319 concepts explained in plain English — what a phrase like “reason to believe” actually requires, who has to prove what, and how the machinery works. Written from the statute and the circulars, with every source listed.
Can the officer reopen my assessment just because something looks suspicious to him?
No. Reopening has always required more than suspicion — under the pre-2021 section 147 the officer needed a "reason to believe" founded on tangible material with a live link to the belief, and under the regime substituted by the Finance Act 2021 he needs "information which suggests" that income has escaped assessment, plus prior approval. Either way the reasons or information must exist and be recorded before the notice, and cannot be supplemented afterwards.
I am an individual buying a flat, paying high rent and paying a contractor. Do I have to deduct tax without a TAN?
Yes, in all three cases, and none of them needs a TAN — you use your PAN. Section 194-IA covers the purchase of immovable property, 194-IB covers rent above the monthly limit paid by an individual or HUF not already covered by 194-I, and 194M covers contract, commission, brokerage and professional payments above Rs. 50 lakh in a year.
The department says I should have deducted 10% under 194J, not 2% under 194C. How do I tell which one applies?
Ask what the payee actually supplied: an outcome produced under a contract for work, or the application of professional or technical expertise directed at your particular requirement. Courts treat a standardised facility available to everyone as work, and a specialised service tailored to the individual user, with real human involvement, as technical or professional service.
My buyer deducts TDS on my invoice and I also collect TCS on the same sale. Which of us is right?
Where both could apply, section 194Q prevails and the seller does not collect — that is what CBDT Circular 13/2021 says. The question is now largely historical for current transactions, because section 206C(1H) was withdrawn with effect from 1 April 2025, leaving only the buyer's 0.1% deduction under 194Q.
Should I declare a flat percentage of my turnover instead of keeping books, and what do I lose?
Section 44AD lets a resident individual, HUF or partnership firm (not an LLP) declare 8% of turnover — 6% for receipts through banking or electronic modes — where turnover is up to Rs 2 crore, or up to Rs 3 crore if cash receipts are 5% or less of total receipts. Section 44ADA lets a resident individual or firm in a specified profession declare 50% of gross receipts up to Rs 50 lakh, or Rs 75 lakh on the same 5% cash test.
If I donate to an 80G-approved charity, how much of it do I actually get back?
Usually half, and only up to a cap. Most ordinary charities fall in the 50% category subject to a qualifying limit of 10% of your adjusted gross total income, so a Rs 1,00,000 donation gives a deduction of Rs 50,000 at most, worth your marginal rate — and only a handful of government funds give 100% with no limit. You get nothing at all unless the charity files Form 10BD and issues you Form 10BE, cash donations above Rs 2,000 are ineligible, and 80G is unavailable if you are taxed under the section 115BAC regime.
My society earns interest on deposits with a co-operative bank — is that deductible under 80P(2)(d)?
It is genuinely unsettled. 80P(2)(d) allows the whole of the interest or dividend a co-operative society derives from investments with any other co-operative society, and most tribunals and several High Courts hold that a co-operative bank is still a co-operative society, so the deduction stands; the Karnataka High Court line holds otherwise. Separately, section 80AC means that for AY 2018-19 onwards no 80P deduction is allowed at all unless the return was filed by the section 139(1) due date.
Is my credit co-operative society still entitled to the 80P deduction after sub-section (4) came in?
Almost certainly yes, unless it is actually a licensed co-operative bank. Section 80P(4) shuts out co-operative banks, but expressly preserves primary agricultural credit societies and primary co-operative agricultural and rural development banks — and the Supreme Court in Mavilayi held that 80P(4) has the limited object of excluding co-operative banks that function on a par with commercial banks lending to the public at large.
Can I get the tax position on a transaction decided in advance, and will the department be bound by it?
You can apply to a Board for Advance Rulings under section 245Q if you are a non-resident, a resident transacting with a non-resident, a notified resident, certain public sector undertakings, or anyone seeking a ruling on whether an arrangement is an impermissible avoidance arrangement. But since the Board replaced the Authority for Advance Rulings on 1 September 2021, commentary treats its rulings as not binding, and both the applicant and the department can appeal to the High Court under section 245W within sixty days.
Who actually has to pay advance tax, and what does it cost me if I underpay an instalment?
You must pay advance tax if your estimated liability for the year is Rs 10,000 or more after credit for TDS and TCS. It is due in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March — and s.234C charges 1% a month on each shortfall.
My farm income is exempt, so why did my accountant say it pushes up the tax on my salary?
Agricultural income is exempt under s.10(1), but it is not ignored. If your agricultural income exceeds Rs 5,000 and your other income exceeds the basic exemption limit, partial integration aggregates the two to fix the rate on your non-agricultural income, so the exempt income still raises your effective rate.
My startup raised money above book value — is the premium still taxable as angel tax?
No, not for issues on or after 1 April 2025. Section 56(2)(viib) taxed a closely held company on share consideration received in excess of the fair market value of the shares, but the statute now carries an express proviso that the clause does not apply on or after 1 April 2025, that is from AY 2025-26 onwards.
My trust could not spend 85% of its income this year — can I accumulate it, and where must the money sit?
Yes, but only if you file Form 10 specifying the purpose, apply the money within five years, and keep it invested only in the modes listed in section 11(5). The baseline is that 85% of income must be applied to the objects each year; 15% may be retained without any condition.
The department has called me an assessee in default — what does that mean and how do I get out of it?
"Assessee in default" is a status, not a finding of dishonesty: it arises under section 201 when a deductor fails to deduct or pay TDS, and under section 220(4) when a demand is not paid within thirty days of service of the notice of demand. Each has its own escape route — for TDS, proof that the payee has paid the tax; for demand, extension or instalments, or a stay pending appeal.
The officer estimated my income without any basis — can he just pick a number?
Section 144 lets the Assessing Officer assess to the best of his judgment where the assessee fails to file a return or to comply with notices, but only after taking into account all relevant material he has gathered and after giving a show cause opportunity. The estimate must be an honest and fair one with a nexus to the material; it cannot be dishonest, vindictive, capricious or a punishment for non-cooperation.
