Income Tax

Income Reporting_ Differences and Penalties

Under-Reporting of Income vs. Misreporting of Income: Key Differences and Penalties

Income Tax / /

Filing an Income Tax Return (ITR) requires taxpayers to report their income accurately and claim only eligible deductions and expenses. However, errors, missing information, or incorrect claims can result in a difference between the income reported and the income assessed by the tax authorities. Two important concepts in this context are under-reporting of income and […]

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Tax Perquisites Explained_ Benefits and Impact

What Counts as a “Perquisite” Under the Income-tax Act, 2025?

On Other Source / /

Is Your Salary More Than Your Monthly Pay Cheque? Your salary package may include much more than your basic pay, allowances, and monthly take-home salary. Employers may also provide accommodation, company shares, insurance benefits, and other facilities. But are these benefits always tax-free? No. Some employer-provided benefits may qualify as taxable perquisites under the Income-tax

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Tax Salary Components

TAX ALERT: What All Counts as “Salary” Under the Income-tax Act, 2025?

On Salary Income / /

Do you think your salary means only the monthly amount credited to your bank account? Think again! For income-tax purposes, salary can include much more than basic pay and monthly wages. Commissions, pension, gratuity, leave encashment, perquisites, certain employer contributions, and other payments may also fall within the definition of salary. Understanding these components is

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Salary Taxability Explained_ Section 15

When Does Your Salary Become Taxable? Section 15 of the Income-tax Act, 2025

On Salary Income / /

Have you ever When Does Your Salary Become Taxablewondered whether your salary becomes taxable only when it reaches your bank account? The answer may surprise you! Under Section 15 of the Income-tax Act, 2025, salary can become taxable even when your employer has not paid it yet. Similarly, salary received in advance and certain salary

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Tax Relief for Urban Agricultural Land

Capital Gains on Sale of Urban Agricultural Land: Tax Relief Under Section 83 of the Income-tax Act, 2025

On Other Source / /

Selling agricultural land located in an urban area can result in capital gains tax. However, taxpayers may reduce this tax liability by reinvesting their capital gains in another agricultural land. Section 83 of the Income-tax Act, 2025 provides relief in certain cases when an individual or a Hindu Undivided Family (HUF) sells land used for

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Tax Relief for Industrial Property

Section 84 of the Income-tax Act, 2025: Capital Gains Relief on Compulsory Acquisition of Industrial Property

On Capital Gain / /

What happens if the government compulsorily acquires your factory land or industrial building? You may receive compensation for the property, but the transfer could also result in a capital gain and an income-tax liability. To support businesses that need to relocate or re-establish their operations, Section 84 of the Income-tax Act, 2025 provides capital gains

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Short-Term Capital Asset Rules

What Is a Short-Term Capital Asset? Holding Period Rules Under the Income-tax Act, 2025

On Capital Gain / /

Have you sold shares, mutual fund units, property, gold, or another investment? Before calculating your capital gains tax, you need to determine whether the asset qualifies as a short-term capital asset or a long-term capital asset. The classification depends mainly on how long you held the asset before selling or transferring it. However, the holding

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Residential Status in India

Residential Status in India Under Section 6 of the Income-tax Act, 2025: Resident, Non-Resident and RNOR Explained

Income Tax / /

Do you live in India, work abroad, or visit India regularly while earning income overseas? Your residential status can significantly affect how much of your income is taxable in India. Under Section 6 of the Income-tax Act, 2025, residential status depends on factors such as your physical stay in India, income from Indian sources, previous

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India’s Tax Cuts and Growth Outlook

Income Tax 2025: Can Lower Taxes Boost India’s Economic Growth?

Income Tax / /

Income tax plays an important role in India’s economic development. It provides revenue for public infrastructure, healthcare, education, transportation and other essential government services. At the same time, income tax affects how much money individuals can spend, save and invest. In the Union Budget 2025–26, the Government of India announced significant personal income tax relief

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