Nikhil Garg

In a bid to foster a business-friendly environment and stimulate economic growth, the Indian government introduced Section 115BAA under the Income Tax Act, 1961. This provision offers domestic companies an opportunity to significantly reduce their corporate tax burden, enabling them to compete more effectively in the global market. Let’s dive into the features, eligibility, and […]

Unlocking Financial Stability: Understanding Section 43B(h) of the Income Tax Act The introduction of Section 43B(h) in the Income Tax Act by the Finance Act of 2023 marks a significant step towards enhancing the financial health of Micro and Small Enterprises (MSEs) in India. This provision is designed to ensure timely payments from larger businesses […]

Additional depreciation is a tax incentive provided under Section 32 of the Income Tax Act, 1961, aimed at encouraging businesses to invest in new machinery and equipment. This additional depreciation allows businesses to claim an extra percentage of depreciation on top of the regular depreciation for eligible assets. Key Features of Additional Depreciation Eligibility Criteria: […]

Introduction The Indian government has announced significant changes to the classification of Micro, Small, and Medium Enterprises (MSMEs) effective from April 1, 2025. These updates aim to foster growth and innovation within the MSME sector, which is a vital component of the Indian economy. Revised MSME Classification Criteria In the Union Budget 2025, Finance Minister […]

TReDS Registration: A Complete Guide The Trade Receivables Discounting System (TReDS) is an innovative online platform designed to facilitate Micro, Small, and Medium Enterprises (MSMEs) in converting their trade receivables into cash. This system is crucial for improving liquidity and financial stability for small businesses in India. Below is a comprehensive guide on the registration […]

Understanding Section 194N of the Income Tax Act Introduction Section 194N of the Income Tax Act was introduced to regulate high-value cash withdrawals and promote digital transactions in India. This provision mandates Tax Deducted at Source (TDS) on cash withdrawals exceeding specified limits. The objective is to discourage large cash transactions and curb the circulation […]

In a move to enhance the efficiency of the Goods and Services Tax (GST) system, the Indian government is set to amend the Central GST (CGST) Rules, granting recipients of goods and services a two-month window to accept or reject credit notes and adjust their input tax credit (ITC) accordingly. Key Aspects of the Amendment: […]

Section 194-IB of the Income Tax Act, 1961, was introduced to bring individuals and Hindu Undivided Families (HUFs) (who are not subject to tax audit) under the purview of Tax Deducted at Source (TDS) on rent payments. Key Provisions of Section 194-IB 1. Applicability: Applicable to Individuals & Hindu Undivided Families (HUFs) who are not […]

The introduction of Section 194T in the Income Tax Act, 1961, effective April 1, 2025, mandates Tax Deducted at Source (TDS) on payments made by partnership firms and LLPs to their partners. Scope and Key Provisions Section 194T applies to: Salary, Remuneration, Commission, Bonus, and Interest on Capital Contributions Excludes Capital Repayment or Partner Withdrawals […]

Tax Deducted at Source (TDS) under Section 194J of the Income Tax Act governs the deduction of tax on professional and technical service fees. Effective 1st April 2025, certain changes have been proposed in the Union Budget 2025, impacting businesses, professionals, and taxpayers. Understanding these modifications will help in maintaining compliance and avoiding penalties. 1. […]