taxadmin Capital gains exemption under section 54 and 54F is available only when statutory conditions relating to timelines, asset type and reinvestment are strictly complied with. Capital gains exemption under sections 54 and 54F is one of the most frequently claimed but equally frequently denied tax benefits under the Income-tax Act, 1961. While these provisions offer … Read more
Late filing fee under section 234F is one of the most commonly encountered levies by taxpayers who miss the due date for filing their income-tax return. The fee is imposed automatically by the system and often comes as an unpleasant surprise at the time of filing or while processing under section 143(1). A common question … Read more
Form 26QB not visible on TRACES is a common problem faced by property buyers after paying TDS on purchase of immovable property. When Form 26QB does not reflect on the TRACES portal, buyers are unable to generate Form 16B, which leads to complaints from sellers and unnecessary panic. This article explains why Form 26QB does … Read more
(Sections 270A / 271AAC / defective show cause) Penalty quashed for procedural lapses form a consistent theme in income-tax jurisprudence, as courts have repeatedly held that penalty proceedings are not automatic and must strictly comply with statutory procedure. If procedure fails, penalty fails. Why Procedural Lapses Are Fatal to Penalty Proceedings Penalty provisions under the … Read more
CPC 143(1) adjustments quashed by courts clearly establish that intimation under section 143(1) is limited to prima facie adjustments and cannot decide debatable issues or make mechanical additions. Mechanical adjustments under section 143(1) have therefore been struck down consistently. Legal issue involved Whether CPC can: The settled position is that 143(1) is not an assessment. … Read more
TDS on property under section 194-IA is a mandatory compliance for buyers of immovable property in India and must be followed strictly to avoid interest and penalties. This provision was introduced to track high-value real estate transactions and ensure reporting of capital gains. However, due to lack of awareness, many buyers end up paying TDS … Read more
Reassessment quashed invalid approval section 151 cases establish that sanction is not an empty formality and mechanical approval vitiates jurisdiction. Reassessment quashed for invalid approval under section 151 is a settled legal position where sanction is granted mechanically without independent application of mind by the approving authority. Approval under section 151 is not a mere … Read more
NRO to foreign remittance tax is one of the most misunderstood areas for Non-Resident Indians (NRIs). While remittance of funds from an NRO account to a foreign bank account is legally permitted, it is subject to strict tax and regulatory compliance under FEMA and the Income-tax Act, 1961. This article explains the legal framework, tax … Read more
(Inadequate Enquiry vs. No Enquiry) Section 263 revision quashed cases clearly establish that inadequate enquiry is not the same as no enquiry, and revision under section 263 cannot be invoked merely because the PCIT holds a different view. Section 263 is routinely invoked by the Principal Commissioner, often mechanically. Courts have repeatedly clarified that inadequate … Read more
Form 15CA / 15CB are compliance requirements prescribed under the Income-tax Act for foreign remittances, and they apply only where the payment is chargeable to tax in India, subject to exemptions under Rule 37BB. What these forms are They apply only to taxable remittances, subject to exceptions. Statutory Background of Form 15CA and Form 15CB … Read more