Introduction As the financial year has ended, many individuals and businesses find themselves concerned about filing their Income Tax Returns (ITRs) for the financial year 2022-23. Tax obligations can be complex and overwhelming, but understanding the process and taking proactive steps can alleviate much of the stress associated with ITR filing. This article aims to …
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The Ahmedabad ITAT has upheld the order of the CIT(A), which resulted in the deletion of an addition of Rs. 86.75 crore under Section 69A as unexplained income for the assessee. The ITAT held that the cash deposited in the bank account cannot be considered unexplained since the revenue department itself accepted in the remand …
The case at hand revolves around the applicability of Section 69C of the Income Tax Act, which deals with unexplained expenditure. The assessee-firm in question was involved in the import of rough diamonds, as well as the manufacturing and export of polished diamonds. The Assessing Officer (AO) noticed that there was an excess consumption of …
The method of accounting that an assessee chooses to use can significantly impact the computation of their income under the heads of business or profession (Section 28) and income from other sources (Section 56). While the choice of method lies with the assessee, it is essential to note that they must demonstrate that they have …
Any expenditure that is incurred solely and necessarily in relation to the transfer of a capital asset can be deducted from the full value of consideration. This means that only expenses that are directly connected to the transfer of the asset can be claimed as a deduction. It is important to note that the expenditure …
Under the Income Tax Act, a non-resident Indian can be assessed directly or through an agent. Section 160(1)(i) defines a “representative assessee” as an agent of the non-resident Indian, including a person who is treated as an agent under Section 163. An agent of a non-resident Indian, as per the provisions of Section 163, includes …
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The Income Tax Appellate Tribunal (ITAT) in Chennai has allowed an appeal by an individual Assessee engaged in the film distribution business and also Managing Director of Kural TV Creations (P) Ltd, deleting the addition made by the Revenue under Section 40A(3). The ITAT held that Section 40A(3) is not applicable in cases where the …
The Mumbai Income Tax Appellate Tribunal (ITAT) recently issued a judgement in the case of Ajay Parasmal Kothari v. ITO concerning the taxability of receipts received by an individual from a builder for alternate accommodation and hardship during redevelopment. The ITAT allowed the Assessee’s appeal and held that the receipt from the builder is compensation …
The Income Tax Department has issued a notification on July 29th stating that the time limit for e-verification or hard copy submission of ITR-V has been reduced to 30 days from August 1st. This means that taxpayers need to verify their returns within 30 days from the date of filing to complete the process. The …
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Filing an income tax return is a legal obligation for every taxpayer in India. It is a way to report your income and taxes paid during the financial year to the Income Tax Department. Filing ITRs has several benefits, including facilitating tax compliance and helping individuals claim tax refunds, if eligible. Additionally, it helps individuals …
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