Navigating Section 79: How Continuity of Beneficial Ownership Preserves Loss Carry-Forward

 A recent ruling by the Income Tax Appellate Tribunal (ITAT) in ACIT vs. Lurgi India International Services Pvt. Ltd. provides crucial clarity on the application of Section 79 of the Income Tax Act, which restricts the carry-forward of losses in closely-held companies upon a change in shareholding. The decision underscores that the provision looks at economic reality over legal form, emphasizing beneficial ownership and the timing of corporate restructuring.

Section 194Q and the Jute Aarth Crisis: When Tax Compliance Clashes with Agency Law

The introduction of Section 194Q into the Income Tax Act, 1961, via the Finance Act, 2021, was designed to widen the tax net and create audit trails for high-value business transactions. However, its mechanical application has inadvertently triggered a systemic crisis for traditional commission-based business models, most notably in the jute industry’s aarth system. This provision mandates buyers with a turnover exceeding ten crore rupees to deduct tax at source (TDS) on purchases over fifty lakh rupees. The resulting conflict between procedural tax compliance and the substantive principles of agency law reveals a critical flaw in legislative design.

MCA Relaxes Small Company Thresholds: Unlocks Compliance Benefits

 The Ministry of Corporate Affairs has recently expanded the eligibility thresholds for classification as a ‘small company’ under the Companies Act, 2013. A company will now qualify as a small company if its paid-up capital does not exceed ₹10 crore and its annual turnover in the preceding financial year does not exceed ₹100 crore.

Case Laws on HUF

 The ITAT Kolkata SMC Bench, has given a strict reading of the deemed tax provisions defining “relatives” for tax purposes and ruled that gift received by an individual member from HUF does not qualify as being from a “relative” for Gift tax provisions, making it taxable in the recipient’s hands.​ However, the matter was remanded back to the tax officer to examine whether the same was an exempt income in the hands of recipient member u/s 10(2) of the Income Tax Act.

The assessee received certain sum as a gift from her husband’s HUF (of which the husband was Karta) and claimed exemption under section 56(2) considering the same as received from 'relative' . The AO and CIT(A) treated it as taxable under section 56(2), relying on ITAT Ahmedabad’s decision, which clarified that post-Finance Act 2012 amendment (retrospective from 01.10.2009), HUF is recognized only as a Donee (not donor) in the relative definition for individual recipients. The ITAT Kolkata upheld this view, emphasizing HUF’s distinct legal entity status from its members, rejecting arguments that HUF equates to a “conglomeration of relatives”.

Navigating the New Dawn: India's M&A Landscape in 2025

The Indian mergers and acquisitions (M&A) arena in 2025 is a narrative of strategic resilience and calculated ambition. Despite global economic crosswinds, the market demonstrates robust health, driven not by reckless exuberance but by a clear focus on consolidation, capability building, and capitalizing on long-term structural growth stories. The latest landscape analysis reveals an ecosystem evolving in sophistication, where regulatory clarity, sector-specific trends, and strategic foresight are shaping deal-making’s future.

Clean scrutiny order u/s 143(3) by Assessing Officer to override Tax Adjustment from intimation order u/s 143(1) by CPC

 In Standard Castings Private Limited v. ITO, the Hon’ble ITAT Delhi allowed the assessee’s appeal and set aside a demand that had continued to stand merely because it was raised in a CPC intimation under section 143(1), despite a complete and clean scrutiny assessment under section 143(3) accepting the returned income. The dispute arose from a typographical error during e-filing, where capital gains were inadvertently entered in the wrong row of Schedule BP. The CPC, while processing the return treated the figure as ‘income from other sources,’ and raised a demand. The assessee filed a rectification application under section 154, but CPC transferred rectification rights to the Jurisdictional Assessing Officer.

Corporate Guarantees Under GST: Navigating Taxability, Valuation, and Legal Precedents

The provision of a corporate guarantee, where one company pledges to cover the financial obligations of another (often a subsidiary or affiliate), is a common business practice. However, under India's Goods and Services Tax (GST) regime, this "costly promise" has evolved into a complex area of taxability, sparking significant litigation and regulatory clarification. Understanding the current landscape is crucial for businesses to ensure compliance and mitigate potential liabilities.

