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Budget 2026: New tax slabs for salaried individuals, NRIs and foreign companies — see what changed
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Is 44ADA Dead? What has changed in new income tax act for the good old 44ADA - What Section 58 (Income Tax Act 2025) Really Means for Freelancers If you’re a freelancer, consultant, creator, designer, coach, CA, lawyer- you’ve probably loved 44ADA. Declare 50%. Skip complicated expense tracking. Avoid audit stress (mostly). Life was simple. But from April 1, 2026, things shift under the Income Tax Act, 2025. 44ADA becomes Section 58. And no — it’s not just a new number. There’s a mindset change in the law. Let’s break it down without tax-jargon headache. The Big Shift: It’s About You, Not Just Your Income Earlier, the thinking was: “If this income qualifies, I can use 44ADA.” Now the thinking is: “If I earn certain types of income at all, I may lose eligibility completely.” That’s the shift. Before → Income-based viewNow → Person-based eligibility Who Should Worry? If you are a “pure” professional — meaning: Only professional fees No brokerage No commission No agency income You’re mostly fine. But if you earn: Affiliate commission Brokerage Deal-based success fees Referral commissions Agency-style income Even a small amount… You may become ineligible for Section 58 entirely. Yes. Entirely. Real Example You’re: A marketing consultant earning ₹40 lakh in professional fees Plus ₹4 lakh affiliate commission Earlier mindset: “Professional income under presumptive, commission separately.” New rule vibe: That commission income can push you out of Section 58 eligibility. Meaning: Full books. Normal computation. Possible audit if thresholds cross. What About the 50% Rule? Here’s another reality check. Section 58 continues the 50% structure. But now it’s very clear: You must declare 50% of gross receipts OR your actual profit — whichever is higher. So if your real margin is 70%And you keep declaring 50% every year… In today’s AIS + data-matching world? Risky. The law looks similar.The tech behind it is much sharper. Threshold Limits Still around: ₹50 lakh turnover limit Can extend to ₹75 lakh if cash receipts are within 5% So digital freelancers are generally safe on threshold. The issue isn’t turnover. The issue is income type. Can You Declare Less Than 50%? Technically yes. But then: You must maintain books Audit may apply if income crosses exemption limit So the simplicity disappears. Another Silent Change: Less Adjustment Flexibility Under Section 58, the presumptive income is treated more rigidly. You cannot: Reduce further business expenses Adjust business losses freely Play deduction games on top of presumptive base It’s cleaner.But less flexible. Who Still Benefits? Section 58 is great for: ✔ Doctors ✔ Lawyers ✔ Designers ✔ Independent consultants ✔ Pure service professionals As long as income = fee-based only. Who Needs to Re-Plan? You need to rethink if you are: Affiliate marketers Commission-based consultants Hybrid advisors Real estate consultants Deal-closure professionals Basically anyone with mixed revenue streams. The Bigger Picture The new law is not increasing tax rates. It is tightening eligibility boundaries. It’s saying: “If you want simple presumptive taxation, keep your structure clean.” Mix too many revenue types? You move into proper bookkeeping mode. Is 44ADA dead? Not really. But it’s no longer a casual default option. Under Section 58 of the Income Tax Act 2025: Pure professionals → smoother compliance Hybrid earners → time to restructure If you’re a freelancer or consultant, this is the right time to review your income model before April 2026. Because in the new tax world: Clarity wins.Structure matters.And “I didn’t know” won’t save you. Tax Vic is a platform for self-employed individuals. Say hi and let’s work together. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Professional Tax Registration for Freelancers & Self-Employed: Complete Guide (India) - If you are a freelancer, consultant, or self-employed professional, Professional Tax (PT) is one of the most commonly missed state compliances. With state departments actively issuing notices in recent years, Professional Tax Registration has become a must-check compliance item for independent professionals across India. This article explains who needs Professional Tax registration, why it is mandatory, and how freelancers can stay compliant easily. What is Professional Tax? Professional Tax is a state-level tax levied on individuals earning income through profession, trade, employment, or calling.Unlike Income Tax (which is central), Professional Tax is governed by individual state laws, and compliance depends on the state where you operate. Who Needs Professional Tax Registration? Professional Tax applies to self-employed persons, including: Freelancers (IT, design, marketing, content, consultants, etc.) Chartered Accountants, lawyers, doctors, architects Proprietors and partners Independent consultants and advisors Directors earning remuneration (in many states) If you are earning professional income and are located in a Professional Tax–levying state, Professional Tax Enrollment is mandatory. Professional Tax Enrollment vs Registration – Simple Explanation For freelancers and self-employed persons: Professional Tax Enrollment (PTEC)→ Required when you pay Professional Tax for yourself Professional Tax Registration (PTRC)→ Required only if you have employees and deduct PT from their salaries Most freelancers and solo professionals need only Enrollment (PTEC). Is Professional Tax Mandatory for Freelancers? Yes, if: Your state levies Professional Tax, and You fall within the income slab prescribed by that state No, if: You operate only in states where Professional Tax is not applicable (e.g. Delhi, UP, Haryana, Bihar) Important: If you work with clients across India but operate from a PT-applicable state, you are still required to take Professional Tax Enrollment. How Much Professional Tax Do Freelancers Pay? Maximum Professional Tax: ₹2,400–₹2,500 per year (varies by state) Usually, payable annually or half-yearly Due dates differ state-wise Even though the amount is small, non-registration can attract penalties and notices. Why is Professional Tax Being Highlighted Now? In recent years: State departments have started data matching PAN, GST, and bank data are being cross-verified Notices are being issued for non-enrollment Many freelancers assume PT is optional—but state laws make it mandatory. Documents Required for Professional Tax Registration For most freelancers, the documents are minimal: PAN card Address proof Business / profession details Bank details (in some states) If you are already our client, we usually have all documents on record. Professional Tax Registration for Freelancers – Our Service We provide end-to-end Professional Tax Registration for freelancers and self-employed persons across multiple states. What we cover: State-wise Professional Tax Enrollment Application filing & follow-ups Certificate delivery Compliance guidance Professional Fees: ₹1,499 only (per state, exclusive of government fees) No confusion. No chasing portals. No compliance risk. Why Take Professional Tax Registration Now? Avoid future department notices Stay 100% state-compliant Low cost, lifetime peace of mind Essential for clean compliance records Need Help with Professional Tax Registration? If you are a freelancer, consultant, or self-employed professional, we recommend completing Professional Tax Enrollment at the earliest. Get your Professional Tax Registration done for just ₹1,499 Contact us today to check applicability for your state. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
