TAX DUE DATE - JUNE 2025

 

S. No	Due Date	Related to	Compliance to be made
1	11.06.2025	GST RET 01	Payment of GST and filing of return for the Month of May 2025
2	13.06.2025	ISD	Filing for the month of May 2025
3	20.06.2025	GST	Payment of GST for the month of May, 2025 Filing of GSTR 3B for the month of May, 2025
4	07.06.2025	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 May  2025 Deposit TDS from Salaries deducted during the month of May 2025 Deposit TCS for collections made under section 206C including sale of scrap during the month of May  2025, if any
5	15.06.2025	Income tax	Payment of Advance tax for the Corporate assesses –Amount not less than 15% of advance tax.
6	30.06.2025	Equalisation levy annual return	Filing of equalisation levy annual return for 24-25

CBDT Extends Due Date for Filing Personal Income Tax Returns for FY 2024–25 to 15 September 2025

 Background

The Central Board of Direct Taxes (CBDT) has recently announced an extension of the due date for filing Income Tax Returns (ITRs) for the financial year 2024–25 (assessment year 2025–26), moving the deadline from 31 July 2025 to 15 September 2025. This decision comes in the context of substantial revisions made to the ITR forms and related procedural updates.

How NRI’s can save tax on their capital gain income.

An NRI Sold Indian Shares Worth ₹10 Crores and Paid ₹0 in Tax. Was he Evading Taxes? No! Here’s How NRIs Legally Pay ₹0 Tax Despite High Capital Gains 👇

 

GST Updates Effective from April 1, 2025: Key Changes for Businesses

 The Government of India has introduced significant GST updates effective April 1, 2025, aimed at simplifying compliance, enhancing security, and improving accuracy in tax reporting. Here's a quick rundown of the major changes:

A Global Minimum Tax Framework: Tackling Digitalisation and Base Erosion

 The rapid digitalisation and globalisation of the economy have created complex challenges for international tax systems. In response, the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) has developed the Global Anti-Base Erosion (GloBE) Model Rules—a coordinated approach aimed at ensuring multinational enterprises (MNEs) pay a fair share of tax, regardless of where they operate.

Transfer Pricing in the HO-PO Model: Key Considerations for Multinationals in India

 As India continues to attract foreign investment, multinational enterprises (MNEs) often choose to operate through a Project Office (PO) model to execute short- to medium-term projects. Under this setup, the Head Office (HO), based abroad, establishes a PO in India to locally manage and deliver projects. Though the HO and PO form part of a single legal entity, Indian tax laws treat them as distinct enterprises for transfer pricing (TP) purposes.

 

US to Levy 5% Tax on Immigrant Remittances

 A new bill working its way through the U.S. Congress may significantly impact the finances of Non-Resident Indians (NRIs) and other immigrants. Officially titled “The One Big Beautiful Bill,” the proposed legislation contains a 5% remittance tax on money sent abroad by non-citizens—including H-1B visa holders, green card holders, and other non-immigrant visa categories.

Other Comprehensive Income (OCI) — Simplified

 OCI is one of the least understood components of financial reporting under IFRS. Let’s break it down in a simple, practical way.

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🔹 What is OCI?

Other Comprehensive Income (OCI) is part of the total income a business reports, but it’s not part of regular profit or loss. Instead, it captures gains and losses that arise from revaluation, translation, or remeasurement—things that aren’t part of your day-to-day operations.

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🔹 Why Does OCI Matter?

It matters because it separates operating performance from changes in asset values or financial instruments. This separation gives a clearer picture of how well a business is truly performing operationally—without distortion from market fluctuations or accounting revaluations.

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🔹 Common Examples of OCI Items

✅ Actuarial gains/losses on defined benefit pension plans
✅ Revaluation gains/losses on property, plant, and equipment
✅ Cash flow hedge adjustments
✅ Foreign currency translation differences for foreign operations
✅ Unrealized gains/losses on certain financial instruments (e.g., equity investments classified as FVOCI)

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🔹 Simple Examples

• Asset Revaluation:
  A building owned by the company increases in value—from ₦90 million to ₦150 million.
  The ₦60 million gain doesn’t go into your operating profit—it goes into OCI.
  Why? Because the gain isn’t due to your business performance. It’s a paper gain from revaluation.