No undervaluation trigger under IT Act (Section 56) when asset acquired from Government undertaking at lower value

 Recently, the Hon’ble Income-tax Appellate Tribunal, Kolkata (‘ITAT’), in the case of Kanha Villa LLP (‘the Appellant’), deleted an addition of Rs. 6.59 crore made under Section 56(2)(x) of the Income-tax act, 1961 (‘the Act’), which was based on an enhanced valuation by the District Valuation Officer (‘DVO’) for a property acquired from West Bengal Infrastructure Development Corporation Ltd. (‘WBIDCO’), a state government undertaking. The Hon’ble ITAT held that since the transaction was directly with the State Government entity, there could be no undervaluation or suppression of the purchase price. Accordingly, the addition made on the grounds of undervaluation or suppression of purchase price was deleted.

Tax Due Date - December 2025.

 

S No	Due Date	Related to	Compliance to be made
1	11.12.2025	GSTR – 1	Filing of GSTR – 1 for the month of November 2025
2	13.12.2025	GST ISD	Filing for the month of Nov 2025
3	20.12.2025	GST	Payment of GST for the month of November, 2025 Filing of GSTR 3B for the month of November, 2025
4	07.12.2025	TDS/TCS (Income Tax)	· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of November 2025. · Deposit TDS from Salaries deducted during the month of November 2025 • Deposit TCS for collections made under section 206C including sale of scrap during the month of November 2025, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of November 2025, if any
5	15.12.2025	Income tax	Payment of Advance tax for the Corporate and Non Corporate assesses –Amount not less than 75% and 60% of advance tax respectively.
6	31.12.2025	GST	Filing of Annual Return -  GSTR 9 & 9C.

HC holds two-year period of limitation for claiming refund of wrongly paid tax is not mandatory

 This Tax Alert summarizes a recent ruling^[1] of the Karnataka High Court (HC) on whether the two-year time limit prescribed under Section 54 of the Central Goods and Services Tax Act, 2017 (CGST Act) is mandatory or directory.

Tribunal rules that exemption on gifts from relatives does not require a gift deed

 In a recent decision, the Kolkata Tribunal held that where an individual receives cash from his brother-in-law (a specified relative under the tax laws) through banking channels, a gift deed is not required to establish its tax-exempt nature.

Nature of land determined as "agricultural land" at time of acquisition, the subsequent stamp duty reclassification as “non-agricultural” cannot warrant tax addition

 The Ahmedabad ITAT recently held that decision of Sub-Registrar to determine stamp duty value treating the land as “non-agricultural land” does not in itself alter the actual nature of the property. Since the land in question was demonstrably agricultural in nature, the ITAT held that the addition made under Section 56(2)(x) of the Income-tax Act, 1961 (“the Act’) being the difference of actual consideration and stamp duty value was unsustainable.

ITAT Mumbai rules redevelopment consideration in real estate projects taxable in hands of individual members, not the co-operative society

 The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has recently delivered an order in the matter of RBI Employees Bhagvati Co-operative Housing Society Ltd., deciding on taxability of consideration received on redevelopment projects and clarifying whether capital gains arising from transfer of development rights are taxable in the hands of the co-operative housing society or its individual members.

Bombay HC: Penalty Order on Tax Adjustment held unsustainable when Quantum Appeal (the Tax Adjustment itself) pending before ITAT

 In a significant ruling, the Hon’ble Bombay High Court held that a penalty order passed under section 271(1)(c) of the Income-tax Act, 1961 (‘the Act’) is invalid where the appeal relating to quantum matter is pending disposal by the Income Tax Appellate Tribunal (‘ITAT’). The Court clarified that section 275(1)(a) of the Act, contains a substantive statutory bar that prohibits the Assessing Officer (‘AO’) from imposing penalty until the quantum appeal has been disposed of, making any penalty order issued in the interim, legally unsustainable.

CESTAT holds royalty paid by OEM to overseas entities is includible in the assessable value of goods imported by contract manufacturer

 This Tax Alert summarizes the recent ruling ^[1] of the Customs, Excise and Service Tax Appellate Tribunal, Chennai (CESTAT) on whether the royalties paid by original equipment manufacturer (OEM) to overseas entities should be added to the assessable value of the goods imported by Contract Manufacturers (CMs).