There was a search at my premises last year. Which assessment machinery applies to me now?
If the search under s.132 or requisition under s.132A was initiated on or after 1 September 2024, Chapter XIV-B applies — a single block assessment under s.158BC covering six assessment years plus the part-year up to the last authorisation, taxed at 60% under s.113. This is not s.153A, which governed searches up to 31 March 2021, and it is not the ordinary reassessment machinery of s.148.
The officer says my loan is unexplained — what exactly do I have to prove?
Under section 68 the initial burden is on you to explain the nature and source of any sum credited in your books, and courts have read that as requiring proof of three things: the identity of the creditor, his creditworthiness, and the genuineness of the transaction. Only once all three are established prima facie does the onus shift to the department, and since the Finance Act 2022 the explanation must in most cases also cover the creditor's own source.
The company is buying back my shares. Is that still tax-free in my hands?
No - but only for a buyback undertaken between 1 October 2024 and 31 March 2026. In that window s.115QA no longer applies and the entire buyback consideration is a deemed dividend in the shareholder's hands under s.2(22)(f), taxed at slab rates with no deduction for what the shares cost; the cost comes back only as a capital loss, because the proviso to s.46A deems the consideration nil. From 1 April 2026 the window closes: s.69 of the Income-tax Act, 2025 as substituted by the Finance Act, 2026 taxes a buyback as capital gains again on the ordinary consideration-minus-cost basis, with an additional income-tax on promoters only, and there is no nil-consideration limb in that Act at all.
Having filed an appeal to the CIT(A), can I withdraw it - for example to take a settlement or amnesty route?
The Bombay High Court has held that once an appeal is filed before the CIT(A), it is not open to the assessee to withdraw it, just as it is not open to the CIT(A) to dismiss it for non-prosecution. The appeal must be disposed of by a decision under section 251(1). That has direct consequences for anyone planning to abandon a pending appeal.
The same papers were before the officer last time — can he reopen and take a different view now?
No. Reassessment is a power to reassess, not a power to review, and a fresh view on material already considered is a change of opinion which cannot support reopening. There must be tangible material coming from outside the concluded assessment.
If I gift money to my wife and she invests it, whose income is the interest?
Yours. Section 64 pulls back income from assets transferred to a spouse or a son's wife without adequate consideration, remuneration drawn from a concern you substantially control, and almost all of a minor child's income. Reciprocal or cross transfers arranged to sidestep it are treated as if they were direct.
I missed the return deadline and lost a refund or a loss carry-forward. Can the delay be condoned?
Yes, under s.119(2)(b), on an application showing genuine hardship. CBDT Circular No. 11/2024 dated 1 October 2024 sets the current rules: the application must be made within five years from the end of the relevant assessment year, and the deciding authority depends on the amount — Pr.CIT/CIT up to Rs 1 crore, CCIT above Rs 1 crore up to Rs 3 crore, Pr.CCIT above Rs 3 crore.
What cost can I deduct, and do I still get indexation after the 2024 changes?
Cost of acquisition is what you paid, or for assets received by gift, will, inheritance or HUF partition, what the previous owner paid. For transfers on or after 23 July 2024 indexation is gone and long-term gains are taxed at 12.5%, with one carve-out: a resident individual or HUF selling land or building acquired before 23 July 2024 can ignore any tax in excess of the old 20%-with-indexation figure.
I paid tax overseas on income that India also taxes. How do I get credit, and what happens if I file Form 67 late?
Section 90 or 90A gives the credit where a treaty exists and section 91 gives unilateral relief where none does. Rule 128 sets the conditions and requires Form 67; since Notification 100/2022 the form can be filed up to the end of the assessment year. Tribunals have repeatedly held the Form 67 deadline is directory, not mandatory.
My notice has no DIN on it — does that make it invalid?
A DIN is a computer-generated number the CBDT requires on income-tax communications so that every notice or order has an audit trail. Under CBDT Circular 19/2019 a communication issued outside the permitted exceptions without a DIN was to be treated as invalid and deemed never to have been issued; that circular has since been superseded by Circular 4/2026 dated 31 March 2026, and the Finance Act 2026 has inserted a curative provision that blunts DIN challenges retrospectively.
Can the CIT(A) increase my assessment, and can he tax something the Assessing Officer never looked at?
Section 251(1)(a) lets the CIT(A) confirm, reduce, enhance or annul, and section 251(2) requires a reasonable opportunity of showing cause before any enhancement. The powers are plenary and coterminous with the Assessing Officer's. But they stop at the boundary of the assessment: a source of income the officer never considered from the point of view of taxability cannot be brought in by enhancement.
If my charitable trust loses registration or shuts down, is there a tax on everything it has accumulated?
Yes. Section 115TD charges tax at the maximum marginal rate on a trust's accreted income — broadly the fair market value of its total assets less its total liabilities on a specified date — when the trust converts into a non-eligible form, merges with a non-eligible entity, or fails to transfer its assets to a qualifying institution within twelve months of dissolution. Conversion includes cancellation of registration and failure to apply for fresh registration or approval in time.
The interest on my old demand has grown larger than the tax. Can it be waived, and who decides?
Interest under s.220(2) can be reduced or waived under s.220(2A) if all three conditions are met — genuine hardship, default due to circumstances beyond your control, and cooperation. Since CBDT Circular No. 15/2024 dated 4 November 2024 the decision sits with the PrCIT/CIT up to Rs 50 lakh, the CCIT/DGIT above that to Rs 1.5 crore, and the PrCCIT above Rs 1.5 crore. Interest under ss.234A, 234B and 234C is a different power, exercised under s.119(2)(a).
Too much tax is being deducted from my receipts. How do I get a lower or nil deduction certificate?
Apply in Form 13 on TRACES for a certificate under s.197; the Assessing Officer fixes the rate under Rule 28AA by reference to your estimated liability for the year and your assessed or returned income of the last four years. The higher-rate regime for non-filers under s.206AB was omitted with effect from 1 April 2025, but s.194N keeps its own lower thresholds for people who have not filed returns.
Someone gave me money or property without payment — when is that taxable in my hands?
