India Taxation

08/06/2026

*Paying tax on black money may no longer be enough to save you.*

Paying tax on unexplained cash may no longer be enough to stay safe. A recent SAFEMA tribunal ruling says that even if someone voluntarily declares unaccounted cash and pays tax, authorities can still investigate under the Benami law. *If the real source or owner of the money cannot be proven, the cash or related assets may be confiscated.*

07/06/2026

*Filing the wrong ITR form can make your return invalid.*

*Not just incorrect. Invalid. As in: treated as never filed at all.*

Here is which form applies to you 👇

*1. ITR 1 (Sahaj): resident individuals only*
✅ Total income up to ₹50 lakh
✅ Income from salary, pension, up to 2 house properties, or interest
✅ LTCG u/s 112A up to ₹1.25 lakh with no brought forward losses
❌ NRIs cannot file ITR 1
❌ Directors in any company cannot file ITR 1

*2. ITR 2: if your income is more complex*

✅ Capital gains from shares, mutual funds, or property
✅ More than 2 house properties
✅ Foreign assets or foreign income
✅ Total income above ₹50 lakh
✅ Director in any company or investment in unlisted equity shares

Salaried and traded in stocks this year? You almost certainly need ITR 2, not ITR 1.

*3. ITR 4 (Sugam): small business owners and freelancers under presumptive taxation*

✅ Section 44AD: business turnover up to ₹3 crore
✅ Section 44ADA: professional receipts up to ₹75 lakh
✅ Section 44AE: transport operators
❌ Total income must not exceed ₹50 lakh
❌ LLPs cannot file ITR 4

*4. Three mistakes people make every year*

➡️ Salaried person with mutual fund gains files ITR 1 instead of ITR 2
➡️ Freelancer with presumptive income and capital gains files ITR 4 instead of ITR 3
➡️ Director in a private limited company files ITR 1 without realising directors are excluded

The portal does not always stop you. The error shows up later as a notice.

*5. What happens when department catches a wrong form*
📌 Defective return notice under Section 139(9)
📌 15 days to respond and correct it
📌 No response: return treated as never filed
📌 Losses cannot be carried forward
📌 Refunds get delayed
📌 Late filing fee under Section 234F may apply
📌 Income underreporting via wrong form: penalty up to 50% of tax due

*6. Quick decision tree*
➡️Salary, pension, interest, up to 2 house properties, income under ₹50L → ITR 1
➡️Capital gains, foreign assets, income above ₹50L, director → ITR 2
➡️Presumptive business or profession, income under ₹50L → ITR 4
➡️Regular books of accounts or anything else → ITR 3

The right form is the one that matches every source of income you actually earned. If your income does not fit cleanly into one form, consult a CA before filing.

07/06/2026

*📑 CBDT Issues Guidelines for Compulsory Selection of Returns for Complete Scrutiny – FY 2026-27*

📢 CBDT has issued Guidelines for Compulsory Selection of Income-tax Returns for Complete Scrutiny during FY 2026-27 (AY 2026-27).

*⏳ Important Deadline:* Notice under Section 143(2) must be served on or before *30 June 2026.*

*🔍 Cases Selected for Compulsory Complete Scrutiny*

*1️⃣ Survey Cases (CS-01)*

• Survey conducted under Section 133A (excluding Section 133A(2A)) on or after 01.04.2024.
• Auto-selected by the system with approval of DGIT (Systems).
• Cases outside Central Charges are to be transferred within 15 days of issuance of notice under Section 143(2).

*2️⃣ Search & Requisition Cases (CS-02)*

• Search under Section 132 or requisition under Section 132A conducted on or after 01.04.2024.
• Manual selection by the AO with prior approval of Pr. CIT/CIT.
• Cases where search is conducted on or after 01.09.2024 will be governed by the special Block Assessment Provisions.

*3️⃣ Reassessment Cases (CS-03)*

• Cases covered by notices issued under Section 148 pursuant to search/survey actions conducted during 01.04.2021 to 31.08.2024.
• Other reassessment cases shall be handled through NaFAC as per applicable procedures.