The Human Toll of Tax Limbo: Navigating the Maze of Pending Litigations

 In the complex world of taxation, a dispute with the authorities is more than just a line item on a balance sheet. It represents a state of suspended animation for the individuals and businesses caught in its grip. The growing mountain of pending tax litigations is not merely a statistical concern for economists; it is a human drama of stress, financial strain, and an agonizing wait for clarity. For the people behind these cases, the process is a grueling marathon where the finish line is not only distant but also completely shrouded in fog, a situation exacerbated by systemic issues like legal complexity, officer discretion, and the new era of faceless assessments.

NCLT Mumbai permits amendment to approved Scheme of Amalgamation regarding change in accounting method

 The National Company Law Tribunal (NCLT), Mumbai Bench, has recently delivered an Order in the matter of Ecospace IT Park Pvt. Ltd. (“Applicant Company”), clarifying the scope of modifications to Schemes of amalgamation after its approval, especially with regard to amendments in accounting treatment under the Companies Act, 2013.

Voluntary Revision Made Possible: Section 18A of Customs Act

Madras High Court upholds validity of tax assessment made in deceased person’s name

 Recently, the Madras High Court has held that an income tax assessment made in the name of a deceased person remains valid and enforceable against his legal heirs.

Tribunal ruling holds tax rate of 25.17% applies even to long term capital gains

 In a recent significant ruling, the Tribunal has held that once a company opts for the Concessional corporate tax regime (Section 115BAA) the uniform rate of 22% applies to all types of income, including capital gains. As a result, the separate concessional tax rates (@12.5% effective 23^rd July 2024) for capital gains will not apply once the company opts for the new regime.

In the present case, the assessee, a domestic company, filed its return for A.Y. 2021-22 declaring Long-term Capital Gain (LTCG) arising from sale of land. For the year under consideration, the assessee had opted for the concessional corporate tax regime under Section 115BAA. While computing its tax liability, the assessee applied the rate of 20% on LTCG. The AO, however, recomputed the tax at 22% under Section 115BAA and raised an additional demand.

The assessee contended that LTCG should be taxed at 20% (now taxable @12.5% effective 23^rd July 2024) as per the specific provisions applicable to capital gains. The Tribunal, however, held that since the assessee had opted for the concessional tax regime under Section 115BAA, the applicable rate of tax on its total income, including LTCG, would be 22%. Accordingly, the order of the CIT(A) was upheld, and the appeal filed by the assessee was dismissed.

Delay in filing Form 10-IC held procedural and benefit of concessional tax @ 25.168% for a Company allowed

 Recently, the Hon’ble Mumbai Income-tax Appellate Tribunal (‘ITAT’) in the case of Staubli Tec Systems India Private Limited (‘the Company’) has allowed the company the benefit of the concessional rate under section 115BAA of the Income-tax act, 1961 (‘the Act’) despite delay in filing Form 10IC. The Tribunal held that delay in filing Form 10IC is a procedural issue and does not affect the substantive right of the assessee to claim the tax benefit.

GAAR Panel applies anti-avoidance provisions to NCLT approved demerger

 The Approving Panel under General Anti-Avoidance Rules (GAAR), in a landmark direction, has characterized the demerger of Digital, Media and Communication Business Undertaking of NXT Digital Limited into Hinduja Global Solutions Limited (HGSL) as an "impermissible avoidance arrangement". This marks a rare instance where a NCLT approved corporate restructuring has been subjected to anti-avoidance scrutiny, challenging the presumption that NCLT-sanctioned schemes are immune from GAAR provisions.

Singapore entity not conduit as satisfies PPT / LOB conditions : Grants LTCG exemption under treaty

 The Hon’ble Income-tax Appellate Tribunal, Mumbai Bench (‘Tribunal’) recently held that long-term capital gains (LTCG) arising to Fullerton Financial Holdings Pte. Ltd., Singapore (‘the taxpayer’) on the sale of shares of Fullerton India Credit Company Limited (FICCL, India) to Sumitomo Mitsui Financial Group (Japan) are exempt from tax in India, as the gains qualify for exemption under Article 13(4A) and also satisfies the conditions prescribed in Article 24A (Principal Purpose Test (PPT) and Limitation of Benefits (LOB) clause) of the India–Singapore Double Taxation Avoidance Agreement (‘India–Singapore DTAA’).

Telangana High Court upholds treatment of business transfer as slump sale – fragmentation of consideration not permissible

 The Hon’ble Telangana High Court, in a recent decision, upheld the finding of the Tribunal that the transfer of a business undertaking as a going concern for a lump-sum consideration constituted a slump sale, rejecting the Revenue’s approach of fragmenting the transaction and taxing parts of the consideration as business income.