• Investment Loss:
  Your shares in a public company fall in value from ₦8 million to ₦3 million.
  That ₦5 million unrealized loss goes to OCI.
  Again, it’s not because of your business operations—it’s due to market fluctuations.

Bond Market Trends – April 2025

 In April 2025, Indian bond markets experienced a notable decline in yields across both government securities (G-Secs) and AAA-rated corporate bonds. This trend was driven by improved systemic liquidity, prompted by the Reserve Bank of India's Open Market Operations (OMOs) and increased government spending toward the end of the fiscal year.

Understanding Section 263 of the Income Tax Act, 1961: Power of Revision

 Section 263 of the Income Tax Act empowers the Principal Commissioner of Income Tax (PCIT) to revise an order passed by an Assessing Officer (AO) if two conditions are met simultaneously:

1. The order is erroneous (i.e., incorrect in law or facts).

Understanding Income Tax Notice under Section 142(1): What You Need to Know

 Receiving a notice from the Income Tax Department can be unsettling, but understanding its purpose and responding correctly can make the process smoother. One such commonly issued notice is under Section 142(1) of the Income Tax Act, 1961.

UK-India Double Contributions Convention (DCC)

On 6 May 2025, India and the UK finalized a landmark Free Trade Agreement (FTA). Alongside the FTA, India and the UK have agreed to negotiate a reciprocal Double Contributions Convention (DCC). The DCC will support business and trade by ensuring that employees moving between the UK and India, and their employers, will only be liable to pay social security contributions in one country at a time.

UK-India Free Trade Agreement (FTA)

 On 6 May 2025, India and the UK finalized a landmark Free Trade Agreement (FTA). Government of India has described this as “a historic and ambitious deal to boost jobs, exports, and national growth.” The FTA includes tariff elimination on 99% of Indian tariff lines, covering nearly 100% of trade value, and reduces tariffs on 90% of UK tariff lines, with an estimated annual economic boost of £4.8 billion (US$6.4 billion) for the UK by 2040.

HC rules refund cannot be recovered for violation of Rule 96(10) after its omission

 This Tax Alert summarizes a recent ruling of the Uttarakhand High Court (HC) ^[1] on validity of ongoing proceedings under Rule 96(10) of the Central Goods and Services Tax Rules, 2017 (CGST Rules) after its omission.

Rule 96(10) inter alia provides that a person cannot claim refund of integrated tax paid on export of goods or services if benefit of specified exemption notifications is availed. The said rule was omitted w.e.f. 8 October 2024.

Assessee, engaged in the manufacture of gold bar and jewellery, received a show cause notice on 26 September 2023, for recovery of incorrect refund of IGST in violation to Rule 96(10). The said demand was confirmed vide order dated 3 February 2025. Aggrieved, assessee challenged the order before HC, on the ground that it was issued after Rule 96(10) was omitted.

The key observations of the HC are:

Indirect Tax Regulatory Updates

Regulatory Updates

• Customs Amendment Rules, 2025: Terms like "certificate" replaced with "proof" of origin to broaden documentation scope.

• CAROTAR Guidelines Updated: "Proof of Origin" now includes self-declarations; updates made to FTA Cell responsibilities and ICES portal.

Tax Due Date - May 2025

 India

Sr No	Due Date	Related to	Compliance to be made
1	10.05.2025	GST	Filing of GST 1 for the month of April, 2025
2	20.05.2025	GST	Payment of GST for the month of April, 2025 Filing of GSTR 3B for the month of April, 2025
3	07.05.2025	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 April 2025. Deposit TDS from Salaries deducted during the month of April 2025 Deposit TCS for collections made under section 206C including sale of scrap during the month of April 2025, if any
5	31.05.2025	TDS/TCS (Income Tax)	Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended Jan-March 2025 in Form 24Q / 26Q / 27Q / 27EQ.
6	31.05.2025	Income Tax	Filing of Annual Information Return u/s 285BA

Government notifies Rules to regulate the procedures and functioning of GST Appellate Tribunal

 This Tax Alert summarizes the recent notification issued by Ministry of Finance, notifying Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025 (GSTAT Rules) ^[1] pursuant to Section 111 of the Central Goods and Services Tax Act (CGST Act), for regulating the procedure and functioning of GST Appellate Tribunal (Tribunal).