*4️⃣ Non-Approval / Cancellation of Exemption Claims (CS-04)*

• Trusts and institutions claiming exemption in ITR-7 despite denial, cancellation, or withdrawal of registration/exemption under Sections 12A, 12AB, 10(23C), etc., on or before 31.03.2025.
• Cases where appellate authorities have reversed such cancellation are excluded.

*5️⃣ Recurring High Additions (CS-05)*

• Cases involving recurring additions (including Transfer Pricing issues) that have attained finality or have been upheld by appellate authorities.

*📊 Threshold Limits:*
🔹 ₹50 lakh or more – Metro Charges (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune)
🔹 ₹20 lakh or more – Other Charges

*6️⃣ Specific Tax Evasion Information (CS-06)*

• Based on credible and verifiable tax evasion information received from the Investigation Wing or other law enforcement agencies.
• Routine alerts such as AIS, SFT, CPC-TDS, or NMS mismatches do not qualify under this category.

*📌 Additional Highlights*

✔ The same parameters apply to International Taxation and Central Charges, subject to prescribed approvals.
✔ Guidelines have been issued under Section 536(2)(c) of the Income-tax Act, 2025.

*💡 Professional Takeaway*

✅ Review clients falling under the above categories.
✅ Maintain robust supporting documentation and reconciliations.
✅ Pay special attention to recurring addition cases and exemption-related matters.
✅ Ensure timely and effective compliance with notices to avoid prolonged litigation.

*📄 Guidelines PDF:*
https://drive.google.com/file/d/1xY6Mq3-YQ1JCR5kb46k2TIs6pOiTDF3K/view?usp=drivesdk

*📚 Source:* CBDT Guidelines dated 04.06.2026. Readers are advised to refer to the official guidelines for complete details, conditions, and app

07/06/2026

*📢 Income Tax Compliance Alert – June 2026*

Key Due Dates | FY 2025-26 (AY 2026-27)

🔔 Review upcoming compliance deadlines and take timely action to avoid interest, penalties, and compliance risks.

*🔹 1. STT / CTT Deposit – 7th June 2026*

• Obligation: Deposit of Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT) collected during May 2026.
• Due Date: 7th June 2026 (i.e., by the 7th of the succeeding month).
• Applicability: Recognised Stock Exchanges, Brokers, and other entities collecting STT/CTT.
• Mode: Payment through Challan ITNS 283 on the Income Tax e-Filing portal.
• Consequences of Delay: Interest and penalty as applicable under the relevant provisions.

✅ Action Point: Reconcile collections and deposit immediately to maintain a clean compliance record.

*🔹 2. Advance Tax – 1st Instalment | 15th June 2026*

• Due Date: 15th June 2026
• Amount: Minimum 15% of the estimated total tax liability for FY 2025-26 (after TDS/TCS credit).
• Applicability: All assessees where the estimated tax liability exceeds ₹10,000.
• Interest Implications: Deferment may attract interest under Sections 234B and 234C.
• Recommendation: Estimate tax liability based on current-year projections and pay adequately to minimise interest exposure.

*🔹 3. Issuance of Form 16 – 15th June 2026*

• Due Date: 15th June 2026
• Form 16: Salary TDS Certificate (Part A & Part B) for FY 2025-26.
• Applicability: All employers/deductors responsible for salary TDS.
• Issuance Mode: Through the TRACES portal, either digitally or physically.
• Penalty for Non-Compliance: ₹100 per day of default under Section 272A(2).

*✅ Key Advisory*

• Reconcile Form 24Q (Q4) with payroll records before issuing Form 16.
• Guide employees to use Form 16 for accurate ITR filing.
• Maintain proper documentation and audit trail for future verification.

🛡️ Timely compliance helps avoid interest, penalties, and unnecessary litigation.

06/06/2026

LIC had raised governance and accounting concerns at Rajesh Exports since 2021, opposing multiple shareholder resolutions over disclosure and transparency issues.

Despite these warnings, LIC steadily increased its stake from around 2% in 2016 to over 11% in 2022, and remains a major shareholder. SEBI’s recent action has renewed focus on these early red flags.

*Opinion* : A serious inquiry is needed into why LIC increased its stake in Rajesh Exports despite repeatedly flagging governance and disclosure concerns.

06/06/2026

06/06/2026

the unique watch

06/06/2026

06/06/2026