International Tax: India's Share Buyback - Dividend or Capital Gain?

A recent discussion with a colleague highlighted a key international tax dilemma: when an Indian company buys back shares from a non-resident individual, is it taxed as a dividend or as a capital gain? The answer determines the applicable tax treaty article and the final tax burden.

The Indian Law Change

The 115BAA Conundrum: Does a Flat 22% Tax Obliterate Special Capital Gains Rates?

 A  significant legal fault line has emerged across India’s tax tribunals, creating uncertainty for corporations that opted for the concessional tax regime under Section 115BAA. The core question is deceptively simple: does choosing this flat 22% tax rate also apply this rate to capital gains income, or do the special rates under sections like 111A and 112 continue to apply? The recent Delhi ITAT ruling in Maharishi Education Corporation has thrown a wrench into what was becoming a settled interpretation, prompting a crucial discussion on legislative intent and statutory harmony.

Income tax valuation rules inapplicable to cash compensation under development agreement of real estate deals

 The ITAT Mumbai Bench, in a recent ruling in the case of Suvarna Chandrakant Bhojane v. ITO, has clarified that the deeming provisions of Section 50C of the Income-tax Act, 1961, cannot be invoked where the assessee merely receives cash compensation and no transfer of immovable property actually takes place.

A Blueprint for Better Tax Incentives: Principles for Policymakers

Tax incentives—preferential tax provisions meant to promote specific activities—are a powerful but double-edged sword for governments. While they can spur investment, innovation, and social good, they also carry significant risks: draining public revenue, distorting markets, and creating opportunities for abuse. In response, the Platform for Collaboration on Tax (PCT)—a joint initiative of the IMF, OECD, UN, and World Bank—has established a set of aspirational principles to guide policymakers through this complex terrain.

Navigating the Tariff Storm: A Guide to Transfer Pricing Adjustments

In the complex world of international business, multinational enterprises (MNEs) face a new and significant challenge: adapting their transfer pricing strategies to a landscape reshaped by tariffs. Transfer pricing—the rules for setting prices on transactions between related companies in different countries—is built on the "arm's length principle." This means the prices should be as if the companies were independent, unrelated parties.

Tribunal allows full capital gains exemption under Sec 54 on reinvestment in jointly owned residential property

 Mumbai tribunal has clarified that Section 54 of the Income-tax Act, 1961 (‘the Act’) deduction should be allowed in full to the extent of the amount actually funded by the Assessee towards the new residential property, irrespective of the property being jointly registered in the name of another family member.

India Tax Due Date. - November 2025.

S No	Due Date	Related to	Compliance to be made
1	11.11.2025	GSTR – 1	Filing of GSTR 1 for the month of October 2025
2	13.11.2025	GST – ISD	Filing for the month of October 2025
3	20.11.2025	GST	-Payment of GST for the month of October, 2025 -Filing of GSTR 3B for the month of October, 2025
3	07.11.2025	TDS/TCS (Income Tax)	·Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of October 2025. ·Deposit TDS from Salaries deducted during the month of October 2025 • Deposit TCS for collections made under section 206C including sale of scrap during the month of October 2025, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of October 2025, if any
4	30.11.2025	Filing of returns for the Company	Filing of Master File data in Form 3CEAA for FY 2024-25.   Filing of Income tax return for the Corporate assesses with Transfer Pricing .

SB holds levy of penalty under Black Money Act for default in reporting of foreign assets, as discretionary and not automatic

 This Tax Alert summarizes a decision of the Special Bench of the Income Tax Appellate Tribunal, Mumbai (SB) dated 14 October 2025 in the case of Vinil Venugopal and Ranjeeta Vinil ^[1] (Taxpayers), wherein the issue before the SB was whether the imposition of penalty under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA) for default in disclosure of foreign assets/income in the return of income (ROI), is “mandatory” and “automatic”.

