Mar 17, 2025 CBDT clarifies exemptions from principal purpose test in double taxation avoidance agreements
Income TaxIndia's Central Board of Direct Taxes (CBDT) has clarified that exemptions from the Principal Purpose Test (PPT) under Double Taxation Avoidance Agreements (DTAAs) with countries like Mauritius, Cyprus, and Singapore won't interfere with domestic anti-abuse rules. This clarification is significant, especially since India and Mauritius amended their tax treaty in April 2024 to include the PPT. The PPT aims to prevent large companies from avoiding taxes by scrutinizing business arrangements made purely for tax benefits . In January, the CBDT had announced that the PPT wouldn't apply to past investments made under certain tax treaties with countries like Mauritius, Cyprus, and Singapore.
Mar 11, 2025 Social media accounts accessed only in search, survey ops: I-T official
Income TaxThe new Income Tax Bill prescribes the existing process for tax authorities to gain access to the digital space or a computer device only during search and survey operations, and it is not aimed to breach the online privacy of common taxpayers even if their case lands into scrutiny, a top I-T department official said Monday. The powers for such a coercive action "already existed" in the 1961 Act, and these have only been reiterated in the Income Tax Bill of 2025, he said. The official rejected claims made in some reports and opinion pieces that the tax authorities have been granted "additional" powers to breach the passwords of electronic records, including email, social media handles and Cloud storage space of the taxpayers.
Mar 11, 2025 Mauritius seeks amendment in double taxation avoidance convention with India: Foreign Minister Dhananjay Ramful
Income TaxMauritius is pressing for amendments to its trade agreement, including Double Taxation Avoidance Convention (DTAC) with India, Foreign and Trade Minister Dhananjay Ramful said. In an interview with PTI Videos at his office in Port Louis, he underscored the need to revisit the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to restore Mauritius' position as a preferred investment conduit, as foreign direct investment (FDI) inflows from the island nation to India have declined sharply since the treaty's revision in 2016. "Amendment in DTAC is still under discussion. Two issues, I think, need to be sorted out. From what I've been told, once this is sorted out, then they will sign the protocol," he explained, hinting at unresolved sticking points in the negotiations.
Mar 07, 2025 Over 30k taxpayers declare foreign assets worth Rs 29k cr in CBDT's campaign
Income TaxOver 30,000 taxpayers have revised their I-T returns or filed belated returns and declared additional foreign assets and income of more than Rs 30,000 crore, Government sources said on Thursday. In line with its 'trust-first' approach, the Central Board of Direct Taxes (CBDT) had on November 16 last year, launched an awareness campaign under which messages were sent to taxpayers who had not disclosed high-value foreign income or assets in their ITRs for AY 2024-25. SMSes and emails were sent to 19,501 taxpayers with high foreign account balances or significant foreign income from interest or dividends above a specified threshold.
Mar 06, 2025 Major changes in TDS and TCS rules from April 1: Here’s all you need to know
Income TaxThe Centre in the Budget announced many important changes related to tax, especially to make TDS and TCS easy and simple. The purpose of these changes – which will be effective from April 1, 2025 – is to make tax compliance easier for common taxpayers and traders and eliminate unnecessary complexities. These changes will ensure taxpayers do not face the hassles of tax deduction and collection like before on sending money abroad, making big purchases or business transactions. Let us know what special changes have been made in the budget this time. New limits of TDS When you earn interest from the bank, pay rent or make any big payment, TDS is deducted after a certain limit.
Mar 03, 2025 I-T Dept investigates unlisted share transactions, tax evasion in OFS deals
Income TaxThe Income Tax (I-T) Department is investigating transactions where promoters, their associates and anchor investors bought unlisted stocks of companies and offloaded them during offers for sale (OFS) when the entities went for listing. Over the past 10 days, the department's investigation wing has sent out many notices, questioning such investors in multiple cities on how they computed the 'cost' of acquisition of unlisted shares and the subsequent capital gains on their sale. The tax office suspects several investors pegged the stock purchase cost at an unacceptably high fair market value (FMV) - instead of the actual outgo for acquisition- to lower capital gains and tax numbers, said people in the know.