Section 56(2)(x) taxes the recipient, not the giver, on money or specified property received without consideration or for inadequate consideration, once the Rs 50,000 threshold is crossed. It does not apply at all if the giver is a "relative" as defined, or if the receipt falls in one of the listed exclusions such as marriage, a will, or inheritance.
How is rental income taxed, and what if the flat is empty or lying unsold?
You are taxed on the annual value of property you own, not on cash received. Up to two houses you occupy yourself carry a nil annual value; the rest are deemed let out. From the gross annual value you deduct municipal taxes actually paid, then 30% of the balance under s.24(a), then interest under s.24(b).
I donated to a charity with 80G approval. Why is my deduction less than half of what I gave?
Because 80G has two independent restrictions. First, most donations to ordinary charitable trusts fall in the 50% category. Second, those donations are also capped at 10% of your adjusted gross total income. And any cash donation above Rs 2,000 gets nothing at all.
My assessment is faceless. Who is deciding, and what happens if they skip the hearing?
Section 144B routes scrutiny and best judgment assessments through the National Faceless Assessment Centre, which allocates the case to an assessment unit and can call on verification, technical and review units. Before any variation prejudicial to you, a show cause notice must issue, and since the Finance Act 2022 a request for a personal hearing by video conference must be allowed. A breach no longer makes the order automatically void — sub-section (9) was omitted retrospectively from 1 April 2021 — so the remedy is a writ on natural justice grounds.
We split the family property between the brothers. Why is the department still assessing the HUF?
Because a partition has no tax effect until the Assessing Officer records a finding recognising it under s.171. And a partial partition after 31 December 1978 cannot be recognised at all — s.171(9) requires the department to ignore it and keep assessing the family as undivided.
The assessment added income and started penalty. Can I pay and buy immunity instead of fighting?
Yes, if the penalty is for under-reporting and not for misreporting under s.270A(9). You must pay the tax and interest in the assessment order within the time in the demand notice, not file an appeal against that order, and apply in Form 68 within one month from the end of the month in which you received the order. If immunity is granted, you cannot later appeal under s.246A or apply under s.264 against that assessment.
My TDS notice shows interest and a late filing fee. What is each one for, and can either be waived?
Interest under section 201(1A) compensates for tax that reached the Government late — 1% a month where you failed to deduct, 1.5% a month where you deducted and paid late. The section 234E fee of Rs. 200 a day is for filing the quarterly statement late, is capped at the TDS of that quarter, and there is no waiver machinery for it.
I received years of interest on a compensation award in one go. Is it all taxed this year?
Yes. Section 145B(1) deems interest on compensation or enhanced compensation to be income of the previous year in which it is received, whatever your method of accounting; section 56(2)(viii) charges it under income from other sources; and section 57(iv) gives a flat deduction of 50% with no other deduction permitted. That receipt-basis scheme replaced the accrual position under the Supreme Court's decision in Rama Bai.
My order has three kinds of interest on top of the tax. What is each one for, and is it a penalty?
Three different defaults: 234A for filing the return late, 234B for not paying at least 90% of the assessed tax as advance tax, 234C for missing the quarterly advance tax instalments — all at 1% per month or part of a month. Section 244A runs the other way, paying you 0.5% per month on a refund. Interest is compensatory and mandatory; penalty under s.270A, at 50% or 200% of tax, is punitive and requires a finding against you.
Who hears my first appeal now - CIT(A), JCIT(A) or a faceless centre - and can I still get a hearing?
The Finance Act 2023 inserted section 246, creating a Joint Commissioner (Appeals) for smaller and specified appeals, operationalised by the e-Appeals Scheme, 2023. Section 246A appeals continue to lie to the CIT(A), disposed of through the faceless machinery. In both channels the hearing, if you ask for one, is by video conferencing.
Is this notice too late, and does it matter that the officer had reasons?
Limitation is a hard outer boundary on the department's power, not a procedural nicety — a notice issued after the period expires is issued without jurisdiction and everything built on it falls. For reassessment, section 149 as substituted by the Finance (No. 2) Act 2024 with effect from 1 September 2024 bars a section 148 notice after three years and three months from the end of the relevant assessment year, extending to five years and three months only where the officer holds books, documents or evidence showing escaped income of fifty lakh rupees or more.
They used a statement against me without letting me question the person — is that allowed?
No. Where an order carries adverse civil consequences, the assessee must be given a real opportunity of being heard, must be supplied the material relied on against him, and must be allowed to cross-examine a person whose statement is used against him. The Supreme Court has held that denying cross-examination of a witness whose statement forms the basis of the order is a serious flaw that makes the order a nullity.
The assessee attended the hearings without objecting, so does s.292BB cure the missing notice?
Section 292BB deems a notice to have been duly served where the assessee has appeared or co-operated and did not object before the assessment was completed. Courts have read it narrowly: it fixes defects in the service of a notice that was in fact issued, and it does nothing where no notice was ever generated.
A partner is retiring and taking cash and a flat. What does the firm end up paying tax on?
Two separate charges can fire, both on the firm. Section 9B taxes the firm as if it had sold the capital asset or stock it hands over, at fair market value. Substituted s.45(4) taxes the firm on any money or capital asset received by the partner in excess of his capital account balance. Both were introduced by Finance Act 2021 and apply from assessment year 2021-22.
What must I pay before my appeal is admitted, and what happens if I file late?
Section 249(4) makes payment of the tax due on the returned income a condition for the admission of a first appeal - not a technicality but a bar the CIT(A) can and does apply. 'Tax' for this purpose does not include interest under sections 234A to 234C. Section 249(3) lets the CIT(A) admit a late appeal on sufficient cause, and the courts read that liberally.
My PF used to be entirely tax-free. Which parts of it are taxable now, and from when?
Two separate caps bite. Interest on your own contributions above Rs 2,50,000 a year (Rs 5,00,000 where the employer contributes nothing) is taxable, for contributions made on or after 1 April 2021. And employer contributions to PF, superannuation and NPS together above Rs 7,50,000 a year are a taxable perquisite, from AY 2021-22, along with the return earned on that excess.
There is an obvious arithmetic or credit error in my order. Can it be fixed without an appeal?
