TDS on Property Purchase | Form 26QB Replaced by Form 141

 

CA RAMAKRISHNA SANJAY

7760252581

TDS on Property Purchase: Transition from Form 26QB to Form 141 (Effective 1 April 2026)

Introduction

The Income Tax Department has introduced Form 141 to simplify reporting of TDS on property transactions. From 1 April 2026, Form 141 will replace Form 26QB for reporting TDS under Section 194-IA of the Income-tax Act. This change aims to make compliance easier, particularly in transactions involving multiple buyers and sellers.

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What is TDS on Property Purchase?

Under Section 194-IA, any buyer purchasing an immovable property (other than agricultural land) must deduct 1% TDS if the sale consideration exceeds ₹50 lakh.

Key compliance points:

• TDS Rate: 1% of consideration
• Threshold: Applicable if property value is ₹50 lakh or more
• Time limit: TDS must be deposited within 30 days of deduction
• Earlier form: Form 26QB
• New form: Form 141 (effective 1 April 2026)

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Why Form 141 is Introduced

Earlier, buyers had to file separate Form 26QB for every buyer–seller combination, which often 

Important Rules Buyers Should Know

• TDS applies if total property value exceeds ₹50 lakh, even in joint purchase.
• Ownership share mentioned in the agreement determines TDS liability.
• GST should not be included while calculating TDS.
• Incidental charges such as parking, maintenance, club membership should be included in property consideration.
• Even if payment is made through housing loan, the buyer must deduct and deposit TDS.

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Correction of Errors

If incorrect details are reported in Form 26QB or Form 141, corrections can be made through the TRACES portal. Timely correction ensures that the seller receives proper TDS credit and avoids tax disputes.

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TDS on property purchase, Form 141 TDS, Form 26QB replacement, Section 194-IA TDS, property purchase tax rules India, property TDS compliance 2026.

Cryptocurrency Tax in India (2026 Guide): 30% Tax, 1% TDS, Budget 2026 Reporting Rules Explained

 

Cryptocurrency trading has grown rapidly in India. However, the Income Tax law treats crypto transactions under a special taxation regime, making compliance stricter than many other financial assets.

If you buy or sell Bitcoin, Ethereum, or any other crypto asset, it is important to understand the tax implications.

This guide explains how cryptocurrency is taxed in India, reporting requirements, TDS rules, and key Budget 2026 changes.

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1️⃣ What is Cryptocurrency Under Income Tax Law?

Cryptocurrencies are classified as Virtual Digital Assets (VDA) under the Income Tax Act.

Examples include:

✔ Bitcoin
✔ Ethereum
✔ Solana
✔ Meme coins
✔ Exchange tokens

The taxation framework for VDA was introduced in Finance Act 2022.

Key provisions include:

• Section 115BBH – Tax on crypto gains

• Section 194S – TDS on crypto transactions

• Section 56(2)(x) – Tax on crypto gifts

• Schedule VDA – Mandatory disclosure in ITR

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2️⃣ Tax Rate on Cryptocurrency in India

Income from transfer of cryptocurrency is taxed at:

30% + surcharge + 4% health and education cess

This rate applies regardless of holding period.

Unlike shares or mutual funds:

❌ No long-term capital gain benefit
❌ No concessional tax rate

Example

Particulars	Amount
Purchase value	₹5,00,000
Sale value	₹6,20,000
Profit	₹1,20,000

Tax = 30% of ₹1,20,000 = ₹36,000 + cess

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3️⃣ Deduction Allowed While Calculating Crypto Tax

The law allows only one deduction.

✔ Cost of acquisition

Example:

Particulars	Amount
Purchase price	₹2,00,000
Sale price	₹2,70,000
Taxable profit	₹70,000

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4️⃣ Expenses That Cannot Be Claimed

Under the crypto tax regime, most expenses are not allowed.

Examples include:

❌ Brokerage or exchange fees
❌ Internet expenses
❌ Office rent
❌ Electricity costs
❌ Salary paid to trading staff
❌ Interest on borrowed money
❌ Trading software costs

The law clearly states:

No deduction is allowed except cost of acquisition.

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5️⃣ Crypto Loss Rules in India

Crypto taxation rules are very strict regarding losses.

