Income Tax Act, 1961

Short-term capital gains (STCG): Listed equity/units: 20% (Section 111A — held < 12 months). Other assets: slab rate (held < 24/36 months depending on asset). Long-term capital gains (LTCG): Section 112A — listed equity/units: 12.5% on gains exceeding ₹1.25 lakh (no indexation). Other assets: 12.5% (Section 112 — no indexation from FY 2024-25). Exemptions: Section 54 (residential house), 54EC (bonds — ₹50 lakh limit), 54F (non-residential to residential). Business income — Key provisions: Section 35 (scientific research deduction), Section 37 (general deduction), Section 40A(3) (cash payment > ₹10,000 disallowed), Section 43B (statutory dues — deductible on payment basis), Section 44AD/44ADA (presumptive taxation — 8%/6% of turnover for business, 50% for professionals).

Section 5 — Scope: Resident: global income taxable. Non-resident: Indian-sourced income only. RNOR: Indian income + income from business controlled in India. Section 9 — Deemed to accrue in India: Business connection, property, salary for services in India, dividend from Indian company, interest, royalty, FTS. Section 90/91 — DTAA: India has 90+ tax treaties. Treaty overrides domestic law if more beneficial (Section 90(2)). Transfer Pricing (Sections 92-92F): Arm's length price for international transactions between associated enterprises. Methods: CUP, RPM, CPM, PSM, TNMM, or any other prescribed method. TP documentation (Section 92D): Master File, Local File, CbCR (Country-by-Country Report for groups with turnover > ₹5,500 crore). Section 94A — Notified Jurisdictional Area (tax haven). GAAR (Sections 95-102): Impermissible avoidance arrangement — principal purpose test. Tax benefit of arrangement can be denied.

Key TDS sections: 192 (salary), 194A (interest other than securities — ₹40,000 threshold), 194C (contractors — 1%/2%), 194H (commission — 5%), 194I (rent — 10% > ₹2.4 lakh), 194J (professional fees — 10%), 194Q (purchase of goods — 0.1% > ₹50 lakh), 195 (payment to non-residents — rate as per DTAA or Act). Section 206C — TCS: Sale of motor vehicle > ₹10 lakh (1%), scrap (1%), minerals/forest produce, tendu leaves, overseas remittance under LRS (5%/20%), overseas tour package (5%). Section 197 — Lower/nil TDS certificate: Apply to AO if tax liability is lower. Section 201 — Consequences of non-deduction: Deemed assessee-in-default, interest (1%/1.5% per month), penalty under Section 271C (equal to TDS amount). TDS returns: 24Q (salary), 26Q (non-salary), 27Q (non-resident), 27EQ (TCS).

Section 143(3) — Scrutiny assessment: Faceless assessment (Section 144B) — AI-driven, jurisdiction-free. Section 147/148 — Reassessment: Post-2021 regime — information suggesting income escaped assessment. Show-cause notice before issuance of Section 148. Time limits: 3 years (general), 10 years (> ₹50 lakh escaped). Section 132 — Search and seizure: Authorised officer can search premises, seize books/assets. Block assessment (Section 153A) — 6 assessment years preceding search year + year of search. Appeals hierarchy: CIT(A) / Joint CIT(A) → ITAT (Income Tax Appellate Tribunal) → High Court (Section 260A — substantial question of law) → Supreme Court. Section 245C-245L — Settlement Commission: Abolished for new applications post-01.02.2021. Interim Board for Settlement handles pending cases. Vivad Se Vishwas: Direct tax dispute resolution schemes (2020 and 2024 editions).