Yes, under s.154, if the mistake is apparent from the record — obvious and patent, not something needing a long chain of reasoning. The order can be rectified within four years from the end of the financial year in which it was passed, and where you apply, the officer must dispose of the application within six months from the end of the month in which he receives it.
How do I get my trust registered under section 12AB, and when can the department cancel it?
Registration is now a time-limited grant under section 12AB, not a one-off event: a new trust gets provisional registration for three years and must convert it, and an established trust gets five years (ten years from 1 April 2025 if its total income was Rs 5 crore or less in each of the two preceding previous years). Registration can be cancelled only for one of the six "specified violations" listed in section 12AB(4).
Before an Assessing Officer estimates income, what must he establish about the books, and what must the estimate rest on?
An estimate is only as good as the rejection that precedes it. The officer must first record why the accounts are incorrect, incomplete or not drawn on a proper method, and only then may he estimate, using material that has a reasonable nexus to the figure adopted.
How many days can I spend in India before I become a resident, and what does RNOR actually change?
You are resident if you are in India for 182 days or more in the year, or for 60 days or more in the year and 365 days or more across the four preceding years. Indian citizens and persons of Indian origin visiting India get 182 days instead of 60, reduced to 120 days where income other than from foreign sources exceeds Rs 15 lakh. Being "not ordinarily resident" keeps most foreign income out of the Indian net.
I missed reporting some income two years ago. Can I still fix it, and what will it cost?
Three different doors. A revised return under s.139(5) and a belated return under s.139(4) both close on 31 December of the assessment year and cost only the s.234F fee and s.234A interest. After that, only an updated return under s.139(8A) is available — now up to 48 months from the end of the assessment year, with additional tax of 25% to 70% under s.140B.
The Commissioner has issued a notice to revise my assessment. Is that different from my asking him to revise it?
Completely different. Section 263 is the Commissioner acting against you, to revise an order that is erroneous and prejudicial to the interests of revenue, within two years from the end of the financial year in which the order was passed. Section 264 is you asking the Commissioner for relief, within one year, on a Rs 500 fee, and the order he passes cannot be prejudicial to you.
The CIT(A) allowed my appeal but rejected two of my grounds; the Revenue has appealed. Must I file a cross-objection?
Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 lets a respondent who has not appealed support the order appealed against on any ground decided against him. It is a right, not a concession, and no written application is needed. But it is purely defensive - it can get the appeal dismissed and nothing more.
How do I get evidence before the CIT(A) that I never filed with the Assessing Officer?
Rule 46A(1) allows additional evidence only through four gateways, and Rule 46A(3) forbids the CIT(A) from taking that evidence into account unless the Assessing Officer has been given a reasonable opportunity to examine it and rebut it. Rule 46A(4) preserves the CIT(A)'s own power to call for evidence, and the Bombay High Court has held that the rule does not fetter his powers under section 250(4) and (5).
What can the Assessing Officer call for under s.142(1), and what follows if the assessee does not comply?
Section 142(1) is the officer's inquiry power: it lets him call for a return, for accounts and documents, and for information in the form he specifies. Non-compliance carries two distinct consequences, a best judgment assessment under s.144 and a penalty under s.272A(1)(d), and the penalty is relieved where reasonable cause is shown under s.273B.
When does approval under s.153D stop being a safeguard and start being a rubber stamp that destroys the assessment?
In search assessments the Assessing Officer cannot pass the order without the prior approval of the Joint or Additional Commissioner. Courts have held the approval must show an application of mind, and composite, same-day or last-minute approvals covering many years or many assessees have been held to vitiate the assessments entirely.
How much cash can I legally take, repay or receive, and what is the penalty if I get it wrong?
Section 269SS bars taking a loan, deposit or property advance of Rs 20,000 or more in cash; s.269T bars repaying one of Rs 20,000 or more in cash; s.269ST bars receiving Rs 2,00,000 or more in cash in aggregate from a person in a day, in a single transaction, or for one event or occasion. Each penalty equals 100% of the amount, imposed by the Joint Commissioner.
I did not deduct TDS on a payment to a resident vendor. How much of my expense do I lose, and can I get it back?
You lose 30% of the sum in the year of the expense — not 100%, and not the tax amount. You get it back in the year the tax is finally deducted and paid, or, if the payee has already paid tax and you furnish the accountant's certificate under the first proviso to section 201(1), the second proviso deems you to have deducted and paid on the date the payee filed his return.
The registrar valued my property higher than what I actually sold it for. Will I be taxed on the higher value?
Yes, unless you fall inside the tolerance band or get the value reduced. Section 50C deems the stamp duty value to be the full value of consideration for land or building, but only where the stamp duty value exceeds 110% of the actual consideration — that band was 105% for AY 2019-20 and 2020-21 and has been 110% from AY 2021-22.
If I put the sale proceeds into another house, how much tax do I actually save?
Section 54 exempts the long-term gain on a residential house to the extent you buy or build another one; section 54F exempts the gain on any other long-term asset in proportion to how much of the net consideration you reinvest. Both are capped at Rs 10 crore of investment from AY 2024-25, both require purchase within one year before or two years after (three years for construction), and anything not spent by the return due date must go into the Capital Gains Account Scheme.
The officer says my cash deposits and loans are unexplained. What section applies and how badly am I taxed?
Section 68 catches sums credited in your books; ss.69 to 69D catch investments, money, understated investments, expenditure and hundi borrowings that are not in the books at all. Anything brought to tax under these sections is charged under s.115BBE at 60% plus a 25% surcharge and cess — roughly 78% — with no deduction, no allowance and no set-off of loss, and a further 10% penalty under s.271AAC if you did not offer it in your return.
And 259 entries, by name. The first 60 are spelled out above because that is as far as most people scroll; each of these has a page of its own carrying the full text and the sources.
How much of my HRA and LTA is actually exempt, and how is my company flat valued?
Who had to approve this reopening, and does a one-line approval count?
There is a tax proceeding running against me. If I sell my property now, is the sale void?
I am selling unlisted shares below fair value — does the buyer and I both get taxed on the same gap?
The department says it issued the notice, but I never got it — does that matter?