How to File ITR if You Have Both Salary and Freelance Income - In today’s economy, many professionals are no longer dependent on a 9-to-5 job. You’re not alone if you’re working full-time but also doing freelance work, like consulting, content writing, design, coding, or teaching. But come tax season, things get tricky: Which ITR form should you choose? How do you report both types of income correctly? In this blog, we’ll explain how to file your Income Tax Return (ITR) if you have both salary and freelance income, with clear examples and compliance tips. 1. Understanding Your Two Income Sources Let’s first distinguish your income types: Salary Income: Received from your employer, usually with TDS already deducted under Section 192. Freelance Income: Any payment you receive for services rendered in your capacity, usually without any employment contract. This is taxed under “Profits and Gains from Business or Profession”. This combination makes your ITR more complex, but manageable with the right approach. 2. Choosing the Correct ITR Form For AY 2025–26, you cannot use ITR-1 if you have freelance income. Instead: Use ITR-3: If you are maintaining books of accounts or do not want presumptive taxation. Use ITR-4: If your freelance income qualifies for presumptive taxation under Section 44ADA, and your total income is within ₹50 lakh (₹75 lakh if cash receipts are less than 5%) ✅ Tip: Most part-time freelancers opt for ITR-4 using presumptive taxation for simplicity, but if you have higher expenses or losses to claim, ITR-3 is better. 3. Reporting Salary Income Your salary income goes under the standard “Income from Salary” head. Enter salary as per Form 16 (Part B) Report exemptions (HRA, LTA, etc.) and deductions (like 80C, 80D) Match TDS from Form 26AS or AIS (Annual Information Statement) 4. Reporting Freelance Income Here’s where things vary depending on how you choose to report: A. Under Presumptive Taxation (Section 44ADA) – Simpler Option Declare 50% of gross receipts as income. No need to maintain books. For example, if you earned ₹6,00,000 from freelancing: ₹3,00,000 (i.e., 50%) is deemed your income You pay tax on ₹3,00,000 (after Chapter VI-A deductions like 80C) B. Under Normal Provisions – More detailed Show actual income minus expenses (advertising, tools, subscriptions, electricity, internet, etc.) Maintain books of account and possibly get a tax audit if income exceeds ₹50 lakh More suitable if you have significant business expenses or losses 5. Pay Advance Tax or Face Interest Freelance income, such as salary, is not subject to TDS. So, if your total tax liability (after TDS) exceeds ₹10,000, you must pay advance tax quarterly. If you don’t, you’ll be charged: Interest under Section 234B & 234C for shortfall/delay Even if your employer deducts TDS, you’re still liable for tax on freelance income. 6. Claim Deductions and Reduce Your Tax Whether salaried or freelancer, you can claim standard deductions like: 80C (LIC, PPF, ELSS, etc.) 80D (Health insurance) 80G (Donations) 80TTA/80TTB (Savings interest) For freelancers: you may also claim business expenses (only if not opting for 44ADA) 7. Example Case: Riya, a software engineer, earns: ₹12,00,000 from her job (TDS deducted by employer) ₹4,00,000 from freelance coding projects on weekends Her options: File ITR-4, declare ₹2,00,000 as presumptive income under 44ADA Add it to her salary income, claim deductions and pay the remaining tax . Or, if she has expenses (laptop purchase, co-working space), she can opt for ITR-3 and declare actual profits. 8. Documents to Keep Ready Form 16 from the employer Details of freelance income (invoices, payment proofs) Proof of expenses (if not using 44ADA) Form 26AS and AIS to reconcile TDS and income Receipts for deductions under 80C, 80D, etc. If you have both salary and freelance income, don’t panic—just plan. Choose the correct ITR form (ITR-3 or ITR-4), understand whether presumptive taxation works for you, and don’t forget advance tax. More income means more responsibility—but also more flexibility. With proper reporting, you stay compliant and avoid tax notices or penalties. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Foreign Companies in India
Supreme Court Tiger Global Ruling: GAAR Overrides TRC & Treaty Protection - There is a lot of talk going around with tiger global ruling. India’s Supreme Court has delivered a landmark tax judgment that will significantly impact foreign investors, venture capital funds, and offshore holding structures. In its ruling dated 15 January 2026, the Supreme Court of India held Tiger Global Management liable to pay capital gains tax in India on its USD 1.6 billion Flipkart exit (2018)-despite routing the transaction through Mauritius entities and holding valid Tax Residency Certificates (TRCs). The verdict sends a clear message:Substance will override form. GAAR can override treaty benefits and TRCs. Background of the Case: What Tiger Global Did Tiger Global exited its investment in Flipkart by selling shares through Mauritius-based holding companies, claiming: Capital gains exemption under India-Mauritius DTAA Protection due to grandfathering provisions Valid Tax Residency Certificates (TRCs) from Mauritius However, Indian tax authorities alleged that: The Mauritius entities were conduit companies They lacked commercial substance The primary purpose of the structure was tax avoidance Accordingly, authorities invoked GAAR (General Anti-Avoidance Rule). What Is GAAR? (Quick Refresher) GAAR is contained in Chapter X-A of the Income-tax Act, 1961 and empowers tax authorities to deny tax benefits if an arrangement is: Primarily designed to obtain tax benefits Lacking commercial substance Misusing or abusing tax treaty provisions Not at arm’s length Importantly, GAAR applies even if the transaction is technically legal. Journey of the Case: From AAR to Supreme Court Authority for Advance Rulings (AAR) Denied treaty benefits; upheld GAAR invocation Delhi High Court Ruled in favour of Tiger Global, accepting TRC and treaty protection Supreme Court of India Overturned Delhi HC decision Held GAAR supersedes TRC and treaty protection This final ruling has now settled the law. The Grandfathering Argument — And Why It Failed What Tiger Global Argued Tiger relied on grandfathering provisions, claiming that: Investments made before 1 April 2017 are protected Article 13(4A) of India–Mauritius DTAA exempts such gains Rule 10U restricts GAAR for grandfathered investments What the Supreme Court Held The Supreme Court clarified that: Grandfathering applies only to direct shares of Indian companies (Article 13(3A)) Indirect transfers fall under the residual clause Tiger’s structure involved indirect transfers, hence no grandfathering Rule 10U(2) allows GAAR to apply to post-April 1, 2017 tax benefits, even if the investment was made earlier Grandfathering is not a blanket shield. Key Takeaway: TRC Is Not Conclusive Proof The Court clearly held that: A Tax Residency Certificate is not conclusive It is only one piece of evidence Authorities are entitled to examine: Commercial substance Decision-making authority Economic risk and control This aligns India with global BEPS principles. What Experts Are Saying Leading tax firms have called this ruling a “game-changer” GAAR can apply even to pre-2017 structures Layered offshore holding companies will face higher scrutiny Mere paper presence in treaty jurisdictions is no longer sufficient Experts also reiterated GAAR’s four tests: Lack of commercial substance Abnormal rights/obligations Misuse of tax law Non–arm’s length arrangement Failing any one test can trigger GAAR. Broader Implications for Investors & Funds For VCs, PE Funds & FPIs Mauritius route loses attractiveness Exit taxes could rise sharply Legacy exits may face reassessment risk Tiger Global’s exposure reportedly exceeds USD 1.5 billion For India Strengthens tax sovereignty Aligns India with OECD BEPS framework Reinforces post-2016 anti-avoidance reforms What Investors Should Do Now If you are a foreign investor or fund: Re-evaluate holding structures Ensure real substance (people, decisions, risks) Document commercial rationale clearly Consider Advance Rulings before exits Explore direct India holding or stronger jurisdictions like Singapore (with substance) What Indian Startups Should Watch Out For If your investors are offshore funds: Expect higher exit tax planning Valuations may factor in tax leakage Deal structures may become more conservative Compliance and documentation will gain importance Final Thoughts The Tiger Global Supreme Court ruling marks a decisive shift in India’s tax jurisprudence. Treaty shopping without substance is officially high risk. GAAR is no longer theoretical- it is enforceable. Tax vic supports foreign businesses entering India, with focused expertise in North India business setup and operations, covering structuring, compliance, and ongoing operational support. