The actual flows are contingent on how these elements perform and are thus beyond the government’s control. True, better compliance has been witnessed in the past, thanks to better systems being put in place. But beyond a point, such flows tend to plateau out. Therefore, the government needs to look at new avenues of taxation…
Taxpayers must note that the deadline for filing a belated income tax return or submitting a revised return for the assessment year 2024-25 is fast approaching. The final date for submission is in one week, i.e., on January 15, 2025. Originally, the deadline was set for Dec 31, 2024. However, the Central Board of Direct…
This is despite the fact that corporate taxes accounted for more than half of India’s total direct taxes until 2019-20, although their share is now less than half. Corporate taxes accounted for an average of almost two-thirds of total direct taxes during the United Progressive Alliance (UPA) government’s second term. Their share went below half…
In fiscal year 2022-23, India’s Income Tax Department data shows that the gross total income (GTI), before loss set-offs and deductions, of individuals amounted to ₹62.4 trillion, while that of corporates amounted to ₹38.3 trillion. Of the country’s overall GTI of ₹107.2 trillion, as per the department’s records, the balance ₹6.5 trillion is accounted for…
Personal income taxes now account for a larger share of government revenue than corporate taxes, marking only the third time this has happened in over three decades. From 35% during the United Progressive Alliance (UPA) years, corporate taxes today are only 26% of total tax revenue. This shift, along with high Goods and Services Tax…
Some income taxpayers have reportedly received notices under section 148, which is related to the reopening of assessments for the assessment years 2014-15, 2015-16, 2016-17 and 2017-18. A former president of the Institute of Chartered Accountants of India ((ICAI), the chartered accountants’ professional body, believes that these tax notices are wrongly sent since the limitation…
A recent decision by the Mumbai bench of the Income Tax Appellate Tribunal in the case of one of the Tata Trusts has brought attention to a challenge faced by many charitable trusts in claiming tax exemptions for spending on charitable activities. The case involved the trust providing loan scholarships to Indian students pursuing higher…
Salary is taxable on a ‘due’ or ‘receipt’ basis, whichever is earlier. As you have retired in February 2024, the leave encashment became due to you in February 2024 itself. While section 10(10AA) of the Income Tax Act, 1961, provides an exemption for ‘payment’ towards leave encashment received, one would need to read the exemption…
Independent content creators who have seen a spike in their earnings are flocking to financial advisers, wealth managers and chartered accountants (CAs) to avoid tax troubles and plan investments in everything from financial instruments and real estate to startups. “The broad theme that we have learned while working on content creators’ portfolios is that the…
It is understandable that procuring a personal loan is the last resort for a lot of people. Every time a salaried individual encounters financial trouble, the first option that s/he thinks of is to procure a personal loan. A personal loan is an unsecured loan which can be processed seamlessly by applying with a bank or an NBFC and…
