Posts

Diwali Sales Alert: Beware of the ₹2 Lakh Cash Receipt Limit Under the Income-tax Act, 2025

Image
Introduction Diwali is one of the busiest shopping seasons in India. Retailers, wholesalers, jewellery shops, electronics stores, supermarkets, service providers and other businesses often experience a significant increase in customer transactions during the festive period. While higher sales bring business opportunities, accepting large cash payments without understanding the applicable income tax provisions can create serious compliance problems. Under Section 186 of the Income-tax Act, 2025 , which came into effect on 1 April 2026, a person cannot receive ₹2 lakh or more through prohibited payment modes. The restriction applies to specified receipts from a person in a day, a single transaction, or transactions relating to one event or occasion. A violation may attract a penalty equal to the amount received under Section 451 of the Income-tax Act, 2025 . Therefore, businesses should review their cash collection practices before accepting large payments during Diwali and other festive...
Post a Comment
Read more

Filed the Wrong ITR? Here’s How to Correct Your Income Tax Return for AY 2026–27

Image
Introduction Filing an Income Tax Return (ITR) is an important responsibility for every eligible taxpayer. It helps individuals and businesses report their income, claim eligible deductions, disclose financial transactions and fulfil their tax obligations. However, even after taking care while filing, mistakes can happen. You may accidentally report incorrect income, miss interest earnings, select the wrong ITR form or enter inaccurate tax credit details. Such errors can lead to tax demands, refund delays, discrepancies or notices from the Income Tax Department. The good news is that taxpayers who discover eligible mistakes in an already-filed return can generally correct them by submitting a Revised Income Tax Return within the prescribed time limit. For Assessment Year (AY) 2026–27, taxpayers should understand the applicable provisions, review their original returns carefully and take timely action to correct errors. 1. What Is a Revised Income Tax Return? A Revised Income Tax Retur...
Post a Comment
Read more

GST Changes from 1 November 2026: New Rules for Hotels, Catering, Electric Vehicles and Delivery Services

Image
Introduction The Goods and Services Tax (GST) framework in India continues to evolve to address changing business models and industry requirements. The Government has introduced important changes to the GST treatment of hotel accommodation, restaurant services, outdoor catering, electric vehicle transportation and renting, and specified delivery services through e-commerce operators. These amendments have been notified through Notification No. 06/2026–Central Tax (Rate), dated 27 October 2026 , and are effective from 1 November 2026 . One of the important aspects of these changes is the revision of Input Tax Credit (ITC) conditions. Businesses opting for specified lower GST rates will continue to face restrictions on general ITC, but limited credit for certain input services in the same line of business is now permitted. Hotels, restaurants, catering businesses, EV operators, transport providers and e-commerce delivery businesses should understand these changes and review their billing...
Post a Comment
Read more

GSTR-9 Filing for FY 2025–26: 5 Common Mistakes Businesses Must Avoid

Image
A Complete Guide to Accurate GST Annual Return Filing, ITC Reconciliation and GST Compliance Introduction Filing the Goods and Services Tax (GST) annual return is an important compliance responsibility for businesses registered under GST in India. The GSTR-9 Annual Return provides a consolidated summary of outward supplies, inward supplies, Input Tax Credit (ITC), tax payments and other relevant transactions undertaken during a financial year. For FY 2025–26 , businesses required to file GSTR-9 should carefully review their GST records to ensure accurate reporting and minimise discrepancies. Even minor mistakes in GST annual return preparation can lead to reconciliation difficulties, departmental queries, potential tax demands and unnecessary compliance complications. The general due date for filing GSTR-9 for FY 2025–26 is 31 December 2026 , unless extended through an official notification. In this article, Taxla Services explains five common GSTR-9 filing mistakes, their potential c...
Post a Comment
Read more

Diwali Gifts and Income Tax in India: Are Your Festive Gifts Taxable in 2026?

Image
A Complete Guide to Gift Tax Rules, ₹50,000 Exemption, Employer Gifts and Tax Compliance Introduction: Celebrate Diwali Without Unexpected Tax Liabilities Diwali is one of India's most cherished festivals, celebrated with lights, sweets, family gatherings and the exchange of gifts. From cash and jewellery to electronic gadgets, gift vouchers and valuable properties, exchanging presents is an important part of the festive tradition. However, many taxpayers are unaware that certain Diwali gifts may attract income tax , depending on who gives the gift, its monetary value and the nature of the asset received. While gifts from specified relatives are generally exempt, gifts received from friends, employers and other individuals may have different tax implications. Understanding these rules can help taxpayers celebrate confidently while maintaining proper financial records. In this guide, Taxla Services explains the income tax treatment of Diwali gifts in India, the ₹50,000 threshold, e...
Post a Comment
Read more

Foreign Assets Disclosure Scheme 2026: Online Filing, Eligibility, Form 1 and Tax Compliance – Complete Guide

Image
Introduction With increasing globalisation, more Indian taxpayers are investing, working and earning income outside India. Foreign bank accounts, overseas investments, international properties and income from foreign sources have become increasingly common. However, foreign assets and income can also create additional reporting obligations under Indian income tax laws. Failure to disclose applicable foreign holdings may lead to compliance issues, notices, penalties and other consequences. A recent tax awareness update has highlighted the Foreign Assets of Small Taxpayers Disclosure Scheme (FADS), 2026 , describing it as a proposed or reported opportunity for eligible taxpayers to disclose previously unreported foreign assets and income. The update mentions online filing through Form 1 and a deadline of 31 December 2026 . Important clarification: The existence, legal provisions, official filing facility and deadline of the scheme described as FADS 2026 have not been independently veri...
Post a Comment
Read more