Client Background A Mumbai-based individual, who was a tax resident of Singapore, had invested in Indian equity and debt mutual funds over the years. During the relevant financial year, she redeemed and sold these investments, resulting in substantial short-term capital gains. While filing her Indian…

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…

About the Case This case study highlights the journey of Karan, an IT professional and Futures & Options (F&O) trader, who successfully navigated a complex income-tax assessment for FY 2022–23 with the expert support of CA Mitesh and Associates. In the ever-evolving and intricate landscape…

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…

Introduction Cryptocurrencies have gained tremendous popularity in recent times and the number of users has also been increasing. Importance of understanding and complying with tax regulations for cryptocurrency transactions Basics of Crypto Taxation Recent Updates in Crypto Taxation Taxable Events Calculation of Tax Liability Reporting Requirements…

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…

Capital Gains Tax on Redevelopment Definitions Capital Asset as per the Income Tax Act, 1961 Section 2(14) — a) property of any kind held by an assessee, whether or not connected with his business or profession. Section 2(47) "transfer", in relation to a capital asset,…

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…

While residing and working in the United States, the client required withdrawal of their Employees’ Provident Fund accumulated during earlier employment in India. The core complexity lay in completing the entire PF withdrawal process—ranging from documentation to coordination with the EPFO—without being physically present in…

The number of visas you need for your business in the UAE depends on various factors, including the type of business entity, the nature of your business activities, and the specific requirements of the emirate where you are establishing your company. Here are some general…

The specific bank requirements for opening a business account in the UAE can vary depending on the bank and the type of business entity you are establishing. However, there are common requirements that many banks typically ask for. Keep in mind that these requirements can…