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    ManualsIncome Tax
    How Much Time Revised Return Can Be Revised?
    ManualsIncome Tax
    Can Revised Return Substitute Original Return?
    ManualsIncome Tax
    Is It Possible To File Auditor Report With Revised Return?
    ManualsIncome Tax
    Whether Assessment Made Under Section 143(1) Would Be Considered as Assessment For Revised Return?
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    Example: 1) X purchases a house property situated in Nagpur from A on 31st March, 2013. The purchase...
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    Example:- Loan Taken on 01-05-2006 of ₹ 5,00,000. Construction ends on 07-09-2012. Rate of int...
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    Example: 4) The details of House property are as follows: Municipal value: 80,000, Fair rent: 78,00...
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    ManualsIncome Tax
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    Revised return can be filed multiple times within the limitation period when omissions or errors are discovered in the original filing.
    An assessee may file a revised return multiple times so long as each revision is within the applicable limitation period and corrects an omission or wrong statement discovered in the earlier return, permitting successive amendments prior to expiry of the statutory time bar.
    ManualsIncome Tax
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    Revised return substitutes the original return, while mere corrections leave the original filing intact for assessment.
    A validly filed revised return withdraws and substitutes the original return for assessment purposes; corrections or amendments made to a filed return without filing a revised return do not change the filing's character and therefore do not effect such substitution.
    ManualsIncome Tax
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    Auditor's report: may be filed with a revised return to rectify omission from the original tax return.
    Where an assessee obliged to furnish an auditor's report with its income tax return fails to submit it with the original filing, the auditor's report may be furnished subsequently with the revised return, permitting rectification of that omission under the return amendment regime.
    ManualsIncome Tax
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    Assessment under section 143(1) not an assessment; revised return filed after intimation remains valid for consideration.
    An intimation issued under section 143(1) is procedural and does not constitute a formal assessment; therefore a revised return filed after such an intimation but within the statutory period must be treated as duly filed and considered by the Assessing Officer.
    ManualsIncome Tax
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    Share premium taxation under Section 56(2)(viib): excess consideration over fair market value is taxable on closely held companies.
    Taxability of share premium for a closely held company turns on whether consideration per share exceeds fair market value; if FMV exceeds consideration (FMV 42, consideration 40) no tax arises, whereas if consideration exceeds FMV (consideration 40, FMV 31) the excess per share (9) is taxable under the provision governing share premium receipts.
    ManualsIncome Tax
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    Taxability of discounted transfers to closely held companies: listed company shares are excluded from gift inclusion, so not taxable.
    Receipt of listed public company shares by a closely held company for consideration below fair market value does not attract tax under the provision addressing gifts to firms and closely held companies, because shares of a listed company are excluded from that inclusion and therefore are not characterized as taxable income from other sources under that rule.
    ManualsIncome Tax
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    Taxability of gifts: transfers from a partnership firm to an individual are taxable when the firm is not a relative.
    A gift of immovable property from a partnership firm to an individual is taxable under the gift provisions because a partnership firm is not a "relative" even if the partners are relatives; the stamp duty valuation of the plot is noted for valuation reference.
    ManualsIncome Tax
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    Taxability of gifts: gifts received from non-relatives are taxable under the gifts provision, not excluded as relative transfers.
    Gifts received by an individual or HUF from persons who do not qualify as "relatives" are taxable as income from other sources; in the example, gifts from a father's cousin and from the recipient's grandfather's elder brother are excluded from the relative exemption and the aggregate amount received from those non-relatives is taxable.
    ManualsIncome Tax
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    Gift taxation: stamp duty valuation excess over purchase price becomes taxable from the amendment's effective date under income rules.
    The amendment taxes, as Income from Other Sources, the difference between stamp duty value and actual purchase price where consideration is below stamp duty valuation, applying only from the amendment's effective date; transactions concluded prior to that date are not subject to this valuation-based charge.
    ManualsIncome Tax
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    Pre-construction interest deduction allows spreading pre-acquisition interest across subsequent assessment years, with current-year interest treated separately.
