Girish Agarwala & Co

29/10/2025

Tax audit and itr date extended

🔥 Big Relief for taxpayers: CBDT Extends Income Tax Return Filing Due Date for AY 2025-26 to December 10, 2025

23/09/2025

02/09/2025

Another practical pain point for taxpayers & professionals...

Cases are being picked for scrutiny where substantial receipts fall under TDS u/s 194J but income is declared under 44AD (Presumptive Business) instead of 44ADA (Presumptive Profession @ 50%).

✅ ITD is questioning why income should not be taxed u/s 44ADA & is demanding:
➡️ Full books of accounts (BS, P&L, capital a/c)
➡️ Bank statements with narration for every debit/credit
➡️ Source of cash deposits / credits with proof
➡️ Office address proof, trade license, past year comparison
➡️ Party-wise reconciliation of 26AS vs ITR vs TDS credits

The crux:
👉 Section 44AD = for eligible businesses (8%/6% presumptive).
👉 Section 44ADA = only for specified professionals (CA, doctors, lawyers, architects etc.) @ 50%.
👉 Section 194J = applies to all kinds of professional/technical service payments and not limited to specified professions.

Hence, there is no direct nexus between 194J & 44ADA.

If your nature of work is not among “specified professions”, your case may rightly fall under 44AD, even if TDS is deducted u/s 194J.

✅ Taxpayers should not fear.
✅ If you are eligible for 44AD, make your position clear with proper explanation in reply.

15/08/2025

Diwali Gift on Independence Day... GST Rate cuts from 12% to 5% and 28% to 18%
Biggest GST Reform coming on Diwali !

28/07/2025

Central Board of Direct Taxes issues Circular 10/2025, providing relaxation of time limit for the processing of electronically filed income tax returns.

24/07/2025

The Income Tax Department has started sending messages and emails to individuals who may be holding foreign assets requiring mandatory disclosure.

These foreign assets typically include:

- 🌐 ESOPs / RSUs received from foreign parent companies (e.g., Oracle, SAP, Walmart, Meta, etc.)
- 📈 Shares held of foreign-listed companies
- 💳 Overseas bank accounts
- 🏠 Foreign property or retirement accounts

With automatic data exchange under DTAA provisions in force, foreign financial information is being shared with Indian authorities.

📌 If you hold any such assets, disclosure in the FA Schedule of your ITR is mandatory - even if there is no income from them.

21/07/2025

INCOME TAX CIRCULAR BREAKING: CBDT issues relief circular for TDS/TCS defaults due to PAN-Aadhaar non-linking.

🔹 No higher TDS/TCS if:
✅ Payment made between 01.04.2024–31.07.2025 & PAN is linked by 30.09.2025.

✅ Payment on/after 01.08.2025 & PAN is linked within 2 months of that month.

18/07/2025

Incometax department expose fake deduction with the help of tools

A Hyderabad-based taxpayer sold an immovable property for Rs 1.4 crore and reduced the capital gains liability by claiming deductions of over Rs 68.7 lakh under the head 'cost of improvement' with indexation by way of bogus bills.

The Income Tax department, employing AI tools and generative AI forensics, detected discrepancies in the submitted documents, specifically forged photocopies of expenditure bills dated between 2002 and 2008. One notable bill, dated July 6, 2002, claimed an expense of Rs 7.68 lakh, which raised red flags due to inconsistencies.

Growing effectiveness of in detecting tax evasion, ensuring compliance, and protecting revenue is seen in case of a taxpayer case in The AI-driven analysis focused on font forensics, revealing that the text in the documents was in 'Calibri' font. This font, designed between 2002 and 2004, was not released to the public until 2007, indicating the bills were fabricated post-2007. This discrepancy was critical, as it confirmed the documents were not authentic for the claimed period. The AI tools, including font analysis and potentially other digital forensics, played a pivotal role in flagging the fraud, showcasing the power of technology in scrutinizing historical financial claims.

Following the detection, the assessee was unable to produce original bills and claimed the photocopies were found in an old folder belonging to their late father. However, due to the evident discrepancy, the assessee withdrew the inflated claim, filed a revised return excluding the cost of improvement, and paid taxes based on the corrected capital gains.

This case highlights how technology can address financial fraud, particularly in complex cases involving historical data.