Tax Ready Reckoner

Section 9A (Investment Fund Participation Rules): Indirect investments by Indian residents in offshore funds are now excluded from the 5% limit, reducing compliance burdens . The Central Government can relax conditions for eligible investment funds/fund managers in International Financial Services Centres (IFSCs) . Section 10(4D) (Tax Exemptions for Specified Funds): Retail Schemes and Exchange-Traded Funds (ETFs) regulated […]

New Section 44BBD: Section 44BBD, introduced by the Finance Act 2025, is a presumptive taxation scheme designed to attract foreign expertise into India’s electronics manufacturing sector by simplifying tax compliance for non-residents. Who It Applies To Non-resident entities that: Provide services or technology to a resident Indian company That company must be setting up or

Chapter XIV-B (Sections 158BA, 158BB, 158BE): Replaces “total income” assessment with “undisclosed income” assessmentin search/seizure cases . Undisclosed income includes: Income declared in block returns. Income determined by the Assessing Officer (AO) based on search evidence . Excludes income already assessed under regular provisions (e.g., Sections 143, 147) . Time limit for block assessments: 12 months (extendable to 13

The Budget 2025 proposed new tax slab rates under section 115BAC i.e., the New Tax Regime or the Default Tax Regime. This was to ensure that individuals save more and increase their spending capacity. These revised tax slab rates will be applicable for income earned in FY 2025-26 onwards. INCOME RANGE (₹) TAX RATE Up

Here’s a consolidated table of the revised TDS threshold limits effective from April 1, 2025, based on the Finance Act 2025 amendments: Key TDS Threshold Changes (FY 2025-26)  SECTION NATURE OF PAYMENT OLD THRESHOLD (PRE-APRIL 2025) NEW THRESHOLD (FROM APRIL 2025) TDS RATE 193 Interest on Securities Nil ₹10,000 10% 194A Interest (other than securities) ₹50,000

Here’s a structured table summarizing the key changes to Tax Collected at Source (TCS) effective from April 1, 2025, based on the Finance Bill 2025 amendments: TCS Changes from April 2025  SECTION TRANSACTION TYPE OLD THRESHOLD/RATE (PRE-APRIL 2025) NEW THRESHOLD/RATE (FROM APRIL 2025) KEY NOTES 206C(1G) Remittances under LRS ₹7 lakh threshold ₹10 lakh threshold No

Here’s a structured table summarizing the extension of time limits for filing Updated Tax Returns (ITR-U) under the Income Tax Act, 1961, as amended by the Finance Bill 2025: Updated Tax Return (ITR-U) Time Limits and Additional Tax Liability TIME PERIOD FOR FILING ITR-U EXTENDED DEADLINE ADDITIONAL TAX PAYABLE KEY CONDITIONS Within 12 months from the end of

Start-ups in India can benefit from significant tax exemptions under Section 80-IAC of the Income-tax Act, designed to support innovation and entrepreneurship. Key Features of the Exemption 100% tax deduction on profits for 3 consecutive years out of the first 10 years since incorporation. Available to DPIIT-recognized start-ups that are: Incorporated as a Private Limited

Here’s a structured summary of the key amendments related to deduction on remuneration paid to partners introduced by the Finance Bill 2025, based on the latest updates: 1. Increased Permissible Limits for Partner Remuneration Amendment: The deduction limit for remuneration paid to working partners under Section 40(b) has been doubled from FY 2025-26 (AY 2026-27) . BOOK PROFIT FY 2024-25 LIMIT FY 2025-26 LIMIT (REVISED)

Here’s a detailed summary of the treatment of ULIPs (Unit-Linked Insurance Plans) as capital gains under the Finance Bill 2025, including key changes, tax rates, and applicability: 1. Key Changes in ULIP Taxation (Effective April 1, 2026) Capital Asset Classification: ULIPs with annual premiums exceeding ₹2.5 lakhwill now be classified as capital assets under Section 2(14) of the Income Tax Act, 1961 . Taxation