TaxKey

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Taxkey chennai based accounting and taxation firm formed in 2018 with intention to offers a Professional services like " Income Tax Filing, GST Registration and Filing, Business Registrations, Trademark, ESI and EPF Registration and filing, Trust and Societies Registration Etc.. Our Locations are
Chennai - Medavakkam
Chennai - Pallavaram
Royal Vellore

Thank you for your continued trust.We remain committed to guiding you towards better compliance, tax efficiency, and bus...
01/04/2026

Thank you for your continued trust.
We remain committed to guiding you towards better compliance, tax efficiency, and business growth in FY 2026–27.

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**🔥 Celebrate Gandhi Jayanti with Taxkey! 🇮🇳**🎯 This Gandhi Jayanti, we remember the principles of non-violence, truth, ...
02/10/2025

**🔥 Celebrate Gandhi Jayanti with Taxkey! 🇮🇳**

🎯 This Gandhi Jayanti, we remember the principles of non-violence, truth, and simplicity that guided Mahatma Gandhi. May his teachings inspire us to build a stronger and more equitable nation.

🛍️ Taxkey offers comprehensive chartered accountancy services to empower businesses to thrive with integrity and transparency. Our experienced professionals will guide you through every step of the way, ensuring your financial success.

Follow us for more updates!

Happy Ayudha Pooja.Celebration brings Happiness
01/10/2025

Happy Ayudha Pooja.

Celebration brings Happiness

How was Madras created? 22 August 1639 being the widely agreed date for the purchase of the village of Madraspatnam or C...
22/08/2025

How was Madras created?

22 August 1639 being the widely agreed date for the purchase of the village of Madraspatnam or Chennapatnam by East India Company factors Andrew Cogan and Francis Day from Damarla Venkatadri Nayaka, the viceroy of the Vijayanagar Empire.

Celebrated as Madras Founding day.

✨ Celebrating the spirit of Madras (Chennai) – a city of tradition, culture, and endless possibilities.

From Marina’s waves 🌊 to filter coffee’s aroma ☕, Madras is more than a city, it’s an emotion. 💙

Happy Madras Day! 🏙️🌸

*❇️ ITAT Rules in Favor of NRI — Indexation Should Start from Agreement Date, Not Possession*In a *landmark judgment*, t...
21/08/2025

*❇️ ITAT Rules in Favor of NRI — Indexation Should Start from Agreement Date, Not Possession*

In a *landmark judgment*, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has *granted relief to an NRI assessee, Braj Kishore Singh*, by affirming that the date for computing indexation benefit in long-term capital gains (LTCG) should be the *date of the agreement to sale—not the date of possession.* This decision centers on the interpretation of Section 48 (Explanation (iii)) of the Income Tax Act, 1961. 
⸻
*💢Case Background*
The dispute pertains to the Assessment Year (AY) 2015–16. Mr. Singh, a non-resident Indian, sold a residential flat for ₹70 lakhs but had failed to file a return of income. The case was reopened under Section 147 due to alleged escapement of income. In such reassessment proceedings, the Assessing Officer (AO) calculated LTCG at ₹17,04,264, applying indexation from FY 2010–11—when possession of the property was taken. 

*♻️ Assessee’s Argument*
Mr. Singh contended that the agreement for purchase was executed in November 2007, and over 64% of the price was paid by FY 2007–08. He argued that his holding period began with the agreement date, not possession, making the agreement date the valid acquisition date for indexation purposes. 
⸻
*⚠️Tribunal’s Finding*
The ITAT Bench—consisting of Padmavathy S (Accountant Member) and Raj Kumar Chauhan (Judicial Member)—ruled in favor of the assessee. It held that the “*date of agreement to sale*,” specifically 16 November 2007, constitutes the acquisition date for LTCG purposes, aligning with established judicial precedents. Consequently, indexation must be calculated from this date, not when possession was transferred (16 December 2010).

_This ruling provides much-needed clarity on the interpretation of Section 48 of the Income Tax Act and strengthens the legal stance for NRIs and other taxpayers who enter into agreements well before taking actual possession._
⸻
*🛖What This Means*
➤ *Holding period* : Begins from agreement date, not possession date, for LTCG computation
➤ *Indexation calculation* : More favorable for taxpayers when significant payments made early
➤ *Legal precedence* : Reinforces reliance on earlier judgments allowing agreement date recognition
➤ *NRI taxpayers* : Sets precedent for future disputes regarding long-term gains on property sale.

May this Raksha Bandhan inspire unity, mutual respect, and positive synergy across our team. Best wishes to you and your...
09/08/2025

May this Raksha Bandhan inspire unity, mutual respect, and positive synergy across our team. Best wishes to you and your loved ones.”

