When the source of payment for purchases is known but the supplier isn’t genuine, the disallowance should be made under Section 37(1) of the Income-tax Act, 1961, not the harsher Section 69C. Issue If an assessee’s purchases are found to be non-genuine, but the payments for them are properly documented through bank accounts, should the… Read More »
No separate TP adjustment should be made for overdue receivables from an associated enterprise if a working capital adjustment has already been granted under the TNMM. Issue Can a separate transfer pricing (TP) adjustment be made by charging notional interest on overdue receivables if the financial impact of these delayed payments is already factored into… Read More »
A taxpayer can retract a mistaken suo moto disallowance under Section 14A if there’s a valid basis, such as having sufficient own funds to cover investments. Issue Can an assessee withdraw a disallowance under Section 14A that was mistakenly made in the return of income, and what are the grounds for deleting such a disallowance?… Read More »
The rule of consistency applies when facts and law remain unchanged for tax exemption. Issue Is a charitable trust entitled to an exemption under Section 10(23C)(iv) of the Income-tax Act, 1961, based on the rule of consistency, when the same exemption has been granted to it in numerous prior years on identical facts and law?… Read More »
An AO’s order is not erroneous for not examining issues outside limited scrutiny’s scope. Issue Can an assessment order passed under the limited scrutiny framework be considered “erroneous” for the purpose of revision under Section 263 of the Income-tax Act, 1961, simply because the Assessing Officer did not examine an issue that was outside the… Read More »
FAOs on Tax Treatment under UPS Q.1 What is the tax treatment for the contributions made by the Central Government to the Individual corpus of the subscribers under the Unified Pension Scheme (UPS)? Ans: The Central government contributes 10% of monthly emoluments (Basic Pay + Dearness Allowance) of the employees to the individual corpus. This… Read More »
Advisory: New Changes in Invoice Management System (IMS) Sep 23rd, 2025 This is to bring to your notice that several new changes have been introduced in the Invoice Management System (IMS) to simplify the taxation system and reduce the compliance burden on the taxpayers. The following are the key updates Pending action for specified records: Taxpayers… Read More »
Ministry of Finance DFS releases detailed FAQs on the tax treatment under UPS; NPS Tax Benefits applicable to UPS Posted On: 23 SEP 2025 8:05PM by PIB Delhi The Unified Pension Scheme (UPS) was notified by the Ministry of Finance, Government of India, vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025. The scheme is applicable… Read More »
MINISTRY OF FINANCE (Department of Revenue) CORRIGENDA New Delhi, the 18th September, 2025 G.S.R. 676(E) .- In the notification number 9/2025 – Central Tax (Rate), dated the 17th September, 2025, of the Government of India in the Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section… Read More »
Income Tax Exemption to ‘Real Estate Regulatory Authority’ Rajasthan, Jaipur’ u/s 10(46) MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 22nd September, 2025 S.O. 4251(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby… Read More »