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit- Transfer Pricing Compliance for Foreign Subsidiary in India: Complete Guide for 2025 - Introduction As India becomes a key market for global businesses, many multinational enterprises (MNEs) set up foreign subsidiaries in the country. However, when these subsidiaries engage in transactions with their parent company or other related entities abroad, Transfer Pricing (TP) regulations under Indian Income Tax Law come into play. Failure to comply with TP rules can lead to audits, penalties, and serious reputational damage. In this blog, we explain Transfer Pricing compliance requirements for foreign subsidiaries operating in India, key deadlines, documentation needs, and how to stay audit-ready. What is Transfer Pricing? Transfer Pricing refers to the pricing of goods, services, and intangibles between related parties (also called associated enterprises or AEs) across international borders. The Indian subsidiary and its foreign parent are considered associated enterprises, and any intercompany transaction between them must be conducted at Arm’s Length Price (ALP) — i.e., the price that would be charged if the parties were unrelated. Who is Covered Under Transfer Pricing Regulations in India? A foreign subsidiary in India is required to comply with TP regulations if it has international transactions with: Its foreign parent company Other group companies or sister concerns abroad Types of Transactions That Attract TP Rules Nature of Transaction Examples Sale/Purchase of Goods Raw materials, finished goods Services Rendered IT, R&D, support services Royalty or License Fee Use of trademarks, patents Loans or Guarantees Intercompany funding Cost Sharing Shared management, admin costs Even a single rupee of international transaction can trigger TP compliance. Transfer Pricing Compliance Checklist for Foreign Subsidiary ✅ 1. Maintain TP Documentation (Rule 10D) You must prepare three-tier documentation: Local File (Indian entity-specific) Master File (group-level info, if applicable) CBCR (Country-by-Country Report, only if global revenue > ₹6400 crore) ✅ 2. Benchmarking Study Justify that your intercompany transactions are at ALP using methods like: Comparable Uncontrolled Price (CUP) Transactional Net Margin Method (TNMM) Cost Plus / Resale Price Method, etc. ✅ 3. Form 3CEB Filing Mandatory for all entities with international transactions Certified by a Chartered Accountant Filed on or before 31st October following the end of financial year ✅ 4. Form 3CD Disclosure Annexure to Tax Audit Report Requires disclosures of TP transactions Penalties for Non-Compliance Default Penalty Not maintaining documentation 2% of transaction value Not filing Form 3CEB ₹1,00,000 Incorrect ALP reporting Up to 100%–200% of tax underreported Not furnishing CBCR (if applicable) ₹5,00,000 and more Case Study: SaaS Subsidiary in India A US-based tech company opens an Indian subsidiary to provide software development support. The Indian entity charges a fixed monthly service fee to the parent. 👉 They must benchmark the fee using TNMM and file Form 3CEB with proper documentation to prove it’s at arm’s length. Missing this can trigger TP audit. Common Mistakes by Foreign Subsidiaries ❌ Treating related party pricing casually ❌ Using generic third-party agreements as proof ❌ Delayed or missed Form 3CEB filings ❌ Ignoring master file or CBCR thresholds ❌ Inadequate documentation in case of scrutiny How TaxVic Can Help You Stay Compliant At TaxVic, we help foreign subsidiaries in India by offering: Benchmarking study and intercompany agreement drafting Form 3CEB filing and documentation under Rule 10D Support during TP audit or notice Strategic planning to reduce TP risk and optimize tax Conclusion Transfer Pricing compliance is not just a tax formality — it’s a critical component of risk management for foreign subsidiaries in India. With increasing digitization and AI-driven scrutiny by tax authorities, ensuring accurate reporting and strong documentation is a must. ✅ File smart. Stay compliant. Avoid penalties. FAQs Is TP compliance required if my foreign subsidiary only provides back-office services? ➡️ Yes, if it receives payments from the foreign parent or any AE, compliance is mandatory. What if I miss the 3CEB deadline? ➡️ A penalty of ₹1,00,000 may apply, and increased scrutiny is likely. Is TP applicable on loans or capital infusion? ➡️ Yes, especially on interest rate charged or waived. 4. Can I do TP study later if I’m not audited? ➡️ No. TP documentation must be maintained proactively before due date. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Adding Foreign Directors and Shareholders to an Indian Company: A Complete Guide - Foreign investment in Indian companies continues to grow as India strengthens its position in the global economy. Understanding the regulatory framework is essential for businesses looking to add international expertise and capital through foreign directors and shareholders. This guide outlines the process, requirements, and considerations. Legal Framework for Foreign Participation Foreign Directors The Companies Act, 2013 permits foreign nationals to serve as directors of Indian companies, with certain conditions: Residency Requirement: Every company must have at least one director who has stayed in India for at least 182 days in the previous calendar year. Director Identification Number (DIN): All directors, including foreign nationals, must obtain a DIN. Maximum Board Composition: The maximum number of foreign directors on a company’s board is not restricted. Foreign Shareholders Foreign investment in Indian companies is primarily governed by: Foreign Exchange Management Act (FEMA) Foreign Direct Investment (FDI) Policy Reserve Bank of India (RBI) regulations Step-by-Step Process for Adding Foreign Directors 1. Obtaining a Director Identification Number (DIN) For foreign nationals, the DIN application requires: Form DIR-3 submission Passport copy (notarized) Proof of address in the home country Recent photograph PAN card or passport as ID proof In case PAN is not available, declaration in Form 60 Identification and address proof of foreign directors must be apostilled 2. Digital Signature Certificate (DSC) Foreign directors need a DSC for signing documents: Class 2 or Class 3 DSC from authorized certifying agencies Foreign directors must have their documents attested by: The Indian Embassy in their country, or Apostille by the home country under the Hague Convention 3. Board Resolution & Appointment Pass a board resolution approving the appointment File Form DIR-12 with the Registrar of Companies (ROC) Update the company records 4. Compliance Requirements Foreign directors must comply with: Provisions of the Companies Act, 2013 SEBI regulations (for listed companies) Income Tax Act (for remuneration and taxation) Process for Adding Foreign Shareholders 1. Determining the Investment Route Identify the appropriate investment route: Automatic Route: No prior government approval required for sectors with 100% FDI permission Government Route: Prior approval from relevant ministries is needed for restricted sectors 2. KYC Documentation Foreign shareholders must provide: Passport copies (notarized) Proof of address Tax identification documents from