March 2025

Trade, Commerce, or Manufacture: Understanding Income Tax Implications Under Indian Law Introduction Determining whether an activity qualifies as ‘trade,’ ‘commerce,’ or ‘manufacture’ is crucial under the Income Tax Act, 1961, as it directly impacts how income derived from such activities is assessed and taxed. This article aims to provide a comprehensive understanding of these terms […]

Clause (12A): Understanding Books or Books of Accounts under Indian Income Tax Law Understanding the nuances of income tax law is crucial for compliance and effective financial planning. Clause (12A) of the Income Tax Act, 1961, specifically deals with the definition of “books or books of account.” This seemingly simple definition has significant implications for

Clause (9): Unveiling the Assessment Year Under Indian Income Tax Law Understanding the nuances of Indian Income Tax Law is crucial for every taxpayer, whether an individual or a corporate entity. Among the fundamental definitions that lay the foundation for tax compliance is the concept of the "Assessment Year," as defined under Clause (9) of

Clause (7) [Section 2(9) of 1922 Act]: Decoding the "Assessee" under Indian Income Tax Law Understanding the term "assessee" is fundamental to navigating the complexities of Indian Income Tax law. Section 2(9) of the Income Tax Act, 1961 (which replaced the 1922 Act), defines this crucial concept. While the 1922 Act is historically relevant, the

Clause (12A): Books or Books of Accounts Under Income Tax in India Understanding the intricacies of Indian Income Tax law can be a daunting task, especially when dealing with specific clauses. This article delves into Clause (12A), specifically focusing on its relationship with "Books or Books of Accounts" as understood within the Income Tax Act,

Clause (11): Understanding Block of Assets under Indian Income Tax Law Depreciation is a crucial aspect of income tax calculation, allowing businesses to deduct a portion of the cost of assets used for business purposes over their useful lives. In India, the Income Tax Act, 1961 employs the concept of "Block of Assets" (as defined

Understanding "Assessment Year" under Indian Income Tax: A Comprehensive Guide (Clause 9) The "Assessment Year" (AY) is a fundamental concept in Indian Income Tax law. Defined under Clause (9) of Section 2 of the Income Tax Act, 1961, it serves as the crucial timeframe for evaluating and taxing the income earned during the preceding financial

Understanding "Assessing Officer" under Clause (7A) of the Income Tax Act: A Comprehensive Guide The Income Tax Act, 1961, forms the backbone of India's direct tax system. Within this framework, the role of the "Assessing Officer" is pivotal. Defined under Clause (7A) of Section 2 of the Act, the Assessing Officer is the key functionary

Clause (7) [Section 2(9) of 1922 Act]: Understanding the Definition of "Assessee" Under Indian Income Tax Law This article delves into the definition of "Assessee" as defined under clause (7) of Section 2(9) of the Income Tax Act, 1961 (though referencing the erstwhile 1922 Act for historical context), a crucial element for understanding the Indian

Reference to Court under Income Tax Act, 1961: A Comprehensive Guide Understanding the procedures available to taxpayers under the Income Tax Act, 1961, to challenge assessments and orders is crucial. One such significant mechanism is the "Reference to Court," specifically, the High Court, which allows for determination of questions of law arising from orders of