Loss from crypto:

❌ Cannot be set off against other income
❌ Cannot be set off against gains from other coins
❌ Cannot be carried forward

Example

Coin	Result
Bitcoin profit	₹80,000
Solana loss	₹50,000

Taxable income remains ₹80,000.

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6️⃣ 1% TDS on Crypto Transactions

Section 194S introduced 1% TDS on crypto transfers.

This applies on transaction value, not profit.

Example

Crypto sold for ₹10,00,000

TDS = 1% = ₹10,000

This is not final tax, only a credit.

Actual tax is calculated at 30% on profit.

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7️⃣ Budget 2026: Stronger Crypto Reporting Rules

Budget 2026 proposes a stricter reporting framework for crypto transactions.

If reporting entities fail to submit crypto transaction details:

⚠ Penalty of ₹200 per day

If incorrect information is submitted:

⚠ Penalty up to ₹50,000

Effective from:

📅 1 April 2026

Although reporting is primarily for exchanges, the practical effect is:

✔ Income Tax Department will receive detailed trading data
✔ Non-disclosure by taxpayers may be detected easily

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Conclusion

Cryptocurrency taxation in India is structured as a special compliance regime.

Key points to remember:

✔ 30% tax on crypto profits
✔ 1% TDS on transaction value
✔ No deduction except cost of acquisition
✔ No loss set-off or carry forward
✔ Mandatory reporting in Schedule VDA
✔ Stronger reporting rules from Budget 2026

Frequently Asked Questions (FAQs)

1️⃣ Is cryptocurrency legal in India?

Yes. Crypto trading is legal but heavily taxed under the VDA regime.

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2️⃣ What is the tax rate on crypto in India?

Crypto gains are taxed at 30% plus surcharge and 4% cess.

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3️⃣ Can crypto losses reduce tax?

No. Loss from crypto cannot be set off against any income or carried forward.

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4️⃣ Is TDS applicable on crypto transactions?

Yes. 1% TDS under Section 194S applies on transfer of crypto assets.

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5️⃣ Which ITR form should be used for crypto income?

Generally:

• ITR-2 → Investors

• ITR-3 → Crypto trading as business

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CA RAMAKRISHNA SANJAY

7760252581

How Income from House Property is Taxed in India – Complete Beginner Guide

 

(A Simple Guide for Taxpayers)

Owning a house is not just an emotional investment — it also has tax implications. Under the Income Tax Act, 1961, income from house property is taxed under a separate head called “Income from House Property.”

This guide explains the basic concept in simple terms, so that property owners clearly understand how such income is calculated and taxed.

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📌 What is Income from House Property?

Income from house property refers to income earned from buildings or land attached to buildings.

👉 This typically includes:

• Rent received from letting out a house

• Deemed rent from property that is not actually rented

• Commercial buildings or residential properties given on rent

⚠️ Important Condition

For taxation under this head:

✔ The taxpayer must be the owner of the property
✔ The property must consist of building or land appurtenant to it

If these conditions are satisfied, income will be taxed under House Property, even if the property is used for business by the tenant.

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🏡 Types of House Property for Tax Purposes

1️⃣ Self-Occupied Property

A property used for your own residence is called self-occupied property.

✔ Annual value considered = Nil

However:

• Deduction for housing loan interest is allowed up to ₹2,00,000 per year (subject to conditions).

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2️⃣ Let-Out Property

A property given on rent is called a Let-Out Property.

Here, tax is calculated based on the actual rent or expected rent, whichever is higher.

Typical examples:

• Residential house rented to tenant

• Commercial building rented to business

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🧾 How Income from House Property is Calculated

The taxation follows a standard formula under the Income Tax Act, 1961.

Step-by-Step Computation

Step 1 — Determine Gross Annual Value (GAV)
Higher of:

• Expected rent

• Actual rent received

Step 2 — Less: Municipal Taxes Paid

Result → Net Annual Value (NAV)

Step 3 — Deductions Allowed

Two deductions are allowed under Section 24:

✔ 30% Standard Deduction (for repairs and maintenance)
✔ Interest on Housing Loan

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📊 Simple Example

Particulars	Amount
Annual Rent Received	₹3,00,000
Less: Municipal Taxes	₹20,000
Net Annual Value	₹2,80,000
Less: 30% Standard Deduction	₹84,000
Less: Interest on Loan	₹1,00,000
Taxable Income	₹96,000

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💡 Key Points Every Taxpayer Should Know

✔ Up to two houses can be treated as self-occupied
✔ Standard deduction of 30% is mandatory (no proof required)
✔ Housing loan interest deduction can be significant tax benefit
✔ Loss from house property can be set-off up to ₹2 lakh against other income
✔ Balance loss can be carried forward for 8 years

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CA RAMAKRISHNA SANJAY

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Joint Home Loan – Hidden Tax Benefits Most Home Buyers Miss!