The department has adjusted my refund against an old demand without telling me. Is that allowed?
I made a loss this year. What can I set it against, and how long can I carry the rest forward?
I deducted TDS but under the wrong section, so it was less than it should have been. Is that as bad as not deducting?
I am selling a whole division for one lump sum. How is that gain worked out?
The Assessing Officer wants my accounts audited by a nominated chartered accountant. Can he do that, and what does it cost me in time?
Do I still have to benchmark payments to my own directors and group companies under transfer pricing?
Is my intraday and futures-and-options trading speculative, and can I set the loss off against other income?
The Tribunal stayed my demand a year ago and still has not heard the appeal. Does the stay lapse?
I have filed an appeal but the department is demanding the tax. Can I get the demand stayed?
My business was taken over mid-year or merged under a court order. Who is assessed, and what happens to depreciation?
My tax bill has surcharge and cess on top of the tax — how are they worked out?
What is TCS, which of my sales attract it, and how is it different from deducting TDS?
I gave a distributor a free trip. Do I really have to deduct tax on that?
I am remitting money abroad to a foreign supplier. Must I deduct tax, and what do I file before the bank will send it?
Do I have to deduct 1% TDS when I buy crypto, and what happens if I trade on an exchange?
How is my profit on selling crypto taxed, and can I set my losses off against it?
Where do I appeal an assessment order, how long do I have, and how far can I take it?
What are the current limits for 80C, 80D, 80E, 80TTA, 80TTB, 80U and 80DD, and do any survive the new regime?
Can the CIT(A) dismiss my appeal because I did not appear or did not respond to notices?
Should I stay in the concessional regime, and what exactly am I giving up by doing so?
Who is an eligible assessee under s.144C, and what happens if the officer skips the draft order?
What was the equalisation levy on digital payments, and is it still payable?
My vendor has already paid tax on the amount I failed to deduct on. How do I get out of assessee-in-default status?
What exactly does a notice under s.143(2) do, and what happens if it is never issued or issued late?
My Indian company pays interest to its foreign parent. How much of it can I actually deduct?
When exactly does my property count as transferred, and which year do I pay capital gains in?
I am a trustee of a family trust. Am I taxed, are the beneficiaries taxed, and when does the top rate apply?
Could I have settled my long-running appeal under the 2024 Vivad se Vishwas scheme, and is it still open?
Are my loyalty points or my gift voucher a virtual digital asset, and where do I report crypto in my return?
I am retiring. How much of my gratuity, leave encashment, commuted pension and VRS money is tax-free?
My trust's object is general public utility and it charges fees — does that make it non-charitable?
The company owes tax it cannot pay. Can the department recover it from me as a former director?
My bank says the income tax department has attached my account. What did they use, and can a third party resist?
The government acquired my land and paid compensation. When and how much of it is taxable?
When an assessment goes through the DRP, does the nine-month Panel period run inside the s.153 limitation or on top of it?
Is the order I have received an appealable order under section 246A, and what if I have already accepted it?
I make payments in my business — when exactly does my TDS obligation start, and does a book entry count?
The department lost my appeal and did not go further. Can I rely on that in a later year?
The officer wants my lender's bank statements, and now his lender's. Where does this stop?
The officer added my loan as an unexplained cash credit and disallowed the interest on it as well. Is the interest disallowance automatic?
I asked for the personal hearing in a letter and by email to the NFAC, not through the e-filing portal. Does that count?
My appeal has been pending before the CIT(A) for years. Is there a time limit, and can I do anything about the delay?
The CIT(A) has issued an enhancement notice that says almost nothing. Must it set out what he proposes to add and how it is worked out?
The penalty order has finally arrived, years after the assessment. Is it out of time under s.275?
I never raised the defective penalty notice below. Can I raise it for the first time before the Tribunal?
The s.270A penalty is being run through the faceless machinery. Who is deciding it, and will I get a hearing if I ask?
We paid the TDS late and a prosecution is on the table. What does compounding actually cost?
The default was years ago. Can the department still launch a s.276B prosecution now?
The officer has taxed the cash at the special rate under s.115BBE. What penalty comes with it?
If I come out of the presumptive scheme and declare my real, lower profit, what does that cost me?
How does the Rs 10 crore cap on reinvestment actually work in the s.54 and s.54F computation?
I pay rent to my mother or my wife. What paperwork does the department actually require, and what has to be reported?
The AO thinks the rent I declared is understated. How is the annual value of a let out property actually determined?
My father has died and the department wants to assess his income - which of us must be served, and how much can they actually collect?
The notice says more than Rs 50 lakh has escaped. What is the officer allowed to count towards that figure, and can he add up two years?
The only thing behind my s.148A show-cause is a high-risk category on the Insight portal. Is a portal flag "information" at all?
By when must the s.143(2) notice go out, and how do I prove that one never did?
Is the point that my ward officer issued the s.148 notice instead of the faceless unit still worth taking, and what happens if the assessment is already complete?
The Commissioner has issued a s.263 show-cause notice. Can I go to the High Court now, or do I have to wait for the order and appeal to the Tribunal?
The department has set off my refund against a demand under s.245. Can I appeal that, or do I have to file a writ?
The Tax Recovery Officer has attached property I bought, for somebody else's tax arrears. What do I file, what do I have to prove, and what happens if he rejects it?
The department has issued a s.226(3) notice to my bank. Can I appeal against it, or is a writ the only way?
Our partner signed a surrender in a survey that ran past midnight. What is that statement actually worth?
A seized loose sheet has bare numbers on it and the AO has multiplied them by a thousand. Can he do that?
The search on the builder was in 2019 and the notice came to me in 2024 for seven years. Which years can they actually reach?
The person who paid me deducted TDS and never deposited it. The department has raised a demand on me. Can it do that?
The TDS shows in a year I have not offered the income, or against somebody else's PAN. What are the rules on credit?
My payee had a loss, or has died, dissolved or simply will not help. Can I still get out of the s.40(a)(ia) disallowance and out of assessee-in-default status?
The TDS officer says I under-deducted on salary. My payroll estimate was honest — is that a defence?
