Income tax
Understanding income tax is crucial for managing your finances. Discover how income tax works, learn about tax brackets, deductions, and credits. Stay informed about changes in tax laws and filing requirements. Navigate the world of taxation with confidence and ensure you make the most of your financial opportunities.
Created on: 09/04/2025
A Trader's Guide to F&O Taxation: Decoding Your Income Tax Obligations
This guide explains the crucial aspects of Futures & Options (F&O) taxation in India. It clarifies that F&O income is categorized as 'Non-Speculative Business Income', detailing how to calculate turnover based on 'absolute profit' plus premiums. The guide outlines various deductible expenses to reduce taxable income and explains when a tax audit is mandatory, especially for losses or specific turnover thresholds. Finally, it covers how to manage F&O losses through set-off and carry-forward, and provides essential information on ITR filing (ITR-3), applicable tax rates, and advance tax payments, ensuring traders stay compliant and manage their finances effectively.
Created on: 09/04/2025
A Trader's Guide to F&O Taxation: Decoding Your Income Tax Obligations
This guide explains the crucial aspects of Futures & Options (F&O) taxation in India. It clarifies that F&O income is categorized as 'Non-Speculative Business Income', detailing how to calculate turnover based on 'absolute profit' plus premiums. The guide outlines various deductible expenses to reduce taxable income and explains when a tax audit is mandatory, especially for losses or specific turnover thresholds. Finally, it covers how to manage F&O losses through set-off and carry-forward, and provides essential information on ITR filing (ITR-3), applicable tax rates, and advance tax payments, ensuring traders stay compliant and manage their finances effectively.
Created on: 09/03/2025
CBDT's Game-Changer: Relaxing Black Money Rules for Taxpayer Relief
This blog details the recent changes by the CBDT in relaxing certain "black money" rules, aiming to provide significant relief to Indian taxpayers. It explains the rationale behind these changes, focusing on the rationalization of penalties, re-evaluation of "undisclosed" status, new opportunities for compliance, and a reduction in harassment and litigation. The article highlights who benefits from these relaxations, positions them within a broader shift towards trust-based taxation, and advises taxpayers on necessary steps to take.
Created on: 09/02/2025
Before You Click That Tax Notice: Read This Security Alert.
This blog provides a simple guide to help taxpayers differentiate between genuine and fraudulent income tax notices. It outlines five key verification steps, such as checking the DIN and sender details, to prevent falling victim to financial scams.
Created on: 08/30/2025
CBDT Circular 9/2025: No More 20% TDS Trouble in Property Deals
This blog post explains CBDT Circular No. 9/2025, which clarifies that the higher 20% TDS rate under Section 206AB will not apply to property transactions covered by Section 194-IA. This brings significant relief to buyers and sellers by ensuring a consistent 1% TDS deduction on property sales over ₹50 Lakhs, simplifying compliance and streamlining real estate dealings.
Created on: 08/28/2025
CBDT Overhauls Income Tax: Simpler Forms & Stronger Data Protection by 2025
The Central Board of Direct Taxes (CBDT) is implementing significant changes to income tax forms and rules, effective April 2025, following the new Income Tax Act of 2025. The initiative focuses on simplifying tax filing through smart, pre-filled forms, drastically reducing the number of forms from 200 to under 100, and ensuring robust protection for digital data collected during tax procedures. While new ITR forms are slated for 2027, immediate efforts are on TDS, TCS, advance tax, and exemption forms. These reforms aim to enhance transparency, ease compliance, and create a smarter, safer tax environment for Indian taxpayers.
Created on: 08/28/2025
New Income Tax Act 2025: Key Updates from the CBDT
The Central Board of Direct Taxes (CBDT) has announced a significant overhaul of the Income Tax Act, effective from assessment year 2025-26. This blog details the crucial changes, including simplified individual tax slabs, revised capital gains taxation, a stronger focus on digital transactions, corporate tax reforms, revamped deductions and exemptions, enhanced anti-evasion measures, and the introduction of a Taxpayer Charter. Understanding these updates is vital for both individuals and corporations to ensure compliance and optimize financial planning under the new regime.
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Created on: 08/26/2025
A Gift That Keeps on Taxing? ITAT Delivers Key Ruling on Capital Gains Between Spouses
The Income Tax Appellate Tribunal (ITAT) has clarified that when an asset gifted to a spouse is sold, the resulting capital gains must be taxed in the hands of the gifting spouse, not the recipient. This blog breaks down the mandatory "clubbing of income" provision under Section 64(1)(iv) of the Income Tax Act, explaining its implications for taxpayers, the calculation of gains, and the importance of proper documentation.
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Created on: 08/26/2025
CBDT Instruction No. 01/2025 – Black Money Act Update for Minor Foreign Assets
The CBDT has issued Instruction No. 01/2025 on 18 August 2025, aligning its policy with the Finance (No. 2) Act, 2024. This update ensures that prosecution under Sections 49 and 50 of the Black Money Act will not be initiated for undisclosed non-immovable foreign assets valued up to ₹20 lakh. The move offers relief to genuine taxpayers, prevents harsh action for minor errors, and focuses enforcement on serious non-compliance cases.
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Created on: 08/25/2025
How NRI Dividend Is Taxed in 2025: Rates, TDS, and Tax Planning
In 2025, NRIs receiving dividend income from Indian companies face a flat 20% tax plus surcharge and cess, deducted at source. With the abolition of Dividend Distribution Tax (DDT), the tax burden now lies with investors. However, NRIs can lower this liability using DTAA benefits, proper documentation, and strategic tax planning. This blog breaks down dividend tax rules, TDS rates, refund claims, and smart investment strategies to help NRIs make the most of their India growth story.
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Created on: 08/25/2025
ITAT Cancels Tax Addition on Demonetization Cash Deposits
This blog post provides a detailed analysis of a significant Income Tax Appellate Tribunal (ITAT) ruling that cancelled a ₹10.46 lakh tax addition against a senior citizen. The case involves a large cash deposit made during the 2016 demonetization period, which the Assessing Officer had treated as unexplained money under Section 69A. The article explains the taxpayer's defense—that the cash was an accumulation of prior bank withdrawals—and breaks down the ITAT's reasoning, which centered on the "preponderance of probabilities" and the lack of contrary evidence from the revenue. The post highlights key takeaways for taxpayers, emphasizing the importance of plausible explanations and proper documentation.
Created on: 08/25/2025
CBDT Simplifies Tax Rules for IFSC Funds: A Major Win for Investors
This blog post breaks down the recent significant amendment made by the CBDT to Rule 21AIA of the Income Tax Rules. It details the removal of sub-rule (4), which previously imposed additional compliance burdens on "specified funds" like retail schemes and ETFs in the IFSC. The post explains how this change aligns tax laws with IFSCA regulations, effectively eliminating dual regulation. The primary impact is simplified compliance, reduced regulatory overlap, and a more attractive investment environment in India's IFSC, ultimately fostering growth in financial hubs like GIFT City.