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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

Employee Stock Option Plan (ESOP) has gained popularity as a tool for employee retention, especially in startups that may not be able to offer hefty pay packages. ESOPs provide employees with an opportunity to become equity shareholders of the company over a period of time. However, the taxability of ESOPs can be complex. In this

An Association of Persons (AOP), whether incorporated or not, is treated as a `person` under section 2(31)​ of the Income-tax Act, 1961. Hence, AOP is treated as a separate entity for the purpose of assessment under the Income-tax Act. Here it is important to note that an AOP shall be deemed to be a person, whether

In order to monitor high-value transactions conducted by taxpayers, a significant regulatory measure was introduced with the inception of Form 61A under Section 285BA, effective from April 1, 2004, as per Notification No. 182/2005 dated July 11, 2005. This provision mandated reporting persons to furnish Annual Information Return (AIR) concerning specific financial transactions recorded or registered by them starting from

Introduction Section 54B of the Income Tax Act, 1961, provides an exemption on capital gains arising from the transfer/sale of agricultural land. This exemption is available to individuals and Hindu Undivided Families (HUFs) who sell a piece of agricultural land and invest the proceeds in another agricultural land. Basic Conditions To claim the benefit of section 54B, the

Introduction Agricultural land is a significant asset in India, providing employment to many people and producing food to feed the nation. From an income tax perspective, agricultural land is classified into two types: Rural Agricultural Land and Urban Agricultural Land. Rural Agricultural Land Rural Agricultural Land in India is not considered a capital asset. Therefore, any gains