Income tax - Provisions

  തൃശൂർ ജ്വല്ലറി ഹബ്ബിൽ നടന്ന റെയ്ഡുകൾ ജിഎസ്ടി ഒഴിവാക്കലിൻ്റെ അപകടസാധ്യതകളും സുരക്ഷാ രീതികളും ഉയർത്തിക്കാട്ടുന്നു. തൃശൂർ, കേരളം – ഓഗസ്റ്റ് 2025: കേരളത്തിന്റെ സ്വർണ്ണ തലസ്ഥാനം എന്നറിയപ്പെടുന്ന തൃശൂർ, 16 ആഭരണ വ്യാപാരികളുമായി ബന്ധപ്പെട്ട 42 സ്ഥലങ്ങൾ ലക്ഷ്യമിട്ട് സംസ്ഥാന ജിഎസ്ടി ഇന്റലിജൻസ് ആൻഡ് എൻഫോഴ്‌സ്‌മെന്റ് വിംഗ് ഓപ്പറേഷൻ ആർക്കൻസ്റ്റോൺ നടത്തിയപ്പോൾ ഒരു വലിയ എൻഫോഴ്‌സ്‌മെന്റ് നടപടിക്ക് സാക്ഷ്യം വഹിച്ചു. ഈ റെയ്ഡിൽ 100 ​​കോടി രൂപയുടെ വിൽപ്പന അടിച്ചമർത്തൽ കണ്ടെത്തി, കണക്കിൽ പെടാത്ത 36 കിലോഗ്രാം സ്വർണ്ണം പിടിച്ചെടുത്തു , നികുതിയും പിഴയും ആയി 2 കോടിയിലധികം രൂപ കണ്ടെടുത്തു. നികുതി ബാധ്യതകൾ കുറയ്ക്കുന്നതിന് വിൽപ്പന അണ്ടർ-റിപ്പോർട്ട് ചെയ്യൽ, സ്റ്റോക്ക് രജിസ്റ്ററുകളിൽ കൃത്രിമം കാണിക്കൽ, വ്യാജ ഇൻവോയ്‌സുകൾ നൽകൽ തുടങ്ങിയ രീതികൾ ഉപയോഗിക്കുന്ന ജ്വല്ലറി മേഖലയിൽ ജിഎസ്ടി വെട്ടിപ്പ് തുടരുന്ന പ്രശ്‌നത്തിലേക്ക് ഈ പ്രവർത്തനം അടിവരയിടുന്നു . ജിഎസ്ടി ഒഴിവാക്കലിലെ അപകടകരമായ രീതികൾ മനസ്സിലാക്കൽ വിൽപ്പനയുടെ വ്യവസ്ഥാപിത അടിച്ചമർത്തൽ യഥാർത്ഥ വിൽപ്പനയേക്കാൾ മനഃപൂർവ്വം കുറഞ്ഞ വിൽപ്പന രേഖപ്പെടുത്തൽ. ...

business loss (non-speculative) can be set off against capital gains (both short-term and long-term), subject to restrictions under Section 71 : ✅ Allowed Business loss (other than speculative loss) can be set off against income under any head (except salary). So, if you have a business loss and a taxable capital gain, you can adjust the loss against that gain. 📌 Example: Business loss = ₹4,00,000 LTCG (u/s 112A) = ₹3,00,000 ➡ Net taxable income = ₹(4,00,000 – 3,00,000) = ₹1,00,000 (loss carried forward if return filed in time). ❌ Not Allowed Speculative business loss → can be set off only against speculative business income (not capital gains). Loss from specified business u/s 35AD → only against specified business income. Capital loss → cannot be set off against business income (only against capital gains). 👉 So the direction is: Business Loss → Capital Gain ✅ Capital Loss → Business Income ❌

 the ruling you are referring to was delivered by the SMC Bench of ITAT, Ahmedabad . 📌 Case: Jayshreeben Jayantibhai Palsana vs. ITO 📌 Bench: ITAT Ahmedabad – SMC Bench 📌 Date of Order: 12 August 2025 (some references mention 13 August 2025, but 12 Aug 2025 is the official pronouncement date) 📌 Issue: Whether rebate u/s 87A is available against tax payable on short-term capital gains (STCG) u/s 111A under the new regime u/s 115BAC(1A) . 📌 Finding: The Bench held that Sec. 87A, as applicable for AY 2024–25, does not exclude STCG u/s 111A ; hence, if the total income ≤ ₹7 lakh , rebate is allowable.

