💼 Leave Encashment Tax Relief up to ₹25 Lakhs – Are You Claiming It Correctly?

 

Leave Encashment Tax Relief up to ₹25 Lakhs

Are You Claiming Your Retirement Benefits Correctly?

Many employees unknowingly pay excess tax on leave encashment received at the time of retirement or resignation. Under Section 10(10AA) of the Income Tax Act, you are entitled to significant tax exemptions that can save you lakhs of rupees.

New Update: The lifetime exemption limit for private-sector employees has been enhanced to ₹25,00,000.

Eligibility & Exemptions

🏛️ Gov. Employees

100% Tax-Free: Leave encashment received at retirement is fully exempt from tax without any upper limit.

🏢 Private Sector

Up to ₹25 Lakhs: Exemption available for non-government employees at the time of retirement or resignation.

How is Exemption Calculated?

The exempt amount is the least of the following four factors:

Criteria	Description
Actual Received	The total amount paid by your employer.
Statutory Limit	Max limit of ₹25,00,000 (Lifetime).
Average Salary	Last 10 months' average basic salary + DA.
Earned Leave	Cash equivalent of leave balance (Max 30 days/year).

⚠️ Critical Tax Warnings

• During Employment: Any leave encashed while still in service is fully taxable.
• Cumulative Limit: The ₹25 Lakh limit is a lifetime ceiling across all employers.
• Timing Matters: Exemption applies only during Retirement, Resignation, or Termination.

Don't Lose Money to Incorrect Tax Filing

We provide expert tax optimization and accurate calculations for retirees and salaried professionals.

📍 Bangalore | 📱 +91 77602 52581

📞 Get Professional Tax Help

Residential Status and Its Impact on Tax Liability

 

Residential Status and Its Impact on Tax Liability in India – Complete Guide

Residential Status is the foundation for determining tax liability under the Income Tax Act, 1961. It defines whether your global income or only Indian income is taxable in India.

Important: Residential Status depends on your physical stay in India, not your citizenship.

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Meaning of Assessee

As per Section 2(7), an Assessee means a person liable to pay tax under the Income Tax Act. It includes:

• Individual
• Company
• Firm
• HUF
• AOP / BOI

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Types of Residential Status

Status	Meaning
Resident and Ordinarily Resident (ROR)	Fully resident in India
Resident but Not Ordinarily Resident (RNOR)	Partial resident
Non Resident (NR)	Non resident

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Basic Conditions to Become Resident

An individual is Resident if ANY ONE condition satisfied:

✔ Stay in India ≥ 182 days in Financial Year

OR

✔ Stay ≥ 60 days in FY AND 365 days in previous 4 years

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Additional Conditions for ROR

To become ROR, BOTH must be satisfied:

• Resident in at least 2 out of last 10 years
• Stay in India ≥ 730 days in last 7 years

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Taxability Based on Residential Status

Income Type	ROR	RNOR	NR
Indian Income	Taxable	Taxable	Taxable
Foreign Income	Taxable	Not Taxable*	Not Taxable

*Except income from business controlled in India

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Special Benefit for Returning NRIs

RNOR Status provides major tax benefit:

• Foreign Income not taxable
• No foreign asset disclosure
• Huge tax saving opportunity

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Residential Status of Other Assessees

• Company: Resident if POEM in India
• Firm: Resident if control in India
• HUF: Resident if management in India

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Importance in Tax Planning

✔ NRI Tax Planning
✔ Foreign Salary Taxability
✔ DTAA Benefit
✔ Avoid tax notices

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Conclusion

Residential Status is the most critical factor in determining tax liability. Proper determination helps:

• Save tax legally
• Avoid penalties
• Ensure compliance

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Need Help with NRI or Residential Status Taxation?

Get Professional Advisory Support

📞 +91 77602 52581

📍 Bangalore

🌍 Residential Status Decides Your Tax in India – Not Your Citizenship!

 

Many taxpayers wrongly assume that staying abroad means no tax in India. In reality, your Residential Status under the Income Tax Act, 1961 determines whether your global income or only Indian income is taxable.