CBDT notifies laws under which settlement would be disallowable expenditure

On 23 April 2025, the Central Board of Direct Taxes (CBDT) issued Notification No. 38/2025, specifying certain laws under which any expenditure incurred towards settling initiated proceedings for contraventions will be disallowed as a tax deduction under Indian tax laws.

A Refined Perspective on Tax Deducted at Source (TDS)

Introduction

Tax Deducted at Source (TDS) is a pivotal mechanism embedded within the framework of the Indian Income Tax Act, designed to facilitate the advance collection of tax at the point of income generation. Under this system, the payer (deductor) withholds a specified percentage of tax before disbursing income to the recipient (deductee), subsequently remitting it to the government on behalf of the deductee. TDS applies across various income streams, including but not limited to salaries, interest, rent, professional fees, and commissions. By securing tax at the origin, TDS serves as a proactive instrument for revenue assurance, enhancing transparency and reducing opportunities for tax evasion.

Strategic Significance and Utility of TDS

1. Ensuring Steady Government Revenue
TDS acts as a continuous and reliable source of revenue for the government, enabling smoother fiscal planning and uninterrupted public expenditure throughout the financial year. This steady inflow supports governance, infrastructure development, and welfare initiatives without depending solely on year-end collections.

2. Fostering Compliance and Structured Record-Keeping
For enterprises, the obligation to deduct and deposit TDS fosters a culture of fiscal discipline. Maintaining accurate TDS records ensures alignment with statutory requirements and serves as a verifiable audit trail, thus supporting long-term financial governance.

3. Minimizing Scope for Tax Evasion
By intercepting income at the source, TDS significantly curtails the potential for tax evasion. It enhances traceability and accountability, leaving little room for concealment or misrepresentation of income.

4. Simplifying Individual Tax Filings
From the taxpayer’s perspective, TDS credits serve as pre-paid tax, which can be adjusted against their total tax liability while filing returns. This can either reduce the final payable tax or result in a refund, thereby streamlining the compliance burden for individuals.

5. Strengthening Payroll and Vendor Management
TDS compliance is a critical component of payroll and vendor payment processes. HR and finance professionals are entrusted with the responsibility of accurately computing, deducting, and reporting TDS, thus reinforcing internal financial controls and safeguarding organizations against regulatory breaches.

6. Legal and Audit Implications
Proper TDS management is integral to minimizing exposure to interest liabilities, penalties, and potential prosecution. During tax audits, demonstrable adherence to TDS provisions underscores the organization’s commitment to legal and ethical financial practices.

Conclusion
TDS is more than a tax collection method—it is a strategic fiscal tool that supports both macroeconomic stability and micro-level compliance. For individuals and businesses alike, diligent adherence to TDS provisions not only ensures regulatory alignment but also contributes meaningfully to the nation’s economic framework.

Withholding of Refunds under Section 245(2): An Overview of the New Power

 Introduction

Section 245(2), introduced by the Finance Act, 2023, empowers the Principal Commissioner or Commissioner of Income Tax to withhold tax refunds—either wholly or in part—in cases where:

• Assessment or reassessment proceedings are pending, and
• Issuing the refund is likely to adversely impact revenue interests.

Updates regarding compliance on payment of rent under Section 194-IB of the Income-tax Act, 1961

 This Tax Alert aims to provide an update on developments in relation to compliance requirement to deduct tax at source (TDS) on rent paid to residents by individuals and/or Hindu Undivided Family (HUF), under Section 194-IB of the Income Tax Act, 1961 (the Act).