Buying a home is a major financial milestone. Many people take a joint home loan with spouse or family members, but few realise the powerful tax advantages it offers.

Let us understand the key benefits in simple terms 👇

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✔ 1️⃣ Higher Loan Eligibility

When two people apply for a home loan together:

👥 Both incomes are considered

This means:

📈 Higher loan approval
📈 Ability to buy a better property
📈 Improved repayment capacity

Banks see joint borrowers as lower risk.

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✔ 2️⃣ Lower Interest Rates for Women Borrowers

Many banks offer interest concessions if a woman is a borrower.

💰 Typical benefit: 0.05% – 0.15% lower interest rate

Even a small reduction can save ₹1–2 lakhs over the loan tenure.

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✔ 3️⃣ Stamp Duty Savings

Several states in India provide stamp duty concessions if property is registered in a woman’s name.

🏷 Possible savings: around 1% of property value

Example:

Property Value = ₹50 Lakhs
Stamp Duty Saving ≈ ₹50,000

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✔ 4️⃣ Double Income Tax Benefits

This is the most powerful advantage of a joint home loan.

If both borrowers repay the EMI:

💼 Principal Repayment (Sec 80C)
➡ Up to ₹1.5 lakh deduction each

💼 Interest Payment (Sec 24)
➡ Up to ₹2 lakh deduction each

📊 Total potential deduction:

Deduction Type	Husband	Wife
Principal	₹1.5L	₹1.5L
Interest	₹2L	₹2L

💡 Total family deduction = ₹7 Lakhs

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✔ 5️⃣ Capital Gains Planning

Joint ownership can help when claiming capital gains exemptions.

Under Section 54EC:

📌 Each owner can invest ₹50 lakhs in specified bonds.

👥 Joint owners may together claim up to ₹1 crore exemption, subject to conditions.

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⚠ Important Condition

Tax benefits are available only if all these are satisfied:

✔ Both are co-owners of the property
✔ Both are co-borrowers in the loan
✔ Both contribute to EMI payment

Otherwise, the deduction may not be allowed.

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📚 Tax Upadesh – Simplifying Tax & Finance

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CA RAMAKRISHNA SANJAY

7760252581

Composite Rent in Income Tax – Simple Guide for Landlords & Taxpayers (India)

 

 

🏠✨ Did you know?

Sometimes the rent you receive is not only for the building, but also for furniture, equipment, or other facilities. In tax terms, this is called Composite Rent.

Understanding how this rent is taxed is important because the tax treatment can change depending on the situation.

Let us understand this in simple language with examples.

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📌 What is Composite Rent?

Composite Rent means a single combined rent received for:

🏢 Building / property
🪑 Furniture or fixtures
⚙️ Machinery or equipment
🚗 Parking or other facilities

Instead of charging separately, one single amount is charged for everything.

📍 Example

Monthly rent received = ₹80,000

This includes:

• House rent

• Furniture

• Air conditioner

• Car parking

This combined amount is called Composite Rent.

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🔎 Two Types of Composite Rent

Income tax law divides composite rent into two important categories.

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1️⃣ Inseparable Composite Rent

🎯 In this case, building and assets cannot be rented separately.

The building cannot be used without the assets.

🏢 Example

🎬 Cinema Theatre

Rent includes:

• Theatre building

• Projector

• Sound system

• Seating equipment

Without equipment, the building cannot function as a theatre.

💰 Tax Treatment

➡ Entire rent is taxed under:

📊 Profits & Gains from Business
OR
📊 Income from Other Sources

❗ It will NOT be taxed under Income from House Property.

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2️⃣ Separable Composite Rent

🎯 In this case, building and assets can be rented separately.

Even if the agreement shows a single amount, logically both are different.