Here is what every NRI, returning professional, and foreign income earner must know:

━━━━━━━━━━━━━━━━━━━

📌 Three Residential Status Categories

🔹 Resident and Ordinarily Resident (ROR)
✔ Tax on global income
✔ Mandatory disclosure of foreign assets

🔹 Resident but Not Ordinarily Resident (RNOR)
✔ Tax only on Indian income
✔ Foreign income generally not taxable
✔ Major tax saving opportunity for returning NRIs

🔹 Non-Resident (NR)
✔ Tax only on income earned or received in India
✔ Foreign income fully exempt in India

━━━━━━━━━━━━━━━━━━━

📊 Why this is Critical

✔ Avoid unnecessary tax on foreign income
✔ Proper tax planning when returning to India
✔ Correct income tax return filing
✔ Compliance with foreign asset reporting
✔ Avoid penalties and scrutiny

━━━━━━━━━━━━━━━━━━━

💡 Special Advantage for Returning NRIs

Returning individuals can legally enjoy RNOR status, where foreign income remains non-taxable in India for a limited period, subject to conditions.

Proper planning can result in significant tax efficiency.

━━━━━━━━━━━━━━━━━━━

⚠ High-Risk Areas Where Professional Guidance is Essential

• NRI Tax Filing
• Returning to India Planning
• Foreign Salary Taxability
• DTAA Benefit Claim
• Foreign Asset Disclosure

━━━━━━━━━━━━━━━━━━━

🤝 Get Expert Guidance on Your Residential Status and Tax Liability

Accurate determination can help you:

✔ Save tax legally
✔ Avoid notices
✔ Ensure full compliance

📞 Contact: +91 77602 52581
📍 Visit: https://share.google/aOzL0ZYXlgKBzSjib

━━━━━━━━━━━━━━━━━━━

Plan your Residential Status. Plan your Taxes Smartly.

GST on Influencers & Content Creators

GST

📸

▶️

🎵

👥

🔥

💸

📢 2026 Creator Tax Guide

CREATORS, GST IS HERE.

You grew the followers. You landed the brand deals. Now the taxman wants his cut. Here's everything you need to know about GST — no jargon, no confusion.

18%

GST Rate

₹20L

Registration Limit

0%

On Foreign Sales

ITC

Credits Available

18%

Flat GST on ALL influencer services  ·  No exceptions  ·  SAC Code 998361

📋 Registration Rules

WHEN MUST
YOU REGISTER?

Once your total annual income from brand deals · YouTube · affiliates · courses · free products crosses the threshold — GST registration is mandatory.

₹20L

Per Year — Most States

Maharashtra, Delhi, Karnataka, Tamil Nadu, Gujarat and more.

₹10L

Per Year — Special States

Uttarakhand, Himachal Pradesh, Manipur, Nagaland, Tripura & others.

⚠️

Include EVERYTHING in your turnover: Brand deals + YouTube AdSense + Affiliate commissions + Course sales + Free products at market value. Even that gifted phone counts.

💰 Income Breakdown

GST ON YOUR
INCOME STREAMS

🤝

Brand Promotions

Paid to promote a brand on Instagram 📸, YouTube ▶️, or TikTok 🎵? Collect 18% GST on top of your fee and deposit it with the government.

Service Fee     ₹1,00,000

GST @18%     ₹18,000

Invoice Total   ₹1,18,000 ✅

📦

Barter / Free Products

Received a ₹50,000 phone instead of cash? GST still applies on market value. No cash ≠ no tax. This catches most creators completely off-guard.

Product Value   ₹50,000

GST @18%      ₹9,000

GST Payable    ₹9,000 💸

🔗

Affiliate + Foreign Income

Affiliate commissions are taxable at 18%. But courses or deals with foreign clients = 0% GST (Export of Service). File a LUT first.

Affiliate (India) ₹2,00,000

GST @18%      ₹36,000

Foreign Sales   🌟 Zero Rated

📱 Real Creator Scenario

YOUR TAX
REALITY CHECK

A typical mid-size Indian creator — annual income:

📸 Brand Deals (Instagram + YouTube)₹12,00,000

🔗 Affiliate Commissions₹5,00,000

▶️ YouTube AdSense₹6,00,000

Total Turnover₹23,00,000

🚨 GST Registration MANDATORY — Crosses ₹20L threshold

GST @18% on applicable income. Monthly returns mandatory. Late filing = penalties + interest.