SC rules NR taxpayer carried on business in India even in absence of contract or PE in India

 This Tax Alert summarizes a recent Supreme Court^[1] (SC) (Two Judge Bench) decision in the case of Pride

Unregistered "Power Of Attorney/Agreement Of Sale" does not trigger Capital Gains Tax under Real Estate Joint Development Agreements

 The Bangalore Bench of the Income Tax Appellate Tribunal (“ITAT”) has ruled that execution of an unregistered Power of Attorney (POA) or unregistered agreement of sale does not amount to a “transfer” under Section 2(47)(v) of the Income-tax Act, 1961 (“the Act”). Consequently, capital gains cannot be taxed in such cases of joint development agreements until a valid, registered instrument of transfer exists.

Non-deposit in Capital Gains Account Scheme does not affect capital gains exemption if reinvestment made within stipulated time.

 The ITAT, Chennai in a recent ruling has held that the tax exemption under Section 54 (exemption of capital gains arising on sale of residential property) of the Income-tax-act, 1961 (‘the Act’), cannot be denied just because the unutilized sale proceeds were not deposited in the Capital Gains Account Scheme (‘CGAS’) by the due date for filing the return. The essential requirement is that the taxpayer must reinvest the gains from selling a residential property into buying or constructing a new residential property within the prescribed period of three years. Since this substantive condition was met, the exemption was allowed despite the technical lapse related to the deposit.

Simplified Summary: Business Structuring under the Income Tax Act, 2025

 For businesses, the new Income Tax Act 2025 is more of a language update than a tax revolution. The core rules governing your business structure remain the same.

Recent Tax Tribunal Rulings: Key Takeaways for Taxpayers

 Recent decisions from Income Tax Appellate Tribunates (ITATs) across India provide crucial clarity on common tax disputes. Here’s a simplified look at the key rulings:

Important GST Update: File Pending Returns Before They Expire Forever

 A new rule states that you cannot file old GST returns after three years from their original due date. This applies to major forms like GSTR-1, GSTR-3B, GSTR-9, and others.

Tax Tribunal Shields Offshore Share Transfers: A Landmark Ruling on the India-Singapore DTAA

 The case stemmed from the global acquisition of Flipkart by Walmart in 2018. As part of this transaction:

Allows capital gains exemption despite delay in registration of new property

 The Hon’ble Hyderabad Income Tax Appellate Tribunal (‘Tribunal’) recently held that exemption under Section 54F of the Income-tax Act, 1961 (‘the Act’) is available even though the registration of the new residential house property occurs after the prescribed two-year period, as long as substantial investment is made in the purchase or construction of the new property within the stipulated time.

Mumbai ITAT allows TDS Credit to the Payee - TDS Credit must be available despite Deductor’s default or misreporting

 The Hon’ble Mumbai ITAT (‘Tribunal’) has ruled that TDS credit cannot be denied to a taxpayer merely because the deductor failed to deposit the tax or correctly report it to the Government.

Taxpayer still eligible for capital gains exemption when delay in house construction is beyond taxpayer's control - ITAT Delhi allows Sec. 54F deduction

 In an era marked by heightened tax scrutiny, compliance with capital gains provisions requires not just timely action but also proactive risk management. A recent ruling by the Delhi Income Tax Appellate Tribunal (ITAT) in the case of Rajni Kumar offers valuable insight into the application of Section 54F of the Income Tax Act, 1961 towards capital gains exemption, where unforeseen hurdles left the assessee unable to complete the construction of a new residential property.

Central Processing Center of Income Tax Dept. cannot go beyond prima facie adjustments while processing returns

 In a recent ruling, the Hon’ble Delhi ITAT in Coforge Limited v. DCIT (ITA Nos. 4333 & 4659/Del/2024) quashed an intimation issued u/s 143(1) of the Income-tax Act, 1961 (‘the Act’), holding that the adjustments made by the Centralized Processing Centre (CPC) were beyond the permissible scope as prescribed under the law [i.e. section 143(1)(a)]. The Tribunal reiterated that only prima facie and non-debatable adjustments can be made at the return processing stage, and any issue requiring verification or interpretation must be dealt with in regular scrutiny assessment under the Act [i.e. section 143(3)].

Indian Government’s Public Policy Think Tank, NITI Aayog, recommends a presumptive tax regime for foreign enterprises

 This Tax Alert summarizes the Indian Government’s Public Policy Think Tank, Niti Aayog’s, paper titled ‘‘Enhancing Certainty, Transparency, and Uniformity in Permanent Establishment and Profit Attribution for Foreign Investors in India” (Paper) ^[1] published on 3 October 2025. Out of the various themes that have been identified by the ‘Consultative Group on Tax Policy’ (CGTP) formed by NITI Aayog to facilitate ease of doing business, promote Foreign Direct Investment (FDI), simplify tax laws and processes, and make the system future-ready, the Paper focusses on recommending measures to refine tax rules related to Permanent Establishment (PE) and the attribution of profits.

