Buying Property from an NRI? TAN Relief Starts 1 October 2026—but TDS Still Applies

IMPORTANT PROPERTY-TDS UPDATE

Buying Property from an NRI? TAN Relief Starts—but TDS Still Applies

A simpler PAN-based reporting process applies from 1 October 2026. Buyers should understand exactly what changed—and what did not.

The biggest misunderstanding

“TAN not required” does not mean “TDS not required”. The buyer must still calculate the applicable TDS correctly, deduct it, deposit it, report the transaction and provide the TDS certificate.

What has changed?

✓

PAN-based reporting

The specified resident individual or HUF buyer can use the new challan-cum-statement route without obtaining TAN only for this purpose.

▣

New Form 141 Schedule E

Schedule E captures the property, buyer, non-resident seller, consideration, capital-gain and TDS details.

↗

Form 132 certificate

The prescribed TDS certificate framework has also been updated for property transferred by a non-resident.

What the buyer must not assume

Wrong assumption	Correct approach
No TAN means no TDS.	Only the reporting mechanism is simplified. TDS obligations continue.
Every property purchase attracts flat 1% TDS.	Do not copy the resident-seller rule. The seller’s non-resident status and applicable provisions must be examined.
TDS can be checked after registration.	Complete the tax review before making or crediting the payment.
One filing is enough for all buyers.	Where there is more than one deductor, each deductor has to file separately.

Last-minute buyer checklist

Before releasing the property payment, confirm:

• The residential status of every seller
• PAN of the buyer and seller, wherever available
• Seller’s foreign address, email and contact details
• Tax Residency Certificate and foreign tax identification details, where relevant
• Agreement date, registration date and complete property address
• Sale consideration and stamp-duty value
• Whether payment is lump sum or in instalments
• Share of every buyer and seller
• Correct TDS rate, including applicable surcharge and cess
• Any lower or nil deduction certificate and its validity
• Previous payment and acknowledgement details for instalment transactions

One practical example

Suppose two resident individuals jointly purchase a flat from a non-resident seller. They should not simply deduct 1% or make one combined filing. The seller’s tax position, each buyer’s share, applicable deduction and separate reporting requirement should be examined before payment.

What professionals commonly miss

• Incorrectly treating the seller as resident based only on an Indian address or PAN
• Applying the resident-property TDS rule without examining non-resident provisions
• Ignoring surcharge and cess while calculating the deduction
• Mismatch between agreement, payment, stamp-duty and registration information
• Missing separate reporting where there are multiple buyers
• Failing to verify the scope and validity of a lower-deduction certificate
• Paying the full amount before deciding the correct TDS treatment

How Gururaaja Sanjay and Co can assist

We can review the seller’s residential status, transaction documents, applicable TDS, lower-deduction certificate and reporting information before the payment is released. A timely review can reduce avoidable mismatches and correction work.

Planning to buy property from an NRI?

Get the TDS position reviewed before making payment.

Call 7760252581 WhatsApp Us

General educational information based on CBDT Notification No. 121/2026 dated 22 September 2026. Tax treatment depends on the facts, residential status and documents of each transaction. Obtain professional advice before acting.

Tax Audit Due Date Extended to 21 October 2026: Use These 21 Extra Days to Fix Form 3CD Errors

CBDT DEADLINE UPDATE • AY 2026–27

Tax Audit Due Date Extended to 21 October 2026

Use the additional time to correct Form 3CD, GST, MSME and TDS issues

TAX AUDIT REPORT

21 October 2026

Earlier: 30 September 2026

AUDIT-CASE ITR

21 November 2026

Earlier: 31 October 2026

Important clarification: CBDT announced this relief for the applicable regular audit cases for AY 2026–27. It should not be assumed that every audit form, transfer-pricing report or other statutory deadline has been extended.

The extension gives businesses and auditors additional time, but it should be used for better verification—not for postponing the audit. Incorrect reporting in Form 3CD can affect the income-tax return and may create questions during assessment.

What exactly has CBDT extended?

Compliance	Earlier date	Revised date
Applicable Tax Audit Report	30 September 2026	21 October 2026
ITR for applicable audit cases	31 October 2026	21 November 2026

What has not automatically changed?

