The Tribunal held that no TDS demand can survive where tax was duly deposited and PAN became operative within the CBDT-prescribed timeline. Deductors are entitled to relief under the beneficial 2024 CBDT circular.
The Tribunal held that reassessment initiated solely on the basis of an audit objection, without any independent application of mind, is invalid. Such reopening lacks the mandatory reason to believe and cannot sustain in law.
Budget 2026 prioritises easing compliance, reducing penalties, and cutting litigation rather than raising tax rates. The reforms aim to make tax administration more practical and taxpayer-friendly.
Sales already offered to tax cannot be added again under section 68. With stock movement evidenced and books not rejected, treating recorded turnover as unexplained cash credit was held unsustainable.
This session breaks down the major income tax amendments announced in the Union Budget 2026 in a clear and practical manner. It highlights what has changed and the immediate impact on taxpayers and businesses.
Jewellery imports now follow weight-based limits instead of value caps, offering relief amid rising gold prices. Transfer of Residence limits are also increased with an updated list of modern household items.
The proposed amendment disallows any interest deduction against dividend and mutual fund income. As a result, dividends will now be taxed on a gross basis, increasing the tax burden on leveraged investors.
The Income-tax Act, 2025 introduces a targeted exemption for foreign companies using notified Indian data centres. The measure removes source and permanent establishment concerns while reinforcing India’s ambition to become a global data and AI hub.
The Tribunal held that estimating profit at 20% of turnover in a milk trading business was arbitrary and unsupported by industry realities. It restricted the gross profit rate to 5%, recognising wastage, spoilage, and thin margins typical to the trade.
The new tax framework retains existing rates but introduces wide-ranging reforms in MAT, penalties, disclosures, and filing procedures.