!! Academic Purpose only 🔎 How Auditors Detect / Trap Cash Siphoning 1. Related-Party Transactions (Sec. 40A(2), AS-18 / Ind AS-24) Check disclosures in notes to accounts for related-party names. Verify pricing : Compare payments to related parties vs. market rates. Audit Trail : Match invoices with actual delivery/benefit received. Trap : If related parties are paid more than fair value (inflated expenses), auditor questions management & reports under CARO/Tax Audit (Form 3CD, Clause 23/31). 2. Inflated Expenses Analytical procedures : Compare expense ratios (advertising, consultancy, repairs) vs. past years/industry average. Vouching : Verify supporting bills, contracts, and third-party confirmations. Cash flow check : Expense shown in P&L but no matching service/goods delivered. Trap : Fake vendors or repetitive round invoices without actual service. 3. Round-Tripping of Funds Bank reconciliation : Unusual high-value transactions flowing...

!! ACADEMIC PURPOSE ONLY “Tax deferred on Sweat Equity Shares / Securities – B/F” which comes up in the Income Tax Return (ITR) forms . Here’s a clear explanation: 📌 Background: Section 191(1C) & Section 115QA / 192(1C) When an employee receives Sweat Equity Shares or ESOPs (Employee Stock Options) from an employer (especially eligible start-ups), the value is taxable as a perquisite under Section 17(2)(vi). Normally, tax is payable in the year of allotment. However, Section 191(1C) read with Rule 26D allows employees of eligible start-ups (Sec 80-IAC recognized) to defer payment of tax on such perquisite. 📌 What does “Tax Deferred” mean? Instead of paying tax immediately, the employee can defer payment of tax on such ESOP perquisite. Tax becomes payable at the earliest of these events : On expiry of 48 months (4 years) from end of relevant AY, OR On the date of sale of such shares, OR On the date of ceasing employment , whichever is earlier....

Sec 80-IAC recognized start-up   means in Income-tax law: 📌 Section 80-IAC – Deduction for Profits of Eligible Start-ups 1. Eligible Start-up Definition (as per Income-tax Act, 1961) A company or LLP is treated as an eligible start-up if: Incorporation period : Incorporated between 1st April 2016 and 31st March 2025 . Nature of entity : Must be a Private Limited Company or a LLP (not a partnership firm without LLP structure). Turnover limit : Turnover should not exceed ₹100 crore in any of the previous years since incorporation. Innovation criteria : Should be working towards: innovation, development, improvement of products, processes or services, OR a scalable business model with high potential for employment generation or wealth creation. Recognition : Must be recognized as a start-up by DPIIT (Department for Promotion of Industry and Internal Trade) under its start-up scheme. 2. Tax Benefits under 80-IAC Deduction of 100% of p...

ready reckoner chart that places Salary (Sec. 17(1)), Perquisites (Sec. 17(2)), and Profits in lieu of Salary (Sec. 17(3)) side by side 📘 Ready Reckoner – Section 17(1), 17(2), 17(3) Section Covers Examples Essence Sec. 17(1) – Salary Basic monetary payments received as part of employment - Wages, Basic Salary - Advance salary - Fees, Commission, Bonus - Annuity or Pension - Leave encashment (while in service) - Employer’s contribution to RPF > 12% of salary - Excess interest (>9.5% p.a.) credited to RPF Direct and fixed compensation for services Sec. 17(2) – Perquisites Benefits/amenities provided by employer in addition to salary , in cash/kind - Rent-free accommodation - Free/concessional education - Free/Concessional travel - Employer-paid electricity/medical bills - ESOPs (taxable at exercise) - Employer’s contribution to superannuation fund > ₹1.5 lakh - Free car with driver Fringe benefits enjoyed during service Sec. 17(3) – Profits in lieu of Salary Any compensat...