Budget 2025 is expected to include major improvements, including streamlining TDS on property transactions and modifying the 182-day criterion for defining residence. This blog digs into the existing issues that NRIs experience, suggested remedies, and the projected advantages of these reforms, which seek to make tax compliance easier and more transparent.

can be difficult to manage income tax as an NRI, and even small mistakes could result in tax notifications. The top 5 tax notifications that non-resident Indians (NRIs) frequently receive are highlighted in this blog. These notices include non-filing of returns, income mismatches, unreported income, suspected tax evasion, and faulty returns. It offers helpful advice on how to prevent these letters, including timely filing, correct income declaration, making use of DTAA advantages, and speaking with tax experts. NRIs may guarantee hassle-free tax compliance and steer clear of fines by being proactive and knowledgeable.

By issuing Notification No. 127/2024, the Central Board of Direct Taxes (CBDT) has amended Section 10(23FE) of the Income-tax Act. The updated rules simplify compliance and increase the range of assets available to pension funds (PFs) and sovereign wealth funds (SWFs). In line with India's economic objectives, these adjustments are meant to draw in long-term investments in the social development and infrastructure sectors.

Without altering tax rates, the ongoing review of the Income Tax Act of 1961 seeks to enhance compliance and streamline tax regulations. This project aims to improve digital integration, eliminate out-of-date provisions, and make the Act easier to use. It is anticipated to be finished by mid-December 2024, and taxpayers can anticipate more transparency and lower compliance expenses.

This blog explores Sections 54 and 54F of the Indian Income Tax Act and explains how they exempt individuals and HUFs from paying taxes on capital gains when they reinvest them in residential real estate. To ensure clarity for taxpayers, the essay also discusses frequent disagreements, court rulings, and helpful advice for claiming exemptions.

A thorough explanation of Section 139(5) of the Income Tax Act can be found in this blog post. It describes what a defective return is, how to fix a defective return, and the possible repercussions of filing a defective return. Taxpayers can guarantee compliance with income tax legislation and prevent penalties by being aware of Section 139(5).

Property sellers are prohibited by Section 50C of the Income Tax Act from undervaluing real estate transactions in order to avoid paying taxes. If the stamp duty value is more than the real consideration, this clause treats it as the considered selling price. This blog offers a thorough explanation of Section 50C's operation, as well as its consequences for capital gains, exemptions, dispute settlement procedures, and the safe harbor limits that have been included in more recent modifications.

Form 1 for the Declaration of Taxable Value of Securities (DTVSV) 2024 is now available for online submission. By October 31, 2024, taxpayers who own securities as of March 31, 2024, must submit this form. Up to December 31, 2024, a late return may be submitted; however, there will be a ₹1,000 penalty. In the event that the form is not submitted by the stipulated deadline, there will be a penalty of ₹10,000 and potential interest on unpaid taxes. Find out how to easily file Form 1 online and make sure you're following the DTVSV rules.

For shareholders, the proposed increase in the corporate tax rate from 21% to 28% might have significant ramifications. Reduced capital gains, dividends, and corporate earnings might put stockholders at risk of higher taxes and slower market expansion. Higher taxes, though, may also lessen income disparity and boost public coffers. This blog examines the possible advantages and disadvantages of the new income tax laws for shareholders and offers advice on adjusting to these adjustments.

The Income-tax Act, 1961's Section 2(22) discusses the idea of presumed dividends and makes sure businesses don't evade taxes by giving shareholders advances or loans in lieu of dividends. This area affects the financial health of a corporation as well as dividend taxes. To ensure financial stability and compliance with tax laws, become aware of the important clauses and their implications.

One important measure to stop companies from abusing loss carry-forward processes when ownership changes is Section 79A of the Income Tax Act, 1961. This blog explores the main points of Section 79A, when it applies to mergers, acquisitions, and restructuring, and how it affects companies, particularly small and startup ones. We also look at the section's exclusions and how enterprises, venture capitalists, and investors might use this clause to guarantee legal compliance while implementing smart tax planning.

The Income Tax Act's Section 115JB establishes the Minimum Alternate Tax (MAT), which makes sure businesses pay a minimum tax even when they take advantage of exemptions and deductions. The goal of MAT, its applicability to both domestic and international businesses, its calculation method, the credit system, and important modifications such as exclusions for businesses falling under Sections 115BAA and 115BAB are all covered in this blog. It also looks at MAT's function in maintaining tax equity, particularly for companies with high book earnings but low tax obligations.