The Finance Act 2017 introduced Section 194-IB with effect from 1 June 2017, requiring TDS deduction at 5% where rent paid is higher than INR 50,000 per month. The Finance (No. 2) Act 2024 reduced the applicable rate of TDS to 2% effective 1 October 2024, creating ambiguity for tax deductors regarding the applicable rate of TDS for the Financial Year (FY) 2024-25, particularly for tenancies that continued past this date. Two views emerged on the TDS rate application, leading to practical challenges where tax deductors who deducted TDS taking the conservative view, i.e 5% for period 1 April 2024 to 30 September 2024 and 2% for the period 1 October 2024 to 31 March 2025, are facing discrepancies in the tax credit allowed by the Income-tax department. The Income-tax department is restricting the tax credit to an amount equivalent to 2% on rent for the full financial year creating a challenge for both the tax deductor (tenant) and the tax deductee (landlord). Tenant will have to claim a refund of the "excess" tax deducted as also pay to the landlord the shortfall in rent because of this excess deduction of tax at source. Landlord will have to pay additional tax and interest for the shortfall in tax credit.

Additionally, the Income-tax department has issued notices to taxpayers for non-compliance with TDS provisions while claiming HRA exemptions in previous financial years. Defaulting taxpayers may consider belated compliance.

Provisions under GST deeming transactions between Association and its members as supply held unconstitutional by Divisional bench of Kerala HC

 This Tax Alert summarizes a recent ruling of the Kerala High Court (HC)¹ on levy of Goods and Services Tax (GST) on fee collected by Association from its members and the constitutional validity of the provisions of Section 2(17)(e) and Section 7(1)(aa) of the Central Goods and Services Tax Act, 2017 (CGST Act).

Bombay HC holds interest and penalty not leviable on delayed payment of IGST on import of goods in absence of substantive provisions under Customs Tariff Act

 This Tax Alert summarizes the recent ruling of the Bombay High Court (HC) ^[1] on applicability of interest, penalty and redemption fine on delayed payment of integrated tax (IGST) as a part of Customs duty on import of goods during the period 13 October 2017 to 9 January 2019.

The petitioner imported raw materials under Advance Authorization for manufacture of goods, however, did not comply with the “pre-import condition” applicable during the relevant period. Accordingly, Revenue authority demanded payment of IGST along with interest, penalty and redemption fine in lieu of confiscation of goods. Petitioner filed a writ petition before the HC challenging the demand of interest, penalty and redemption fine.

The key observations of the HC are:

HOW TO CHOOSE BETWEEN OLD & NEW TAX REGIME

 

GST and AIFs: A Hidden Cost That Demands Attention

 In India’s evolving regulatory landscape, Alternative Investment Funds (AIFs)—the go-to vehicle for high-net-worth individuals, institutions, and private equity players—are facing increasing scrutiny under the Goods and Services Tax (GST) regime. While fund managers often focus on returns and compliance with SEBI regulations, GST implications are frequently underestimated, leading to overlooked costs and potential regulatory pitfalls.

India Tax Administration amends the transfer pricing safe harbor rules

A “safe harbour” is defined in the Indian Income Tax Law (ITL) as circumstances in which the tax authorities shall accept the transfer price declared by the taxpayer. India’s Central Board of Direct Taxes (CBDT), the apex Indian tax administration body, first issued transfer pricing (TP) safe harbor rules (SHR) on 18 September 2013, applicable for five years from financial year (FY) 2012-13 to FY 2016-17.

CBDT notifies last date for filing declaration under Direct Tax Vivad Se Vishwas Scheme, 2024

  

The Direct Tax Vivad Se Vishwas Scheme, 2024 ^[1] (VSV 2.0) which provides an opportunity to taxpayers to settle disputes pending as on 22 July 2024, and those disputes whose time to file an appeal had not expired as on 22 July 2024, in relation to tax, interest, penalty or fees payable under the Income Tax Act, 1961. Taxpayers can settle such disputes by filing a declaration in the prescribed form to the designated authority (DA) and by paying the prescribed amount. Once the disputed tax is settled under VSV 2.0, the taxpayer will enjoy complete waiver and immunity from interest, penalty and prosecution in relation to tax arrears which are the subject matter of the settlement.

Is Opting for Section 115BAA Like a Life Sentence? Debunking the Myth

The introduction of Section 115BAA under the Income Tax Act, 1961 offered a lucrative flat tax rate for domestic companies in exchange for foregoing certain exemptions and deductions. However, a growing concern—almost a myth—has emerged: once a company opts for Section 115BAA, it's a one-way street with no return. Is this really the case? Let's delve into the legal provisions and break this down.