SEBI’s New RPT Norms – A Paradigm Shift in Corporate Governance

 SEBI’s revised norms on Related Party Transactions (RPTs), effective from September 1, 2025, represent far more than a procedural update. They signal a fundamental shift in the regulatory philosophy, moving from a disclosure-based regime to one demanding substantive governance and economic justification. This change is set to reshape how corporate groups of various structures conduct their affairs.

How to Save Tax on Property Reconstruction: A Simple Guide to Section 54F

Navigating tax laws can be confusing, especially when you're dealing with large sums of money from investments or property. This article breaks down a common scenario: using the profit from selling investments, like mutual funds, to demolish and rebuild your own house, and how you can save tax while doing it.

HC holds export duty not leviable on supplies by DTA to SEZ

 This Tax Alert summarizes a recent ruling of the Andhra Pradesh High Court (HC)^[1] on levy of export duty on supply of goods from Domestic Tariff Area (DTA) to Special Economic Zone (SEZ) basis fifth proviso to Rule 27(1) of Special Economic Zones Rules, 2006 (SEZ Rules).

The fifth proviso to Rule 27(1) was inserted w.e.f. 19 September 2018 to provide that supplies from DTA to SEZ shall attract export duty.

The key observations of the HC are:

Tax Due Date - October 2025.

 

S. No

Due Date

Related to

Compliance to be made

GSTN issues advisory on the changes introduced in the Invoice Management System

 This Tax Alert summarizes the recent advisory ^[1] issued by Goods and Services Tax Network (GSTN) on the changes introduced in the Invoice Management System (IMS).

The highlights of the advisory are:

• Taxpayers can keep the following records pending for a limited period of one tax period i.e., one month for monthly taxpayers and one quarter for quarterly taxpayers:
  
  
  
• Credit notes, or upward amendment of credit notes.
• Downward amendment of credit notes where original credit note was rejected.
• Downward amendment of invoice / debit note where original invoice was accepted and GSTR-3B was filed.
• Downward amendment of documents issued by e-commerce operator where original document was accepted, and GSTR 3B was filed.
  
  The due date for keeping records pending will be calculated based on the date/ tax period in which such documents have been communicated by the supplier.
  
  

• No reversal of input tax credit (ITC) is required if the recipient has not availed ITC on the relevant invoice. In cases where ITC has been availed partially, the obligation to reverse ITC is limited to the amount actually availed.
  
  
  
• Accordingly, a new facility has been introduced in IMS allowing taxpayers to declare the actual amount of ITC availed and specify the reversal amount required, either in full or in part, for selected records. This feature can be used when reversal has already been made previously or ITC was never claimed on the relevant invoice or document.
  
  
  
• An option is also made available to the taxpayers to save remarks while marking records as rejected or pending. These remarks will be visible to the recipient in GSTR-2B for future reference and to suppliers via their outward supplies dashboard, facilitating corrective action.
  
  
  
• The changes, including the facility to keep credit notes pending and declaration of ITC amounts, will be effective from October 2025 tax period and shall apply prospectively to records filed by suppliers after the rollout of the changes.

Comments:

• Allowing taxpayers a defined timeframe to take action on specified records enhances their ability to make informed choices regarding acceptance or rejection, ensuring more deliberate and compliant decision-making.
  
  
  
• Businesses may need to closely assess potential ERP system updates and modifications arising from the new IMS requirements.

^[1] Advisory dated 23 September 2025

AAR holds credit of IGST paid on import of goods not required to be reversed on non-payment to foreign supplier within 180 days

 This Tax Alert summarizes a recent advance ruling ^[1] issued by the Authority for Advance Ruling, Gujarat (AAR) on applicability of second proviso to Section 16(2) of Central Goods and Services Tax Act, 2017 (CGST Act) in case of import of goods.

A Simple Guide to Economic Double Taxation in India

 When a company in India does business with its parent or sister company abroad (called Associated Enterprises or AEs), they must set prices for these transactions as if they were unrelated parties. This is the "arm's length principle." If the Indian tax authorities (Income Tax Department) find that the prices were too high or too low, they can adjust the company's profits upwards, leading to more tax in India.

