Courts distinguish lawful tax planning from criminal concealment. Recent rulings stress commercial substance and strict penalties for evasion.
Section 6 determines whether Indian or global income is taxable. Tax liability depends on physical presence and control, not citizenship.
The proposed Form 26 and Draft Rule 46(8) require financial data servers to be physically located in India and updated daily, tightening compliance obligations.
Section 139(8A) now permits filing of ITR-U within 48 months from the end of the assessment year. However, it cannot be used to reduce tax liability, claim refunds, or bypass departmental proceedings.
The Budget focuses on simplification, predictability, and targeted incentives, introducing the Income Tax Act, 2025 and major compliance reforms.
Indian law permits legitimate tax planning but strictly penalises concealment and fraud. Courts distinguish lawful avoidance from illegal evasion based on intent and substance.
Artificial Intelligence is transforming audits by enabling 100% transaction testing, reducing sampling risk, and enhancing fraud detection.
Indian tax law taxes not just salary but also perquisites like rent-free accommodation, company cars, and stock options, increasing taxable income.
Budget 2026 replaces certain procedural penalties with fixed fees, aiming to reduce tax litigation and enhance compliance certainty through automated levy mechanisms.
The Draft Income-tax Rules, 2026 require salaried taxpayers to disclose their relationship with landlords, enabling enhanced scrutiny of family-based HRA arrangements.
