May 2025

Setting Up and Commencement of Business Under Previous Year: An Income Tax Perspective (Indian Law) Understanding the nuances of setting up and commencing a business within the framework of the ‘previous year’ is crucial for accurate income tax reporting and compliance in India. The ‘previous year’ plays a significant role in determining the income taxable […]

Newly Set Up Business Under Previous Year: Navigating Income Tax in India Starting a new business is an exciting venture, but understanding the nuances of Income Tax law is crucial for ensuring compliance and minimizing potential liabilities. This article provides a comprehensive overview of the income tax implications for businesses newly established during the "Previous

Understanding the "Previous Year" Concept in Indian Income Tax Law: A Crucial Link to the Financial Year The Indian Income Tax Act, 1961, levies taxes on income earned during a specific period. Central to understanding income tax obligations is the concept of the "Previous Year." This article delves into the intricacies of the "Previous Year"

Understanding "Previous Year" Under Indian Income Tax Law The concept of "Previous Year" is fundamental to understanding the Indian Income Tax Act, 1961 (hereinafter referred to as "the Act"). It determines the period for which income is assessed and taxed in a particular assessment year. This article delves into the definition, legal provisions, and nuances

Previous Year Defined Under Income Tax Act, 1961 (India) Understanding the concept of "Previous Year" is fundamental to understanding the Income Tax Act, 1961 (hereinafter referred to as “the Act”). It serves as the cornerstone for determining income tax liability in India. This article delves into the definition, significance, and legal implications of the 'Previous

Income Tax Implications for Unregistered Firms in India Running a business in India, whether as a sole proprietorship, partnership, or company, comes with the responsibility of complying with income tax regulations. While registered firms are generally well-versed in these obligations, unregistered firms often face confusion and uncertainty. This article delves into the income tax implications

Understanding Explanation 2 Under Transfer in Relation to a Capital Asset (Indian Income Tax Law) Explanation 2 to Section 2(47) of the Income Tax Act, 1961, plays a crucial role in determining what constitutes a 'transfer' of a capital asset for the purposes of income tax in India. This explanation is particularly important because it

Transfer of Assets Under "Transfer" in Relation to a Capital Asset: An Indian Income Tax Perspective The Income Tax Act, 1961, governs the taxation of capital gains arising from the transfer of capital assets. Understanding the definition of "transfer" is crucial because capital gains tax is triggered only when a "transfer" takes place. This article

Decoding Sub-Clause (vi) – Not of Underlying Assets Under Transfer in Relation to a Capital Asset under Income Tax Understanding the nuances of capital gains tax can be complex, especially when dealing with intricate provisions. One such provision, Sub-clause (vi) of Section 47, relating to transfers not regarded as transfers in relation to a capital

Clause (v) and (vi) Part Performance Under Transfer in Relation to a Capital Asset Under Income Tax in India Understanding the implications of transfer of capital assets under the Income Tax Act, 1961 is crucial for both taxpayers and tax professionals. Specifically, clauses (v) and (vi) of Section 2(47) of the Act define certain transactions