Recently, thousands of taxpayers have received SMS alerts or emails informing them that their income tax refunds have been placed on hold by the Income Tax Department under its Risk Management Strategy. These communications have drawn widespread attention and concern, prompting the need to understand the intent, mechanism, and implications of such refund holds. The Risk Management Strategy (RMS) leverages data analytics, third-party information, and…
Inheritance is a vital component of personal financial planning and wealth management. In India, although inheritance benefits from a favourable tax regime, inadequate planning and lack of legal clarity often result in disputes, procedural delays, and unintended tax exposure for heirs. With this context, the article explores the legal meaning of inheritance, its importance, the tax treatment under the Income Tax Act, 1961, and the…
Over the past few years, the Central Board of Direct Taxes (CBDT) has been making consistent and commendable efforts to introduce and upgrade various digital initiatives aimed at improving efficiency, transparency, and accountability within the income tax system. This initiative is a part of CBDT’s continuous endeavor to simplify compliance and enhance the taxpayer experience through digital empowerment. The department has been steadily integrating user-friendly…
In today’s interconnected economy, tax avoidance has become one of the most pressing concerns for governments, regulators, and global institutions. While multinational companies (MNCs) are expected to pursue efficiency and maximize shareholder value, governments rely on tax revenues to fund development, infrastructure, and welfare. This natural tension has given rise to increasingly sophisticated tax planning practices and equally complex countermeasures. Below are some key themes…
Enacted in 2015, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act was introduced by the Indian Parliament to curb “black money”, particularly undisclosed foreign income and assets held by Indian residents. The Act primarily targets foreign income and assets that remain undisclosed to Indian tax authorities. Given the cross-border nature of black money, a robust legal and administrative framework is…
Selling property often brings the responsibility of paying capital gains tax on the profit earned. Fortunately, Indian tax laws provide exemptions under Sections 54, 54F, and 54B if the gains are reinvested in specified assets. However, many taxpayers find it challenging to reinvest their capital gains before filing their Income Tax Return (ITR). To address this issue, the government introduced the Capital Gains Account Scheme…
The Income Tax Department has launched a nationwide drive to crack down on large-scale manipulation, where false claims of deductions have been identified and are currently under scruty. Tax authorities are leveraging multiple databases with the help of Artificial Intelligence to detect and investigate these discrepancies. The Central Board of Direct Taxes (CBDT) states that while the primary focus is on deductions related to fake…
The Central Board of Direct Taxes (CBDT) has granted taxpayers a welcome breather by extending the income tax return filing deadline from 31st July 2025 to 15th September 2025. In the past, deadline extensions have been granted for various reasons, often following persistent representations had to be made in past by professional bodies and industry associations. While exceptional situations like the COVID-19 pandemic & natural…
In the complex world of taxation, one element often determines whether a business or individual stays on the right side of the law: documentation. Proper recordkeeping is not just a best practice—it’s the foundation of tax compliance. Without it, even the most well-intentioned taxpayer can face audits, penalties, or missed opportunities for deductions and credits. Whether you are an individual, a small business, or a…
Building on the government’s goal of streamlining tax collection with minimal administrative efforts, the Budget 2024 introduces new provisions for deducting TDS on partners’ income from the firm in the form of remuneration & interest. These provisions are effective for payments made on or after 1st April 2025. Section 194T can be summarized as: (1) Any person, being a firm, responsible for paying any sum…
