The law on whether you are entitled to the higher exemption as per CBDT Notification No. 31/2023 dated May 24, 2023 is not clear. Although the notification is effective from April 1, 2023 (FY 2023-24/AY 2024-25), several ITAT Benches have ruled in favor of retrospective application to earlier years, treating it as a beneficial and… (read more)

Valuation of jewellery appears to involve "technical consultancy" since it requires technical knowledge. If so, it will constitute a "specified profession" and fall u/s 44AA(1). These professions are not eligible u/s 44AD. (read more)

1. No. As there is no finding that the books are incorrect or unreliable and have not been rejected. The sales have been accepted. No specific defects in the accounts (such as unverifiable purchases, fictitious transactions etc) have been found. Further, as the GP margin is admittedly 0.10%, the arbitrary addition of 10% is not… (read more)

A wife/widow is not eligible to become Karta because she is not a coparcener in her husband's HUF. The wife enters the family via marriage and not birth. However, the senior-most daughter, if adult, can become a Karta as she entered the family by birth. If all the coparceners are minor, the wife/widow can act… (read more)

Yes. STCG on gold or silver ETFs is added to the total taxable income and taxed at slab rates. if the overall income (including the STCG) remains within the basic exemption limit, the effective tax liability would be zero. (read more)

The ITAT has taken the view that Notification No. 31/2023, increasing the limit u/s 10(10AA)(ii) to ₹25 lakh with effect from April 1, 2023 (i.e., AY 2024-25 and later), should be treated as retrospective and applicable to earlier years. To benefit from this, you will have to file a rectification application. The AO will probably… (read more)

No. In the absence of a valid assessment order, penalty is not leviable. The AO has to record his satisfaction in the assessment order, which is not possible as the assessment years are time-barred. (read more)

Yes, the rejection of a rectification application u/s 154 of the Income Tax Act, 1961 can be appealed u/s 246A before the CIT(A) within 30 days of the date of the order. (read more)

In AY 2021-22, leave encashment was exempt u/s 10(10AA)(ii) of the Income Tax Act, 1961 upto ₹3,00,000. Vide CBDT Notification No. 31/2023, the exemption limit for non-government employees has been increased to Rs 25,00,000 with effect from April 1, 2023. The ITAT has taken the view in Chandra Prakash Vashistha vs. ITO (ITAT Jaipur, ITA… (read more)

It is true that the ITAT has ruled that the Rs 25 lakh exemption has to be applied retrospectively for assessment years prior to FY 2023-24 on the logic that the limit increase accounts for inflation and salary growth and is a beneficial provision. However, the counter argument is that as the notification itself explicitly… (read more)