The announcement does not by itself extend GST returns, TDS returns, ROC filings, advance-tax obligations or every separate audit report. Transfer-pricing and special audit cases should be checked independently.

Business owners: use the extra time for these checks

1. GST turnover reconciliation

Match sales as per books with GSTR-1 and GSTR-3B. Prepare reasons for every material difference.

2. AIS and Form 26AS

Check income, TDS, high-value transactions, property details and other information appearing in AIS.

3. MSME vendor status

Obtain vendor declarations and Udyam details. Identify dues covered by Section 43B(h).

4. TDS compliance

Review expense ledgers for non-deduction, short deduction, delayed payment and incorrect reporting.

5. Loans and cash transactions

Check acceptance and repayment of loans, deposits and specified sums against permitted payment modes.

6. Closing stock

Finalise quantity, valuation method, obsolete stock and differences between physical and book records.

Form 3CD clauses commonly missed

Clause 13 – Accounting method and ICDS

The financial accounts and taxable income may require ICDS adjustments. Simply writing “mercantile” is not always enough.

Clause 16 – Income not credited to profit and loss account

Check incentives, duty benefits, escalation claims, capital receipts and income directly credited elsewhere.

Clauses 21 and 26 – Disallowances and Section 43B

Review cash payments, personal or capital expenses, statutory liabilities and amounts allowed only on payment.

Clause 22 – MSME and Section 43B(h)

Vendor classification, Udyam status, agreed credit period and actual payment date require proper supporting records.

Clause 31 – Loans, deposits and specified sums

Do not check only the year-end balance. Examine receipts and repayments during the entire year.

Clause 34 – TDS and TCS

Reconcile expense ledgers, TDS returns, challans and outstanding amounts. Vendor-wise testing is essential.

Clause 35 – Quantitative details

Businesses often finalise values but leave quantities incomplete. Stock records and production details need verification.

Clause 44 – GST-wise breakup of expenditure

Total expenditure must be properly classified between registered, composition, exempt and unregistered suppliers.

The most commonly overlooked area

Clause 22 and Section 43B(h) deserve special attention. Many businesses identify MSME dues only from the vendor name or invoice. The correct exercise requires the vendor’s MSME status, nature of enterprise, invoice date, accepted credit period and payment date. A normal ledger ageing report may not be sufficient.

When may an auditor need a qualification or observation?

A qualification should not be inserted as a routine disclaimer. It should be specific, supported by the audit work and connected to a material limitation or misstatement.

Situation	Possible reporting approach
Records are incomplete or not produced	State the exact records not available and the clauses affected.
Closing stock cannot be verified	Describe the absence of quantity records or physical verification and its effect.
GST or turnover is not reconciled	Report the unreconciled amount and avoid a general statement such as “subject to GST reconciliation.”
Vendor MSME status is unavailable	State the limitation and the basis used for Clause 22 reporting.
External confirmations are unavailable	Mention balances affected and whether alternative procedures were possible.
Personal expenses cannot be separated	Quantify where possible and explain the limitation instead of using a blanket disclaimer.

Good qualification practice: identify the issue, mention the affected amount or records, state the audit procedure performed, explain the limitation and connect it to the relevant Form 3CD clause. Avoid vague phrases that do not tell the reader what went wrong.

Final 48-hour-style checklist

• Complete the trial balance and financial statements.
• Match turnover with GST returns and bank credits.
• Reconcile AIS, Form 26AS and TDS certificates.
• Collect MSME declarations and prepare invoice-wise ageing.
• Review cash payments, loans and property transactions.
• Check TDS section, rate, deduction date and payment date.
• Complete Clause 44 expenditure classification.
• Confirm opening balances and related-party details.
• Obtain signed financial statements and management representation.
• Generate UDIN and verify all figures before uploading.
• Ensure the taxpayer accepts the uploaded report on the portal.
• Download and preserve the acknowledgement and final report.

Use the extension for accuracy—not delay

Gururaaja Sanjay and Co can provide professional assistance with tax-audit applicability, account reconciliation, Form 3CD review and compliance based on your records and circumstances.

Call 7760252581 WhatsApp Us

Disclaimer: This article is for general education. Applicability, reporting and audit qualifications depend on the records and facts of each taxpayer. Please verify the formal CBDT order and portal updates before filing.