Our trust pays rent, or a salary, to a trustee. How is the officer supposed to test whether the amount is right, and who has to prove it?
We have a show-cause notice proposing cancellation of our 12AB registration. What procedure is the Commissioner bound to follow, and is there a time limit?
Part of our society's fixed deposits are with a nationalised bank. Can we claim that interest under 80P(2)(d) along with the co-operative bank interest?
Our society does not fit any of the activity clauses of 80P. Is there any deduction left for us?
The show-cause says I may be penalised under s.271AAD for a false entry. What is that, and is it really 100 per cent?
My purchases have been called bogus. Is the addition the whole amount or only the profit in it, and how is the percentage fixed?
How far do I have to go in checking whether my supplier is a micro or small enterprise, and is it 15 days or 45?
The notice compares my GST turnover with the turnover in my return and treats the difference as suppressed income. What can the officer lawfully infer from that?
The addition has been made under s.69A. Should it have been s.68, or s.37(1), and does it make any difference now?
The officer has disallowed the remuneration and interest we pay our partners. What does s.40(b) actually require?
The officer has disallowed part of my interest because I gave an interest-free advance. On what basis can he do that?
The officer says the 2022 amendment to s.14A applies to my earlier years because it is clarificatory. Is he right?
I paid a supplier in cash. How much of the expense do I lose, and can Rule 6DD save it?
When is my ESOP taxed, on what value, and can the company put off deducting the tax?
I changed jobs mid-year and I have interest income. What do I give my employer, and what must he do with it?
I gave a political party a donation and claimed it under s.80GGC. What can the officer ask, and where does cash fail?
The penalty notice came a year after the assessment. Does anything have to be in the assessment order itself?
Our return was late. Does that by itself kill the deduction we claimed?
The bank deducted tax when our society drew cash. On what, and is our threshold not higher?
Our credit society takes deposits and repays loans in cash to members. Which of the cash sections apply to us?
My property was vacant for the whole year. Can the annual value be taken as nil?
How much housing loan interest can I actually deduct, and can the same interest go into my cost when I sell?
My lease covers the building, the furniture and some services under one rent. Which head does it fall under?
The property is jointly held, or is in my spouse's name. Whose income is the rent?
The gift came from family - but is the giver a 'relative' for s.56(2)(x)?
How is the fair market value of unquoted shares fixed for s.56(2)(x) and s.50CA, and can the AO reject my valuer's report?
If I transfer an asset without any consideration, is there a capital gain?
The AO has taken the circle rate as my purchase value. Can I make him send it to the Valuation Officer?
The circle rate went up between our agreement and the registration. Which one does the AO use?
Do I have to get a tax audit this year, and which limit applies to me?
Is my work a "specified profession" for s.44ADA, and can the officer push me out of s.44AD into it?
How is income computed under s.44AE for my trucks, and how many can I own before I lose the scheme?
How do I compute turnover for the s.44AB threshold when the business is settled by differences — intraday, futures, options?
The officer has levied a penalty because the tax audit report was late. What can be said against it?
A s.276CC notice has come for a year where the return went in late. What actually has to be shown, and does the proviso save me?
The department says wilfulness is presumed under s.278E. Is that right, and what does it take to rebut?
Who has to authorise a tax prosecution, and can the department prosecute me as a director of the company?
The officer's day count is 184 and mine is 175. How are the days of stay in India actually counted, and who gets 182 days instead of 60?
I came back to India last year and I am RNOR. Which of my foreign income stays out of the Indian return?
My foreign payee has sent a tax residency certificate. Is that enough to apply the treaty rate, and do I also need a Form 10F?
The officer has denied my treaty claim under the Principal Purpose Test. What are the answers, in the order I should take them?
I left a foreign account or some foreign shares out of Schedule FA. What is the exposure, and is the Rs 10 lakh penalty automatic?
My overseas client sells software and services to Indian customers with nobody and nothing in India. Can the department still say he has a business connection?
The s.263 notice says my assessment was passed 'without making inquiries or verification which should have been made'. What does that actually require the Commissioner to show?
My assessment went to the CIT(A) on two issues. Can the Commissioner still revise it under s.263 on a third?
My return was only processed under s.143(1) and never scrutinised. Can the Commissioner revise that under s.263?
How wide is the Commissioner's power under s.264, and what must he do with my application?
CPC has changed my return and raised a demand under s.143(1)(a). What was it allowed to adjust, and did it have to warn me first?
I filed a rectification application and nothing has happened. Does the six-month limit in s.154(8) give me anything?
The order has come with a notice of demand. How long do I have, and can they give me less than thirty days?
The AIS shows crypto receipts far larger than anything I earned, and I have a notice. How do I answer it?
My client sold crypto in FY 2018-19 or FY 2020-21. Section 115BBH did not exist then — what governs, and can the AO tax the whole receipt as income from other sources?
A search has turned up wallets and exchange accounts my client never disclosed. Is that block assessment income, and what can the officers actually take?
From when does my exchange report my crypto transactions to the income-tax department, and what does it report?
My client trades on an offshore platform. Nothing shows in the AIS and nobody deducts 1% — does anything have to be reported?
Can I write off my incorporation and project expenses, and how much of them actually survives the 5% ceiling?
I bought units just before the record date and sold at a loss after the payout. Can I still set that loss off?
My REIT or InvIT has paid me interest, dividend, rent and something called repayment of debt. How is each taxed?
My shares were bought in physical form years ago and dematerialised recently. Which date does the holding period run from?
The TPO accepted my pricing but the AO has still levied a s.271AA penalty. On what, and what can I say against it?
I booked an under-construction flat years before the agreement and the possession letter. Which date does my holding period run from?
I have moved back to India and still hold a 401(k) or a UK pension. Do I have to pay Indian tax on income accruing in it every year?
The flat is in my name on the society's books but no conveyance was registered. Whose income is the rent?
My client imports, and has an external commercial borrowing. The rupee moved. What is taxable, what is deductible, and what has to be capitalised?
My construction client wants to offer profit only when the project is handed over. Can he, and does the same rule apply to a service contract?
The AO says I follow the mercantile system, so the amount accrued whether or not I will ever see it. Is that right?
