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: