Judicial Precedents - My Tax Support

A Balanced Approach to Tax Penalties Under the Income Tax Act:- Complete Guide

The Income Tax Act, 1961, balances the imposition of penalties with principles of fairness to protect taxpayer rights while safeguarding government revenue. Penalties are a crucial tool to deter non-compliance and promote accountability, but their application requires judicial scrutiny

Important Case Laws Defining Penalties Under Income Tax Act

The Income Tax Act, 1961, has a robust framework for penalties and prosecutions to ensure compliance and deter tax evasion. Over the years, several landmark judicial decisions have shaped the interpretation and application of these provisions. Below, we explore

“What You Need to Know About Taxing Unexplained Assets and Money”

Income from undisclosed sources refers to income or assets for which the taxpayer cannot provide satisfactory evidence or explanation about their origin. Under the Income Tax Act, 1961, such income is classified and taxed to ensure accountability and compliance.

“Simplified Tax Guide for Composite Letting of Machinery and Property”

Composite letting of assets refers to a situation where an individual or entity lets out multiple assets together, such as a building along with machinery, furniture, or other equipment, as part of a single agreement. The Income Tax Act,

“What You Need to Know About Taxing Unexplained Income and Assets”

Unexplained credits, investments, and expenses arise when a taxpayer cannot provide satisfactory evidence for the source of funds, transactions, or expenditures. These amounts are brought into the tax net under the head 'Income from Other Sources' as per the

“Landmark Tax Cases: Income from Other Sources in Focus”

The concept of Income from Other Sources under the Income Tax Act, 1961, acts as a residual head, capturing incomes that do not fall under specific categories like salary, business income, or capital gains. Over the years, various judicial

“Simplified Tax Rules for Director’s Sitting Fees and Commissions”

Director’s sitting fees and commissions are common payments made to directors for their services. Under the Income Tax Act, 1961, these payments are categorized as 'Income from Other Sources' or 'Income from Salary,' depending on the nature of the

“What You Need to Know About Taxing Interest on Compensation Under Section 56(2)(viii)”

Interest on compensation or enhanced compensation is a unique income category under the Income Tax Act, 1961. This type of income typically arises when a court or authority awards compensation for compulsory acquisition of property or increases the amount

What Are the Conditions for Chargeability Under Section 56(1)?

Section 56(1) of the Income Tax Act, 1961, is part of the residuary head of income titled 'Income from Other Sources.' It mandates the taxation of income not chargeable under other specific heads of income. This ensures comprehensive tax

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