🏠 Example

Renting a furnished apartment

Monthly rent = ₹60,000

Possible breakup:

🏠 Building rent → ₹50,000
🪑 Furniture rent → ₹10,000

💰 Tax Treatment

Component	Tax Head
🏠 Building Rent	Income from House Property
🪑 Furniture Rent	Business Income / Other Sources

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📊 Why This Classification Matters

The tax impact changes significantly.

If taxed under House Property

You get:

✅ 30% Standard Deduction
✅ Municipal tax deduction

If taxed under Other Sources

❌ Standard deduction not allowed

This is why correct classification is important.

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🧾 Practical Tip for Landlords

Many landlords structure rent like this:

📄 Rent Agreement Example

🏠 Building Rent → ₹40,000
🪑 Furniture Rent → ₹10,000
🛠 Maintenance → ₹5,000

This helps in clear tax reporting and better compliance.

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🎯 Simple Summary

Situation	Tax Treatment
🏢 Building + Assets inseparable	Business Income / Other Sources
🏠 Building + Assets separable	Building → House Property
Assets → Other Sources

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⭐ Tax Tip:
Always review the rental agreement carefully to determine whether the rent is separable or inseparable for tax purposes.

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✍️ Educational article for awareness on Indian Income Tax provisions.

CA RAMAKRISHNA SANJAY

7760252581

📊 Budget 2026: Interest on Loan for Dividend Investment Not Allowed as Deduction

The Union Budget 2026 has proposed a major change affecting investors who borrow money to invest in shares or mutual funds.

📌 The proposal seeks to disallow deduction of interest expenditure incurred on borrowings used for earning dividend income or mutual fund income.

📅 Effective from: 1 April 2026

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🔎 Earlier Tax Rule on Dividend Income

After the abolition of Dividend Distribution Tax (DDT), dividend income became taxable in the hands of the shareholder.

However, taxpayers were allowed to claim deduction for interest paid on borrowed funds used for investment.

⚠ But there was a restriction.

✔ Interest deduction allowed only up to 20% of dividend income.

This deduction was available under provisions similar to Section 57 of the Income-tax law.

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📌 Example – Earlier Tax Treatment

Assume the following situation:

💰 Dividend income received : ₹10,00,000
💳 Interest paid on loan : ₹8,00,000

Maximum deduction allowed:

20% × ₹10,00,000 = ₹2,00,000

✔ Taxable income:

₹10,00,000 − ₹2,00,000
➡ ₹8,00,000

Even though the interest expense was ₹8,00,000, deduction was limited to ₹2,00,000.

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⚖ Proposed Amendment in Budget 2026

The new proposal states:

❌ No deduction will be allowed for interest expenditure incurred on borrowings used to earn dividend income or mutual fund income.

In simple words:

➡ Dividend income will be taxed fully without allowing interest deduction.

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📌 Example – New Rule After Amendment

💰 Dividend income : ₹10,00,000
💳 Interest on loan : ₹8,00,000

Earlier deduction allowed: ₹2,00,000

Now deduction allowed: ₹0

📊 Taxable income:

➡ ₹10,00,000

Even though the actual income is only ₹2,00,000.

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🎯 Why Government Introduced This Change

The government believes some investors were using borrowed funds to create tax advantages.

📉 Impact on Investors

This amendment may have several practical implications.

1️⃣ Borrowing for Investment May Reduce

Investors may avoid taking loans for dividend-yielding shares.

2️⃣ Dividend Strategies May Decline

Investors may prefer growth option mutual funds rather than dividend option.

3️⃣ Leveraged Investments Become Less Attractive

High net worth investors who borrow funds for investment may rethink their strategies.

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⚖ Real Income vs Gross Income Debate

One important principle of taxation is:

💡 Tax should be levied on real income (net income).

Example:

Dividend received : ₹10,00,000
Interest paid : ₹8,00,000

✔ Actual income = ₹2,00,000

But under the new proposal:

⚠ Tax will apply on ₹10,00,000

This effectively shifts taxation from net income to gross income, which has raised debates among tax experts.

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📅 Effective Date

📌 Applicable from 1 April 2026

Therefore it will apply from:

Financial Year 2026-27 onwards

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🤝 How We Assist Clients

we assist with:

📊 Tax planning for investment income
📑 Income tax advisory and compliance
📈 Structuring tax-efficient investment strategies
📘 Understanding new amendments introduced in Union Budget

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📝 Conclusion

The proposed amendment will significantly change the taxation of dividend income by disallowing interest deduction on borrowed funds used for investment.