Tax Audit Deadline Is 30 September 2026: Complete These 12 Checks Before Filing Form 3CD

Tax Audit Deadline Is 30 September 2026

Complete these 12 important checks before approving Form 3CD.

Only a few days remain for the tax-audit deadline. Rushing the report without complete records can create differences between the books, Form 3CD and the income-tax return.

Current deadline: 30 September 2026 Applicable to tax-audit reports for AY 2026–27. As checked on 27 September 2026, no later official extension was found.

Remember: Uploading by the Chartered Accountant is not the final step. The taxpayer should log in, review and accept the tax-audit report on the income-tax portal.

Which tax-audit form applies?

Form	When it generally applies
Form 3CA with Form 3CD	When the accounts are already required to be audited under another law, such as the Companies Act.
Form 3CB with Form 3CD	When the accounts are not required to be audited under another law but tax audit is applicable.

12 checks before approving Form 3CD

1

Finalise the books of account

Ensure that all sales, purchases, expenses, receipts, payments and journal entries are recorded. Avoid changing the books after giving the final data to the auditor without informing the auditor.

2

Confirm turnover or gross receipts

Reconcile the turnover appearing in the profit and loss account with GST returns, invoices, bank credits and other applicable records.

3

Complete the GST reconciliation

Compare the books with GSTR-1, GSTR-3B and annual GST workings. Explain differences caused by credit notes, advances, amendments, exempt supplies or timing differences.

4

Verify TDS compliance

Review expenses such as salary, interest, rent, professional fees, contracts and commission. Check whether applicable TDS was deducted, deposited and reported correctly.

5

Review outstanding expenses

Examine unpaid statutory liabilities and year-end provisions. Confirm whether any amount requires adjustment or separate reporting under the tax law.

6

Check MSME creditors

Identify suppliers registered as micro or small enterprises. Keep their declarations, ageing details and payment dates ready for examining the applicable deduction and disclosure requirements.

7

Verify loans and deposits

Prepare party-wise details of loans accepted or repaid. Include opening balance, additions, repayments, closing balance, mode of payment and lender details.

8

Check cash transactions

Review large cash receipts, cash payments, expense vouchers and cash-book balances. Confirm that supporting evidence is available and applicable restrictions have been examined.

9

Update the fixed-asset register

Provide invoices and put-to-use dates for new assets. Record assets sold or discarded and reconcile depreciation with the books and tax workings.

10

Confirm related-party transactions

Prepare the names, relationships, nature of transactions and amounts involving specified related persons. Keep agreements and supporting documents ready.

11

Match AIS, TIS and Form 26AS

Review reported income, TDS, high-value transactions and tax payments. Investigate differences before the income-tax return is prepared.

12

Accept the uploaded report

After the auditor submits the report, the taxpayer should review it on the portal and complete the acceptance process before the deadline.

Documents to keep ready

Area	Important records
Accounts	Trial balance, ledgers, financial statements and schedules
Banking	Statements, reconciliations, loan statements and interest certificates
GST	GSTR-1, GSTR-3B and turnover reconciliation
TDS	Returns, challans, Form 26AS and expense-wise reconciliation
MSME	Supplier declarations, registration details, ageing and payment dates
Fixed assets	Purchase invoices, sale documents and depreciation workings

What happens if tax audit is delayed?

Where Section 271B applies, the Assessing Officer may impose a penalty equal to 0.5% of turnover or gross receipts, or ₹1,50,000, whichever is lower.

However, the law provides relief where the taxpayer proves a reasonable cause. This should not be treated as an automatic waiver.

Do not wait for the final day

The auditor needs sufficient time to review reconciliations, supporting records and explanations. The taxpayer also needs time to accept the uploaded report.

Submitting incomplete information on the final day may result in avoidable qualifications, incorrect reporting or last-minute portal difficulties.

Is your tax audit still pending?

Contact our office for professional assistance with tax-audit applicability, books review, GST and TDS reconciliation, Form 3CD preparation and income-tax compliance.

