Section 40A(3A) of the Income Tax Act: Implications of Cash Transactions in Business.

Introduction The Indian tax landscape has undergone significant changes over the years, aiming to curb tax evasion and promote transparency in business transactions. One such critical provision is Section 40A(3A) of the Income Tax Act, 1961. This section deals with the disallowance of business expenses in cases where payments exceeding a specified limit are made in cash. This blog explores...

EPFO Exemption: TDS Impact on Employee Perquisites.

Navigating the complexities of tax deduction at source (TDS) regulations can be challenging for autonomous bodies and their employees. The recent case involving an autonomous body (EPFO) highlights significant considerations for similar organizations. This blog post explores the implications of the decision, emphasizing the necessity of a cautious approach before applying the ratio of this...

Practical Case Studies on Old vs. New Income Tax Regime.

Introduction: In the bustling city of Mumbai, India, resides Priya, a middle-class working professional. She finds herself grappling with a challenging decision: whether to opt for the New Tax Regime introduced by the Government or stick with the familiar Old Regime. This decision holds immense significance for Priya and millions of other Indian taxpayers, impacting their financial stability...

Comparative analysis of Old Tax Regime and New Tax Regime.

  The Hon’ble Finance Minister in her speech mentioned five major announcements impacting personal income tax rates and once of major announcement is tax rebate for income upto ₹ 7 lacs in new tax regime. Thus, comparing it with old tax regime individual having income (taxable income) up to ₹ 5 lacs will not have to pay any tax the new tax regime looks favourable for the taxpayers....

Changes In Income Tax Return Form No 1 to 4 for Assessment Year 2024-25.

No change in the applicability: The CBDT has not amended R12 of the Income-tax Rules, 1962, which outlines the criteria for the applicability of ITRs to different classes of taxpayers and method of furnishing returns and the same can be summarized as below for the AY 2023-24: Nature of income ITR 1 ITR 2 ITR 3 ITR 4 Salary Income Income from salary/pension (for ordinarily resident...

Changes In Income Tax Return Form No 2, 3, 5 for Assessment Year 2024-25.

  Applicability of ITR forms – not changed: Specific Income Tax Return (ITR) forms are applicable to specific source of income relating to specified assesee. The CBDT did not changed such applicability. Thus, the applicability of ITR forms to different taxpayers remains unchanged in the new versions of ITR forms. Thus, the source of income and taxpayers on which different ITR forms are...