As regards the precautions in the hands of the donor for Section 68, presumably, he will have filed a return in the earlier years showing the shares as an asset in the Balance Sheet. Generally, he will have to maintain proof of source of the purchase in 2000. There is no limit on amount or… (read more)

Scrutiny is not mandatory under any specific provision for FY 2024-25 based solely on ₹20 lakhs fees and ITR filing. It becomes applicable only if the Income Tax Department selects the case for scrutiny based on risk parameters or random selection. Fees dropped from ₹25 lakhs (FY 2023-24) to ₹20 lakhs (FY 2024-25). A significant… (read more)

If the physical cash balance exceeds the amount recorded in the books (here, a difference of Rs. 8 lakhs), it is considered "unexplained cash." Tax authorities may treat this as unreported income unless it can be justified with proper documentation. If the difference is due to a legitimate source (e.g., personal funds, a loan, or… (read more)

If the agricultural land is rural, no capital gains tax applies to any of the transactions, as rural agricultural land is not a capital asset under Section 2(14). The profit of ₹3 lakhs from the sale on 10/12/2024 is exempt. If the agricultural land is urban, capital gains tax applies to the sale on 10/12/2024.… (read more)

Courts have held that for assets that were not capital assets at the time of acquisition (e.g., rural agricultural land), the period of holding for capital gains purposes begins from the date they become capital assets (e.g., upon conversion). Examples include CIT v. Rama Rani Kalia (2013) 358 ITR 499 and CBDT Circular No. 4/2007.… (read more)

If a trust is not registered under Section 12A at the time of receiving donations, its income (including donations) is not exempt under Sections 11 and 12. Such income could be taxed as income from other sources under Section 56. Though the trust spent ₹7,13,960 (98.5% of ₹7,24,600) on charitable purposes, leaving ₹10,640 unspent, the… (read more)

The Rs. 1 crore cash gift to the grandson is exempt from tax in the hands of the grandson under Section 56(2)(x), as it is received from a relative (grandparent). As regards Section 68, the assessee will have to provide documentary evidence to prove the source of the balance Rs 50 Lakh to avoid it… (read more)

As regards the consultation income of Rs. 50 lakhs, healthcare services, including consultation by a doctor, are exempt from GST under Notification No. 9/2017-Integrated Tax (Rate), dated 28.06.2017. However, this exempt income is still included in the aggregate turnover calculation. As regards the medicine sales of Rs. 80 lakhs, the sale of medicines by a… (read more)

You are liable for GST registration because your aggregate turnover (Rs. 48 lakh) exceeds the threshold of Rs. 40 lakh, even though the taxable value under Rule 32(5) is only Rs. 8 lakh. Rule 32(5) reduces the taxable value to the margin (Rs. 8 lakh) for GST payment, but it does not redefine "aggregate turnover"… (read more)

The doctor is not liable for GST on the consultation fee as it’s healthcare service & exempt. The intermediary is liable to charge and pay GST on its commission. If the annual turnover exceeds Rs. 20 lakh or involves inter-state supplies, the intermediary will have to apply for GST registration. (read more)