Phone: 7760252581

Call 7760252581 WhatsApp Us

Official references checked on 27 September 2026:
Income Tax Department – Interplay and Transition FAQs
Form 3CA-3CD User Manual
Section 271B – Failure to get accounts audited

Disclaimer: This article provides general information. Tax-audit applicability and reporting depend on the taxpayer’s legal status, business, profession, turnover, cash transactions, presumptive-tax history and other facts. Obtain professional advice for your particular case.

DPIIT Recognition Means Zero Tax for 3 Years? The Startup Myth Founders Must Avoid

DPIIT Recognition Means Zero Tax for 3 Years?

The important difference every Indian startup founder should understand.

Many founders receive their DPIIT Startup Recognition Certificate and assume that their startup’s profits are automatically tax-free.

This is not correct. DPIIT recognition and the startup profit deduction are separate benefits with different eligibility conditions and approval requirements.

Common assumption: “My company is recognised by DPIIT, so I do not have to pay income tax for three years.”

Correct position: DPIIT recognition is the first step. The startup must separately satisfy the income-tax conditions and obtain the prescribed eligibility certification before claiming the profit deduction.

What is DPIIT Startup Recognition?

DPIIT recognition identifies an eligible entity as a startup under the Startup India framework. Recognition may provide access to specified regulatory relaxations, schemes and other benefits, subject to their individual conditions.

General DPIIT recognition

• The entity can be a private limited company, LLP, registered partnership firm or eligible cooperative society.
• It should generally be within 10 years from incorporation or registration.
• Turnover should be below ₹200 crore in every previous financial year.
• The business should work towards innovation, development or improvement, or have a scalable model with potential for employment or wealth creation.
• It should not be created merely by splitting or reconstructing an existing business.

Separate higher limits may apply to a startup qualifying under the notified DeepTech framework. Such status should not be assumed merely because the business uses technology.

What is the startup tax deduction?

For income earned under the Income-tax Act, 2025, the startup profit deduction is contained in Section 140. It corresponds to the benefit popularly known under Section 80-IAC of the earlier Income-tax Act.

Who can qualify?

An eligible private limited company or LLP satisfying the prescribed startup, business and certification conditions.

How much is deductible?

Up to 100% of eligible business profits for three consecutive assessment years, subject to the law.

Which years?

The startup may select three consecutive assessment years from the permitted ten-year period beginning with incorporation.

Turnover condition

Turnover must not exceed ₹100 crore in the previous year for which the deduction is claimed.

Recognition and tax deduction are not the same

Point	DPIIT recognition	Startup profit deduction
Main purpose	Recognition under Startup India	Deduction of eligible business profits
Eligible structure	Company, LLP, registered partnership or eligible cooperative society	Eligible company or LLP
General turnover limit	Below ₹200 crore	Not exceeding ₹100 crore in the claim year
Approval	DPIIT recognition	Separate prescribed eligibility certification
Automatic tax holiday?	No	Available only after all conditions are satisfied

Simple example

ABC Innovations Private Limited receives DPIIT recognition. Its turnover and age are within the recognition limits.

This certificate alone does not allow ABC Innovations to deduct its profits. The company must separately check the startup tax-deduction conditions, obtain the prescribed certification and correctly claim the benefit in its income-tax return.

Why choosing the correct three years matters

The deduction is available for three consecutive assessment years. Therefore, using it during a year with very low or no profit may reduce its practical benefit.

Before selecting the first claim year, founders should prepare realistic profit projections and consider carried-forward losses, tax rates, other deductions and future growth.

Important: Do not claim the deduction only because your startup has a DPIIT certificate. An incorrect claim may lead to adjustment, tax demand, interest or further verification.

Startup tax-planning checklist

• Confirm the legal structure and date of incorporation.
• Verify DPIIT recognition details and continued eligibility.
• Check the applicable turnover limit separately for recognition and tax deduction.
• Confirm that the business activity meets the eligible-business conditions.
• Review whether the entity was formed by splitting or reconstructing an existing business.
• Prepare the financial statements and profit projections.
• Apply for the prescribed tax-eligibility certification.
• Select the three consecutive years only after proper tax planning.
• Maintain supporting documents and file the required return and reports within the applicable timelines.

How professional guidance can help

A Chartered Accountant can assist in reviewing the entity structure, turnover, financial statements, profit projections, eligibility conditions and tax-compliance requirements.