CA RAMAKRISHNA SANJAY

7760252581

Draft Rule 18 – Medical Treatment Perquisite Exemption Explained

 

📢 The Draft Income-tax Rules, 2026 introduce Rule 18, which clarifies when medical treatment provided by an employer will NOT be treated as a taxable perquisite under Section 17(2)(b)(ii) of the Income-tax Act.

This rule mainly focuses on serious medical treatments provided in approved hospitals.

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🏥 What is a Medical Perquisite?

When an employer pays or reimburses medical expenses of an employee, it may be treated as a perquisite (benefit) and taxed as salary income.

However, the law provides exemptions in certain cases.

Rule 18 specifies the situations where such medical treatment will not be taxed.

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✔ When Medical Treatment Will Not Be Taxable

Medical expenses paid by the employer will be exempt from tax if:

✅ Treatment is for specified serious diseases
✅ Treatment happens in a hospital approved by the Chief Commissioner / Principal Chief Commissioner

This ensures that the exemption is used only for genuine medical treatment in proper hospitals.

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🩺 Diseases Covered Under the Rule

The exemption applies to treatment for serious medical conditions such as:

• Cancer
• Tuberculosis
• AIDS
• Major heart diseases
• Organ-related diseases requiring surgery
• Fractures requiring orthopaedic treatment
• Caesarean and obstetric procedures
• Severe burn injuries
• Mental disorders requiring hospitalisation
• Drug addiction treatment
• Severe allergic reactions (anaphylactic shock)

In most cases, the patient must be hospitalised for at least 3 continuous days.

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🏨 Conditions for Hospital Approval

To qualify for this exemption, hospitals must meet certain minimum infrastructure and medical standards, such as:

✔ Registration with local authority
✔ Minimum 10 patient beds
✔ Proper operation theatre and sterilisation facilities
✔ Qualified doctors and nursing staff available round the clock
✔ Medical equipment and diagnostic laboratory
✔ Proper patient record maintenance

These standards ensure that only genuine hospitals qualify for the exemption.

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🌿 Hospitals under Indian Systems of Medicine

Hospitals providing treatment through:

• Ayurveda
• Siddha
• Unani
• Homeopathy

will be approved based on guidelines issued by the Ministry of Health (Office Memorandum dated 6 June 2002).

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📍 For guidance on Income Tax, GST, Audit, and Compliance matters, professional assistance is available.

📞 +91 77602 52581

📍 Location:
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Taxation of Foreign Retirement Benefit Accounts

 

1. Background of Rule 74

The Draft Income-tax Rules, 2026 introduce Rule 74 to address taxation of retirement benefit accounts maintained in foreign jurisdictions.

Many individuals working abroad accumulate savings in foreign pension or retirement plans (such as 401(k)-type plans, superannuation funds, or employer retirement schemes).

Under earlier provisions, income accruing annually in such accounts could become taxable in India even though the funds are not withdrawn, resulting in timing mismatch and potential double taxation.

Rule 74 introduces a deferral mechanism to align taxation in India with the taxation in the foreign country where the retirement account is maintained.

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2. Key Concept – Deferral of Taxation

A specified person can choose to defer taxation in India for income accrued in a foreign retirement account.

Instead of taxing the income every year in India, the taxpayer may offer it to tax only when the income is actually taxed upon withdrawal or redemption in the notified country.

In simple terms

Scenario	Tax Treatment
Income accrues yearly in foreign retirement account	No taxation in India if option exercised
Withdrawal / redemption happens abroad	Income becomes taxable in India in that year

This ensures synchronisation of tax timing between India and the foreign jurisdiction.

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3. Who Can Use This Rule?

The option is available only to a “Specified Person”.

Definitions are aligned with Section 158(2) of the Income-tax Act, 2025.

Key elements include:

• Specified Person – Generally a resident individual holding such foreign retirement accounts.

• Specified Account – A retirement benefit account maintained abroad.

• Notified Country – Countries specifically notified by the Government.

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4. Conditions for Exercising the Option

To avail the deferral benefit, the taxpayer must comply with the following:

1️⃣ Option must be exercised for ALL retirement accounts
Partial selection is not permitted.

2️⃣ Form to be filed
The option must be filed in Form No. 40.

