The Income Tax Department may initiate an Income Escaping Assessment under Sections 148 and 148A when taxpayers fail to report or include any specified income in their Income Tax Returns. Income Escaping Assessment Assessment or re-assessment refers to the process by which the department verifies…

Cryptocurrency tax reporting is one of the most complex areas in personal finance. With thousands of tokens, multiple blockchains, and diverse transaction types (staking, swapping, bridging, lending, etc.), calculating gains accurately is no small feat. Crypto tax tools like Koinly, CoinTracker, Accointing, ZenLedger, and others…

The Indian government has taken significant steps to curb black money and undisclosed foreign assets held by residents outside the country. One of the key legal tools in this effort is the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Successfully Defending a Large Crypto Trader Against Income Tax Notice - India 2025 In recent years, the Income Tax Department (ITD) has increased scrutiny on cryptocurrency (Virtual Digital Assets or VDA) transactions due to concerns about tax evasion and underreporting. Many traders and investors have…

Controlled Foreign Company (CFC) Rules in India for UAE (Dubai) Company 2025 This article provides a concise explanation of Controlled Foreign Corporations (CFCs)—what they are, why and how they are established, and how they are taxed. Since Indian tax law lacks specific provisions governing CFCs,…

Section 6(1A) of the Indian Income Tax Act, 1961 was introduced by the Finance Act, 2020, and is applicable from the Assessment Year 2021-22. It addresses the issue of stateless individuals (those not liable to tax in any country) and ensures that Indian citizens with significant income in India are…

Receiving an Income Tax Notice in India can be a stressful experience for taxpayers, as it often raises concerns about discrepancies in filed returns or potential scrutiny by tax authorities. A delay or incorrect response to such a notice can lead to severe consequences, including…

A number of our clients have started receiving the following emails from Centralised Crypto Exchanges like WazirX, Zebpay, etc in India. Dear Client, You may be aware that as a Virtual Asset Service Provider, This Crypto Exchange is required to carry out Enhanced Due Diligence…

A number of clients have started receiving an email from centralized exchanges like CoinDCX, WazirX, etc asking for Originator Info. It says something like the following: Subject: Provide Originator Info for Recent Deposit - X,XXX.XX USDT Body: Hi Customer, We noticed a crypto deposit in…

There are several misconceptions or wrong notions about crypto taxes in India. Here are a few: Crypto Transactions Are Not Taxable: One common misconception is that transactions involving cryptocurrencies are not subject to taxation in India. In reality, the Income Tax Department of India considers…

A P2P merchant earns Two to Three thousand dollars per month in India by doing P2P trading on Binance, Paxful, etc. Peer-to-peer (P2P) trading involves buying or selling cryptocurrencies directly between individuals. You started doing P2P Trading a while back and now your account is…

NRIs, OCIs, PIOs, and Expatriates, residing either abroad or in India, prioritize adherence to laws and regulations. Filing Income Tax Returns (ITR) stands as a crucial compliance. It is imperative for NRIs, OCIs, and Expats to file ITRs in India for tax payment, income reporting,…

The Income Tax Department, leveraging advanced database systems, now captures various financial transactions of taxpayers, including Non-residents (NRIs, OCIs). Despite assumptions that foreign source funds aren't taxable, the absence of Indian Income tax filings prompts the department to verify potential tax evasion and the sources…

The taxation of non-resident Indians (NRIs) in India upon the sale of immovable property is an important aspect governed by Indian tax laws. When NRIs sell property in India, they encounter specific tax obligations and considerations that necessitate careful understanding and compliance with Income Tax…

Property sales in India are common transactions for NRIs and OCIs, but they often encounter income tax and other regulatory provisions. In such cases, they seek guidance from tax consultants. We provide assistance to NRIs, OCIs, and other foreign citizens in applying for Lower TDS…

Residential status under the Income Tax Act determines an individual's tax liability in India. It is primarily based on the individual's physical presence in India during a financial year (April 1 to March 31). Answer: Under the Income Tax Act in India, an individual's residential…

What is Annual Information Statement (AIS)? The Annual Information Statement (AIS) is a recently introduced system by the Income Tax Department. It serves as an information repository for taxpayers, providing insights into their financial transactions throughout a given year. This comprehensive statement encompasses various financial…

Taxation implications for Indian citizens residing in the UAE under both Indian tax laws and UAE tax laws. Section 6(1A) was introduced in the Indian Income Tax Act to determine the residency status of Indian citizens who leave India for employment or other purposes. Here's what it states: Residency Rule for…

Ministry of Finance in Lok Sabha on December 4 said that off-shore crypto exchanges such as Binance, Paxful, Kraken and others will be required to follow anti-money laundering and countering the financing of terrorism (CFT) guidelines under PMLA besides getting registered in the country to…

Crypto accounting can be a complex and daunting task, given the volatile nature of digital assets and the intricate regulations surrounding them. From managing fair market valuations to troubleshooting software-specific issues, people often face unique challenges in this rapidly evolving space. This article explores both…