I paid liquidated damages for late delivery and the AO disallowed it as a penalty. What is the actual test?
The officer says my foreign client has a permanent establishment in India. What does that actually mean and how many different ways can he say it?
I have to remit a software payment abroad this week. Do I deduct under s.195, and what do I put on the file if I do not?
The TPO has added my excess advertising spend as a service to my foreign parent's brand. Where does that argument actually stand?
The order has finally arrived. Is it out of time, and can the department say the clock was stopped?
The reopening is admittedly driven by an audit objection the Assessing Officer himself did not accept. Is that a ground?
My s.148 notice is dated 31 March but it only reached me in April. Which date does s.149 test?
The search party came back weeks later just to break the seals and hand back the keys. Does that second panchnama give the department another year?
I want to go back on what I said on oath during the search. Is it too late?
The case against me is a hard disk, a Tally backup and a WhatsApp dump taken off my phone in the search. What are the rules?
Money was stolen, embezzled or lost in the business and there is no clause in the Act that covers it. Can I still deduct it?
How do I tell whether what I spent on my premises or plant is deductible as repairs or has to be capitalised?
I am a tenant and I have spent on partitions, flooring, wiring and a false ceiling. Do I depreciate it, or deduct it?
Our actuary has certified the gratuity liability and we have provided for it in the accounts. Is that provision allowable?
The officer has treated our donation box collections as anonymous donations. Is the whole amount taxed at 30%?
Our housing society collects maintenance, transfer fees and non-occupancy charges from members and earns interest on its fixed deposits. What is actually taxable?
Our trust runs a business and puts the profit into its objects. Does s.11 still cover that income?
We received a donation earmarked for our corpus. Is it exempt, and can we spend it?
Our trust benefits one caste or community. Can it be charitable at all, and does s.13(1)(b) end the matter?
I sold family jewellery and old silver. Is any of it outside capital gains as personal effects?
The Supreme Court dismissed the SLP against the High Court decision I want to rely on. Can I cite it as approved by the Supreme Court?
The Tribunal has restored my case to the Assessing Officer. What is the officer allowed to do now, and how long does he have?
The officer says my asset is not plant. What is the test, and how much help is the definition in s.43(3)?
My asset was sold, discarded or demolished. Is there a separate write-off or a separate charge, or does the block of assets absorb it?
My depreciation could not be absorbed this year. How long can I carry it, and does a late return kill it the way it kills a business loss?
I have written the debt off in my books. Is that enough, or is the officer right that something else has to be satisfied first?
I sold the family field. Is there any capital gain to declare?
I am moving land from investment into my business as stock. When is the gain taxed, and on what figure?
Which holding period applies to my asset now, and from exactly when did the 36-month tier go?
My purchaser forfeited his advance. Is that taxable now, or does it come off my cost when I eventually sell?
I received shares in the resulting company on a demerger. Is that taxable, and what is my cost in each holding?
My Sovereign Gold Bond is maturing. Is the gain exempt, and does it matter that I bought it on the exchange?
Two of us are running a joint venture with no company and no registered firm. Who does the department assess?
Our company is being wound up and the shareholders will get cash and a property. Who pays what?
The TDS officer says we should have deducted under s.192 on our partners' remuneration. Is he right?
Money leaves my hands under a binding obligation before I ever enjoy it. Am I still taxed on it?
Can the Assessing Officer simply substitute a different method of accounting because he thinks it reflects my income better?
How do I value closing stock for tax, and can the Assessing Officer force me to value it at cost?
My company received a dividend and paid one out. Can I deduct what I received, and does it matter that I do not hold a majority in the paying company?
I won money on a lottery, a card game, a race or a competition. How is it taxed, and what does the payer have to do?
The investigation wing has summoned me under s.131(1A) though no proceeding is pending. What can they ask for, and who is allowed to sign it?
CPC says my return is defective and gives me fifteen days. What actually makes a return defective, and what happens if I miss the date?
A s.133(6) or s.148A notice is built on an SFT entry in my AIS that is simply wrong. How do I get it off the record?
The officer says reasonable cause under s.273B is not available to me. Which penalties does the section actually reach, and who has to prove what?
My property or bank account has been provisionally attached while the assessment is still running. Who had to approve it, how long does it last, and how do I get it lifted?
I paid the tax but the challan shows the wrong assessment year, the wrong head or the wrong PAN, and a demand is now outstanding. How is the challan moved?
How long can my company carry MAT credit, how is it actually set off, and do I lose it if I move to the concessional rate?
Which audit form does our trust file — Form 10B or Form 10BB — and what actually decides it?
We run a marketplace, or sell through one. What has to be deducted under s.194-O, at what rate now, and when does a small seller drop out?
My employer gives me a car. How much of it is added to my salary, and have the monthly figures moved?
We pay the premium on a keyman policy on our director's life. Is it deductible, is the maturity money taxable, and does assigning the policy to him before maturity make it tax free?
My client's policy carries a large premium. Is the maturity amount still exempt under s.10(10D), and if it is not, how is it taxed?
I have a long-term gain on a property. Can I park it in capital gain bonds instead of buying another house, and how much will that actually save?
My client is giving up a pagdi tenancy, for money or for a flat in the redeveloped building. What is taxed, and under which head?
The search turned up nothing for this year and the officer has still made an addition. Can he?
A benami show-cause has landed while my client's assessment is still running. Are the two proceedings connected?
The officer wants to tax old creditor balances, a waived loan and a refund under s.41(1). What does he actually have to establish first?
We have goodwill sitting in our block of intangibles. What happened to it, from which year, and is there tax to pay merely for taking it out of the block?
I donated to an institution approved under s.35(1)(ii) and the department has reopened my assessment because the approval was cancelled with retrospective effect. Is the deduction gone?
The officer has raised GAAR on my restructuring. What does Chapter X-A actually require him to establish, and who decides?
My treaty protocol has an MFN clause and I applied the lower rate India agreed with a later OECD partner. Can the department disturb that?
The officer says my counterparty is an associated enterprise. What does s.92A actually require, and is control in substance enough?