3️⃣ Time limit
The form must be submitted before the due date of return filing under Section 263(1)(c).

4️⃣ Once exercised – cannot be withdrawn
The option becomes permanent for all future years.

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5. Safeguard Against Double Taxation

When income is eventually taxed in India at the time of withdrawal:

The following income will NOT be taxed again:

✔ Income already taxed in earlier years in India
✔ Income that was not taxable earlier due to residential status (NR / RNOR)
✔ Income exempt due to DTAA provisions

However:

⚠ Foreign tax paid earlier on that income will not be eligible for foreign tax credit under Rule 76.

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6. Important Rule if the Person Becomes Non-Resident

If the individual becomes a non-resident in a later year:

• The earlier option is treated as never exercised.

• All previously deferred income becomes taxable in the year immediately preceding the year of becoming non-resident.

• Tax must be paid before the return filing due date.

This provision prevents permanent tax deferral through change in residential status.

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7. Practical Impact

Rule 74 is particularly relevant for:

• Returning NRIs

• Employees who worked abroad

• Individuals holding foreign retirement savings accounts

• Persons planning cross-border retirement taxation

8. Professional Perspective

The rule introduces structured taxation of global retirement funds, but proper planning is required regarding:

• Residential status

• DTAA implications

• Foreign tax credit treatment

• Timing of withdrawals

• Disclosure and compliance requirements

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9. How Professional Advisory Helps

Professional review can assist taxpayers in:

• Evaluating eligibility as a specified person
• Identifying qualifying retirement accounts
• Filing Form 40 correctly within due dates
• Managing foreign asset reporting and compliance

Proper advisory ensures global retirement savings remain tax-efficient and compliant with Indian tax laws.

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CA RAMAKRISHNA SANJAY
7760252581

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📊 Understanding Form 10BD – A Key Compliance for Charitable Institutions

Charitable trusts and institutions that receive donations eligible for deduction under the Income-tax Act must comply with an important reporting requirement called Form 10BD.

This form ensures greater transparency in donation reporting and helps the Income-tax Department verify deductions claimed by donors.

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📌 What is Form 10BD?

Form 10BD is an annual statement of donations filed by certain charitable or eligible institutions with the Income-tax Department.

It captures donor-wise details of donations received during the financial year.

The objective is to enable system-based verification of deductions claimed by donors under Section 80G and other relevant provisions.

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👥 Who Must File Form 10BD?

The requirement applies to institutions such as:

✔ Charitable trusts registered under Section 12A / 12AB
✔ Institutions approved under Section 80G
✔ Research institutions eligible under Section 35
✔ Universities, hospitals or other notified funds receiving eligible donations

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📋 Information Reported in Form 10BD

The form requires detailed reporting, including:

🔹 Name and PAN of the institution
🔹 Approval / registration details
🔹 Name of donor
🔹 PAN / Aadhaar of donor
🔹 Address of donor
🔹 Amount of donation
🔹 Mode of payment
🔹 Nature of donation (corpus / specific / general)

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📅 Due Date

The statement must be filed on or before 31 May of the following financial year.

Example:
Donations received during FY 2025-26 → Form 10BD due by 31 May 2026

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📜 What Happens After Filing?

Once Form 10BD is filed, the institution must issue Form 10BE to donors.

Form 10BE serves as the certificate of donation, enabling donors to claim deduction under Section 80G while filing their income-tax return.

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⚠️ Consequences of Non-Compliance

Failure to file Form 10BD may attract penalty under Section 271K, ranging from:

💰 ₹10,000 to ₹1,00,000

In addition, donors may face difficulty claiming tax deduction.

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CA Ramakrishna Sanjay
7760252581
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Reporting Requirement for Film Producers and Specified Activities

🎬 What is Rule 236?

Rule 236 of the Draft Income-tax Rules, 2026 introduces a mandatory reporting requirement for certain industries to provide financial information to the Income Tax Department.

This rule is issued under Section 507 of the Income-tax Act, 2025.

The objective is to increase transparency in sectors where large investments and complex revenue-sharing arrangements exist, particularly the film and entertainment industry.

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🎥 Who Needs to Comply with Rule 236?

Rule 236 applies to:

1️⃣ Producers of Cinematograph Films

Any person or entity engaged in the production of films.