their home country Bank account details 3. Structuring the Investment Determine whether the investment will be through equity shares, preference shares, or debentures Ensure compliance with pricing guidelines prescribed by the RBI 4. Filing Requirements File the FC-GPR form with the Authorized Dealer Bank within 30 days of issuing shares Update the Register of Members Report to the RBI through Annual Return on Foreign Liabilities and Assets 5. Post-Investment Compliance Issue share certificates Reporting foreign investment in annual filings Ensure compliance with ongoing FEMA regulations Key Considerations and Challenges 1. Sectoral Caps and Conditions Different sectors have varying FDI limits: 100% in manufacturing, IT services 74% in private banking 49% in insurance Restricted percentages in media, retail, and defense 2. Tax Implications Understand Double Taxation Avoidance Agreements (DTAs) Plan for withholding tax on dividends Address Permanent Establishment concerns 3. Exchange Control Regulations Repatriation of profits Capital account transactions Reporting requirements 4. Due Diligence Conduct thorough background checks on potential foreign directors and shareholders to ensure compliance with: Prevention of Money Laundering Act FEMA regulations Companies Act provisions Best Practices for Successful Integration Clear Documentation: Maintain comprehensive shareholder agreements and director appointment terms Cultural Integration: Create orientation programs for foreign directors about Indian business practices Compliance Calendar: Develop a compliance date for timely filings Professional Assistance: Engage legal and accounting experts specializing in cross-border investments Common Pitfalls to Avoid Overlooking the resident director requirement Neglecting ongoing compliance after the initial appointment Improper valuation of shares Failing to adhere to sectoral caps Missing reporting deadlines Adding foreign directors and shareholders can bring valuable expertise, capital, and a global perspective to Indian companies. However, careful navigation of regulatory requirements is essential to ensure compliance and maximize the benefits of international participation in your company’s governance and ownership structure. If you need personalized guidance through this process, CA Reetu, business head at TAXVIC, can help. CA Reetu, a professional advisor with experience in cross-border business structures, can help ensure a smooth integration of foreign participants into a company. Want an instant response? Write to us at info@taxvic.com Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Freelancers & Self-Employed
- Is 44ADA Dead? What has changed in new income tax act for the good old 44ADA - What Section 58 (Income Tax Act 2025) Really Means for Freelancers If you’re a freelancer, consultant, creator, designer, coach, CA, lawyer- you’ve probably loved 44ADA. Declare 50%. Skip complicated expense tracking. Avoid audit stress (mostly). Life was simple. But from April 1, 2026, things shift under the Income Tax Act, 2025. 44ADA becomes Section 58. And no — it’s not just a new number. There’s a mindset change in the law. Let’s break it down without tax-jargon headache. The Big Shift: It’s About You, Not Just Your Income Earlier, the thinking was: “If this income qualifies, I can use 44ADA.” Now the thinking is: “If I earn certain types of income at all, I may lose eligibility completely.” That’s the shift. Before → Income-based viewNow → Person-based eligibility Who Should Worry? If you are a “pure” professional — meaning: Only professional fees No brokerage No commission No agency income You’re mostly fine. But if you earn: Affiliate commission Brokerage Deal-based success fees Referral commissions Agency-style income Even a small amount… You may become ineligible for Section 58 entirely. Yes. Entirely. Real Example You’re: A marketing consultant earning ₹40 lakh in professional fees Plus ₹4 lakh affiliate commission Earlier mindset: “Professional income under presumptive, commission separately.” New rule vibe: That commission income can push you out of Section 58 eligibility. Meaning: Full books. Normal computation. Possible audit if thresholds cross. What About the 50% Rule? Here’s another reality check. Section 58 continues the 50% structure. But now it’s very clear: You must declare 50% of gross receipts OR your actual profit — whichever is higher. So if your real margin is 70%And you keep declaring 50% every year… In today’s AIS + data-matching world? Risky. The law looks similar.The tech behind it is much sharper. Threshold Limits Still around: ₹50 lakh turnover limit Can extend to ₹75 lakh if cash receipts are within 5% So digital freelancers are generally safe on threshold. The issue isn’t turnover. The issue is income type. Can You Declare Less Than 50%? Technically yes. But then: You must maintain books Audit may apply if income crosses exemption limit So the simplicity disappears. Another Silent Change: Less Adjustment Flexibility Under Section 58, the presumptive income is treated more rigidly. You cannot: Reduce further business expenses Adjust business losses freely Play deduction games on top of presumptive base It’s cleaner.But less flexible. Who Still Benefits? Section 58 is great for: ✔ Doctors ✔ Lawyers ✔ Designers ✔ Independent consultants ✔ Pure service professionals As long as income = fee-based only. Who Needs to Re-Plan? You need to rethink if you are: Affiliate marketers Commission-based consultants Hybrid advisors Real estate consultants Deal-closure professionals Basically anyone with mixed revenue streams. The Bigger Picture The new law is not increasing tax rates. It is tightening eligibility boundaries. It’s saying: “If you want simple presumptive taxation, keep your structure clean.” Mix too many revenue types? You move into proper bookkeeping mode. Is 44ADA dead? Not really. But it’s no longer a casual default option. Under Section 58 of the Income Tax Act 2025: Pure professionals → smoother compliance Hybrid earners → time to restructure If you’re a freelancer or consultant, this is the right time to review your income model before April 2026. Because in the new tax world: Clarity wins.Structure matters.And “I didn’t know” won’t save you. Tax Vic is a platform for self-employed individuals. Say hi and let’s work together. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
- Professional Tax Registration for Freelancers & Self-Employed: Complete Guide (India) - If you are a freelancer, consultant, or self-employed professional, Professional Tax (PT) is one of the most commonly missed state compliances. With state departments actively issuing notices in recent years, Professional Tax Registration has become a must-check compliance item for independent professionals across India. This article explains who needs Professional Tax registration, why it is mandatory, and how freelancers can stay compliant easily. What is Professional Tax? Professional Tax is a state-level tax levied on individuals earning income through profession, trade, employment, or calling.Unlike Income Tax (which is central), Professional Tax is governed by individual state laws, and compliance depends on the state where you operate. Who Needs Professional Tax Registration? Professional Tax applies to self-employed persons, including: Freelancers (IT, design, marketing, content, consultants, etc.) Chartered Accountants, lawyers, doctors, architects Proprietors and partners Independent consultants and advisors Directors earning remuneration (in many states) If you are earning professional income and are located in a Professional Tax–levying state, Professional Tax Enrollment is mandatory. Professional Tax Enrollment vs Registration – Simple Explanation For freelancers and self-employed persons: Professional Tax Enrollment (PTEC)→ Required when you pay Professional Tax for yourself Professional Tax Registration (PTRC)→ Required only if you have employees and deduct PT from their salaries Most freelancers