🔥 Myth Busting

STOP BELIEVING
THESE MYTHS

❌ Myth

"My brand is a foreign company, so GST doesn't apply."

→

✅ Reality

If the service is consumed in India, GST applies regardless of where the client is based.

❌ Myth

"I was paid in products, not cash — no GST needed."

→

✅ Reality

Barter is fully taxable at market value. Cash is irrelevant to your GST obligation.

✅ Action Plan

YOUR GST
CHECKLIST

• 01
  Register on the GST PortalApply at gstin.gov.in once turnover is near ₹20L. Get your GSTIN number.
• 02
  Issue GST Invoices for Every DealEvery brand deal, affiliate payout, or course sale needs a GST invoice with SAC code 998361.
• 03
  File GSTR-1 & GSTR-3B + Pay MonthlyReport outward supplies and pay net GST by the 20th of each month.
• 04
  Claim ITC on Your Creator GearCamera 📷 · Laptop 💻 · Software 🎬 · Internet 🌐 · Studio Rent 🏠 — all eligible for credit.
• 05
  File LUT for Foreign IncomeBefore taking money from foreign brands or students, file a Letter of Undertaking for zero-rated status.

📸 ▶️ 🎵 👥 🐦

CREATE. EARN. COMPLY. 🚀

The creator economy is booming — make sure your GST game is too.

⚖️ Disclaimer: This blog is for informational purposes only and does not constitute professional tax or legal advice. Consult a qualified Chartered Accountant for your specific situation.

CA Ramakrishna Sanjay +91 7760252581

🍺Carlsberg India IPO

🍺

IPO Watch · February 2026

Carlsberg
Bets on India

A $700 million listing that could reshape India's beer market

$700M

Target IPO Size

22%

Market Share

₹90B

FY25 Revenue

The Story

Denmark's Finest Pours Into India's Capital Markets

Carlsberg A/S is preparing to list its Indian operations, potentially raising up to $700 million via a secondary share sale. Three marquee banks — Kotak Mahindra Capital, JPMorgan India, and Citigroup — have been appointed, with a DRHP filing possible as early as May 2026.

The rationale is simple: Indian markets offer valuation premiums that parent-company home markets can't match. Hyundai's Indian unit trades at 32× earnings versus just 11× for its Korean parent. Carlsberg wants a slice of that gap — and with 22% beer market share and ₹90 billion in FY25 revenue, it has a compelling story to tell.

"Exploring different options for increasing shareholder value, which may potentially include an IPO of our business in India."

— Kenni Leth, Head of External Communications, Carlsberg Group

Market Position

Who Holds the Glass?

Carlsberg is India's #2 brewer, behind United Breweries (Kingfisher).

22%

Carlsberg

United Breweries ~50%

Carlsberg India ~22%

Others ~28%

Investor Radar

What to Watch

No final decision yet — track these milestones as the IPO unfolds.

📄 DRHP Filing — May 2026

🏛️ SEBI Observations (30–75 days)

🗺️ Management Roadshow

💰 IPO Subscription & GMP

📈 Listing Day Premium

🌍 Pernod Ricard India IPO News

Sources: Bloomberg · ET Markets · Tracxn · February 23, 2026  |  Not investment advice. Markets involve risk.

🚨 Rs. 590 Crore Fraud at IDFC FIRST Bank — Here's What Happened

 

A massive fraud has been uncovered at IDFC FIRST Bank's Chandigarh branch. The victim? Haryana government-linked accounts. The amount? Rs. 590 crore.

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How Was It Caught?

The Haryana government asked the bank to close an account and transfer funds — but the balance on record didn't match what was actually there. Digging deeper revealed the same problem across multiple government accounts.

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What's Being Done?

• 🔴 4 employees suspended
• 🔍 Forensic audit launched
• 👮 Police complaint filed
• 🏦 Board & regulators informed

The bank confirmed this is limited to specific government accounts and does not affect regular customers.

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The Lesson

Even regulated banks aren't fraud-proof. Check your statements regularly and stay alert to any discrepancies — no matter how small.

Stay informed. Stay vigilant.