Income Tax

India needs tax reform to reduce distortions and lift investment growth

Recent tax changes are welcome, but India needs sustained reforms to address exemptions, reduce cascading taxes, improve compliance and broaden the tax base without distorting investment decisions.

Net direct tax collections rise 11.8% to ₹14.42 trillion as of November 10

Gross direct tax receipts rise 14% to ₹17.50 trillion, while refunds jump 25.9%; net collections reach 53.5% of FY27 Budget target, with corporate taxes leading growth

Reassessment invalid if income tax dept fails to issue mandatory notice: SC

The Supreme Court ruled that failure to issue a mandatory notice under Section 143(2) invalidates income tax reassessment proceedings, even if taxpayers participate in them

CBDT notifies new form for tax exemption claims on govt securities

The new Form 173A requires eligible foreign investors and BIS to disclose security holdings, interest income and capital gains to claim exemptions under the Income-tax Act, 2025

CBDT nudges 12,000 tax professionals to file audit reports by October 21

Under its SAKSHAM NUDGE initiative, the Income Tax Department has contacted professionals who have filed fewer than half the audit reports they submitted in the previous year

Inherited jewellery: How to prove its origins and avoid tax scrutiny

Preserve old valuation and inheritance records; document family lockers and explain the source of each holding

Rajasthan tax department expands probe into evasion, false claims

Rajasthan's State Tax Department detected potential tax liability of ₹22.79 crore at over 25 establishments during its crackdown on suspected GST evasion and fraudulent ITC claims.

SC says CBDT circular not binding in courts, rejects Section 80HHC claim

The court said export quota premium could not be treated as export income because the transaction did not involve receipt of foreign exchange

Net direct tax mopup rises 13% to ₹12.12 trillion till September 17

Net direct tax collections rose 13% to ₹12.12 trillion, with corporate tax and STT driving growth despite a sharp rise in refunds

SC stays Punjab & Haryana HC ruling striking down Income-tax Section 147A

The dispute concerns whether tax reassessment notices can be issued by jurisdictional assessing officers or must be routed through the faceless assessment mechanism

35 yrs of liberalisation: Tax system makes progress, but reforms unfinished

India's tax system has come a long way since 1991, but simplifying GST, clearing tax disputes and improving taxpayer services remain key priorities

Delhi HC quashes seven ITAT orders in Patanjali case, flags 'undue haste'

The Delhi High Court found procedural deficiencies and lack of reasoning in the ITAT's handling of seven appeals, and ordered fresh adjudication by another bench

You have a salary and a side hustle. Here's how your tax really works

The salary is largely fixed once your deductions are set, but the freelance side is where the planning happens, presumptive taxation keeps it simple and light.

ITR filing for AY27 touches record 78 million till August 31: I-T dept

A record over 7.8 crore ITRs have been filed for assessment year (AY) 2026-27 till August 31, the income tax department said on Tuesday. Last year, over 7.3 crore income tax returns (ITRs) were filed by September 16, 2025, the extended deadline for filing returns for non-audit cases for AY 2025-26. " A record 7.8 crore+ ITRs have been filed for AY 2026-27 as on August 31,2026," the I-T department said in a X post. This also includes over 5.9 crore ITR-1 and ITR-2, which were filed by the due date of July 31. August 31, 2026, was the due date for filing ITRs for AY 2026-27 for taxpayers with business or professional income who are not subject to audit. If a taxpayer falls in the non-audit category, he/she can file the applicable ITR (ITR-3, ITR-4, ITR-5 or ITR-7). ITR-3 is filed by individuals and Hindu Undivided Families (HUFs) with income from a proprietary business or profession. ITR-4 is a simpler form that caters to small and medium taxpayers. ITR-5 is filed by firms and Lim

Income-tax dept working to bring clarity in international cases: Official

The department is working with taxpayers and other stakeholders to reduce ambiguity and improve consistency as cross-border transactions and business structures become more complex

Suspicious foreign remittances under income tax department scanner

The income tax department has launched a drive to verify "suspicious" foreign remittances by entities with little or no reported business activity, the persons behind them, and the chartered accountants who issued tax determination certificates. Entities located in districts along India's land borders and remitting significant amounts of money abroad have also been covered in the exercise. The exercise has covered approximately 394 entities (including 117 entities located in land-border states), and 36 professionals, the department said in a post on X. "On August 18, the Department launched a nationwide detailed verification exercise to verify these (suspicious) foreign remittances, focusing on shell entities, the persons behind them, and the professionals who have issued Form 15CB certificates," the tax department said. The verification of suspicious foreign remittances follows data analysis and ground intelligence indicating significant overseas remittances by entities with littl

Tax Bill to widen steps to attract foreign investment, ease rules

The government plans to widen tax incentives for offshore funds, electronics, data centres and diamond trading to attract long-term foreign investment and boost ease of doing business

Govt to push Tax Amendment Bill for global bond funds amid Parliament din

The administration plans to table the Income Tax Amendment Bill in the lower house of Parliament as early as next week to replace the ordinance notified early June

Can UPI, NEFT or RTGS transfers trigger income-tax notice? What to know

Tax experts say one of the biggest misconceptions among taxpayers is that the income-tax department watches every small UPI transaction in real time

Income tax notice to a deceased person: How should legal heirs respond?

Legal heirs must bear in mind that the income tax return for the year of death must be filed and tax, if due, must be paid