Section 234C of the Income Tax Act, 1961, pertains to the levy of interest for deferment of advance tax. This section is crucial for tax professionals to understand as it impacts the computation of interest liabilities for assessee who fail to pay advance tax instalments within the stipulated deadlines. This article provides an in-depth analysis of Section […]

Employee Stock Option Plans (ESOPs) are popular mechanisms through which companies attract, retain, and incentivize employees. However, the taxation of ESOPs can be complex, particularly in the Indian context where specific provisions under the Income Tax Act, 1961, govern their treatment. Legal Framework:   Under Indian tax law, ESOPs are considered as perquisites (additional benefits)

Tax Audit Forms The Incomes prescribed two types of forms for tax audit: Audit Report: The audit report would be either as per the Form 3CA or Form 3CB. Form 3CA is for those persons whose accounts have been audited under any law other than the Income Tax laws. Form 3CB is for those persons whose accounts have not been audited under

The taxation of dividends in India has undergone significant changes over the years. This article aims to provide a comprehensive understanding of the historical context, the amendments that abolished the Dividend Distribution Tax (DDT), and the current system where dividends are taxed in the hands of recipients. Additionally, we will explore the deduction available under Section

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank of India on behalf of the Government of India. Features

The Central Board of Direct Taxes (CBDT) has issued Notification No. 2 of 2024, which addresses the time limit for verification of Income Tax Returns (ITRs) after uploading1. This notification provides clarity on the consequences of late verification and outlines the prescribed procedure for ITR-V submission1. Notification No. 02/2024 Dated 31st March, 2024 MINISTRY OF FINANCE (Department of

Unit Linked Insurance Plans (ULIPs) are a unique financial product that offers the dual benefits of life insurance and investment. A portion of the premium paid for a ULIP is invested in a variety of market-linked funds, while the remaining portion is used to provide life insurance coverage. ULIPs offer investors an opportunity to invest towards a

Section 92 of The Income Tax Act 1961, states that any income, expenditure interest & allocation of cost in relation to an international transaction shall be computed based on arm’s length price. International transaction is defined under section 92B of the act, as a transaction between two or more associate enterprises and at least one of such

A Hindu Undivided Family (HUF) is a unique entity recognized by the Indian tax system. It is a family unit that includes all persons lineally descended from a common ancestor. The HUF is taxed separately from its members, providing potential tax benefits. An important aspect of an HUF is the concept of coparceners. A coparcener is a

Section 56(2)(viib) of the Income Tax Act, 1961, is a provision that pertains to closely-held companies issuing shares to resident investors at a value exceeding the “fair market value” of those shares. In such cases, the surplus amount of the issue price over the fair value is subject to taxation as the income of the