Early review is useful because recognition, tax eligibility and the best year for starting the deduction may require separate decisions.

Planning DPIIT recognition or startup tax benefits?

Contact our office for professional assistance with startup incorporation, DPIIT recognition, tax eligibility review, financial projections and compliance planning.

Phone: 7760252581

Call 7760252581 WhatsApp Us

Official references checked on 26 September 2026:
Startup India – DPIIT Recognition and Tax Exemption
Income Tax Department – Section 140
Income Tax Department – Deductions

Disclaimer: This article provides general information and is not a guarantee of recognition, certification or tax benefit. Eligibility depends on the applicable law, notifications, facts and documents of each startup. Obtain professional advice before making a claim.

Tax Audit Deadline 2026: Check Whether Your Business Needs Audit Before 30 September

Income Tax Alert 2026

Tax Audit Deadline Is Near: Does Your Business Need an Audit?

The normal tax-audit report deadline for FY 2025–26 is approaching. Check your turnover, cash transactions and presumptive-tax position now.

Important: As of 21 September 2026, no official extension has been identified. For normal non-transfer-pricing cases, the tax-audit report deadline remains 30 September 2026.

Many business owners look only at sales turnover and conclude that tax audit is not applicable. That can be risky.

Tax-audit applicability may depend on turnover, gross receipts, cash collections, cash payments, the nature of the activity and whether presumptive taxation was used.

Normal tax-audit report deadline 30 September 2026 For FY 2025–26, subject to the applicable category and any official extension

Basic tax-audit limits

BUS

Business

Tax audit is generally applicable when total sales, turnover or gross receipts exceed ₹1 crore.

PRO

Profession

Tax audit is generally applicable when professional gross receipts exceed ₹50 lakh.

Digital-business relief up to ₹10 crore For a business, the tax-audit turnover limit may increase from ₹1 crore to ₹10 crore when both cash receipts and cash payments do not exceed 5% of their respective totals.

Both conditions must be checked separately. A business cannot apply the ₹10 crore limit merely because most customer collections are received through banking channels.

Quick applicability table

Taxpayer situation	General tax-audit position
Business turnover up to ₹1 crore	Normally not required, subject to presumptive-tax and other special provisions
Business turnover above ₹1 crore	Normally applicable unless the enhanced ₹10 crore digital threshold is satisfied
Business turnover above ₹10 crore	Tax audit is generally applicable
Professional receipts above ₹50 lakh	Tax audit is generally applicable, subject to the special presumptive-tax provisions
Eligible professional using Section 44ADA	Special relief may apply where the prescribed presumptive income is declared and statutory conditions are satisfied
Eligible business declaring income under Section 44AD	Audit may not be required if the presumptive-tax conditions and required profit declaration are satisfied
Lower profit declared under presumptive provisions	Tax audit may become applicable depending on the provision, total income and taxpayer’s facts

Do not ignore the presumptive-tax rules

Sections 44AD and 44ADA provide simplified taxation for eligible businesses and specified professionals. However, they are not automatic exemptions from maintaining proper records in every situation.

Audit consequences can arise when a taxpayer declares profit below the prescribed presumptive level, exits Section 44AD after opting for it, or does not satisfy the eligibility conditions.

Special caution for Section 44AD: The five-year restriction and the taxpayer’s total income should be examined before concluding whether audit is applicable.

What about F&O traders?

Futures and options transactions are generally treated as business transactions for Income Tax purposes. The tax-audit decision is based on the correctly calculated F&O turnover, not merely on the total value of contracts shown by the broker.

Profit, loss, options premium and reversal transactions may affect the turnover calculation. The broker’s contract value should not be used directly without proper computation.

Which forms are used for tax audit?

Situation	Audit forms
Accounts audited under another law	Form 3CA with Form 3CD
Accounts not audited under another law	Form 3CB with Form 3CD

The Chartered Accountant uploads the tax-audit report on the Income Tax e-filing portal. The taxpayer must then review and accept the report through the taxpayer’s login.