Where Is Your Company Really Managed?

Imagine an entrepreneur sets up a company overseas. The paperwork is perfect, a local bank account is open, and the company has a physical office abroad. On paper, it looks like a foreign company.

CBIC issues Notifications giving effect to the recommendations made in 56th GST Council Meeting

 This Tax Alert summarizes recent Notifications¹ issued by the Central Board of Indirect Taxes and Customs (CBIC) giving effect to the recommendations made in the 56th Goods and Services Tax (GST) Council meeting² and notifying amendments made vide Finance Act, 2025.

 

Deduction for Gratuity Contributions to LIC Without a Trust: Legal Analysis under Sections 36(1)(v), 40A(7), and 43B of the Income-tax Act, 1961

Introduction

Employee welfare is a cornerstone of corporate responsibility, and gratuity forms a critical part of the social security benefits provided by employers. For private limited companies, one common question is whether contributions made directly to the Life Insurance Corporation of India (LIC) under its Group Gratuity Scheme—without creating a separate gratuity trust—qualify for deduction under the Income-tax Act, 1961. This issue primarily revolves around the interplay of Section 36(1)(v), Section 40A(7), and Section 43B.

This article examines statutory provisions, relevant case laws, CBDT circulars, and judicial interpretation to clarify the deductibility of such payments.

Key recent GST Rulings Simplify Compliance for Businesses

 Recent judgments from various High Courts have provided significant clarity and relief on several GST provisions.

CBIC clarifies treatment of post-sale and secondary discounts under GST

 This Tax Alert summarizes the recent Circular^[1] issued by the Central Board of Indirect Taxes and Customs clarifying tax treatment of secondary and post-sale discounts under GST.

The Tax Maze of Employer-Funded Foreign Education: A Guide for Companies and Employees

 Introduction: The Investment in Human Capital

In today's competitive global landscape, Indian and multinational companies are increasingly investing in high-potential employees by sponsoring advanced education abroad. This includes prestigious MBAs, specialized technical degrees, and executive programs. Often, this sponsorship is coupled with a bond or agreement requiring the employee to return to service for a stipulated period.

A Deep Dive into the Taxation of Carbon Credit Income in India

 Introduction: India's Green Economy and the Tax Conundrum

India stands as a global powerhouse in the fight against climate change, consistently ranking among the largest issuers of carbon credits under international mechanisms like the Clean Development Mechanism (CDM) of the Kyoto Protocol. This vibrant carbon market allows entities that reduce greenhouse gas emissions to generate and sell tradeable "carbon credits" to those needing to offset their emissions, creating a financial incentive for sustainable practices.

Selling a Property? Here’s What Counts as ‘Cost of Improvement’ to Save Capital Gains Tax

 Selling a property can trigger a significant tax liability in the form of capital gains tax. However, the Income-tax Act, 1961, allows you to reduce this tax burden by factoring in two key components: the cost of acquisition (what you paid to buy it) and the cost of improvement (what you spent to improve it).

 

Navigating the Intricacies of Service Permanent Establishment: A Summary of Key Legal Disputes

 The global business landscape has transformed dramatically. With the rise of digitalization and e-commerce, companies can now operate and provide services across borders without a traditional physical presence. This evolution has created a significant challenge for tax authorities worldwide: how to tax the profits generated by foreign enterprises in their jurisdiction. The long-established international tax rule is that a source state can only tax the business profits of a foreign enterprise if it has a Permanent Establishment (PE) there.

Judicial Insights into International Taxation: Key Rulings from April-June 2025

The period from April to June 2025 saw a series of significant rulings from various High Courts and Income Tax Appellate Tribunals (ITATs) across India, alongside a Supreme Court decision, offering crucial clarifications on international taxation matters. These decisions largely focus on the taxability of income for non-residents, the interpretation of Double Taxation Avoidance Agreements (DTAAs), and the applicability of withholding tax provisions.

The 56th GST Council Meeting: A Path Towards Simplification and Enhanced Compliance September 2025

 The 56th Goods and Services Tax (GST) Council Meeting, held in September 2025, represents a significant stride towards simplifying India's GST system. The recommendations from this pivotal meeting address several key areas, aiming to reduce litigation, improve compliance, enhance affordability, and strengthen institutional mechanisms.