This may include:

• Film production companies

• Independent producers

• Co-producers financing film projects

• Individuals producing films

2️⃣ Persons Engaged in “Specified Activities”

The term specified activity is defined under Section 507(3) of the Income-tax Act, 2025.

The Government may notify industries where financial reporting is necessary due to high-value transactions or complex funding structures.

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📄 What Needs to Be Filed?

Persons covered under Rule 236 must submit a statement in:

Form No. 164

This form reports financial and operational details related to film production or other specified activities during the tax year.

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📊 Information Reported in Form 164

The form is expected to capture key information such as:

1. Details of the Reporting Entity

• Name of producer / company

• PAN

• Address and contact details

• Business structure (company, LLP, individual etc.)

2. Project Information

• Name of the film or project

• Date of commencement of production

• Completion or release date

• Nature of the activity

3. Investment Details

• Total project cost

• Details of investors or co-producers

• Amount invested by each participant

4. Payments Made

Payments to:

• Actors and artists

• Directors and technicians

• Production vendors

• Service providers

5. Revenue Sources

Income from:

• Theatre distribution rights

• OTT platforms

• Satellite rights

• Music rights

• Overseas distribution

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📅 Due Date for Filing

The statement in Form 164 must be filed:

Within 60 days from the end of the tax year.

Example:

Tax Year End	Due Date
31 March 2026	30 May 2026

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🏛 Where the Statement is Filed

The form must be submitted to:

Director General of Income-tax (Systems)

The authority will then forward the information to the jurisdictional Assessing Officer for analysis and monitoring.

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They must:

• Maintain project-wise financial records

• Track investments and payments

• File Form 164 within 60 days after the tax year

Failure to maintain proper records could lead to tax scrutiny or compliance issues.

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🤝 We Help YOU

✔ Maintain proper financial records for film projects or specified activities
✔ Track investments and expenses related to each project
✔ Ensure correct reporting of payments to artists, technicians, and vendors
✔ Prepare and file Form No. 164 within the prescribed time limit
✔ Review transactions to ensure compliance with income-tax reporting requirements

CA RAMAKRISHNA SANJAY

+91 7760252581

📊 Advance Tax – Key Points Under the Income Tax Act, 2025

The new framework under the Income Tax Act, 2025 continues the concept of paying tax during the year based on estimated income, known as Advance Tax.

Understanding the basic provisions helps taxpayers avoid interest and manage cash flow efficiently.

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📌 Who should pay Advance Tax?

Advance tax is payable when the estimated tax liability exceeds ₹10,000 during the financial year.

However, resident senior citizens (60+) without income from business or profession are exempt.

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📅 Advance Tax Instalment Schedule

Taxpayers must pay advance tax in four instalments:

✔ 15 June – 15% of total tax
✔ 15 September – 45% of total tax
✔ 15 December – 75% of total tax
✔ 15 March – 100% of total tax

Taxpayers under presumptive taxation may pay the entire amount by 15 March.

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⚠ Interest implications

Interest may apply in two situations:

• Default in payment – If advance tax paid is less than 90% of assessed tax.
• Deferment of instalments – If instalments are not paid as per schedule.

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💡 Important Relief

Shortfall in instalments due to capital gains, dividend income, or similar unexpected income will not attract interest if the tax is paid in subsequent instalments or before 31 March.

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✔ Advance tax is based on self-assessment and estimated income.
✔ Timely payment helps avoid interest and maintain compliance.

CA Ramakrishna Sanjay
7760252581

👨‍👩‍👧‍👦 HUF Creation – A Powerful Tax Planning Tool for Families

💡 Did you know? Your family itself can be a separate taxpayer under Income Tax law!

A Hindu Undivided Family (HUF) is a legal entity that helps families save tax and build wealth efficiently.

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📌 What is HUF?

A HUF is a separate legal person created automatically in a Hindu family.

It includes:

✔ Husband
✔ Wife
✔ Children

The senior-most male or female member becomes the Karta.

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🎯 Major Tax Benefits of HUF

✅ Separate PAN Card
✅ Separate Income Tax Return
✅ Separate basic exemption limit ₹2,50,000
✅ Claim deductions under 80C, 80D etc
✅ Family income can be distributed legally

💰 This means additional tax saving for the same family

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📊 Example – Tax Saving

Without HUF:

Father income: ₹10,00,000

With HUF:

Father income: ₹7,00,000
HUF income: ₹3,00,000

➡ Overall tax liability reduces significantly

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🏦 What HUF Can Do?