Documents generally required

• ✓ Final trial balance and financial statements
• ✓ Sales, purchase and expense ledgers
• ✓ Bank statements and bank reconciliation
• ✓ GST returns and GST reconciliation
• ✓ TDS returns, challans and expense reconciliation
• ✓ Fixed-asset register and depreciation details
• ✓ Loan, deposit and related-party transaction details
• ✓ Cash receipt and cash payment summary

What happens if tax audit is not completed?

Possible penalty under Section 271B: The penalty may be 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000. Relief may be available where the taxpayer proves a reasonable cause, but it should not be assumed automatically.

Delay can also affect the filing of the Income Tax Return, carry-forward of certain losses and the overall accuracy of reported financial information.

Take action before the final week

Tax audit is not only the filing of Form 3CD. Books, GST, TDS, turnover, cash transactions, loans and statutory payments must be reviewed before the report is signed.

Early submission of records gives sufficient time to identify and correct differences before the deadline.

Not sure whether tax audit applies to you?

We can review your turnover, digital transactions, presumptive-tax position and financial records and help you complete the tax audit correctly and on time.

Call or WhatsApp: 7760252581

Call Now WhatsApp Us

Disclaimer: This article provides general information as of 21 September 2026. Tax-audit applicability depends on the nature of activity, turnover calculation, cash transactions, presumptive-tax history and total income. Professional review is recommended.

F&O Taxation in India: Everything Every Trader Should Know

 

Are you trading in Futures & Options (F&O)?

Many traders are confused about:

• How F&O turnover is calculated

• Whether tax audit is applicable

• How F&O profit or loss is taxed

• How to report F&O transactions in ITR

• How to carry forward F&O losses

• Whether expenses like brokerage and other charges can be claimed

Let us simplify it.

1. Is F&O Trading a Business?

Yes. For income-tax purposes, F&O trading on a recognised stock exchange is generally treated as business income, not capital gains.

Therefore, proper calculation and reporting are important.

2. How is F&O Turnover Calculated?

F&O turnover is not simply the total value of your trades.

Generally, turnover is calculated based on:

• Total of favourable and unfavourable differences

• Profit and loss from squared-up transactions

• Premium received on options, subject to applicable rules

• Reverse trades, as applicable

The turnover figure is important because it can determine whether tax audit provisions apply.

3. When is Tax Audit Applicable?

Tax audit applicability depends on your business turnover, profit/loss and other conditions prescribed under the Income-tax Act.

A trader should not decide audit applicability merely by looking at the total contract value shown by the broker.

The correct approach is to first calculate the tax turnover, determine the applicable provisions and then decide whether an audit is required.

4. What if I Have an F&O Loss?

F&O loss should be properly reported in the Income Tax Return.

Subject to the applicable conditions, a properly disclosed business loss can generally be carried forward and set off against eligible future business income.

Therefore, simply ignoring an F&O loss may not be advisable.

5. Can F&O Expenses Be Claimed?

Eligible expenses incurred wholly and exclusively for the business may be considered, subject to the provisions of the Income-tax Act.

These may include, where applicable:

• Brokerage

• Exchange charges

• Data/subscription expenses

• Internet expenses

• Professional charges

• Other eligible business expenses

Proper supporting records should be maintained.

6. Which ITR Should an F&O Trader File?

The appropriate ITR depends on the nature of transactions, income and other facts of the taxpayer.

F&O trading is generally reported as business income, and the return should be prepared after correctly determining turnover, profit/loss and applicable audit requirements.

7. Why Professional Tax Computation Matters

F&O taxation can become complicated when you have:

Multiple brokers + F&O profit/loss + intraday trading + delivery investments + other income + carried-forward losses

A small mistake in turnover calculation can potentially affect the tax audit requirement and return filing.

Need Help With Your F&O Tax Filing?

We can help you with:

✓ F&O turnover calculation
✓ Tax audit applicability
✓ Profit/loss computation
✓ Eligible expense identification
✓ Loss carry-forward calculation
✓ ITR preparation and filing
✓ Tax planning for traders

Don't wait until the ITR filing deadline. Get your F&O transactions reviewed properly.

📞 Call / WhatsApp: 7760252581

For professional assistance with F&O taxation, audit and ITR filing, contact us today.

GST Rule 14A – Simplified GST Registration in 3 Days

Starting a new business often means dealing with registrations and compliances. 

