ITR filing for NRI AY 2026-27 ! New Income Tax Rules in India For Assessment Year (AY) 2026-27 (Financial Year 2025-26), Non-Resident Indians (NRIs) must file an Income Tax Return (ITR) if their total income in India exceeds the basic exemption limit. 1. Key Deadlines for ITR filing for NRI AY 2026-27 For Assessment Year… Read More »
Interest for Default in Payment of Advance Tax Introduction: Interest under Section 234B is levied if the assessee fails to pay advance tax or if the amount paid is less than 90% of the assessed tax. If no advance tax liability exists, this section does not apply. Key Provisions: o Levy of Interest: Applicable when advance tax paid… Read More »
Interest for Default in Furnishing Return Introduction Interest at the rate of 1% per month or part thereof is levied on outstanding tax liability if an assessee fails to furnish the Income-tax return within the due date or does not file it at all. Key Provisions Applicability Interest underSection 234A applies when: o The return is… Read More »
Interest and Fees under the Income-tax Act Introduction Interest and fees are compensatory charges levied for defaults under the Income-tax Act. Interest is applied for delays in tax payments, while fees are levied for non-compliance with filing requirements. These are charged automatically without prior notice. Default in filing statements Income-tax Return Filing o Interest (Section 234A):… Read More »
Tax rates for Assessment Year 2026-27 Total income of an assessee is taxable either as per applicable normal tax rates or as per special tax rates. The special tax rates have been prescribed in the relevant provisions of the Income-tax Act, while as normal tax rates are prescribed every year under First Schedule of the Finance Act.… Read More »
Tax rates for Assessment Year 2025-26 Total income of an assessee is taxable either as per applicable normal tax rates or as per special tax rates. The special tax rates have been prescribed in the relevant provisions of the Income-tax Act, while as normal tax rates are prescribed every year under First Schedule of the Finance Act.… Read More »
Computation of Income and Tax Liability This chapter outlines the statutory procedure for determining the total income and tax liability of a taxpayer under the Income-tax Act, 1961. The process broadly involves three stages: ascertaining the residential status and category of the assessee, computation of total income, and computation of tax liability. Residential Status and… Read More »
Assessment on Dissolution or Discontinuance of AOP or Firm Introduction If an Association of Persons (AOP) or firm is dissolved or discontinued, its assessment is made as if dissolution had not occurred. Every member, partner, or legal representative is jointly and severally liable for tax dues, penalties, or other sums payable. Applicability Applies to: Dissolution… Read More »
Recovery of Firm’s Dues Introduction If a firm has outstanding tax dues, these can be recovered from every person who was a partner during the relevant financial year, whether the firm is under liquidation or not. Liability of Partners Limited Liability Partnership (LLP) [Section 167C] If tax dues cannot be recovered from an LLP, all… Read More »
Oral Trust Introduction An oral trust is a trust not declared through a written instrument, including any valid Wakf deed under the Mussalman Wakf Validating Act, 1913. Recognition of Oral Trusts If a written declaration containing trust purpose, trustee details, beneficiaries, and trust property is submitted to the Assessing Officer within three months from the… Read More »