Mar 01, 2025 Form 16 and 24Q formats revised! New tax deduction rules you must know
Income TaxThe Central Board of Direct Taxes (CBDT) has issued a new circular, which states the new rules for tax deduction from salary under section 192 of the Income Tax Act, 1961. It also includes the changes made in the Finance Act 2024 and 2023. “The Form No. 16 has been amended vide the Income-tax (Fifth Amendment) Rules, 2023, w.e.f. 1-7-2023 and shall be applicable for the assessment year 2024-25 and subsequent assessment years. Form No. 16 (has been further modified vide the Income-Tax (Eighth Amendment) Rules, 2024, w.e.f. 15- 10-2024,” the CBDT circular said. This circular has been issued on 20 February 2025 and it will be applicable to the tax returns of the financial year 2024-25 (i.e. assessment year 2025-26).
Jan 30, 2025 File GSTR-9C by March 31 to get late fee waive-off and avoid GST notice
Income TaxThe Finance Ministry recently issued a notification about Goods and Services Tax (GST) payers who have not filed the annual reconciliation statement using the GSTR-9C form. According to the circular, such taxpayers have an opportunity not to pay any outstanding late fees for failing to file GSTR-9C for FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, or FY 2022-23. To avail of the waive-off, the pending GSTR-9C must be filed by March 31, 2025. Who needs to file GSTR-9C and GSTR-9? GSTR-9 is an annual return to be filed by taxpayers who are registered under GST. This return consolidates the information furnished in the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) during the financial year.
Feb 22, 2025 Tax relief: You'll get rebate even if capital gains push your total income more than Rs 12.75 lakh, points out Finance Bill, 2025
Income TaxIn Budget 2025, Finance Minister Nirmala Sitharaman unveiled significant income tax savings, giving taxpayers more funds and introducing modifications to the way they compute their obligations. A noteworthy point is that individuals with earnings up to Rs 12 lakh are exempt from paying income tax in the updated taxation system. During her speech, the Finance Minister announced that individuals earning up to Rs 12 lakh will be exempt from paying taxes. Taking into account the standard deduction of Rs 75,000, the effective tax-free threshold is raised to Rs 12.75 lakh. How much tax do I have to pay? Calculate now According to the Finance Bill, 2025, on the Central Board of Direct Taxes (CBDT) website, income taxed at special rates is not considered in the rebate calculation. This means that you are still eligible for a rebate even if your total income exceeds Rs 12.75 lakh due to capital gains.
Feb 21, 2025 Income Tax Bill 2025: New Bill clarifies carry forward of house property losses
Income TaxThe New Income Tax Bill 2025, which aims to replace the Income Tax Act 1961, seeks to simplify and simplify tax rules. We take a look at some tax aspects regarding the sale of property Carry Forward Of Losses From House Property If you have a loss from one house property, you can adjust it against income from another house property. If there’s still a loss after this, you can set it off against income from other sources, but only up to Rs 2 lakh a year. Any loss beyond Rs 2 lakh cannot be adjusted against other income in the same year. “The remaining loss (unabsorbed loss) can be carried forward for the next eight years, but it can only be adjusted against income from the house property in those years.
Feb 18, 2025 No refund for late ITR filings under new income tax bill? I-T Department issues this clarification
Income TaxOne of the primary concerns generated by the release of the new Income Tax Bill 2025 is whether late filers will be entitled to refunds when filing their Income Tax Return (ITR) beyond the deadline. The bill, slated to be implemented from FY2026-27, contains provisions that have created uncertainty regarding the entitlement of late filers to refunds. Major provisions in the new bill Clause 263(1)(a)(ix) of the new bill has been criticized by experts, which says that those who are claiming refunds should file their ITR within the stipulated due date. This is different from the existing Income Tax Act, 1961, where taxpayers can claim refunds even if they submit a delayed return by December 31 of the assessment year.
