Knowledge Base

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

The article you’re viewing discusses significant changes to the regulations governing Charitable Trusts in India, effective from April 1, 2024. These amendments shall have effect on donations given by a charitable or religious trust whether by way of corpus donation or not. Legal Provisions- Income of any fund or institution or trust or any university

1. Understanding the Principle of Mutuality The principle of mutuality relates to the notion that a person cannot make a profit from himself. An amount received from oneself is not regarded as income and is therefore, not subject to tax; only the income which comes within the definition of section 2(24) of the Income-tax Act (the Act)

Gratuity is a significant part of an employee’s remuneration package. It is a payment made by an employer to an employee as an appreciation of service rendered by such employee. This article aims to provide a detailed understanding of the income tax implications on gratuity in India. What is Gratuity? Gratuity is a large amount

Circular No. 07/2024 [F. No.173/25/2024-ITA-I] Dated 25th April, 2024: A Detailed Analysis The Central Board of Direct Taxes (CBDT), Government of India, Ministry of Finance, Department of Revenue, issued Circular No. 07/2024 on 25th April, 2024. This circular pertains to the extension of the due date for filing of Form No. 10A/10AB under the Income-tax Act, 1961. Background The CBDT had

Form 10-IEA is a crucial document for taxpayers for AY 2024-2025 and onwards. It allows individuals and Hindu Undivided Families (HUFs) to exercise their right to choose between the old and new tax regimes. This form is particularly relevant for those with income from business and profession. Historical Context Before the financial year (FY) 2022-23, individuals had to

The transformation of a Partnership Firm or a Proprietorship Firm into a Private Limited Company is a significant move that can have profound implications for the business structure and tax obligations. This article delves into the income tax implications of such conversions, guided by the provisions of the Income Tax Act, 1961. Understanding the Legal

Pensions are fixed sums of money that individuals receive at regular intervals after retirement. They are essentially a source of income and are subject to tax as salaried income under the Income Tax Act. However, the taxability of pensions may vary depending on the type of pension that individuals choose to receive after retirement. Types