HUF can:

✔ Open Bank Account
✔ Invest in Shares, Mutual Funds
✔ Purchase Property
✔ Run Business

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📋 Documents Required

📄 PAN Application
📄 HUF Deed
📄 Karta PAN
📄 Address Proof

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⚠ Important Point

HUF should have own income source

Examples:

• Gift received
• Ancestral property
• Investments

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🎯 Who Should Create HUF?

✔ Salaried persons
✔ Business owners
✔ High income families
✔ Families doing investments

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🤝 We Help You With

✔ HUF Creation
✔ PAN Application
✔ Deed Drafting
✔ Bank Account Opening Support
✔ Tax Planning using HUF

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☎ Contact Us Today

📞 77602 52581
📍 Bangalore

Save tax legally. Build family wealth smartly.

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Car Lease vs Direct Car Purchase: How Employees Can Save ₹6+ Lakhs in Tax (FY 2026-27 Guide

🚗

🏦 FY 2026-27 Tax Planning

Car Lease vs
Direct Purchase
Save Big on Tax

Discover how structuring your car through a Company Lease Policy can legally save you lakhs in income tax every single year.

₹6,19,200

Total savings over 4 years

✨

📋 Understanding the Concept

What is a Car Lease Policy?

A Car Lease Policy allows employees to get a car through their employer as part of their CTC. The employer leases the car, and the rental is deducted from the employee's pre-tax salary.

Instead of paying EMI from post-tax income, you pay lease rentals before tax — the government taxes only a small fixed perquisite value, not the full lease amount. This is perfectly legal and government-notified.

📊 Official Tax Rules

Perquisite Value – FY 2026-27

💡 Tax is calculated ONLY on this fixed perquisite value — not on your actual lease rental. That's the entire magic of this strategy!

Category	Monthly Perquisite Value
🚙 Car up to 1600cc	₹5,000 / month
🚕 Car above 1600cc	₹7,000 / month
🧑‍✈️ Car with Driver	Up to ₹10,000 / month

🔍 Real Numbers Comparison

See the Difference Clearly

₹15L

Car Cost

₹35,000

Monthly Rental/EMI

30%

Tax Slab

>1600cc

Engine Size

❌

Direct Car Purchase

EMI (post-tax)₹35,000

Pre-tax income needed₹50,000

Tax paid / month₹15,000

Annual tax burden₹1,80,000

✅

Car Lease Policy

Lease rental₹35,000

Taxable perquisite₹7,000

Tax paid / month₹2,100

Annual tax burden₹25,200

💰 Your Net Annual Tax Saving

₹1,54,800

Every single year — completely legally

₹25,200

Tax under Lease Policy

₹6,19,200

Total 4-Year Savings

🎯 Additional Benefits

More Reasons to Choose a Lease

💸

Lower Effective Car Cost

Save 25–40% on your car's actual cost if you're in the 30% tax bracket.

⛽

Fuel & Maintenance

Both can be structured tax-efficiently within the corporate lease arrangement.

🔄

Buy at Depreciated Value

Car transfers to you at book value after lease — much lower than market price.

🏦

Better Cash Flow

No large upfront payment. Your pre-tax salary handles the lease seamlessly.

📈

Zero Down Payment

Unlike a car loan, no need to block your savings or investments.

🛡️

100% Legal

Fully compliant with Income Tax Act. Backed by government-notified perquisite rules.

🏆 Final Verdict

A Car Lease Policy can reduce your effective car cost by 25% to 40% if you are in the 30% tax bracket. It is one of the most powerful salary structuring tools available to salaried employees in India — and most people don't even know about it!

📞 Get Expert Help

Want to Structure Your Salary Smartly?

Get CA-guided, professional assistance to design your tax-efficient compensation and start saving today.

WhatsApp Me Now 📲 Call: +91 77602 52581

🧾 CA-Guided Tax Planning

Professional salary structuring & tax efficiency

📱 WhatsApp / Call: +91 77602 52581

💬 Chat: wa.me/917760252581

📍 Location: View on Google Maps

© 2026 · Tax Upadesh · CA-Guided Tax Planning · For informational purposes only. Consult your CA for personalised advice.