Residential Status in India: Understanding Resident and Non-Resident Status for Tax Purposes

Determining an individual's residential status is crucial for understanding their tax liability in India. The Income Tax Act classifies individuals as either "resident" or "non-resident" based on their duration of stay in India and other criteria. This status significantly impacts the taxation of income earned both in India and abroad. Understanding Residential Status in India [...]
Understanding Taxation on Inherited Property

Understanding Taxation on Inherited Property

Acquiring property from ancestors is a common occurrence, but understanding its tax implications is crucial. Properties passed down from fathers, grandfathers, and great-grandfathers are considered inherited assets, with some exceptions. The Income Tax Act lays out various provisions regarding the taxation of such property sales. This article provides a comprehensive guide to the taxation of [...]
TDS on Rent - A Guide to Sections 194I, 194IB & 194IC of the Income Tax Act

TDS on Rent – A Guide to Sections 194I, 194IB & 194IC of the Income Tax Act

Rent, a regular financial commitment, includes payments for leasing, tenancy, sub-leasing, or arrangements involving properties such as land, buildings, machinery, plants, furniture, or fittings. To ensure tax compliance, rental income falls under the Tax Deducted at Source (TDS) mechanism through Sections 194I, 194IB, and 194IC of the Income Tax Act. Overview of Relevant Sections: Section [...]
Income Tax Surcharge Rates and Marginal Relief

Income Tax Surcharge Rates and Marginal Relief

Additional Surcharge on High-Income Taxpayers If your income falls within the highest tax bracket of 30%, you may be required to pay an additional surcharge on your tax liability if your income surpasses a specific threshold. Simply put, a surcharge is an extra tax levied on individuals earning beyond a certain limit. The government imposes [...]
Income Tax Rebate Under Section 87A

Income Tax Rebate Under Section 87A

A tax rebate is a form of financial relief granted to individual taxpayers, particularly those in lower income groups, to minimize their tax burden if their earnings remain below a specified threshold. Budget 2025 Update For the financial year 2025-26, the rebate available under the new tax regime has been increased to Rs. 60,000. This [...]
Limited Liability Partnership (LLP) Registration in India

Limited Liability Partnership (LLP) Registration in India

A Limited Liability Partnership (LLP) is a modern business structure that merges the benefits of a traditional partnership with the security of limited liability. It provides entrepreneurs with a flexible framework that ensures legal protection while promoting operational efficiency. Understanding LLP A Limited Liability Partnership (LLP) is a distinct business entity that combines elements of [...]
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