Feb 17, 2025 Foreign education loans gets full relief from TCS on tuition fee remittances
Income TaxThe Union Budget 2025-26 has introduced major changes to Tax Collected at Source (TCS), offering relief to Indian students aspiring to study abroad. These revisions aim to reduce the financial burden on families by lowering tax implications on foreign remittances under the Liberalised Remittance Scheme (LRS). Under this scheme, authorized dealers collect TCS when individuals transfer funds abroad. However, TCS is not an additional tax but an advance that can be adjusted against total income tax liability or refunded if overpaid. How This Benefits Students and Parents Education loan borrowers get full relief from TCS on tuition fee remittances, reducing financial burden. Families remitting personal savings still face 5% TCS on amounts exceeding Rs 7 lakh, but this is significantly lower than the 20% imposed on general remittances.
Feb 17, 2025 I-T Bill creates ambiguities in eligibility for claiming refunds
Income TaxThe new Income Tax Bill, 2025 contains some provisions which have created ambiguity regarding the eligibility for claiming tax refunds. To be specific, clause (ix) under ‘Section 263(1)(a)’ of the new Bill mandates that a taxpayer who intends to claim a refund, is required to file their Income Tax Return (ITR) within the “due date” (the date of the financial year immediately succeeding the relevant “tax year”). However, ‘Chapter XX’ of the new Bill dealing with refunds provides for interest on refunds even in cases where returns are filed “outside of the due dates”. There is also no restriction placed on claiming a refund in a revised or belated tax return, unlike in the case of an updated return, in the new Bill, say experts.
Feb 17, 2025 Employed outside India; here’s how your income tax in India will be impacted as per new tax bill 2025; Experts seek clarification from the tax dept
Income TaxIt seems that the proposed Income Tax Bill, 2025, has made a minor change in language with the residential status clause. Earlier, Indians who moved abroad ‘for the purpose of employment’ enjoyed a relaxation from Indian tax residency provisions namely 182 days instead of 60 days for others. While others had to satisfy the 60 days clause, but if these persons who moved abroad 'for the purpose of employment' stayed in India for less than 182 days in the current financial year then they would have been considered non-residents under the Income Tax Act, 1961. Now as per the proposed Income Tax Bill, 2025, the phrase mentioned above has been changed to Indians who moved abroad “for employment outside India”. Due to this change in language of the proposed Income Tax Bill, 2025, job-seekers, self-employed, professionals, etc may now fall outside the ambit of the relaxed Indian tax residency laws (182 days).
Feb 15, 2025 TDS to capital gains tax: What impact new tax Bill will have on NRIs
Income TaxThe Income Tax Bill, 2025, tabled in Parliament on Thursday, introduces changes for non-resident Indians (NRIs), particularly regarding capital gains, tax deducted at source (TDS), and tax recovery measures. “The Bill introduces more stringent measures for tax recovery from non-residents: Enhanced powers for tax authorities to access electronic records, including emails, social media accounts, and online banking information during searches. This aims to improve tax compliance and prevent evasion by leveraging digital footprints,” said Pallav Pradyumn Narang, partner, CNK (a legal firm). Under new provisions NRIs earning Rs 15 lakh or more annually in India will be classified as residents for tax purposes.
Feb 14, 2025 Income Tax Bill 2025: Key clauses for non-resident Indians
Income TaxThe Income-tax Bill, 2025 has been tabled in Parliament, marking a significant step toward simplifying the language and structure of the Income-tax Act, 1961. No major tax policy changes and no modifications of tax rates have been made in the Income-tax Bill, 2025. Overall, there will be 23 chapters instead of 47, and there will be 536 clauses in place of 819 sections. The Income Tax Bill 2025 has several aspects to be considered by the Non-Resident Indians (NRIs) as Clauses replace Sections. A non-resident Indian means an individual, who is not a resident and is (i) a citizen of India; or (ii) a person of Indian origin. Here are some key Clauses for NRI’s to take note of.
