Compounding of Income Tax Offences: The Complete Guide
At a Glance Parameter Current Position (Post October 2024) Are all offences compoundable? Yes — CBDT October 2024 guidelines removed all non-compoundable categories Time limit for filing application No time limit — 36-month restriction eliminated Multiple applications permitted? Yes — even after prior rejection Application filed with Principal Commissioner or Commissioner of Income Tax Compounding […]
Section 276CC: Prosecution for Not Filing Income Tax Return
At a Glance Parameter Legal Position Offence Wilful failure to furnish return of income within due date Punishment Rigorous imprisonment: 3 months to 2 years + fine When rigorous imprisonment extends to 7 years If tax sought to be evaded exceeds ₹25 lakh Mens rea requirement “Wilfully fails” — deliberate non-filing required Exception 1 Tax […]
Section 270A Immunity: How to Use Section 270AA Correctly
At a Glance Parameter Legal Position Penalty for under-reporting 50% of tax on under-reported income Penalty for misreporting 200% of tax on under-reported income Eight misreporting categories Exhaustive list in Section 270A(9) — must specify which one Immunity under Section 270AA Available for under-reporting cases only Immunity application form Form 68 — filed with Assessing […]
Section 271D and 271E: The 100% Cash Penalty Guide
At a Glance Parameter Section 271D Section 271E Trigger provision Section 269SS violation Section 269T violation What is prohibited Accepting loan/deposit/specified sum in cash ≥ ₹20,000 Repaying loan/deposit/specified advance in cash ≥ ₹20,000 Penalty amount 100% of the amount received in cash 100% of the amount repaid in cash Who levies the penalty Joint Commissioner […]
Section 276C: When Income Tax Prosecution Fails
At a Glance Parameter Legal Position Offence under Section 276C(1) Wilful attempt to evade imposition of tax, penalty, or interest Offence under Section 276C(2) Wilful attempt to evade payment of tax, penalty, or interest Punishment — Section 276C(1) Rigorous imprisonment: 6 months to 7 years + fine Punishment — Section 276C(2) Simple imprisonment: 3 months […]
Tax Audit Checklist for AY 2026-27 and Tax Year 2026-27
At a Glance Parameter AY 2026-27 (FY 2025-26) Tax Year 2026-27 (from April 2026) Governing provision Section 44AB, IT Act 1961 Section 63, IT Act 2025 Audit form Form 3CA / 3CB + Form 3CD Form 26 (new — under IT Rules 2026) Business turnover threshold ₹1 crore (₹10 crore if >95% digital) Same Profession […]
Master Income Tax Compliance Calendar: Tax Year 2026-27
Publisher’s Accuracy Note This calendar has been verified against the official Income Tax Department portal (incometax.gov.in), CBDT notifications, IT Act 2025, and IT Rules 2026. Two governing frameworks run simultaneously: the IT Act 1961 applies to AY 2026-27 (income of FY 2025-26), while the IT Act 2025 applies to Tax Year 2026-27 (income from 01 […]
Section 43B(h): The Complete Professional Commentary
Section at a Glance Parameter Details Inserted by Finance Act 2023 Effective from AY 2024-25 (FY 2023-24) Applies to Buyers making payments to Micro and Small Enterprises Does NOT apply to Medium enterprises Payment deadline — with written agreement Agreed period, subject to maximum 45 days Payment deadline — without written agreement 15 days from […]
Section 263: The Complete Professional Commentary
Section at a Glance Parameter Position Under IT Act 1961 Power PCIT/CIT may revise orders prejudicial to Revenue Twin conditions Order must be (i) erroneous AND (ii) prejudicial to interests of Revenue Both conditions Must co-exist — satisfying one alone is insufficient Limitation period 2 years from end of FY in which order was passed […]
The Taxpayer Charter in IT Act 2025: Your Statutory Rights Against the Income Tax Department
Quick Summary Box Right Old Position (IT Act 1961) New Position (IT Act 2025) Fair and impartial treatment Administrative policy only Statutory guarantee Timely communication No specific statutory guarantee Statutory obligation on department Privacy of information Sec 138 (limited) Statutory + expanded scope Right to be heard Available in law; often violated Strengthened + personal […]