    Pre-construction interest under Sec. 24 is computed for the period from loan drawal to the day before completion; the total pre-construction interest (here computed as principal x months x rate) is capitalised and apportioned equally across the prescribed subsequent assessment years as the annual deduction. Interest accruing in the fiscal year of completion is allowed in that year and amounts accruing between the fiscal year start and actual completion date are excluded from the pre-construction spread.
    ManualsIncome Tax
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    Gross Annual Value calculation: vacancy adjustment reduces taxable house property value under applicable law provision.
    Annual Lettable Value is the higher of Municipal Value or Fair Rent but capped by Standard Rent, fixed here at 80,000. Annual receipts excluding unrealised rent are 54,000. Deducting vacancy loss of 18,000 from the Annual Lettable Value produces a Gross Annual Value of 62,000 as the taxable base for house property income.
    ManualsIncome Tax
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    Gross Annual Value under Section 23 caps assessed value at standard rent; vacancy adjustment affects the GAV calculation.
    Gross Annual Value under Section 23 applies the higher of municipal value or fair rent but not exceeding standard rent (63,000) as the Actual Lettable Value; after excluding unrealised rent and adjusting for vacancy, the Annual Rent Receivable is 42,000, taken as the Gross Annual Value under the cited provision.
    ManualsIncome Tax
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    Gross Annual Value rule for house property: higher of municipal or fair rent subject to standard rent cap.
    Determination of Gross Annual Value requires taking the higher of municipal value or fair rent as the annual lettable value, provided it does not exceed the standard rent; the Gross Annual Value is then the greater of this lettable value and the actual annual rent received excluding unrealised rent.
    ManualsIncome Tax
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    Gross Annual Value rule: ALV equals the higher of municipal value or fair rent but capped at standard rent.
    Annual Letting Value (ALV) is the higher of municipal value and fair rent but capped at the standard rent; with municipal value 60,000, fair rent 68,000 and standard rent 62,000 the ALV (and Gross Annual Value under the cited clause) is 62,000. Annual rent received excluding unrealised rent is 60,000, which is recorded separately from the statutory ALV used to determine Gross Annual Value.
    ManualsIncome Tax
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    Building and land appurtenant defined: includes residential and commercial structures and adjoining land like gardens.
    For house property chargeability, building includes residential, factory, office, shop, godown and other commercial premises, while land appurtenant means land connected with the building such as gardens and garages, establishing which assets constitute house property for income assessment.
    ManualsIncome Tax
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    Deduction under Section 80GG determined as the least of three statutory measures; example illustrates rent-based cap applies.
    Deduction under Section 80GG is the least of: (1) Rs. 2,000 per month (Rs. 24,000 per annum); (2) rent paid less 10% of total income; and (3) 25% of total income. In the supplied example with total income of Rs. 3,00,000 and rent paid Rs. 1,50,000, the three measures are Rs. 24,000; Rs. 1,20,000; and Rs. 75,000 respectively, so Rs. 24,000 is the allowable deduction under the prescribed formula.
    ManualsIncome Tax
    Show AI Summary
    Deduction under 80G requires a stamped receipt showing the trust's registration number and valid registration on donation date.
    Deduction u/s. 80G requires a stamped receipt evidencing the donation that records the trust's registration number for 80G, and the trust's registration must be valid on the date the donation is made; lacking validity or the registration number on the receipt affects entitlement to the deduction.
    ManualsIncome Tax
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    Donation deduction eligibility: employer certificate confirming salary deduction enables employee claim of 80G deduction on donations.
    Employees may claim a deduction under 80G where the employer provides a certificate stating the contribution was made from the employee's salary account; that employer statement operates as the operative documentary basis for the employee's deduction claim even if the donation receipt is in the employer's name.
    ManualsIncome Tax
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    Deductibility of donations: eligibility hinges on whether the recipient trust meets qualifying donee and compliance requirements.
    Whether donations to foreign trusts qualify for deduction under section 80G is a focused eligibility question hinging on whether the recipient trust is a qualifying donee and whether its registration, recognition, domicile or jurisdictional status and accompanying documentary proof and procedural compliance satisfy the statutory conditions for claiming a deduction.
    ManualsIncome Tax
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    Deduction for specified diseases: treatment costs for listed serious neurological, oncological, renal and hematological ailments qualify.
    Deduction for medical treatment is available for specified diseases and ailments: neurological disorders (including certified disability of 40% or above, dementia, dystonia musculorum deformans, motor neuron disease, ataxia, chorea, hemiballismus, aphasia, Parkinson's), malignant cancers, full blown AIDS, chronic renal failure, and hematological disorders such as hemophilia and thalassaemia.

