TAXLA Services: Your One-Stop Solution for Financial and Compliance Needs!

 India’s economy has once again demonstrated its resilience and growth potential. As per the Ministry of Statistics’ release on August 29, 2025 , India’s GDP expanded by 7.8% in the first quarter of FY 2025–26 , surpassing projections and outperforming many of the world’s largest economies, including those in the G7 group. This robust growth reflects a strong combination of domestic consumption, rising services sector output, and government expenditure, all achieved while keeping inflation under control. Let’s explore the key factors driving this performance, the implications for businesses, and what lies ahead. The Numbers Behind the Growth GDP Growth Rate: 7.8% in Q1 FY 2025–26. Services Sector: Expanded by 9.3% , becoming the main driver of growth. Domestic Consumption: Strong consumer demand fueled by rising incomes and stability in inflation. Government Expenditure: Higher capital spending and public investment supported infrastructure and job creation. I...

Filing Income Tax Returns (ITR) is not just a yearly responsibility but also a matter of compliance with timelines. While most taxpayers focus on filing their returns correctly, very few are aware of how long the Income Tax Department (ITD) can take action after an ITR has been filed. Understanding these timelines is crucial because it helps you know when you are completely in the clear and when the department can still call you for scrutiny. In this article, we break down the time limits for regular assessments and income escaping assessments under the Income Tax Act and explain what they mean for taxpayers. 1. Regular Assessment – The First Check Once you file your ITR, the Income Tax Department has the authority to issue a notice if they feel something needs to be scrutinized. This process is called a regular assessment . Time Limit for Regular Assessment A notice can be issued within 3 months from the end of the financial year (FY) in which the ITR is filed . Beyond th...

Corporate Social Responsibility (CSR) was introduced with the noble intention of ensuring that companies give back to society by investing in education, healthcare, environment, and community welfare. Unfortunately, recent revelations have once again highlighted how loopholes are being exploited, with CSR funds being misused for personal gain rather than social good. The Scam – What Happened? The Income Tax Department recently conducted raids across six states in India and uncovered a shocking ₹800 crore CSR scam. Instead of being utilized for genuine welfare activities, the funds were diverted by: Fake NGOs and shell companies created solely for siphoning off money. Misreporting and false documentation to show non-existent projects. Diversion of funds into private pockets without any actual community development work. This is not just a financial crime – it is a betrayal of public trust . Companies allocate CSR budgets believing they are creating real impact, but sca...

When it comes to filing your Income Tax Return (ITR), one of the most overlooked but critical requirements is the disclosure of all your bank accounts . Many taxpayers think only their active savings or current account needs to be mentioned. However, the Income Tax Act is clear — every bank account held during the financial year must be reported , even if it was closed during the year. ✅ Which Accounts Must Be Disclosed? While filing your ITR, you are required to mention: Savings Accounts – active or dormant Current Accounts – used for business or professional purposes Credit Card Linked Accounts NRO/NRE Accounts (for NRIs) Any account closed during the year This disclosure helps maintain financial transparency and ensures the Income Tax Department can reconcile your income, transactions, and tax liabilities. ⚠️ What Happens If You Miss Any Account? If you fail to disclose all accounts: Your return may be treated as defective under Section 139(9). Yo...

India has entered a new era of taxation with the Income-tax Act, 2025 , which officially replaces the six-decade-old Income-tax Act, 1961 . This historic shift marks one of the most significant reforms in the country’s tax landscape, promising simplification, transparency, and compliance ease for individuals and businesses alike. 📅 When does it take effect? The Income-tax Act, 2025 will come into force from 1st April 2026 and will apply from the assessment year 2026–27 onwards. This means taxpayers have a transition period to understand, adapt, and restructure their compliance approach. ✨ Why the Change? The 1961 Act, though comprehensive, had become highly complex and outdated over time due to multiple amendments, judicial interpretations, and intricate provisions. The 2025 Act seeks to: Simplify tax provisions for better understanding. Reduce compliance burden on taxpayers. Introduce a digitally friendly framework aligned with India’s Digital Tax Ecosystem. ...

Staying compliant with Income Tax laws is crucial for every taxpayer and business. One important compliance this month is the TDS Payment (challan-cum-statement) for July 2025. 🗓 Due Date: 30th August 2025 📌 Applicable Sections: This due date applies to challan-cum-statement filing in respect of TDS deducted under the following sections: Section 194-IA – TDS on payment made for transfer of immovable property (other than agricultural land). Section 194-IB – TDS on rent payments made by individuals/HUF (not required to get accounts audited). Section 194M – TDS on payments made to contractors or professionals by individuals/HUF (not covered under tax audit). Section 194S – TDS on transfer of Virtual Digital Assets (like cryptocurrency). ✅ Why is it important? Timely payment and filing of TDS challan-cum-statement ensures that both the payer and payee remain compliant. Helps avoid interest, late fees, and penalties under the Income-tax Act. Builds a c...