To make GST registration faster and easier for small businesses, the Government introduced Rule 14A of the CGST Rules. 

What is Rule 14A?

Rule 14A provides a simplified GST registration process for eligible taxpayers. Under this rule, GST registration can be granted within 3 working days through Aadhaar authentication. 

Who Can Opt for Rule 14A?

A person can opt for registration under Rule 14A if:

• Monthly output GST liability does not exceed ₹2.5 lakh.

• Aadhaar authentication is completed successfully.

• Only one GST registration is held in a State under the same PAN. 

Benefits of Rule 14A

✅ Faster GST registration

✅ Less paperwork

✅ Reduced chances of physical verification

✅ Helps startups and small businesses commence operations quickly. 

How to Apply?

While filing Form GST REG-01, select "Yes" under the option for registration under Rule 14A and complete Aadhaar authentication. 

Can You Exit the Scheme Later?

Yes. If a taxpayer wishes to withdraw from Rule 14A, an application can be filed on the GST Portal, subject to prescribed conditions and filing of pending returns. 

Rule 14A is a welcome step towards ease of doing business. It enables eligible small businesses and professionals to obtain GST registration quickly and start operations without unnecessary delays. If you are planning to apply for GST registration, check whether you qualify for Rule 14A and take advantage of the simplified process.

CA RAMAKRISHNA SANJAY

7760252581

ITR Filing When Shares Are Involved – A Simple Guide for Investors

 

Many taxpayers think that filing an Income Tax Return (ITR) is simple until they start investing in shares. Once shares are bought or sold, additional reporting requirements arise, and filing the correct return becomes important.

Why Are Shares Important in ITR Filing?

The Income Tax Department receives information about your share transactions from stock exchanges, brokers, and depositories. Therefore, it is important to correctly disclose share-related income in your ITR.

Types of Income from Shares

1. Capital Gains

When you sell shares, the profit or loss is called a capital gain or capital loss.

Short-Term Capital Gain (STCG)

• Shares sold within 12 months of purchase.

• Taxed at applicable rates as per prevailing tax laws.

Long-Term Capital Gain (LTCG)

• Shares held for more than 12 months.

• Tax benefits may be available subject to conditions and limits prescribed under the Income Tax Act.

2. Dividend Income

If a company distributes dividends, the amount received is taxable in the hands of the investor and must be reported in the ITR.

3. Capital Losses

Not every investment generates profit.

If shares are sold at a loss:

• The loss should be reported in the ITR.

• It can help reduce future tax liability by setting off against eligible capital gains, subject to tax provisions.

• To carry forward losses, the ITR must be filed within the due date.

Common Mistakes Investors Make

❌ Reporting only profits and ignoring losses.

❌ Forgetting dividend income.

❌ Using the wrong ITR form.

❌ Not reconciling transactions with broker statements.

❌ Ignoring share transactions because there is no taxable profit.

Why Professional Assistance Helps

Share transactions may involve:

• Multiple buy and sell transactions

• Intraday trading

• Futures & Options (F&O)

• Bonus shares

• Rights shares

• IPO allotments

• Foreign investments

A small reporting error can result in notices, loss of tax benefits, or incorrect tax computation.

Final Thoughts

A correctly filed return not only keeps you compliant but also helps you make full use of available tax benefits and loss set-off provisions.

Have you bought or sold shares during the year? Ensure your ITR captures every transaction accurately before filing.

CA RAMAKRISHNA SANJAY

7760252581

ITR Filing : Why Form 16 Is Important for Salaried Employees

 

The Income Tax Return (ITR) filing season for Financial Year 2025-26 has begun. Most salaried employees are eagerly waiting to receive their Form 16 from their employers before filing their income tax returns.

What is Form 16?

Form 16 is a Tax Deducted at Source (TDS) certificate issued by an employer to an employee. It contains details of salary paid and income tax deducted during the financial year.

Employers are required to issue Form 16 on or before 15th June 2026.

Why is Form 16 Important?

Form 16 helps employees:

✅ Verify salary income reported by the employer

✅ Check TDS deducted and deposited with the Income Tax Department

✅ Confirm deductions claimed under Sections 80C, 80D, etc.