*Tribunal Ruling Stuns Returning NRIs: Redefines ‘Resident’ Under FEMA*A recent tribunal ruling has *unsettled thousands...
09/08/2025

*Tribunal Ruling Stuns Returning NRIs: Redefines ‘Resident’ Under FEMA*

A recent tribunal ruling has *unsettled thousands of returning Non-Resident Indians (NRIs),* particularly those seeking to settle in India amid tightening immigration and tax rules in countries like the *US and UK*. The ruling questions the long-standing interpretation of when a person becomes a “*resident*” under the *Foreign Exchange Management Act (FEMA)*, diverging sharply from existing RBI norms.

*The Heart of the Matter: A Stricter View on Residency*

Traditionally, the *Reserve Bank of India (RBI)* has required NRIs returning to India to convert their Non-Resident bank accounts (NRE/NRO) into resident accounts soon after arrival. *FEMA’s interpretation has been more lenient*, typically recognizing returning NRIs as residents immediately if they intend to stay for good.

However, a recent ruling by the *Appellate Tribunal for SAFEMA*, a quasi-judicial authority, has disrupted this understanding by insisting on a dual condition for residency:
1️⃣ The person must intend to stay in India indefinitely, and
2️⃣ They must have spent *at least 182 days in India* in the previous financial year.

This literal reading of *FEMA contrasts sharply with the RBI’s practice and introduces legal and practical* complexities for returning NRIs.
*The Case in Focus* 🧘‍♀️
The case involved an NRI who returned *to India in 2012* with the intention of settling and purchased agricultural land—a right reserved only for residents. However, the tribunal held that since he had not stayed in India for *more than 182 days in the preceding year*, he could not be considered a resident under FEMA, despite his intentions and actions post-arrival.

This ruling meant that he *could not legally purchase agricultural land, and more broadly*, it raises questions over several rights and privileges for returning NRIs—like holding resident savings accounts, investing in certain assets, or receiving gifts under liberalised schemes—until the 182-day residency threshold is met.

*Clash with RBI Guidelines*
The RBI mandates that returning NRIs immediately convert their NRE/NRO accounts into resident accounts upon arrival, in line with their changed status. However, under the tribunal’s interpretation, such individuals may still be considered non-resident for FEMA purposes.

This creates a compliance dilemma: following the *RBI’s direction could lead to violations under FEMA*, and vice versa.

✖️ *Legal and Tax Implications*
The ruling has far-reaching implications:
➤ Investment limitations may apply until one meets the 182-day rule.
➤ Gifting rules become more stringent for those not officially resident.
➤ Property ownership rights (especially agricultural land) are constrained.

💡 *Conclusion*
_The tribunal’s strict interpretation could trigger a policy rethink by regulatory bodies. In the meantime, returning NRIs must tread carefully—balancing RBI’s directives with FEMA’s letter of law. Legal experts advise proactive planning to avoid breaches and ensure smooth financial transition upon returning to India.

31/07/2025

*🧾MCA Imposes ₹3 Lakh Penalty on Private Company and Directors for Failing to Maintain Registered Office*

In another strict enforcement action, *the Ministry of Corporate Affairs (MCA)* has imposed a penalty *totaling ₹3 lakh on a private limited company and its directors* for failing to maintain a registered office, in violation of the provisions of the Companies Act, 2013.

Under *Section 12(1) of the Companies Act, 2013*, every company is required to maintain a *registered office* capable of receiving official communications and notices. The failure to comply with this fundamental requirement led to the initiation of penalty proceedings.
⸻
*⚖️Legal Provisions Invoked*
The company was held liable under:
▪️Section 12(1) and 12(4): Every company must maintain a registered office and report any change to the RoC.
▪️Section 12(8): Provides for penalty in case of default.
_The law prescribes the following penalties:_
▪️A penalty of ₹1 lakh on the company, and
▪️A penalty of ₹1 lakh each on the two directors.
⸻
*💰Total Penalty: ₹3 Lakh*
After considering the facts and duration of non-compliance, the adjudicating officer imposed:
💢 ₹1,00,000 on the company, and
💢 ₹1,00,000 each on the two directors, leading to a combined penalty of ₹3,00,000.
⸻
*📢Key Compliance Takeaway*
Companies must ensure:
◾️ Their registered office is functional and capable of receiving communications.
◾️Any change in office address is promptly updated with the RoC.
◾️Regular compliance reviews are conducted to avoid regulatory action.

27/07/2025

Trademark Registration

🌟 Happy GST Day!Let’s celebrate the spirit of "One Nation, One Tax." May the Goods and Services Tax continue to strength...
01/07/2025

🌟 Happy GST Day!
Let’s celebrate the spirit of "One Nation, One Tax." May the Goods and Services Tax continue to strengthen India’s economy and simplify our lives.

GST on TDS Concept
28/05/2025

GST on TDS Concept

Address

No. 9/182, Patel Salai, Ranganathapuram, Medavakkam, (land Mark : Next To Professional Courier)
Chennai
600100

Opening Hours

Monday 10am - 6pm
Tuesday 10am - 6pm
Wednesday 10am - 6pm
Thursday 10am - 6pm
Friday 10am - 6pm
Saturday 10am - 6pm

Telephone

+919790288234

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