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Dividend income is one of the most commonly overlooked components while filing an Income Tax Return (ITR). Many taxpayers assume that dividends received from shares, mutual funds, or other investments are automatically accounted for or are tax-free. However, under the current Income-tax provisions, dividend income is taxable in the hands of the recipient and must be reported accurately in the Income Tax Return. With the Income Tax Department using advanced technology and the Annual Information Statement (AIS) to verify taxpayers' financial information, failing to report dividend income can result in mismatches, tax notices, penalties, and unnecessary scrutiny. In this article, we explain why reporting dividend income is important, where it should be disclosed, common mistakes taxpayers make, and how you can ensure accurate compliance. Understanding Dividend Income Dividend is the portion of a company's profits distributed to its shareholders. Investors may receive dividend...

The Central Board of Direct Taxes (CBDT) has officially notified the Cost Inflation Index (CII) for the Financial Year (FY) 2026–27 as 384 . This notification is an important development for taxpayers, chartered accountants, tax professionals, and investors involved in capital asset transactions. The Cost Inflation Index plays a significant role in the computation of capital gains by adjusting the purchase cost of eligible capital assets for inflation. It ensures that taxpayers are taxed only on the real gains arising from the appreciation in the value of assets and not merely on inflationary increases. Whether you are planning to sell land, a building, or any other eligible long-term capital asset, understanding the Cost Inflation Index is essential for accurate tax computation and effective financial planning. In this blog, we explain what the Cost Inflation Index is, why it matters, the significance of the newly notified CII of 384 , and how taxpayers should prepare for future ...

The Goods and Services Tax (GST) regime has significantly transformed India's indirect taxation system by promoting transparency, reducing cascading taxes, and improving compliance. Over the years, businesses have consistently sought greater clarity and flexibility regarding the availability of Input Tax Credit (ITC) , especially for expenses related to employee welfare and business operations. In a significant development, the GST Law Committee has proposed allowing Input Tax Credit (ITC) on certain expenses that were previously restricted. These include staff cars used for official business, vehicle insurance, repairs and maintenance, and group health and life insurance for employees . If approved by the GST Council, these proposals could provide substantial financial relief to businesses across various sectors. In this blog, we explain the proposed changes, their potential impact, and what businesses should do to prepare. Understanding Input Tax Credit (ITC) Input Tax Cred...

In an era where financial transactions increasingly cross international borders, tax transparency has become a global priority. To strengthen compliance and ensure accurate tax reporting, the Income Tax Department of India has introduced the Foreign Assets Information (FAI) Report on the AIS (Annual Information Statement) Compliance Portal . This new initiative enables taxpayers to securely access information about their foreign financial assets and income reported by international tax jurisdictions. It is another significant move towards improving transparency, reducing tax evasion, and encouraging voluntary compliance among taxpayers. If you are an individual, NRI, business owner, or investor with overseas financial interests, understanding the FAI Report is essential for staying compliant with Indian tax laws. What is the Foreign Assets Information (FAI) Report? The Foreign Assets Information (FAI) Report is a newly introduced facility available on the AIS Compliance Portal ...