CBDT’s NUDGE Initiative Driving Compliance (AI vs. Tax Evasion) Meaning of NUDGE: NUDGE stands for Non-Intrusive Use of Data to Guide and Enable. The Central Board of Direct Taxes is using data-driven insights to encourage voluntary tax compliance. Two significant campaigns have been carried out thus far: NUDGE 1.0 (November 2024): it concentrated on taxpayers …
India’s New Income-tax Act, 2025 – Effective 1 April 2026 The Income-tax Act, 2025 represents a structural rewrite of India’s direct tax law. One of the most significant changes is the complete restructuring of the TDS and TCS framework, indicating a strong policy shift toward consolidation, simplification, and transaction-level monitoring. Below are the key highlights: …
Various exemptions available in respect of capital gains applicable for FY 2025-26 (AY 2026-27) Income Tax Department chart showing various exemptions available in respect of Capital Gains under different sections of the Income Tax Act for FY 2025-26. These exemptions apply primarily to Long-Term Capital Gains when certain conditions are met. Short-term capital gains generally …
ITR REFUND ALERT – READ THIS BEFORE 31 DECEMBER The Income Tax Dept. has recently started issuing system-generated SMS/emails to taxpayers informing them that ITR processing and refund issuance have been put on hold under its Risk Management Framework due to discrepancies in refund claims. These communications are being widely seen for AY 2025-26 and …
Data on Direct Tax (DT) collections and Advance Tax collections for FY 2024-25 as on 12.01.2025 has been released. Direct Tax Collections (FY26 up to Sept 17, 2025) Net Direct Tax Revenue: INR 10.82 lakh crore (+9.18% YoY) Gross Tax Collection: INR 12.43 lakh crore (+3.39% YoY) Corporate Tax: INR 4.72 lakh crore Non-Corporate Tax: …
New income tax forms & Expected changes & transitional details as of Dec 2025 When the New Income-Tax Act & New Forms Will Apply : The Income Tax Act, 2025, has been passed and will come into effect from April 1, 2026, replacing the Income Tax Act, 1961. New income-tax return forms and associated rules …
Income-tax notices are increasingly data-driven The Income Tax Department now leverages Annual Information Statement/Taxpayer Information Summary/Statement of Financial Transactions reports, foreign remittance data, and cross-border information exchange to identify inconsistencies often before returns are processed. Key risk areas to reassess before filing/revising your income-tax return Foreign stocks, dividends, or assets not disclosed in Schedule FA …
Tax Implications on NRIs Receiving Gifts in India This article is for informational purposes only and does not constitute professional advice. Readers are advised to consult a tax expert before taking any decision. Gifts received by NRIs can be taxable in India in the hands of the recipient, mainly under section 56(2)(x), depending on (a) …
New PAN–Aadhaar Linking: 31 December 2025 Deadline CBDT Notification No. 26/2025: Extended deadline for PAN holders who obtained PAN using Aadhaar Enrolment ID before Oct 1, 2024. However The Income Tax Department has set 31 December 2025 as the last date to link PAN with Aadhaar for all individuals who have been allotted a PAN …
Reasons for Income Tax Scrutiny Triggers / Tax Notices in 2025 Every year, 1000 of taxpayers in India receive Tax Notices due to mismatches, omissions, or non-compliance in their tax filings. With the Tax Dept now deploying advanced AI-driven monitoring systems, scrutiny in 2025 is expected to be more stringent than ever. To avoid penalties, …