Monthly Archives: March 2026

Condonation of Inordinate Delay (2345 Days) and the Standard of ‘Sufficient Cause’ under Section 254 Facts The Assessment: For AY 2012-13 and 2014-15, the Assessing Officer (AO) made significant additions under Section 68 regarding unexplained unsecured loans and credits. First Appeal: The Commissioner (Appeals) confirmed these additions because the Assessee failed to appear or produce… Read More »

Eligibility of Section 80G Deduction for CSR Expenses (PM & CM Relief Funds) Facts The Assessee: A corporate entity (Company) that incurred expenditure towards Corporate Social Responsibility (CSR) as mandated under Section 135 of the Companies Act, 2013. The Donations: During the Financial Year 2019-20 (AY 2020-21), the company made donations to the Prime Minister’s… Read More »

Eligibility for Section 54F Exemption when New Property is Registered in a Relative’s Name Facts The Transaction: The Assessee, an NRI, sold five villas for approximately Rs. 5.26 crores and invested the proceeds into a new residential house to claim exemption under Section 54F. The Registration: Due to his inability to travel to India at… Read More »

Validity of Section 54 Exemption Based on Possession via Unregistered Agreement to Sell (Section 53A of TOPA) Facts The Transaction: The Assessee sold a residential property and claimed a deduction under Section 54 of the Income-tax Act by investing the proceeds into a new residential house. The Acquisition: The new property was acquired through an… Read More »

Set-off of Excess Application of Earlier Years and Requirements of Form 9A for Charitable Trusts Facts The Assessee: A charitable trust registered under Section 12A/12AA of the Income-tax Act. The Claim: For Assessment Year 2017-18, the trust reported surplus income but claimed it was “applied” by setting off excess expenditure (over-application) incurred in previous years.… Read More »

TDS on purchase of immovable property New Income Tax rules 2026 Under the new Income-tax Act, 2025 and the corresponding 2026 Rules, the framework for Tax Deducted at Source (TDS) on the purchase of immovable property has been streamlined. Here are the complete details regarding TDS on immovable property transactions: 1. Applicable Section and Rate… Read More »

SET-OFF / CARRY FORWARD OF LOSSES AND DEDUCTIONS 2025 & INCOME TAX RULE ,2026 Q8.1 Has the fundamental principle of set off and carry forward of losses changed under the Income Tax Act, 2025 Ans: No. The core architecture remains the same—losses are first adjusted intra-head i.e., within the same head of income and then… Read More »

Appeals and revision of income Tax Act 2025 and Tax Rules 2026 Under the Income-tax Act, 2025 and the Income Tax Rules, 2026, the framework for appeals, revisions, and dispute resolution provides taxpayers with a multi-tiered mechanism to challenge tax assessments, penalties, and other orders. Here is a comprehensive breakdown of the provisions: 1. First… Read More »

APPEALS, REVISIONS AND ALTERNATE DISPUTE RESOLUTIONS 2025 & INCOME TAX RULE ,2026 A. TRANSITIONAL ISSUES REGARDING APPEALS Q7.1 What are the key provisions contained in the Chapter on Appeals, Revision and Dispute Resolution Committee (DRC) under the Income-tax Act, 2025? Ans: The Chapter on Appeals, Revision and Alternate Dispute Resolution under the Income-tax Act, 2025… Read More »

Types of Assessment in income Tax act 2025 and Tax Rules 2026 Under the Income-tax Act, 2025, and the corresponding rules, the framework for assessing a taxpayer’s income is divided into several specific types of assessments. Here is a comprehensive breakdown of the types of assessments: 1. Self-Assessment (Section 266) Before furnishing a return of… Read More »