The AO has judicial discretion u/s 270A(1) not to levy penalty if he is satisfied that the circumstances are genuine. Immunity u/s 270AA is also available in genuine under-reporting cases provided procedural conditions are met. The AO has no power to waive u/s 273A. However, the PCIT/CIT has power to waive or reduce penalty if… (read more)

Loans are not included as they are repayable with or without interest and have a debtor-creditor relationship. However, current account which comprises of share of P&L, salary, interest etc can be regarded as part of capital. (read more)

Under the new tax regime for an AOP, the surcharge on income tax is capped at maximum of 25%. The 37% surcharge applies only under the old tax regime for income exceeding ₹5 crore. It does not apply if the AOP has opted for the new regime. (read more)

It is well settled that an addition u/s 69A r.w.s. 115BBE cannot be made relying solely on a dumb document found with a third-party without corroborative evidence. Also, cross-examination opportunity to the assessee before relying on such document is mandatory under the principles of natural justice. In Bharti Jayanti Jain vs ACIT ITA No. 7323/MUM/2025… (read more)

It is arguable that there is no "transfer" because the same area is received in the new building after redevelopment. It is a mere improvement of an existing asset and not a "transfer". However, if any additional area is received, the market value of that may be taxable. In the case of residential property, the… (read more)

Generally speaking, addition u/s 69A is not valid when the return is filed u/s 44AD because the presumptive income offered is deemed to cover the profit element. Further addition defeats the scheme. However, the addition may be valid if the AO brings cogent material to show that the money/deposits are not from business but are… (read more)

Yes. As the doctor is a "business entity" owning a commercial building and earning rent and is paying for legal services, he is liable for GST on RCM basis. The doctor's turnover exceeds Rs 20 lakh and he is also registered under GST. (read more)

Obviously it is not acceptable. Registering the sale deed at only 50% of the market value while receiving the balance in cash amounts to undervaluation of the property and circumvention of tax/stamp duty rules, which authorities actively crack down on. (read more)

Yes. The individual depositing ₹15 lakhs cash in FDs will have to file Form 15G (for individuals below 60 years) or Form 15H (for senior citizens aged 60+) for FY 2025-26. Form 121 becomes effective only from 1 April 2026 (FY 2026-27). For any interest credited in FY 2025-26, you must use the old 15G/15H.… (read more)