The TaxVic Blog
Professional Tax Registration for Freelancers & Self-Employed: Complete Guide (India)
TaxVic
Tax Consultant
Adding Foreign Directors and Shareholders to an Indian Company
TaxVic
Finance Consultant
How to File ITR if You Have Both Salary and Freelance Income
TaxVic
Finance Consultant
Taxes & Compliances you must know about if you provide services outside India
TaxVic
Tax Consultant
NRO to NRE Transfer for NRIs in Australia & New Zealand
TaxVic
Tax Consultant
How Long Do Self-Employed Professionals Really Need to Keep Business Bills? - How long self-employed professionals must keep bills under income tax (Rule 46 and Rule 6F), GST Section 36 and company law, with actual dates.
Proprietorship vs Pvt Ltd for Solo Founders: A Tax and Compliance Comparison - Do solo founders need a Private Limited Company? A tax comparison with 44ADA, compliance obligations and the triggers that justify incorporating.
AI Consultant Earning From Abroad? 5 Mistakes That Lead to GST and Income Tax Notices - Five mistakes AI consultants with foreign clients make on GST, purpose codes, 44ADA, advance tax and foreign tax credit, and how to fix each.
Foreign Companies in India
Supreme Court Tiger Global Ruling: GAAR Overrides TRC & Treaty Protection - The Supreme Court's Tiger Global ruling holds that GAAR can override treaty protection even with a valid TRC. Here's what it means for cross-border investors.- 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 - A complete guide to adding foreign directors and shareholders to an Indian company, covering DIR-12, FC-GPR, and FC-TRS compliance.
Freelancers & Self-Employed
- How Long Do Self-Employed Professionals Really Need to Keep Business Bills? - How long self-employed professionals must keep bills under income tax (Rule 46 and Rule 6F), GST Section 36 and company law, with actual dates.
- Proprietorship vs Pvt Ltd for Solo Founders: A Tax and Compliance Comparison - Do solo founders need a Private Limited Company? A tax comparison with 44ADA, compliance obligations and the triggers that justify incorporating.
- AI Consultant Earning From Abroad? 5 Mistakes That Lead to GST and Income Tax Notices - Five mistakes AI consultants with foreign clients make on GST, purpose codes, 44ADA, advance tax and foreign tax credit, and how to fix each.
Income Tax Return
How to Gift Money to Your Parents in India Tax-Free (The Legal Way) - Gifts to parents are tax-free with no limit. Learn why clubbing doesn't apply, how much you can save and the steps to do it legally.
Income Tax Refund on TDS: When and How You Can Get It (With ITR Types Explained) - Learn when you're owed a TDS refund, which ITR form affects processing speed, and how Section 244A interest works if your refund is delayed.- 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
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
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Do solo founders need a Private Limited Company? A tax comparison with 44ADA, compliance obligations and the triggers that justify incorporating.
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