Feb 14, 2025 The new Income Tax Bill FAQs: I-T department answers key questions
Income TaxThe simplified Income Tax Bill, which is half the size of the 1961 Income Tax Act, seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, the Income Tax department said on Thursday. The new bill, introduced in the Lok Sabha, has a word count of 2.6 lakh, lower than 5.12 lakh in the I-T Act. The number of sections is 536, as against 819 effective sections in the existing law. The number of chapters has also been halved to 23 from 47, according to the FAQ issued by the I-T department.
Feb 13, 2025 Income Tax Bill 2025: How is the new tax law different from the old one?
Income TaxThe new Income Tax Bill 2025, set to be tabled in Parliament on Thursday, marks a historic moment in India’s tax landscape, as it will replace the current year legislation introduced way back in 1961. The bill, once passed, will come into effect from April 1, 2026. “Aimed at overhauling the nation’s tax system, the bill seeks to eliminate obsolete sections that have accumulated over decades. Its primary objective is to simplify the tax laws, ensuring they are more transparent, easier to interpret, and taxpayer-friendly. By replacing complex provisions with clearer provisions, it aims to reduce legal disputes and encourage voluntary tax compliance,” says Rohinton Sidhwa, Partner, Deloitte India.
Feb 13, 2025 Rules on construction & service contracts now part of main I-T law
Income TaxThe new Income Tax Bill, 2025 provides for a specific section which outlines the rules for determining profits and gains from construction contracts and service contracts for the purpose of computation of tax. In the I-T Act, 1961, the ‘Income Computation & Disclosure Standards’ (ICDS) were introduced as a separate section, distinct from the provisions governing profits and gains from business and profession. But the bill seeks to integrate the ICDS provisions within the broader framework of business and profession income, streamlining its application and interpretation, say experts. “This alignment is expected to enhance clarity and consistency in tax computation, reducing ambiguity in the treatment of income and ensuring uniform compliance across businesses,” said Amit Maheshwari, tax partner, AKM Global.
Feb 13, 2025 New Income Tax Bill: Key provisions in the bill taxpayers need to know
Income TaxThe New Income Tax Bill — to be called the Income-Tax Act, 2025, once passed – is set to be presented in Parliament on February 13, and aims to replace the six-decade-old Income Tax Act of 1961. It will extend to the whole of India and shall come into force on the 1st April, 2026. The Bill aims to simplify and modernize India’s tax structure, making compliance easier for taxpayers while ensuring a fair and transparent system. “Looking at the space occupied by the New Income Tax Bill, which is spread over 622 pages against the existing Income Tax Act which runs into 1647 pages, is itself a sign of attempt towards simplucation,” said Balwant Jain, a tax and investment expert. The new bill runs into 536 sections against 298 existing sections.
Feb 13, 2025 New Income Tax Bill to bring social media influencers under strict tax net – freebies and barter deals to be taxable
Income TaxSocial media influencers and digital content creators have become some of the highest-earning individuals in today’s economy, leveraging brand deals, sponsorships, and digital platforms to generate substantial income. From luxury brand collaborations to big-money endorsement deals, the influencer industry has grown into a powerhouse. However, with this success comes increased scrutiny—especially from tax authorities. Now, the Income Tax Bill, 2025 has proposed to bring influencers firmly under the tax net. Freebies, barter deals, and social media earnings will no longer go unnoticed, and influencers will be required to disclose and pay taxes on their income just like any other business. “The Income Tax Bill, 2025 does not explicitly mention ‘influencers’ or ‘brand partnerships,’ as far as direct tax is concerned, but its provisions could have a significant impact on digital content creators based on general tax principles and interpretations,” Siddharth Chandrashekhar, advocate and counsel, Bombay High Court and panel counsel for CBIC & CBDT, told BrandWagon Online.
