Recognition of Prior Deposits as Pre-Deposit for GST Appeals under November 2025 Manual Facts The Context: The petitioner underwent a de novo adjudication process for the period 2017-18 to 2019-20. This followed a previous High Court order that remitted the matter for fresh consideration on the condition that the petitioner deposit 10% of the disputed… Read More »
Statutory Bar on Parallel Proceedings: Quashing Provisional Attachment by State Authorities Facts The Conflict: The State GST authorities issued Form GST DRC-22 to provisionally attach five bank accounts of the petitioner for the period 2017-18 to 2024-25. Prior Central Action: Before the State’s intervention, the Central GST authorities had already initiated extensive enforcement actions on… Read More »
Suo Motu Adjustment of Erroneously Paid Tax: Limitation and Penalties Set Aside Facts The Audit Instruction: The assessee, a nationalized bank, was directed by an audit team to pay service tax on its share of profit from foreign exchange transactions. The Payment: Following these instructions, the bank paid the tax but later realized, upon internal… Read More »
Meaning of Income Introduction Section 2(24) of the Income-tax Act specifically includes over 30 types of receipts or benefits in the definition of income. This provision outlines various notional items that are also considered income for tax purposes. Since the definition of income is inclusive, items not explicitly defined as income or deemed as income by… Read More »
Income under the Head ‘Salary’ AY 2026-27 Calculation of Income from Salary Salary Income Exempt from Tax Tax on Leave Encashment Taxability of Pension Taxation under Agnipath Scheme Employee Provident Fund (EPF) Profits in Lieu of Salary Retrenchment Compensation Voluntary Retirement Compensation (VRS) Taxability of Allowances Taxability of House Rent Allowance (HRA) Taxability of Armed… Read More »
SBI’s Rate of Interest for Perquisite Valuation Introduction The taxable value of the perquisite arising from free or concessional loans extended by employers is determined based on the State Bank of India’s (SBI) interest rates as of April 1 of the relevant financial year. Key Provisions Applicability Perquisite tax applies to loans for personal purposes… Read More »
Taxability of Interest on Contribution to Provident Fund (PF) Introduction Interest on employee contributions to Recognized Provident Fund (RPF) and Statutory Provident Fund (SPF) is exempt under Sections 10(11) and 10(12). However, exemptions are restricted for contributions exceeding Rs. 2,50,000 (or Rs. 5,00,000 for funds without employer contributions). Key Provisions Employer’s Contribution Interest on contributions up to 9.5% is… Read More »
Taxability of Perquisite under Section 17(2)(viia) Introduction Employer contributions exceeding Rs. 7,50,000 annually to Recognized Provident Fund (PF), National Pension Scheme (NPS), and Superannuation Fund, along with annual accretion on such excess, are taxable as perquisites. Applicability Contributions by the employer across all welfare funds exceeding 7,50,000 are taxable. Annual accretion, such as interest, dividends, or… Read More »
Relief from Taxation of Income from Foreign Retirement Benefit Account Introduction Section 89A provides resident individuals the option to defer tax on income from foreign retirement benefit accounts. Instead of taxing the income on an accrual basis, tax is deferred to the year of withdrawal, applicable to accounts in notified countries and by filing Form 10EE electronically. Eligibility… Read More »
Section 89 Relief from Salary Introduction Section 89 provides relief to employees to mitigate additional tax liability arising due to receipt of arrears, advance salary, or other lump sum payments, which may result in higher tax rates in the year of receipt. Eligibility for Relief Relief is available for the following: Salary arrears or advance salary.… Read More »