✅ Verify taxable income and tax liability

✅ File accurate income tax returns and avoid notices

Components of Form 16

Part A

Contains:

• Employee and Employer details

• PAN and TAN details

• Quarterly TDS information

• Tax deposited with the Government

Part B

Contains:

• Salary breakup

• Exemptions and allowances

• Deductions under Chapter VI-A

• Taxable income computation

• Tax payable and relief details

What if You Changed Jobs?

If you worked with more than one employer during the financial year, each employer will issue a separate Form 16 for the period you worked with them.

Both Form 16s should be considered while filing your income tax return.

Should You Wait for Form 16 Before Filing ITR?

Although it is possible to file an ITR without Form 16, salaried taxpayers should ideally wait for it. It helps reconcile salary income, TDS, deductions, and tax payments, reducing the chances of errors.

Due Dates for ITR Filing

• ITR-1 and ITR-2 (Individuals): 31 July 2026

• ITR-4 (Eligible Non-Audit Taxpayers): 31 August 2026

Conclusion

Form 16 is one of the most important documents for salaried taxpayers. Before filing your Income Tax Return, carefully verify the details in Form 16 with your salary slips and Form 26AS/AIS. A few minutes spent reviewing these documents can help avoid future tax notices and ensure smooth processing of your refund.

Always verify your tax details before filing your return.

CA RAMAKRISHNA SANJAY

7760252581

Wedding Gifts & Income Tax: Is Your Cash Gift Really Tax-Free?

 

Marriage is a grand celebration in India, and it’s a long-standing tradition for couples to receive blessings in the form of "Sagan" or cash gifts. 

But as the wedding bells fade and you look at your bank balance, a critical question arises: Does the Income Tax Department want a slice of your wedding cake? 🍰

If you are wondering whether those envelopes of cash are taxable or how to explain them to a tax officer, this guide is for you!

---

✅ The Big Reveal: Is it Tax-Free?

Yes! Under Section 56(2)(x) of the Income Tax Act, any gift (cash, cheques, or property) received by an individual on the occasion of their marriage is 100% exempt from income tax. 💸✨

Unlike regular gifts where you might have to pay tax if the total exceeds ₹50,000, wedding gifts have no upper limit. Whether it is ₹5,000 or ₹5,00,000, if it’s for your wedding, it’s exempt!

---

⚠️ The "Cash Trap" You Must Avoid

While the gift is tax-free, there is a hidden rule called Section 269ST that you need to watch out for.

• The ₹2 Lakh Rule: You should not accept ₹2,00,000 or more in cash from a single person in a single day or for a single occasion.

• The Risk: Even though it’s a wedding gift, if you take ₹2 lakh in cash from one person, you could be hit with a 100% penalty equal to the gift amount! 🚫

• The Solution: If a close relative wants to give you a large sum, ask them to use a Cheque, UPI, or Bank Transfer.

---

📂 How to "Audit-Proof" Your Wedding Gifts

If the Assessing Officer (AO) ever asks, "Where did this money come from?" you need to be ready. Here is your Tax-Ready Checklist:

1. Keep the Invitation: Your wedding card is the primary proof of the "occasion." 💌

2. Maintain a Gift Diary: Note down the names of guests and the amounts they gave. It sounds tedious, but it’s a lifesaver during an audit! 📝

3. Deposit Promptly: Try to deposit the cash into your bank account within a few weeks of the wedding. This links the money directly to the event. 🏦

4. Gift Deeds for High Values: If you receive a large gift from a parent or sibling, a simple Gift Deed on a stamp paper acts as solid legal evidence.

5. Identify the Donor: For very large amounts, the AO may check if the person giving the gift actually has the "capacity" to give it.

---

💡 Tips for Newlyweds

• Only for the Bride & Groom: This special tax exemption applies only to the couple. Gifts received by parents or siblings are subject to normal gift tax rules. 👰🤵

• Declare in ITR: It is always a good idea to mention large wedding gifts in the 'Exempt Income' section of your Income Tax Return. It shows you have nothing to hide!

Final Thoughts 💭

Wedding gifts are a beautiful start to your new life. By keeping simple records and following the cash limits, you can ensure your "happily ever after" isn't interrupted by a tax notice!

---

Enjoyed this guide? Share it with someone getting married soon!