Data Centres (Finance Bill, 2026)The Finance Bill, 2026 introduces a notable tax relief for foreign companies utilizing data centre s...

Introduction: A New Era of Tax Compliance and CertaintyThe Union Budget 2026-27 introduces sweeping legislative adjustments to the Income-tax Act, aimed at simplifying the tax landscape, reducing the...

1. Overview1.1 Section 11(1) of the Income Tax Act, 2025, stipulates that income types listed in Schedules II through VI are to be excluded from the computation of total income for any assessee, provi...

1. Overview of the New Legislation and NPO Taxation ModelThe Income-tax Act, 2025, slated to replace the Income-tax Act, 1961 and effective from 1 April 2026, represents a comprehensive overhaul of In...

OverviewThe framework for reassessment under the Income-tax Act has long been subject to rigorous judicial oversight. This is largely because reopening finalized tax assessments not only affects the r...

Introduction: Context and Legislative EvolutionSection 14A and Its Legislative BackgroundTax professionals are frequently confronted with questions about the disallowance of expenditure related to exe...

Background and Purpose of the Black Money ActThe Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”) was enacted to address the issue of undisclosed...

OverviewTaxation forms the backbone of economic development by funding essential public infrastructure and services. A robust and equitable tax regime not only ensures fiscal sustainability but also c...

IntroductionThe Union Budget 2024-25 set in motion a major overhaul of India’s direct tax legislation, resulting in the enactment of the Income Tax Act, 2025. This modern statute seeks to simplify, cl...

Overview of Taxability for Non-Resident AssesseesSection 5 of the Income Tax Act, 1961, governs the scope of total income for various residential statuses. For non-resident assessees, the primary conc...