and solo professionals need only Enrollment (PTEC). Is Professional Tax Mandatory for Freelancers? Yes, if: Your state levies Professional Tax, and You fall within the income slab prescribed by that state No, if: You operate only in states where Professional Tax is not applicable (e.g. Delhi, UP, Haryana, Bihar) Important: If you work with clients across India but operate from a PT-applicable state, you are still required to take Professional Tax Enrollment. How Much Professional Tax Do Freelancers Pay? Maximum Professional Tax: ₹2,400–₹2,500 per year (varies by state) Usually, payable annually or half-yearly Due dates differ state-wise Even though the amount is small, non-registration can attract penalties and notices. Why is Professional Tax Being Highlighted Now? In recent years: State departments have started data matching PAN, GST, and bank data are being cross-verified Notices are being issued for non-enrollment Many freelancers assume PT is optional—but state laws make it mandatory. Documents Required for Professional Tax Registration For most freelancers, the documents are minimal: PAN card Address proof Business / profession details Bank details (in some states) If you are already our client, we usually have all documents on record. Professional Tax Registration for Freelancers – Our Service We provide end-to-end Professional Tax Registration for freelancers and self-employed persons across multiple states. What we cover: State-wise Professional Tax Enrollment Application filing & follow-ups Certificate delivery Compliance guidance Professional Fees: ₹1,499 only (per state, exclusive of government fees) No confusion. No chasing portals. No compliance risk. Why Take Professional Tax Registration Now? Avoid future department notices Stay 100% state-compliant Low cost, lifetime peace of mind Essential for clean compliance records Need Help with Professional Tax Registration? If you are a freelancer, consultant, or self-employed professional, we recommend completing Professional Tax Enrollment at the earliest. Get your Professional Tax Registration done for just ₹1,499 Contact us today to check applicability for your state. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
- How to File ITR if You Have Both Salary and Freelance Income - In today’s economy, many professionals are no longer dependent on a 9-to-5 job. You’re not alone if you’re working full-time but also doing freelance work, like consulting, content writing, design, coding, or teaching. But come tax season, things get tricky: Which ITR form should you choose? How do you report both types of income correctly? In this blog, we’ll explain how to file your Income Tax Return (ITR) if you have both salary and freelance income, with clear examples and compliance tips. 1. Understanding Your Two Income Sources Let’s first distinguish your income types: Salary Income: Received from your employer, usually with TDS already deducted under Section 192. Freelance Income: Any payment you receive for services rendered in your capacity, usually without any employment contract. This is taxed under “Profits and Gains from Business or Profession”. This combination makes your ITR more complex, but manageable with the right approach. 2. Choosing the Correct ITR Form For AY 2025–26, you cannot use ITR-1 if you have freelance income. Instead: Use ITR-3: If you are maintaining books of accounts or do not want presumptive taxation. Use ITR-4: If your freelance income qualifies for presumptive taxation under Section 44ADA, and your total income is within ₹50 lakh (₹75 lakh if cash receipts are less than 5%) ✅ Tip: Most part-time freelancers opt for ITR-4 using presumptive taxation for simplicity, but if you have higher expenses or losses to claim, ITR-3 is better. 3. Reporting Salary Income Your salary income goes under the standard “Income from Salary” head. Enter salary as per Form 16 (Part B) Report exemptions (HRA, LTA, etc.) and deductions (like 80C, 80D) Match TDS from Form 26AS or AIS (Annual Information Statement) 4. Reporting Freelance Income Here’s where things vary depending on how you choose to report: A. Under Presumptive Taxation (Section 44ADA) – Simpler Option Declare 50% of gross receipts as income. No need to maintain books. For example, if you earned ₹6,00,000 from freelancing: ₹3,00,000 (i.e., 50%) is deemed your income You pay tax on ₹3,00,000 (after Chapter VI-A deductions like 80C) B. Under Normal Provisions – More detailed Show actual income minus expenses (advertising, tools, subscriptions, electricity, internet, etc.) Maintain books of account and possibly get a tax audit if income exceeds ₹50 lakh More suitable if you have significant business expenses or losses 5. Pay Advance Tax or Face Interest Freelance income, such as salary, is not subject to TDS. So, if your total tax liability (after TDS) exceeds ₹10,000, you must pay advance tax quarterly. If you don’t, you’ll be charged: Interest under Section 234B & 234C for shortfall/delay Even if your employer deducts TDS, you’re still liable for tax on freelance income. 6. Claim Deductions and Reduce Your Tax Whether salaried or freelancer, you can claim standard deductions like: 80C (LIC, PPF, ELSS, etc.) 80D (Health insurance) 80G (Donations) 80TTA/80TTB (Savings interest) For freelancers: you may also claim business expenses (only if not opting for 44ADA) 7. Example Case: Riya, a software engineer, earns: ₹12,00,000 from her job (TDS deducted by employer) ₹4,00,000 from freelance coding projects on weekends Her options: File ITR-4, declare ₹2,00,000 as presumptive income under 44ADA Add it to her salary income, claim deductions and pay the remaining tax . Or, if she has expenses (laptop purchase, co-working space), she can opt for ITR-3 and declare actual profits. 8. Documents to Keep Ready Form 16 from the employer Details of freelance income (invoices, payment proofs) Proof of expenses (if not using 44ADA) Form 26AS and AIS to reconcile TDS and income Receipts for deductions under 80C, 80D, etc. If you have both salary and freelance income, don’t panic—just plan. Choose the correct ITR form (ITR-3 or ITR-4), understand whether presumptive taxation works for you, and don’t forget advance tax. More income means more responsibility—but also more flexibility. With proper reporting, you stay compliant and avoid tax notices or penalties. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Income Tax Return
- Income Tax Refund on TDS: When and How You Can Get It (With ITR Types Explained) - Each year, many salaried individuals, freelancers, small business owners, and even senior citizens receive an income tax refund after filing their ITR. This refund is primarily due to excess TDS (Tax Deducted at Source) being collected by banks, employers, or clients during the year. If your actual tax liability is lower than the TDS deducted, you’re eligible for a refund. But who gets this refund, when, and through which ITR form should you claim it? This blog breaks down everything you need to know about TDS refunds, ITR types, and the refund process. 1. What Is a TDS Refund? TDS is the amount of tax deducted by the person or organization paying you income (e.g., employer, bank, client). This deduction is deposited with the Income Tax Department against your PAN if the amount being given to you exceeds a certain limit. It can be for different types of payment made to you like professional income, contractual income interest income etc However, if your total TDS exceeds your total tax liability for the year, you can claim the excess amount as a refund by filing your ITR. 2. Who Can Claim TDS Refunds? Anyone who has paid excess tax during the financial year—either through TDS, TCS, Advance Tax, or Self-Assessment Tax—and whose total liability is lower than the taxes paid can claim a refund. Common Examples: Salaried individuals Freelancers and consultants whose clients deducted TDS @ 10% or @ 2% but actual income tax liability was lower due to deductions or lower slabs. Senior citizens earning interest income, where banks deducted 10% TDS despite income being below the basic exemption limit. NRIs earning from Indian bank deposits with TDS @ 30% but actual taxable income below that. Investors paying TDS on dividends or mutual fund redemptions but having capital loss carryforwards or low taxable income. 3. Types of ITR Forms and Refund Eligibility Here’s a simplified view of which ITR forms are used to claim TDS refunds based on the taxpayer type: ITR Form Applicable To Refund Eligible? ITR-1 Salaried individuals, pensioners, interest income ✅ Yes ITR-2 Individuals with capital gains, foreign income/assets ✅ Yes ITR-3 Professionals, freelancers, business income (non-presumptive) ✅ Yes ITR-4 Individuals under presumptive taxation (Section 44ADA/44AE) ✅ Yes ITR-5/6 Firms, LLPs, Companies ✅ Yes No matter which form applies, refunds are auto-calculated when you file your ITR and will be credited to your bank account (provided it’s pre-validated on the income tax portal). 4. Common Situations Where Refund Arises ✅ Salaried Person With 80C/80D/80G Claims Not Declared to Employer If you forgot to submit proof of LIC premium, PPF, medical insurance, or donations to your HR, extra TDS may be deducted. You can claim it while filing ITR and get a refund. ✅ Freelancer Earning Less Than Tax Slab but Client Deducts TDS Clients deduct 10% or 2% TDS even if your income is ₹3–4 lakh/year (below exemption limit). In such cases, you can claim a full refund of the TDS amount. ✅ Senior Citizens Not Filing Form 15H If a bank deducts 10% TDS on FD interest for a senior citizen earning below ₹3 lakh (or ₹5 lakh for very senior citizens), a refund is due unless Form 15H was filed. ✅ Investors With Capital Losses or Carry forwards If mutual fund redemptions attract TDS, but you have capital losses carried forward or your total gain is exempt (under ₹1 lakh LTCG), you can claim a refund. ✅ Excess Advance Tax or Self-Assessment Tax Paid Sometimes, taxpayers estimate and pay higher advance tax or self-assessment tax before filing. If final computation shows overpayment, refund can be claimed. 5. How to Claim the Refund ✅ Step-by-Step: File your Income Tax Return correctly using the appropriate form. Mention all TDS details in Schedule TDS/TCS or Tax Paid. Enter your pre-validated bank account for receiving refund. Submit and e-verify the ITR (using Aadhaar OTP, net banking, etc.). Refund will be processed by CPC, Bangalore, and credited usually in 15–45 days, unless your ITR is under scrutiny. Note: TAX VIC HELP YOU FILE ITR AND CLAIM YOUR INCOME TAX REFUND LEGALLY. 6. How to Track Your Refund Login to Income Tax Portal → Go to “View Filed Returns” You’ll see the status like: “Processed with Refund”, “Refund Issued”, or “Under Processing” 7. FAQs About TDS Refund Q: Is interest paid on income tax refund? ✅ Yes, if refund is delayed beyond 90 days from ITR processing, interest u/s 244A is paid. Q: What if refund is not credited? ✅ Check if your bank account is pre-validated. If not, update and reprocess refund through “Refund Reissue Request”. Q: Can I revise my return if I missed refund details? ✅ Yes, you can file a revised return before the due date (typically 31st Dec of AY). Final Thoughts A large number of taxpayers, especially first-time freelancers, salaried individuals, and senior citizens, often miss claiming legitimate refunds. The key is: Match Form 26AS and AIS with actual income Ensure all deductions and exemptions are claimed File ITR using the right form and validate your bank account 💡 Smart Tip: Even if your income is below taxable limits, you should file ITR if TDS has been deducted—you’ll get that money back! Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
- How to E-Verify Income Tax Return for FY 2024-25 (AY 2025-26) - Filing your Income Tax Return (ITR) is only half the job done. To complete the process, you must e-verify your return within 30 days of submission. Without verification, your ITR is not valid—which can lead to penalties or even a notice from the Income Tax Department. In this blog, we’ll show you how to e-verify your ITR online for the Financial Year 2024-25 (Assessment Year 2025-26) using various methods provided by the Income Tax e-Filing portal. ✅ Why is E-Verification Important? Mandatory step after filing the ITR Validates the authenticity of your return Avoids penalties or ITR rejection Quick and paperless process 🕒 Deadline to E-Verify ITR for AY 2025-26 You must e-verify your return within 30 days of filing it online. For example, if you filed your ITR on July 10, 2025, you must e-verify it by August 9, 2025. 🔍 6 Methods to E-Verify Your ITR Online 1. Aadhaar OTP Link your Aadhaar with your PAN. Go to e-Filing portal > ‘e-Verify Return’ Choose “Aadhaar OTP” Enter OTP sent to your registered mobile 📌 Most popular and fastest method 2. Net Banking Login to your bank’s net banking Select the Income Tax e-Filing option It redirects you to the portal Choose the return and click “e-verify” ✅ Works with banks like SBI, HDFC, ICICI, Axis, etc. 3. Bank Account EVC Pre-validate your bank account on the portal Request Electronic Verification Code (EVC) Enter EVC sent to your registered mobile/email 4. Demat Account EVC Similar to bank account method Must pre-validate your Demat account Use EVC for verification 💡 Useful for stock market investors 5. Digital Signature Certificate (DSC) Recommended for company or audit cases Register your DSC on the portal Attach and e-verify via emSigner 📎 Not for regular salaried taxpayers 6. Offline Option – Send Signed ITR-V Download and print ITR-V Sign it and post to: CPC, Income Tax Department, Bengaluru – 560500 🚨 Must reach CPC within 30 days of filing ✍️ Step-by-Step Guide: How to E-Verify ITR via Aadhaar OTP Go to https://www.incometax.gov.in Login using your PAN and password Click on “e-File” > “Income Tax Returns” > “e-Verify Return” Select the ITR you want to verify Choose “Verify using OTP on mobile number registered with Aadhaar” Enter the 6-digit OTP Done! You will get a confirmation message. ❗ What Happens if You Don’t E-Verify? Your return is not processed You may face penalties or legal notices Tax refund (if any) will be delayed or denied 🤔 FAQs on ITR E-Verification Can I e-verify after 30 days? A. No. Your ITR will be considered invalid unless condonation is granted by the department. Can I verify someone else’s return using my Aadhaar OTP? A. No, the Aadhaar OTP must belong to the taxpayer. Do I need to e-verify if I have sent ITR-V physically? A. No, either e-verification OR physical submission is needed—not both. 🎯 Final Thoughts E-verification is the final step in completing your ITR filing process for FY 2024-25 (AY 2025-26). It’s quick, digital, and can be done in just 2 minutes using Aadhaar OTP or Net Banking. Don’t delay—verify within 30 days to ensure your return is processed smoothly. If you need help with filing or verifying your ITR, TaxVic can do it for you—accurately and stress-free. 📞 Need Help with ITR Filing or E-Verification? Let experts at TaxVic handle your income tax filing, verification, and compliance—all under one roof. 👉 Contact us today at www.taxvic.com or DM us on Instagram @taxvic.in Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