Notification No. 117/2024 West Bengal Pollution Control Board (PAN AAALW0078N)
Income Taxhttps://www.pdicai.org/Docs/Notification-No-117-2024_21102024144452724.pdf
Oct 26, 2024 Govt extends ITR filing deadline for corporates by 15 days till November 15
Income TaxThe income tax department on Saturday extended the deadline for filing income tax returns by corporates by 15 days till November 15 for assessment year 2024-25. In a circular, the Central Board of Direct Taxes (CBDT) said the deadline will be extended from the earlier target date of October 31. The new deadline for Assessment Year 2024-25 (for furnishing tax returns for fiscal 2023-24) is November 15. Nangia Andersen LLP Tax Partner Sandeep Jhunjhunwala said this extension would not apply to the Tax Audit Report, transfer pricing certification in Form 3CEB and other income tax forms like Form 10DA, for which the deadline would remain October 31, 2024. AMRG & Associates Senior Partner Rajat Mohan said the CBDT's decision to extend the deadline for filing income tax returns for AY 2024-25, though not accompanied by an official explanation, seems aligned with the upcoming festive season. "By extending the deadline to November 15, 2024, taxpayers and professionals alike can prioritise accuracy and compliance without the stress of last-minute filings amidst celebrations," Mohan said.
Nov 05, 2024 CBDT sets monetary limit to waive interest
Income TaxThe central board of direct taxes (CBDT) has set monetary limitations for waiver or Reduction of Interest on Tax Payments with riders. According to the circular issued late night Monday, principal chief commissioners of Income Tax can waive up to Rs. 50 lakhs, chief commissioners or director generals of Income Tax can waive between Rs. 50 lakhs and Rs. 1.5 crores, and principal chief commissioners of Income Tax can waive interest above Rs. 1.5 crores. The notification will be effective Tuesday. The interest waiver or reduction will be considered if payment of the amount would cause genuine hardship to the taxpayer, or if default was due to circumstances beyond their control, the circular said. Taxpayers must also co-operate in assessment or recovery proceedings, the circular added.
Oct 05, 2024 Income tax refund claims: New guidelines issued by CBDT. Top points for taxpayers
Income TaxThe Central Board of Direct Taxes (CBDT), under the Department of Revenue, Ministry of Finance, has recently released updated regulations outlining the process for granting condonation of delays in submitting income tax returns (ITRs) that include claims for refunds or carrying forward losses. These latest directives effectively override any prior guidelines or instructions that were in place. Here are the top points: 1. The authority to approve or deny claims based on amounts are allocated as follows: • Claims up to Rs 1 crore will be decided by Principal Commissioners of Income Tax (Pr. CsIT). • Claims falling between Rs 1 crore and Rs 3 crore are within the jurisdiction of Chief Commissioners (CCsIT). • Claims exceeding Rs 3 crore will be handled by Principal Chief Commissioners (Pr. CCsIT). 2. Time limits for submission of condonation applications: Taxpayers are required to submit condonation applications within five years from the conclusion of the assessment year for refunds or losses claims. This regulation is applicable to applications submitted post October 1, 2024. Authorities must aim to process these applications within six months. 3. Approval Criteria In order to be approved, the taxpayer must show a legitimate justification for the delay and prove that they experienced difficulties in meeting the deadline for filing. If necessary, the authorities may assign a local tax officer to look into the matter. 4. Special Cases: In instances where a refund is issued due to a court order, the five-year limit for refund claims does not include the time the case was under court consideration. Taxpayers are allowed six months from the date of the court order to request condonation. Additional refund claims, known as supplementary refund claims, may be reviewed according to these guidelines. 5. Late refund claims: No interest will be paid on late refund claims; taxpayers filing for delayed refunds should take note of this policy.
