Invalidity of Extended Limitation and Interest Demands upon Pre-Notice ITC Reversal Facts The Trigger: The Petitioner, a GST-registered transporter, was flagged by a DGGI alert alleging that they had availed ineligible IGST Input Tax Credit (ITC) worth ₹4.40 lakhs from a supplier later deemed “non-existent.” Voluntary Compliance: Prior to the issuance of a Show Cause… Read More »
Tax Deducted at Source (TDS) Introduction Tax Deducted at Source (TDS) is a mechanism introduced to ensure a steady inflow of revenue to the Government. It mandates the payer of specified incomes to deduct tax at prescribed rates before making payments and deposit the same to the Central Government within the stipulated time. Scope of… Read More »
Taxation of Banks or Financial Institutions: Interest on Bad or Doubtful Debts Interest income on specified categories of bad or doubtful debts for public financial institutions, scheduled banks, and certain other entities is taxable in the year of receipt or credit to the profit and loss account, whichever is earlier. Entities Covered This provision applies… Read More »
Anti-Profiteering Mandate: Subsummation of Levies and the Limitation on Retrospective Interest Facts The Dispute: A consumer complaint was filed against a DTH (Direct-to-Home) operator for failing to pass on the benefits of the GST transition for the period July 1, 2017, to January 31, 2019. Tax Transition: In the pre-GST regime, DTH services were burdened… Read More »
Presumptive Taxation Schemes Under presumptive taxation schemes, taxpayers can compute their taxable income as a percentage of turnover, gross receipts, or specified amounts without maintaining detailed books of accounts. The schemes are available for both resident and non-resident assessees, covering specific businesses and professions. Presumptive Schemes for Residents Section 44AD: Businesses Eligible Assessee:Resident individuals, HUFs,… Read More »
Classification of Condenser Fans and Blowers: General Purpose Fans vs. Air-Conditioning Parts Facts The Products: The applicant, an automotive components manufacturer, produces motor-driven condenser fans and blowers. Usage Context: These assemblies are specifically intended for rooftop bus air-conditioning systems (to expel hot air from the condenser) and for use in heavy vehicle engine compartments. The… Read More »
Publication of The Social Security (Central) Rules, 2026 The Gazette of India CG-DL-E-08052026-272366 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 310] NEW DELHI, FRIDAY, MAY 8, 2026/VAISAKHA 18, 1948 MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 8th May, 2026 G.S.R. 344(E).—Whereas, the draft of the Social Security (Central) Rules, 2025 were… Read More »
Other Deductions Introduction Section 36 allows deductions for various revenue expenses incurred during business or professional operations, provided specific conditions are met. List of Key Deductions Insurance Premium [Section 36(1)(i)/(ia)/(ib)]: For damage or destruction of stock or stores, on the life of cattle (paid by the federal milk co-operative society), or employees’ health (paid by other… Read More »
Deduction for Interest on Borrowed Capital Introduction Interest on capital borrowed for business or profession is allowable as deduction. However, interest relating to the period before a capital asset is put to use must be capitalised and added to the actual cost of the asset. Conditions to Claim Deduction Where money is borrowed to acquire… Read More »
Tea, Coffee, or Rubber Development Account Introduction The deduction under Section 33AB is available to assessee engaged in the business of growing and manufacturing tea, coffee, or rubber in India are eligible for deductions if they deposit funds in specific accounts for development purposes. These funds must be used as per the prescribed conditions, and misuse results… Read More »