- Common ITR Filing Mistakes That Trigger Income Tax Notices – With Real-Life Examples - Filing your Income Tax Return (ITR) is not just about declaring income—it’s about declaring it correctly. Many taxpayers, including salaried individuals, freelancers, and property owners, receive notices from the Income Tax Department because of small but costly errors in their returns. In this blog, we’ll explore the most common ITR mistakes, explain how they trigger tax notices, and share real examples (anonymized) from actual assessments. If you’re serious about staying compliant and avoiding scrutiny, read this carefully. 1. Mismatch Between ITR and AIS/TIS or Form 26AS The Mistake: You forget to include income that appears in your Annual Information Statement (AIS) or Form 26AS (e.g., interest from FD, foreign remittance, or property sale). What Notice You’ll Get: Notice under Section 143(1)(a) – Proposed adjustment for mismatch Notice under Section 148 – Income escaping assessment (reopening) Real Example: A salaried employee forgot to report ₹65,000 interest from a fixed deposit. His AIS showed it, but he ignored it thinking TDS already covered it. Result? A 143(1)(a) notice and demand for differential tax + interest. ✅ Tip: Always reconcile your AIS and TIS with your ITR before submission. 2. Using the Wrong ITR Form The Mistake: Filing ITR-1 even when you have capital gains, foreign income, director status, or foreign assets—all of which disqualify you from using ITR-1 or ITR-4. What Notice You’ll Get: Notice under Section 139(9) – Defective return ITR gets treated as invalid if not corrected in time. Real Example: A freelancer earning both professional fees and selling mutual funds filed ITR-4. He received a 139(9) defective return notice because capital gains are not allowed in ITR-4. ✅ Tip: Choose the correct ITR form. When in doubt, use ITR-3 or ITR-2 (they cover more cases). 3. Not Reporting Foreign Assets or Income The Mistake: You are a resident taxpayer, but fail to disclose foreign bank accounts, stocks, or property under Schedule FA. What Notice You’ll Get: High-risk cases may get notices under the Black Money Act or foreign assets scrutiny Could lead to penalties of ₹10 lakh per year of non-disclosure Real Example: An NRI who became a resident again in India in FY 2022-23 didn’t report a dormant US brokerage account. In FY 2023-24, he received a compliance query from the IT Department regarding foreign assets in his AIS. ✅ Tip: If you’re a resident, report all foreign assets—even if no income is earned. 4. Not Reporting Income from Freelancing or Side Gigs The Mistake: You earn money from Upwork, Fiverr, teaching, or Instagram collaborations, but don’t declare it thinking “it’s small” or “already taxed by the client.” What Notice You’ll Get: 143(1)(a) adjustment or 148 notice Often flagged via AIS (foreign payments or domestic TDS deductions) Real Example: A software developer earning ₹18 lakh from a foreign client didn’t report it, assuming the money was received via PayPal and not taxable. He got flagged in AIS under “foreign remittances” and received a Section 148 notice. ✅ Tip: Declare all global income if you’re a resident, even if no TDS was deducted. 5. Not Filing ITR at All When It’s Mandatory The Mistake: Skipping ITR filing assuming “I had no tax to pay” or “TDS was already deducted.” When It’s Wrong: Your gross income is above basic exemption limit You want to carry forward losses You did high-value transactions (credit card > ₹10L, property > ₹30L, etc.) What Notice You’ll Get: Non-filer compliance notices or CASS scrutiny Real Example: A salaried individual didn’t file ITR thinking TDS already handled his taxes. But he had gains from shares (short-term) worth ₹1.2 lakh. Since TDS didn’t apply, the ITD noticed and sent a compliance query. ✅ Tip: TDS doesn’t absolve you from filing. You must file ITR if you cross any mandated criteria. 6. Claiming Wrong or Inflated Deductions The Mistake: Claiming deductions (like Section 80C, 80D, HRA, interest on housing loan) without valid proofs. What Notice You’ll Get: 143(1)(a) adjustment or full-blown scrutiny assessment under Section 143(2) Real Example: A consultant claimed ₹1.5 lakh under 80C for ELSS investments but had only invested ₹80,000. His return was flagged, and he had to provide proof during e-proceedings. ✅ Tip: Keep every deduction backed by a valid document. Don’t overclaim. 7. Ignoring Capital Gains from Mutual Funds or Shares The Mistake: Selling mutual funds or shares and not declaring capital gains Thinking “it’s under ₹1 lakh so no need to report” (for LTCG on equity) What Notice You’ll Get: 148 Notice – Income escaping assessment Or mismatch alerts in AIS Real Example: An investor sold shares for ₹5 lakh, incurring a LTCG of ₹1.8 lakh. He didn’t report it, thinking the broker pays the tax. AIS captured it, and he was served a 148 notice the next year. ✅ Tip: Even exempt income or gains under threshold must be disclosed in the correct schedule. Final Thoughts: Don’t Invite a Notice – File Smart Income Tax notices can be avoided by simply: Reconciling AIS/Form 26AS with your ITR Choosing the right ITR form Reporting all incomes honestly Keeping documentation handy If you get a notice, don’t panic. Most are routine and can be resolved if handled correctly and timely. But better yet, avoid errors at the source.
NRI Taxation & Compliance
Form 145 & Form 146 (Earlier Form 15CA & 15CB): Complete Guide for Bank Remittance (2026) - If your bank has asked you to submit Form 145 and Form 146, you’re likely trying to send money abroad or transfer funds from your NRO to NRE account. Form 145 and Form 146 are the mandatory requirements if you are sending money from India to a foreign country or if you are transferring money from your NRO account to NRE account. This situation is extremely common with banks like HDFC, ICICI, SBI, Axis and all other Big Banks and the confusion usually starts because these forms are new names. We are providing you the whole idea on what it is and how quick can this be done and what the cost is. What are Form 145 and Form 146? Under the updated Income Tax framework (2026): Form 145 = Earlier Form 15CA (Self-declaration by taxpayer) Form 146 = Earlier Form 15CB (CA certificate for tax compliance) These forms ensure that: Proper taxes are paid (if applicable) The remittance is legally compliant Banks can process your request without regulatory risk Why Banks Ask for Form 145 / 146 When you initiate a remittance request, banks are required to comply with: Income Tax Act provisions FEMA regulations Banks like: HDFC Bank (for NRO outward remittance and other foreign remittences) ICICI Bank (international transfers and nro to mre transfers) SBI (foreign remittance, nro to nre remitance) Will not process your transaction unless these forms are submitted. When Are These Forms Required? You will typically need Form 145 & 146 in cases like: NRO to NRE transfer Sending money abroad to family Paying foreign vendors Investing outside India Repatriation of income Advance payment to purchase Documents Required To issue Form 146 (CA certificate), you will need: PAN card Bank details through which remittance is being made (IFSC code, Bank name) Source of funds (salary / PF/ rent / sale / gift etc.) Remittance details Your KYC details such as proof of pan in many cases Timeline (Very Important for Bank Deadlines) Document review: 1–2 hours Form 146 (CA certificate): Same day Form 145 filing: Immediate Total time: 2–6 hours What Happens If You Don’t Submit? Remittance gets rejected Funds get stuck Bank may put compliance hold Delay of 3–7 days or more Pricing Starts at 2999/- (all-inclusive, no hidden charges) Need Urgent Help? If your bank has already raised a request — this can be completed the same day. Go fill Tax Vic contact form for instant response. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit FAQs for Form 145 and Form 146 1. What is Form 145 for foreign remittance in India? Form 145 is a self-declaration required before sending money abroad, confirming tax compliance. This is done via your income tax login. Your CA can help you do same. 2. What is Form 146 CA certificate for remittance? Form 146 is issued by a Chartered Accountant certifying that applicable taxes on remittance have been paid. Or if taxes are not applicable then it is verified via this form 146 which was earlier called Form 15 CB. 3. Is Form 145 and 146 mandatory for NRO to NRE transfer? Yes, in most cases banks require both forms before approving NRO to NRE transfer. 4. Which banks require Form 145 / 146? Banks like HDFC, ICICI, SBI, Axis typically require these forms for outward remittance. 5. How long does Form 145 and 146 take? With proper documentation, it can be completed within 2–6 hours.