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      Review of Customs duty Exemptions

      1 February, 2025

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      Union Budget 2025-26 (Full) + Finance Bill, 2025

      VII. Review of Customs duty Exemptions

      A. Review of conditional exemption rates of BCD prescribed in notification No. 50/2017- Customs dated 30.6.2017:

      A comprehensive review has been undertaken in respect of 25 conditional exemptions/concessional rate entries in Notification No. 50/2017-Customs dated 30th June, 2017 whose validity is expiring by 31.3.2025. After review, 24 entries are being continued for varying periods with modification in few entries and 1 entry is being lapsed.

      (1) The details of exemptions/concessional rates being extended with or without modifications:

      S.No

      Description

      Entry No

      End date

      1

      Ships and vessel for breaking up

      S. No. 555A

      31.3.2035

      2

      Raw materials, components, consumables or parts, for use in the manufacture of ships/vessels

      S. No. 559

      31.3.2035

      3

      Bulk drugs for manufacture of drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 3 with modifications in the list]

      S. No. 166

      31.3.2029

      4

      Bulk drugs used in the manufacture of polio vaccine and Monocomponent insulins

      S. No. 166A

      31.3.2029

      5

      Bulk drugs used in the manufacture of life saving drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 4 with modifications in the list]

      S. No. 167

      31.3.2029

      6

      Drugs, Medicines or Food for Special Medical Purposes (FSMP) used for treatment of rare disease

      S. No. 167A S. No. 607B

      31.3.2029

      7

      Good specified in List 36 imported by testing agencies specified in List 37, for the purpose of testing and/or certification

      S. No. 532A

      31.3.2029

      8

      Crude Glycerin for use in manufacture of Epichlorohydrin

      S. No. 81A

      31.3.2027

      9

      Denatured ethyl alcohol for use in manufacture of industrial chemicals

      S. No. 104B

      31.3.2027

      10

      Fish meal for use in manufacture of aquatic feed S. No. 104C 31.3.2027

       

       

      11

      Goods for the manufacture of telecommunication grade optical fibres or optical fibre cables

      S. No. 168, S. No. 341, S. No. 341A

      31.3.2027

      12

      Textile machinery (with addition of two new machinery)

      S. No. 460 S. No. 460A S. No. 460B S. No. 460C S. No. 460D

      31.3.2027

      13

      Parts and components for use in manufacturing of textile machineries

      S. No. 460E

      31.3.2027

      14

       Goods for use in the manufacture of Open cell of LCD and LED TV panel

      S. No. 515B

      31.3.2027

      15

      Seeds for use in manufacturing of rough Lab- Grown Diamonds [IGCR condition removed]

      S. No. 345B

      31.3.2026

      16

      Parts of wind operated electricity generators, for the manufacture or the maintenance of wind operated electricity generators [The entry has also been modified]

      S. No. 405

      31.3.2026

      17

      Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

      S. No. 406

      31.3.2026

      Note: Description of entries is indicative. Notification may be referred to for complete description.

      (2) The following entry is being allowed to lapse with effect from 01.04.2025:

      S. No.

      S. No. of 50/2017- Customs

      Description

      1.

      489AA

      Heat Coil for use in the manufacture of Electric Kitchen Chimneys falling under tariff item 84146000

      (3) Other Changes in notification No. 50/2017 -Customs dated 30.6.2017

      Certain entries are being modified as under:

      S. No.

      S. No. of 50/17-Cus

      Brief Description

      1.

      257A

      9 new groups of items such as sea shell, adhesive etc are being added to the list of duty free items for use in manufacture of handicrafts for export. The time period for export of the handicraft items is also being increased from 6 months to 1 year, further extended by another three months.

      2.

      539

      BCD exemption is being extended to imports of ground installations for satellites and payloads and its spares and consumables of such installations.

      3.

      539A

      BCD exemption is being provided on goods for use in the building of launch vehicles and launching of satellites

      Note: Description of entries is indicative. Notification may be referred to for complete description.

      B. Amendment of Notifications Nos. 16/2017-Customs dated 20.04.2017 and 153/94-Customs dated 13.07.1994

      Notification No.

      Brief Description

      16/2017-customs dated 20.04.2017

      The notification exempts specified drugs and medicines from the whole of the duty of customs leviable thereon subject to their being supplied free to cost to patients under Patient Assistance Programme (PAP) run by the pharmaceutical companies.

       

      37 new drugs and 13 patient assistance programmes are being added to the list

      153/94-customs dated 13.07.1994

      Currently, articles of foreign origin can be imported into India for maintenance, repair and overhauling subject to their export within six months extendable to 1 year. The duration for export in the case of railway goods imported for such purpose has been increased from 6 months to 1 year further extendable by 1 year

      Note: Description of entries is indicative. Notification may be referred to for complete description.

       


      Full Text:

      Union Budget 2025-26 (Full) + Finance Bill, 2025

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      ActsIncome Tax