How Alimony is Taxed in India

Alimony is a financial support paid by one spouse to another after separation or divorce. While it's often viewed as a personal matter, alimony has clear tax implications in India that both paying and receiving parties should understand. Here's how alimony is taxed under Indian law:

CBDT has expanded safe harbour rules:

Introduction:
The Safe Harbour Rules provide a structured process for businesses to simplify transfer pricing in international transactions.

These rules help companies avoid disputes with tax authorities by allowing them to declare transfer prices within predefined acceptable limits.

It is governed by Section 92CB of the Income Tax Act, aiming to reduce complexity in transfer pricing regulations.

Key Amendments Introduced:
Extension of Safe Harbour Period:
The applicability of the Safe Harbour provisions has been extended to include Assessment Years (AY) 2025-26 and 2026-27, ensuring continued benefits for qualifying taxpayers.

Inclusion of Lithium-Ion Batteries as Core Auto Components:
The definition of ‘core auto components’ under Rule 10TA now encompasses lithium-ion batteries for use in electric or hybrid electric vehicles. This inclusion aligns with India’s push towards sustainable mobility and provides tax certainty for manufacturers in the electric vehicle sector.

Increase in Threshold Limits for Eligible Transactions:
The monetary threshold for certain international transactions to avail Safe Harbour provisions has been raised from INR 200 crore to INR 300 crore.


Transactions Covered Under Safe Harbour Rules
SHR applies to specified international transactions where taxpayers engage in controlled transactions with their Associated Enterprises (AEs).
The key categories include:
Software Development and ITeS (Information Technology Enabled Services)
If a taxpayer earns at least 17-18% operating profit margin on total cost, the transfer pricing will not be questioned.

Knowledge Process Outsourcing (KPO) Services
Requires a minimum operating profit margin of 18-24% depending on the complexity of services.

Contract Research and Development (R&D) Services
For generic pharmaceutical R&D and software development R&D, a margin of 24% or higher is accepted.

Manufacturing and Auto Components
Inclusion of Lithium-Ion Batteries (2025 Amendment): Recognized as a core auto component under SHR.

Loans Advanced to Foreign Subsidiaries
Interest rates for intra-group loans in foreign currency are based on LIBOR + a fixed spread.

Corporate Guarantees Provided to AEs
The SHR prescribes a minimum guarantee fee of 1-2%

Government amends CGST Rules and issues further clarifications w.r.t. Amnesty scheme under GST

 This Tax Alert summarizes the recent Notification^[1] and Circular^[2] issued by Central Board of Indirect Taxes and Customs (CBIC) addressing certain issues related to availment of benefit of amnesty scheme under Section 128A of the Central Goods and Services Tax Act, 2017 (CGST Act).

Section 128A and Rule 164 were inserted in the CGST Act and Rules respectively, to provide for waiver of interest and penalty w.r.t certain tax demands pertaining to the period from 1 July 2017 to 31 March 2020.

Earlier, Circular No. 238/32/2024-GST dated 15 October 2024 was issued by CBIC to clarify various issues related to implementation of the said provisions. Based on further representations concerning applicability of amnesty scheme in cases where payments have been made through GSTR-3B instead of DRC-03, and the consolidated demand notices or adjudication orders have been issued covering period other than those specified under Section 128A. CBIC has clarified as follows:

TDS Rate Chart for Financial Year 2025-26 and Assessment Year 2026-27

Section

Particulars

TDS Rate Individual/ HUF (Indian Resident)(in %)

TDS Rate for (NRI) in India (in %)

Domestic Company (in %)

Other than domestic Company (in %)

India Tax Due Date - April 2025

 

Sr No	Due Date	Related to	Compliance to be made
1	11.04.2025	GST	Filing of GSTR1 for the month of March 2025

2

20.04.2025

GST

Payment of GST for the month of March 2025 Filing of GSTR 3B for the month of March 2025

3	30.04.2025	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 March 2025. · Deposit TDS from Salaries deducted during the month of March 2025 • Deposit TCS for collections made under section 206C including sale of scrap during the month of March 2025, if any
4	30.04.2025	Income Tax	Apply for E-Form 10F for all foreign subsidiaries

Maharashtra Government proposes amnesty scheme for PSUs with regard to arrears of erstwhile indirect taxes

 

This Tax Alert summarizes the recent “Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) Bill, 2025¹ introduced pursuant to the Maharashtra State Budget 2025-2026.