We are a start-up. Can we take the 100 per cent deduction under s.80-IAC, and what has to be in place before we claim it?
We have taken on new staff this year. What does s.80JJAA actually give us, and which of those employees count?
We have paid lawyers, valuers, the NCLT and stamp duty on our merger. Can any of it be deducted?
I am being paid under a non-compete covenant on the sale of my business. Is that money still a capital receipt?
I want to incorporate my proprietorship or my firm. Is there a capital gains charge on the assets that go into the company?
Our closely held company's shareholders have changed. Do the brought-forward losses survive?
The department has issued a circular that helps me. Can I hold the Assessing Officer to it, and what does he get to say back?
Our trust gives grants to other registered charities. How much of that is application of our income now?
Which of my clients do the ICDS actually bind, what do the ten standards cover, and what does ICDS II change about the way I value inventory?
My client plays on an online gaming platform. How are the winnings taxed, what must the platform deduct, and how is 'net winnings' actually worked out?
I hold units in a Category II AIF. What is taxed in the fund's hands, what is taxed in mine, and what do I do with the Form 64C it sends me?
The order proposes penalty under s.270A. Is it 50% or 200%, and what decides which?
My client moved to Dubai and pays no tax there. Can he be a resident of the UAE under the agreement, and does the agreement keep his Dubai salary out of India?
I emigrated in the middle of the year. Can the year be split so that only the Indian part is taxed?
The officer says my client is a deemed resident because his income is over Rs 15 lakh. Which income counts towards that figure, and what does 'not liable to tax' mean?
I want to quote the Black Money Act penalty section and its proviso in a reply. What is the exact wording, from when did the higher threshold apply, and who does the section reach?
A penalty notice has come under the foreign-assets legislation. Which officer levies it, how long does he have, where does the appeal go and what do I do about the demand?
The whole threshold argument turns on what the foreign assets are worth. Which date, which rate of exchange, and are the securities taken at market value?
The notice proposes a penalty for leaving the foreign asset out of the return. Can they also prosecute me, and does answering the penalty concede anything on the substantive charge?
The stamp duty value is more than ten per cent above what we paid. Is the whole gap taxed, or only the part above ten per cent?
The department has added the gap to the buyer's income and substituted the same figure as the seller's sale price. Can both stand?
We paid the booking amount by UPI, not by cheque. Does that satisfy the second proviso?
Our agreement is years old but the reckoner value at registration is higher. Do I deduct one per cent on the price or on the reckoner value?
The penalty notice cites s.270A. What is the difference between under-reporting and misreporting, and which one is a stamp-value addition?
What actually goes into the Rule 11UA formula for unquoted equity shares, and which version of it applies to my assessment year?
The officer prefers a different value for my unquoted shares. Can I force a reference to the Valuation Officer, the way I can on land?
The seller was assessed under s.50CA on one figure and I was assessed under s.56(2)(x) on another. What cost of acquisition do I get?
The addition is the gap between my valuer's figure and the officer's. Can that be under-reporting, or misreporting?
The addition has been reduced to a profit element on appeal. Does the s.271AAD penalty come down with it?
If I win the point that the statement was never given to me and the witness was never offered, does the addition go, or does the file come back for another round?
The addition rests on a supplier's statement recorded by the investigation wing under summons. What is that statement actually worth against me?
The same purchases are under an input-credit reversal in GST and a s.69C addition in income tax. Does a finding in one settle the other?
Is there an outer date by which the intimation under s.143(1) has to be sent, and what happens if it goes out after that?
The communication went to an e-mail address nobody reads and was put on the portal. Was I served, or only issued?
I let the thirty days to appeal run out because my s.154 application was pending. Will the delay be condoned?
I did not appeal the s.143(1) intimation and a s.143(3) assessment has since been made. Can I still attack the processing adjustment?
We filed by the due date but claimed the deduction for the first time in a revised return. Does s.80AC still take it away?
I am in the default regime. Do I still get the thirty per cent standard deduction, and the interest on a property that is let out?
My employer valued my stock options on a valuer's report. What does the valuation rule actually require, and how do I test the number?
The shares I received on exercise carry a lock-in and a right of first refusal. Does the restriction reduce the perquisite I am taxed on?
My employer deducted tax on a perquisite I never received in cash. Could it take that out of my salary, what if I cannot fund it, and what happens if the employer pays it instead?
I paid tax on the perquisite when my stock option shares were allotted. What is my cost when I sell them, and what changes if the company buys them back?
The Income-tax Act, 2025 replaces the 1961 Act. Which provisions now carry the stock option perquisite and the start-up deferral of the deduction?
All my tax was paid by deduction at source and advance tax. Does the proviso to s.276CC keep me out of the prosecution, and what is the figure I have to stay under?
The department has offered to compound the prosecution for the years I did not file. What will the charge actually be?
The years in the show cause notice are old ones. Can a s.276CC complaint still be filed now?
My compounding application was rejected. Is there anything I can do about it short of standing trial?
The officer says no clause of Rule 6DD applies to my cash payment. Which clauses are there, and what does each of them actually require?
The officer rejected my books under s.145(3), estimated the gross profit on a rate, and has also disallowed my cash payments and added unexplained credits from the same books. Can he do both?
I sold a plot and took part of the price in cash — a token advance months earlier and the balance handed over at the sub-registrar's office. Is that s.269SS or s.269ST, what is the penalty, and is the buyer exposed too?
The survey party called the search team in the same evening and my partner's statement runs across both. Was that conversion lawful, and what turns on it?
I pay rent for my office and for some machinery. Must I deduct tax under s.194-I, at what rate, and from what amount?
Our closely held company has lent money to a director who holds shares, and it runs a current account with a sister concern. Will the department call either a deemed dividend, and who pays the tax?
How is crypto taxed in India — what rate, what TDS, what do I report, and what happens when the department writes to me?
What can I actually deduct from my salary income under s.16, and what is the standard deduction figure?
I pay rent but my salary carries no HRA - I am self-employed / my pay has no HRA component. What can I deduct for the rent?
My employer paid me three years of salary arrears in one go and my tax jumped. Can I have the arrears taxed at the rates of the years they relate to?