CA Arjun Dhorajiya

In income tax, certain deductions are permitted only upon actual payment, irrespective of the method of accounting followed by the assessee. Section 43B of the Income Tax Act, 1961, enforces this principle, ensuring that taxpayers claim deductions only when the corresponding payments are made. This section primarily targets specific liabilities such as taxes, interest, and […]

Foreign exchange fluctuations play a significant role in businesses engaged in international transactions. The taxation of gains or losses arising due to foreign exchange rate changes is governed by Section 43AA of the Income Tax Act. This section lays down the framework for computing taxable income or loss due to currency fluctuations in line with

In today’s globalized economy, businesses often acquire assets from foreign countries. The fluctuating exchange rates can significantly impact the cost of such acquisitions. To address this, Section 43A of the Income Tax Act provides special provisions for adjustments in asset cost due to changes in exchange rates. What is Section 43A? Section 43A applies when

In income tax, certain receipts that were earlier allowed as deductions can later become taxable under specific conditions. Section 41 of the Income Tax Act, 1961, governs such cases by treating these receipts as profits and gains of business or profession. This provision ensures that taxpayers do not unfairly benefit from deductions that are later

The Indian Income Tax Act restricts business entities from making cash payments exceeding Rs. 10,000 in a day to a single person. This rule, outlined under Section 40A(3), aims to curb tax evasion and promote transparency in financial transactions. However, Rule 6DD of the Income Tax Rules provides certain exceptions where such payments are permissible.

When computing taxable income under the head “Profits and Gains of Business or Profession”, certain expenses or payments may not be deductible under specific circumstances. Section 40A of the Income Tax Act, 1961, provides a framework for disallowing expenses that do not meet the prescribed conditions. This article provides an in-depth analysis of Section 40A,

Setting up a new business or expanding an existing one involves significant preliminary expenses. The Income Tax Act, under Section 35D, provides relief to businesses by allowing amortization of certain preliminary expenses over a specified period. This article explains the provisions of Section 35D, its applicability, eligible expenses, and the benefits available to businesses. Applicability

Maintaining business assets such as machinery, plant, and furniture is essential for smooth operations. The Income Tax Act allows deductions for expenses incurred on repairs and insurance of these assets, provided they are used for business or professional purposes. Understanding these deductions can help businesses optimize their tax liability while ensuring proper maintenance of assets.

When running a business or profession, expenses related to rent, rates, taxes, repairs, and insurance for premises are significant. The Income Tax Act provides specific provisions allowing deductions for such expenses, helping taxpayers reduce their taxable income. This blog delves into the eligibility criteria and scope of deductions available under this provision. Understanding Section 30

Rental income is a crucial component of income for many taxpayers. However, there are instances where tenants fail to pay rent on time, leading to arrears or unrealised rent. To address such situations, Section 25A of the Income Tax Act provides specific provisions for taxing arrears of rent and unrealised rent when received subsequently. This