Taxability of Mutual Funds under the India-Singapore DTAA

 Key Points

1. Article 13: Capital Gains Taxation
• Article 13(4): Exempts capital gains from taxation in India for residents of Singapore unless the gains pertain to immovable property, PE business property, ships/aircraft, or specific shares.
• Article 13(4A): Shares acquired after April 1, 2017, are taxable in India, with gains limited to amounts exceeding the fair market value as of April 1, 2017.
• Article 13(4B): Exempts capital gains from Indian taxation if shares are part of a Singapore PE's business property.
• Article 13(5): Gains from mutual funds are classified as "other property" and are taxable only in Singapore.

Direct Tax Case Laws Update - March 2025.

 ·       SC dismisses SLP to hold that capital reduction leads to transfer of shares and exigible to capital gains taxation

 

Determining the Date of Set-Up for Allowability of Expenses Under Section 37

 Introduction

The date a business is "set up" is crucial for determining whether expenses incurred are deductible under Section 37 of the Income-tax Act, 1961. According to Section 3 of the Act, the "previous year" starts from the date a business is set up. However, the Act does not explicitly define what constitutes a "set-up" of business.

Indian Citizen - Deemed Residency

1. Meaning of Deemed Residency

Under Section 6(1A) of the Income Tax Act, an individual will be considered a deemed resident of India if:

• Their total income (excluding foreign-sourced income) exceeds ₹15 lakh in a financial year, and

• They are not liable to tax in any other country or territory due to reasons like domicile, residence, or similar criteria.

Tax Update - March 2025

Regulatory Updates:

• Customs Regulations: The DGFT revised the Handbook of Procedures for the General Authorization for Export after Repair (GAER) for Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) items. Compliance requirements include bills of entry, proof of repair obligation, and AEO certification.
• Pet Clearance: The CBIC clarified that imported pet dogs and cats can enter only through specified airports and ports.

HC holds IGST as part of customs duty cannot be levied on reimport of goods after repairs

 This Tax Alert summarizes recent ruling of the Delhi High Court (HC) ^[1] on whether integrated tax (IGST) is payable on cost of repairs, insurance and freight in case of re-import of goods which were earlier exported for repairs.

Notification No. 45/2017–Customs provided exemption from duties of customs on re-imported goods in excess of duty which would be leviable if the value of re-imported goods were made up of the fair cost of repairs, insurance and freight charges.

The same was amended by Notification No. 36/2021 – Customs, and Circular No. 16/2021 – Customs was issued to clarify that the integrated tax and cess under Customs Tariff Act, 1975 (CTA) would also be payable on the fair cost of repairs, etc.

The key observations of the HC are:

Tax Due Date - March 2025.

 

Sr No	Due Date	Related to	Compliance to be made
1	11.03.2025	GST	Filing of GSTR 1 for the month of February, 2025

2

20.03.2025

GST

Payment of GST for the month of February, 2025 Filing of GSTR 3B for the month of February, 2025

3	07.03.2025	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 February 2025. · Deposit TDS from Salaries deducted during the month of February 2025 • Deposit TCS for collections made under section 206C including sale of scrap during the month of February 2025, if any
4	15.03.2025	Income Tax	Payment of Advance Tax
5	31.03.2025	GST LUT	Filing of LUT for the FY 24-25

Section 50D of the Income Tax Act: A Comprehensive Analysis

 1. Introduction

Section 50D of the Income Tax Act, 1961, is applicable in cases where the consideration for the transfer of a capital asset is either not ascertainable or is inadequate. This provision ensures that capital gains tax is levied even in situations where the sale consideration is indeterminate, thereby preventing potential tax avoidance.