Timely GST compliance is one of the most important responsibilities for businesses. For taxpayers who have opted for the QRMP scheme (Quarterly Return Monthly Payment) , one key compliance is the payment of tax through PMT-06 challan . Let’s understand this in detail. 🔹 What is PMT-06 Challan? PMT-06 is a challan used under GST for making payments such as: Tax liability Interest Late fees Penalties Taxpayers registered under the QRMP scheme need to make monthly payments through PMT-06 even though they file GSTR-3B quarterly . 🔹 Due Date for July 2025 📅 The due date for payment through PMT-06 for July 2025 is: 👉 25th August 2025 Missing this deadline can lead to interest on delayed payment and late fees , which will increase the compliance burden on businesses. 🔹 Why Timely Payment is Important? ✅ Avoids penalties and interest charges ✅ Ensures smooth GST compliance ✅ Maintains good compliance rating with GSTN ✅ Keeps businesses stress-free f...

The Income Tax Department has officially released the Excel Utility for ITR-7 on 21st August 2025 . This update is crucial for trusts, charitable institutions, political parties, research organizations, and other entities that are required to file their income tax return under specific sections of the Income Tax Act. If you fall under the eligible category for ITR-7, this is the time to get prepared and file your returns well before the due date to avoid penalties and compliance hassles. 🔎 What is ITR-7? ITR-7 is an Income Tax Return Form used by certain entities such as: Charitable / Religious Trusts Political Parties Scientific Research Institutions Universities and Educational Institutions Medical Institutions / Hospitals Other entities claiming exemptions under relevant sections of the Income Tax Act It is applicable for those required to file under: Section 139(4A) – Income derived from property held under trust for charitable/religious purposes ...

The Calcutta High Court has recently delivered a crucial judgment that redefines how GST arrests should be carried out by the authorities. The Court ruled that any arrest under GST must strictly comply with Section 35(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) . This decision is a landmark step in protecting taxpayers’ rights and ensuring that tax enforcement does not bypass due legal process. 🚨 What Did the Court Say? The Court slammed the “arrest first, ask later” approach often adopted by authorities. Arrests cannot be made arbitrarily without following proper legal procedure. In the case under review, bail was granted to the petitioner since: Summons were duly attended, But no formal notice was served before the arrest. This means that compliance with summons alone cannot justify arbitrary arrests if due process is not followed. ✅ Key Takeaways for Businesses & Taxpayers Legal Safeguards Are Important: Tax authorities must act withi...

The clock is ticking for taxpayers! The Income Tax Return (ITR) filing deadline for FY 2024–25 (AY 2025–26) is 15th September 2025 . If you haven’t filed your return yet, now is the time to act before the window closes. Filing your ITR on time is more than just a compliance formality—it protects you from penalties, unnecessary interest, and future scrutiny by the Income Tax Department. Let’s understand why timely filing is so crucial. 🚨 What Happens If You Miss the Deadline? Late Filing Penalty (Section 234F): If you miss the deadline, a penalty of up to ₹5,000 may be levied. If your total income is below ₹5 lakh, the penalty is capped at ₹1,000. Interest on Tax Dues (Section 234A): If you have any unpaid tax liability, interest at 1% per month will be charged until the return is filed. Loss of Certain Benefits: You cannot carry forward losses (like business loss, capital loss, etc.) to future years if you miss the due date. Increased Risk of Notices:...

Filing your Income Tax Return (ITR) is not just a legal responsibility but also a smart financial practice. With the due date of 15th September 2025 fast approaching, taxpayers must act quickly to avoid last-minute hassles, penalties, and unnecessary stress. At Taxla Services , we ensure your return is filed accurately and on time, helping you stay compliant and stress-free. 📅 Why is the ITR Deadline Important? The Income Tax Department has fixed 15th September 2025 as the final date for filing returns for the financial year 2024-25 (Assessment Year 2025-26). Missing this deadline can cause: Late Filing Penalty – Up to ₹5,000 under Section 234F (₹1,000 for taxpayers with income below ₹5 lakh). Interest on Tax Due – Additional interest under Sections 234A, 234B, and 234C. Loss of Benefits – Inability to carry forward business or capital losses. Notices from IT Department – Risk of being flagged for non-compliance. ✅ Benefits of Filing Your ITR on Time ✔️ ...