Section 115BBE: The 78% Tax Rate and How to Fight It
The Quick Reference Box Parameter Legal Position Tax rate under Section 115BBE 60% flat tax on additions under Sections 68–69D Surcharge on Section 115BBE 25% surcharge — making effective rate 78%+ Deduction of expenses Not allowed — any expense against such income is disallowed Setoff of losses Not allowed against Section 115BBE income Additional penalty […]
Section 50C: Seller’s Capital Gains and the Stamp Duty Dispute
The Quick Reference Box Parameter Legal Position What Section 50C does Deems stamp duty value as full value of consideration for seller’s capital gains When SDV applies When SDV exceeds actual sale consideration Safe harbour tolerance 10% of consideration — SDV within 10% is ignored Can assessee dispute SDV? Yes — by claiming SDV exceeds […]
Section 36(1)(va): Employee PF/ESI Delay — No Second Chance
The Quick Reference Box Parameter Legal Position Governing provision Section 36(1)(va) for employees’ contribution Employer’s contribution governed by Section 43B — can be paid till ITR due date Employees’ contribution — last date Due date under PF Act / ESIC Act (not ITR date) If deposited before ITR but after PF due date Disallowed — […]
Section 56(2)(x): Property Transactions and the Stamp Duty Trap
The Quick Reference Box Parameter Legal Position Who is taxed? Buyer — on difference between stamp duty value and consideration Trigger amount Difference must exceed ₹50,000 OR 10% of consideration Tax rate Normal slab rates under the head “Income from Other Sources” Safe harbour tolerance 10% of consideration (Finance Act 2020, from AY 2021-22) Is […]
Section 68 Cash Credits: When the AO’s Addition Fails
The Quick Reference Box Parameter Legal Position Who bears the burden? Assessee — primary burden to prove identity, creditworthiness, genuineness When does burden shift? After assessee produces adequate documentation What must AO do after burden shifts? Conduct independent inquiry — cannot sit back Withdrawn statement — sufficient to sustain addition? No — ITAT Mumbai 2026 […]
The Master Section Number Mapping Table: Income Tax Act 1961 to Income Tax Act 2025 — Every Professional’s Essential Reference
Quick Summary Box Category Old Act (1961) New Act (2025) Change Type TDS on Salary Section 192 Section 392 Renumbered TDS (Non-salary) Sections 193–194T (60+ sections) Section 393 Consolidated TCS Section 206C Section 394 Renumbered Deduction — 80C Section 80C Section 123 Renumbered + consolidated Deduction — 80D Section 80D Section 124 Renumbered Tax Audit […]
M/S NORTH AMERICAN COAL CORPORATION INDIA PRIVATE LIMITED [2018 (10) TMI 1339 (AAR, MAHARASHTRA)
Background: North American Coal Corporation India Private Limited (NACC) provided technical consultancy services related to coal mining under an Association Agreement with Sasan Power Limited (SPL). Due to breaches by SPL, NACC terminated the agreement and claimed past dues, reimbursement of expenses, and liquidated damages from SPL. The question before the AAR was whether the liquidated […]