April 2025

Clause (19AA): Demerger Under the Income Tax Act, 1961 Clause (19AA) of the Income Tax Act, 1961, deals with the crucial aspect of demergers and their tax implications in India. Understanding this clause is critical for businesses contemplating restructuring through demerger, as it dictates the tax consequences for both the demerged company (the transferor company) […]

Clause (19) [Section 2(5B) of the Income Tax Act, 1922]: Co-operative Society and its Tax Implications Understanding the tax implications of co-operative societies under the Income Tax Act, 1922, specifically focusing on Clause (19) of Section 2(5B), is crucial for ensuring compliance. This article delves into the intricacies of this provision, aiming to provide clarity

(f) Other Definitions under Indian Income Tax Act The Income Tax Act, 1961, utilizes several crucial definitions beyond the commonly understood terms like "income," "assessee," and "assessment." These "other definitions" are crucial for accurate tax computation and compliance. Understanding these provisions is essential for taxpayers, tax professionals, and anyone involved in Indian tax law. This

(d) Industrial Company or Trading Company – Finance Acts under Income Tax Act, 1961 The distinction between an industrial company and a trading company under the Income Tax Act, 1961, significantly impacts tax liabilities. This distinction is primarily determined by the nature of the company's business activities as defined and refined over the years through

Assessment of Companies under Indian Income Tax Act The assessment of companies under the Indian Income Tax Act, 1961, is a crucial process determining a company's tax liability. This process involves scrutiny of the company's income, deductions, and applicable tax rates, ultimately leading to the computation of its tax dues. Understanding this process is vital

Clause (15) [Section 43 of the 1922 Act]: Charitable Purpose under Indian Income Tax Section 43 of the Income Tax Act, 1922, as it stood before its repeal and replacement by the Income Tax Act, 1961, contained several clauses defining various types of incomes exempt from tax. Clause (15) specifically addressed income applied to charitable

Land Within or in Vicinity of Municipality or Cantonment: Items (a) and (b) Under Income Tax (Indian Law) Understanding the tax implications of land transactions, particularly those concerning agricultural land situated near urban areas, is crucial for taxpayers in India. The Income Tax Act, 1961, provides specific provisions regarding the definition of “capital asset” and

Trade, Commerce, or Manufacture: Understanding Business Income under Indian Income Tax Law In the realm of Indian Income Tax law, the distinction between various forms of business activity is crucial for determining taxable income. Specifically, understanding the nuances of "Trade," "Commerce," and "Manufacture" is essential for businesses to accurately assess their tax liabilities and comply