Financial And Tax Consultants

13/08/2026

The journey of 26 years from an average student to the guest of honour on felicitation function of senior secondry students.

Life comes full circle back sometimes like a boomerang.

Same school same premises but of course next gen teachers running the institution.

Thanks a lot for inviting me for the day It was a nostalgic and enjoyable experience.

# Modern School Noida

20/07/2026

16/07/2026

Advance Tax Under the Income-tax Act, 2025

Applicability and threshold:
Advance tax under the Income-tax Act, 2025 is governed by Sections 403 to 408, with interest provisions contained in Sections 423, 424, and 425. Every assessee, including individuals, firms, LLPs, companies, and non-residents, must pay advance tax if the net tax liability after considering TDS and TCS is Rs. 10,000 or more. Resident senior citizens without business or professional income remain exempt from this requirement.

Computation of advance tax:
Under Section 405, advance tax is computed as the tax on the assessee’s estimated total income for the year, reduced by the TDS and TCS expected to be credited during that year. This net figure represents the advance tax payable and must be discharged in instalments during the course of the tax year.

Instalment schedule for regular assessees:
For most assessees, this liability is paid in four instalments under Section 408: 15% by 15th June, a cumulative 45% by 15th September, a cumulative 75% by 15th December, and the full 100% by 15th March.

Instalment schedule for presumptive taxpayers:
Assessees who opt for presumptive taxation under Section 58, corresponding to the erstwhile Sections 44AD(1) and 44ADA(1) of the 1961 Act, follow a different schedule. They are required to pay their entire advance tax liability in a single instalment, on or before 15th March, rather than in four instalments.

Income arising after 15th March:
Where specified income arises after 15th March, the tax on such income remains payable and continues to be treated as advance tax for that tax year under Section 408(3), provided it is paid on or before 31st March. However, since this falls after the original due date, such payment attracts a short spell of interest under Section 425 for the delay.

Interest on shortfall:
Separately, a shortfall of more than 10% against the assessed tax attracts interest under Section 424.

25/06/2026

Income tax dept identifies up to 20,000 cases of individuals who used the ‘swapped provisions’ trick to reduce net tax liability

1. The Income Tax Department using data analytics and other tools and sources at its disposal have identified about 15,000 to 20,000 likely cases where individuals have used 'swapped provisions' trick to reduce their taxable income and thus pay a lower income tax.

2. This initiative is part of the tax department's mandate to crack down on bogus claims. In line with this, the department has reached out to employers, urging them to examine discrepancies in Form 24Q concerning the TDS they deducted from their employees' salaries.

3. The tax department is planning to take action against multiple cases of 'swapping' where concessions were swapped between the original ITR and the revised or updated ITR.

4. Department has observed instances where taxpayers have 'swapped provisions' to claim benefits like house rent allowance (HRA). For example, some employees who initially claimed a high HRA in their original ITR, later retracted that claim and opted for benefits under Section 10(14) of the Income Tax Act, which covers allowances for things like conveyance, education or for working in hilly areas.

5. Similarly, in some cases, taxpayers switched their political party donations to research institute donations in updated ITR.

6. The internal threshold for reaching out to taxpayers with such suspected claims is Rs 50,000 to Rs 1 lakh and the department has identified 15,000 to 20,000 cases.

28/05/2026

The 40% US Estate Tax Trap for Indian Investors

Indian residents are increasingly investing in US markets through direct holdings in US listed shares, ETFs, mutual funds, and real estate. However, a significant and often overlooked risk attached to such investments is the US estate tax.

Estate Tax:
Under US law, a non-resident alien (NRA) — i.e., a person who is neither a US citizen nor domiciled in the United States — is subject to estate tax on “US-situated assets” upon death. The tax rate can go as high as 40%.

US-situated assets generally include:
Shares of US companies
US domiciled ETFs and mutual funds
Real estate located in the US
Certain brokerage and investment accounts

Exemption:
For US citizens and domiciliaries, the estate tax exemption currently stands at approximately USD 13.61 million. However, for NRAs, the exemption is restricted to a mere USD 60,000.

Wrong assumptions:
Many investors assume that estate tax applies only to US citizens or residents. That is not correct. Even foreign nationals holding US assets may fall within the scope of the US estate tax regime.

Further, India presently does not have an estate tax treaty with the United States that grants meaningful relief in such situations.

Consequently, several investors explore alternative structures to mitigate US estate tax exposure, including:
Offshore holding structures
Trust arrangements
Diversification into non-US situs assets
However, such planning must be undertaken carefully after evaluating Indian tax implications, FEMA regulations, succession laws, reporting obligations, and anti-avoidance considerations.

11/04/2026

DIN Mandatory for Income-tax Communications: CBDT Tightens Traceability Framework

Background
The Central Board of Direct Taxes (CBDT), through Circular No. 4/2026 dated 1 March 2026, has reinforced the mandatory requirement of quoting a Document Identification Number (DIN) in all communications issued by income-tax authorities.

This builds upon the earlier framework introduced via Circular No. 19/2019 to enhance transparency, accountability, and audit trail in tax administration.

Core Mandate
Every communication issued by any income-tax authority must:
Mandatorily bear a DIN, and
Be generated through the Income-tax Business Application (ITBA) system.
Any communication issued without a DIN shall be treated as invalid and deemed never issued, unless it falls under specified exceptions.

Limited Exceptions (Manual Communications)
Manual issuance without DIN is permitted only in exceptional situations, including:
Technical/System Constraints
Where ITBA is not operational or accessible.
Urgency/Public Interest
Where access to electronic means for generation or quoting of DIN is not possible
Non-ITBA Communications
Where functionality is not available in the system.
PAN Migration Cases
Where PAN is not available or is under migration.

Safeguards for Manual Communications
Where communication is issued manually:
It must record reasons in writing.
Prior approval of prescribed authority is mandatory.
The communication must clearly state that it is issued without DIN under exceptional circumstances.

Post-Facto Compliance
A DIN must be generated within 15 working days for such manual communications.
The communication must then be regularized and linked in the system.

Consequences of Non-Compliance
Any communication not bearing DIN (and not covered by exceptions) is invalid, and legally non est (deemed never issued).

Key Clarifications
Even internal approvals and correspondence must adhere to DIN discipline where applicable.
The objective is to eliminate informal/unauthorized communication channels.

10/04/2026

Rule 237, Income-tax Rules, 2026 – Reporting of Gifts of Immovable Property

The Income-tax Rules, 2026 introduce a significant expansion in the Statement of Financial Transactions (SFT) framework through Rule 237, by expressly bringing gifts of immovable property within the reporting net. This marks a clear shift towards comprehensive tracking of high-value transactions, including those undertaken without consideration.

Legal Framework
Rule 237 mandates specified reporting entities to furnish details of prescribed transactions in the SFT. While the framework broadly corresponds to the earlier reporting regime, a key addition is the inclusion of transactions involving receipt of immovable property without consideration.

Transaction Now Covered
The rule specifically covers:
a. Receipt of immovable property by way of gift
b. Where no consideration is paid
c. And the stamp duty value is ₹45 lakh or more
This brings within scope transactions that were previously outside the structured reporting mechanism.

Reporting Authority
The obligation to report such transactions is cast upon Registrar / Sub-Registrar or Authority responsible for registration of immovable property.

Practical implication:
Taxpayers and advisors must be mindful that, high-value property gifts can no longer remain under the radar. Proper documentation of relationship and intent becomes critical.

CA Nitin Kapoor