When an individual move abroad for work or business, their residential status changes, leading to significant tax implications. Some of the key questions they ask include: This article will clarify these key tax concerns for individuals transitioning from Resident to Non-Resident under the Income Tax Act, 1961. What is Unclear About NRI Taxation? Many people…
Many Non-Resident Indians (NRIs) believe that just because they reside outside India, their business and professional income is exempt from Indian taxes. But is that really the case? The Income Tax Act does not just consider where you live; it also looks at where your business is controlled from and where your profession is set…
If you are planning to move abroad for work or business, or if you are an NRI managing financial affairs in India, you might assume that once you leave India, you automatically qualify as a Non-Resident (NRI) under all Indian laws. But is that really the case? The reality is that residency status is not…
1. Track the Date of Commencement of Activity The date of commencement of the trust’s activities is a key factor in determining the timeline for filing the registration application. 2. Provisional Registration Before Commencement If the trust has obtained provisional registration before starting its activities, it must file for regular registration within 6 months from…
UPDATED RETURN: The time limit for filing updated return is proposed to be 5 years from the end of FY as compared to the present time limit of 3 years. Accordingly proposed additional tax shall be as under: When the updated return is filed after end of 1st FY Time period Additional tax Less than…
The amendment to Section 13(3) of the Income Tax Act redefines substantial contribution, impacting how trusts manage transactions with donors to maintain tax exemption under Sections 11 and 12. New Definition of Substantial Contribution A contributor will be classified as a substantial contributor if: Breakdown of the Criteria Exclusion of Relatives and Associated Businesses Previously,…
The Finance Bill, 2025 introduces significant changes to Section 17 of the Income Tax Act, redefining the valuation and exemption criteria for perquisites. Below are the key amendments: The value of benefits or amenities provided free of cost or at a concessional rate to a Specified Employee is considered a perquisite. Who is a Specified…
Starting from April 1, 2025, the requirement under section 206C(1H) for sellers to collect tax at source (TCS) on the sale of specified goods exceeding Rs 50 lakhs will be discontinued. This change addresses concerns about the dual compliance burden, where sellers were required to ensure buyers deducted tax under section 194Q (TDS), leading to…
The Finance Bill, 2025 introduces Section 44BBD, a presumptive taxation scheme aimed at non-resident companies assisting with the setup or support of electronics manufacturing facilities in India. The key provisions are as follows: 1. Taxable Profits for Non-Residents 2. Presumptive Taxation Rate 3. Previous Tax Treatment 4. Objective of the New Scheme 5. Scope of…
To simplify compliance for smaller trusts, the government has proposed an amendment to Section 12AB of the Income Tax Act, extending the registration validity from 5 years to 10 years, subject to specific conditions. Eligibility Criteria Key Compliance Changes Renewal Process Effective Date These amendments will take effect from the 1st day of April, 2025.