Answers to queries on legal issues

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Confusing status regarding Form 10-IEA for ‘Opting Out of New Tax Regime’
Subject: Confusing status regarding Form 10-IEA for ‘Opting Out of New Tax Regime’
Category: 
Asked by: Sanjay Mohan
Answered by:
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Date: September 12, 2025
Excerpt of answer:
We acknowledge your grievance. A number of other taxpayers have raised the same grievance earlier. Unfortunately, under current rules, you cannot withdraw Form 10-IEA for AY 2025-26 within the same year. I suggest you consult a CA to see if you can refile the return under the old regime before the due date of 15th… (read more)
section 9B vs GST
Subject: section 9B vs GST
Category: 
Asked by: BKS
Answered by:
Tags:
Date: September 11, 2025
Excerpt of answer:
If stock is allotted to a partner as part of profit distribution (e.g in lieu of cash), it could be treated as a supply of goods under Schedule I if it involves business assets on which ITC was claimed. GST would apply on the market value of the stock. (read more)
capital asset given to partner
Subject: capital asset given to partner
Category: 
Asked by: BKS
Answered by:
Tags: ,
Date: September 11, 2025
Excerpt of answer:
U/s 9B, the capital asset given to a partner is taxable in the hands of the firm during reconstitution and dissolution. U/s 45(4), the excess benefit i.e. money or FMV of capital asset over capital account balance) during reconstitution is taxable. The distinction between s. 9B and s. 45(4) is that s. 9B applies to… (read more)
stock vs section 9B
Subject: stock vs section 9B
Category: 
Asked by: BKS
Answered by:
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Date: September 11, 2025
Excerpt of answer:
As the flat is held as stock-in-trade, it will be taxable as profits and gains u/s 9B in the firm’s hands based on FMV. In the books of the firm, the Partner’s Capital A/c will have to be debited and Stock-in-Trade A/c credited. The difference of profit will be shown in the P& A/c. In… (read more)
flats on development of land
Subject: flats on development of land
Category: 
Asked by: BKS
Answered by:
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Date: September 11, 2025
Excerpt of answer:
U/s 45(5A) capital gains is taxable in the year the certificate of completion is issued by the competent authority and not at the time of signing the DA or handing over possession of the land. This applies for individuals and HUFs. (read more)
tax evasion petition
Subject: tax evasion petition
Category: 
Asked by: BKS
Answered by:
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Date: September 11, 2025
Excerpt of answer:
Yes. A tax evasion petition, whether filed with or without identity, can serve as a trigger for a Section 148 or section 263 notice if it provides credible information or documentary evidence indicating tax evasion. E.g. if a TEP includes bank statements, invoices, or records showing unreported income, it can constitute “reason to believe”. (read more)
54F
Subject: 54F
Category: 
Asked by: BKS
Answered by:
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Date: September 11, 2025
Excerpt of answer:
If the amount was not utilized within the specified period (2 or 3 years), the tax exemption is considered revoked, and you should have paid LTCG tax in the year the period expired. If this was not done, you may need to file a revised ITR for the relevant year (if within the permissible time… (read more)
273A/273AA
Subject: 273A/273AA
Category: 
Asked by: AMAL MUKHERJEE
Answered by:
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Date: September 11, 2025
Excerpt of answer:
You may file an application u/s 273A(1) stating that you claimed the income as agricultural in good faith and have made a full and true disclosure of the income in your return before any detection by the AO. You may also explain how the penalty would cause genuine hardship (e.g., financial constraints, impact on family,… (read more)
Stamp Duty + Brokerage deduction allowed in Sec 54F
Subject: Stamp Duty + Brokerage deduction allowed in Sec 54F
Category: 
Asked by: Puneet
Answered by:
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Date: September 1, 2025
Excerpt of answer:
Yes. Stamp duty and registration fees are mandatory costs for transferring ownership of immovable property and are explicitly includible in the cost of acquisition for Section 54F purposes. In C.Aryama Sundaram Vs.The Commissioner of Income Tax-3, (2018) 407 ITR 1/ 258 the Madras High Court held as follows: "20. What has to be adjusted and/or… (read more)
IN WHOSE RETURN OF INCOME THE SALE OF PROPERTY OF THE DECEASED PERSON TO BE INCLUDED
Subject: IN WHOSE RETURN OF INCOME THE SALE OF PROPERTY OF THE DECEASED PERSON TO BE INCLUDED
Category: 
Asked by: N B K
Answered by:
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Date: August 31, 2025
Excerpt of answer:
Option 1 is the correct option. As the sale occurred in 2024-25, after the wife’s death in 2022-23, the LTCG must be reported in the legal heirs’ individual returns based on their respective shares in the sale proceeds. You have to use the original cost to the previous owner as your the cost of acquisition… (read more)