Oct 09, 2024 : Income tax audit deadline extended for these taxpayers to November 10, 2024
Income TaxThe deadline for submitting income tax audit reports using Form 10B/10BB has been extended for certain taxpayers. The new deadline for this category of taxpayers to submit their tax audit reports is November 10, 2024. This extension was announced by the Ministry of Finance through the Central Board of Direct Taxes (CBDT) in an order dated October 7, 2024. Which taxpayers will enjoy the extended deadline to submit tax audit report According to the order by the Ministry of Finance, these taxpayers will benefit from this extended deadline: Trusts, institutions, funds, and Others who are liable to file a tax audit report using Form 10B/10BB. Individuals with business or professional income who are subject to a tax audit under section 44AB need to submit their audit report using Form 3CD, 3CA, and 3CB. The extended deadline for these taxpayers was October 7, 2024. It has been brought to the notice of the CBDT that in some cases, such trusts/institutions/funds, could not file the audit report in the correct prescribed form The CBDT in exercise of the powers conferred under section 119 of the Act, hereby further allows such trusts / institutions/ funds to furnish such audit report in the applicable Form No. 1OB / 10BB on or before 10 November, 2024," said CBDT in the said order under section 119.
Oct 17, 2024 New form to reduce TDS from salary: CBDT issues Form 12BAA to tell employer about other taxes paid by you
Income TaxTo implement the Budget 2024 announcement regarding the adjustment of TDS and TCS from other sources against salary TDS, the Central Board of Direct Taxes (CBDT) has issued a new form called Form 12BAA. This form will be utilized by employees to report to their employers the tax deductions from sources other than their salaries, such as fixed deposits, insurance commissions, dividends from equity shares, or tax collected while making purchases, like buying a car or foreign currency. Employers typically deduct TDS from salary as per the declaration given by the employee, taking into account investments and expenses eligible for tax deductions. However, employers did not adjust the taxes paid by the employee against other sources. Now, this will change with the newly notified form from the CBDT. By informing their employer about TCS collected and TDS deducted via this new form, the employee can lower their tax deduction from their salary. The move will help the employees deal with cash flow issues and increase their income to spend or save. CBDT notified the new form via a notification issued on October 15, 2024.
Aug 27, 2024 Sent more than Rs 6 lakh abroad? You may get a tax notice by December 31, 2024
Income TaxThe Central Board of Direct Taxes (CBDT) has commenced a thorough examination and validation of specific high-value outward foreign remittances to identify any inconsistencies in their reporting in ITR and potential tax avoidance. Experts say that if you are among the identified taxpayers who have been found to have evaded taxes, then you may get a notice under section 133, and/or 131 (1A) and/or, 142(1) and/or, 143 (2), and/or 148, etc. According to a report by The Economic Times, this comprehensive scrutiny and verification of high-value outward foreign remittances is for transactions above Rs 6 lakh. The reason behind this move is that CBDT has noticed many cases where foreign remittances and expenditures did not align with the income declared by individuals. Highlighting the scale of the discrepancy in reporting, an official quoted in The Economic Times news report said an individual with a declared annual income of Rs 5 lakh has been found to have sent Rs 15 lakh abroad in the last three years using three different dealers so that these transactions do not attract the mandatory Tax Collected at Source (TCS).
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- Implementation of Mandatory Mentioning of HSN Codes in GSTR-1
- Advisory on Sequential Filing of GSTR-1
- Finance Minister Proposed, Common ITR form for all Taxpayers
- Finance Ministry Extends ITR Filing Deadline for Companies
- CBDT Extends Deadline for Filing TDS for Non-Salary Transactions
- Change Your Income Tax Regimes While Filing Revised ITR
- Finance Ministry say, "Taxpayers check AIS quarterly & report discrepancies"