NRO to NRE Transfer for NRIs in Australia & New Zealand – Form 15CA & 15CB - Transfer from NRO to NRE account is a repatriation of funds within India, not a foreign remittance. However, banks require Form 15CA and Form 15CB to confirm that applicable Indian taxes have been paid. This requirement applies to NRIs residing in Australia or New Zealand when Indian-sourced income is moved from NRO to NRE. Why Form 15CA & 15CB Is Required for NRO to NRE Transfer Banks need confirmation that: Income credited to NRO account is tax-compliant Applicable TDS has been deducted or paid DTAA benefit (if any) is correctly applied Hence, CA certification becomes mandatory before allowing NRO → NRE transfer. Income Commonly Transferred from NRO to NRE Rental income Sale proceeds of property (within USD 1 million limit) Pension or salary arrears Interest income credited to NRO Each transfer is reviewed independently for tax applicability. DTAA Angle – Australia & New Zealand DTAA does not eliminate the need for Form 15CA–15CB. It only helps in determining correct tax rate, provided: Tax Residency Certificate is available Form 10F and declarations are submitted Process Followed by Banks Review source of income Verify tax payment / TDS CA issues Form 15CB Form 15CA filed on Income Tax portal NRO → NRE transfer approved by bank Bank queries usually arise due to incorrect 15CA–15CB filing. Our process focuses on error-free certification, same-day issuance in standard cases, and a pay-after-service model. Connect to our team for fast response at +919311070842 FAQs – NRO to NRE Transfer Is NRO to NRE transfer a foreign remittance? No. It is a repatriation within Indian banking system. Why does bank still ask for 15CA–15CB? To ensure Indian taxes are correctly discharged. Is DTAA applicable in NRO to NRE transfer? Yes, only for determining tax rate, not for compliance exemption. Can transfer be done without CA certificate? Banks generally do not permit it. One-Line Positioning You Can Reuse Everywhere “NRO to NRE transfer is not a foreign remittance—it is a tax-cleared repatriation of Indian income, and Form 15CA–15CB is the compliance backbone of this process.” Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit
Received a Notice for Not Disclosing Foreign Assets in Your Recent ITR? Here’s What to Do - Many taxpayers are receiving income tax notices after filing their recent Income Tax Return (ITR), mentioning non-disclosure of foreign assets or foreign income. If you’ve received such a notice, the first thing to remember is: Don’t panic.In most cases, this is a compliance issue, not a serious offence — and it can be handled properly if you respond correctly and on time. Let’s understand this in simple language. What Are “Foreign Assets” as per Income Tax Law? Foreign assets include any financial account, investment, or asset located outside India, such as: Foreign bank accounts Overseas investment accounts Foreign shares, ESOPs, or mutual funds Property owned outside India Any account opened or maintained abroad, even if used temporarily Even if the money eventually comes to India, the foreign account or asset itself still needs to be disclosed. Why Are These Notices Being Issued Now? The Income Tax Department now receives international financial information under global data-sharing agreements. Common reasons notices are issued: Foreign bank or investment account not disclosed in Schedule FA Foreign income earned but not properly reported Assumption that “small amounts” or “inactive accounts” don’t need disclosure Lack of awareness about disclosure rules Errors or omissions while filing the return In many cases, there is no intention to hide anything — it’s simply incomplete reporting. Important Clarification (Very Important) Non-disclosure of a foreign asset does NOT automatically mean tax evasion. The department mainly checks: Was income earned? Was tax paid on that income? Was full disclosure made? If income has already been offered to tax, the issue is often procedural, not criminal. What Type of Notices Are Usually Sent? Most notices are issued under: Section 139(9) – Defective return Section 142(1) – Request for information Automated compliance notices These notices are not penalties by default. They are requests for clarification or correction. What Should You Do Now? (Step-by-Step) Step 1: Read the Notice Carefully Check: Assessment year mentioned What exactly is missing (account, asset, income) Time limit to respond Never ignore the notice. Step 2: Identify the Foreign Asset or Account List out: Type of asset or account Country where it is located Whether it was active during the year Even dormant or low-value accounts matter for disclosure. Step 3: Check Whether Income Was Already Declared Ask yourself: Was income from this source included in total income? Was tax paid on it? If yes, your explanation becomes much simpler. Step 4: Respond Honestly and Clearly Depending on the notice, you may need to: File a revised return (if allowed) Submit an online reply with explanation Provide clarification stating the omission was unintentional A clear and truthful explanation is always better than defensive language. Step 5: Don’t Assume It’s a Black Money Case The Black Money Act applies mainly when: Assets are deliberately hidden Income is not disclosed at all There is clear intention to evade tax For genuine taxpayers, most such notices do not escalate to that level. How to Frame Your Reply (In Simple Words) Your response should mention: You are a resident taxpayer Details of the foreign asset/account That income (if any) has been disclosed and taxed Non-disclosure was inadvertent Willingness to fully comply and rectify Polite, factual, and transparent replies usually resolve the matter smoothly. How to Avoid Such Notices in Future Going forward: Always disclose foreign assets in Schedule FA Inform your tax advisor about any overseas account or investment Don’t assume that “small” or “temporary” accounts don’t matter Review foreign disclosures carefully before filing Final Word Receiving a notice related to foreign assets can feel stressful, but in most cases, it is a compliance correction, not a punishment. If you respond correctly and within time, these issues are usually resolved without heavy penalties. When it comes to foreign assets, remember: Disclosure is as important as paying tax. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Email *Contact Number *Message Submit