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CA Himank Singla

@CAHimankSingla

Feb 1

ALL INCOME-RELATED REFORMS AND CHANGES - UNION BUDGET 2026 - ALL AT ONE PLACE! 🧵

#UnionBudget2026 #UnionBudget #unionbudgetlive

Amendments brought in to override judicial precedents which held that assessment/reassessment proceedings invalid:

Bom HC Hexaware Technologies (issue pertaining to whether 148 notice shall be issued by JAO or FAO) overruled

Late Fees for filing Tax Audit Report proposed.

'Penalty' has now been renamed as 'Late Fees now.' It means no penalty proceedings now (which were very rare). Late Fees will be levied during ITR filing only.

1 day delay = Rs. 75,000/-
1 month delay = Rs. 1.5 lakhs

Read 19 tweets

CA Himank Singla

@CAHimankSingla

Jun 28, 2025

🧨 CBDT has started MASS dispatch of Scrutiny Notices for AY 2024–25.

Here’s what to do if YOU receive one, based on cases I’ve personally seen in the past few days.

Save this thread 🧵

1️⃣ What is a Scrutiny Notice?

It’s a formal notice issued u/s 143(2) of the Income Tax Act.

It means the department wants to verify specific information in your ITR and not that you’ve done anything illegal.

2️⃣ Who’s Getting Picked This Time?

Surprisingly, many individuals are under the radar - especially those who:

🔸 Reported only salary income inspite of multiple incomes in AIS
🔸 Ignored mutual fund capital gains
🔸 Missed showing dividend income
🔸 Claimed inflated deductions but didn’t declare related proofs to employers.

Read 13 tweets

CA Himank Singla

@CAHimankSingla

Jun 27, 2025

ITR filing season is upon us...

Trying to raise awareness about blatant misuse of Section 44AD & 44ADA - surprisingly being endorsed by many professionals across social media!

Sections 44AD & 44ADA may spare you from bookkeeping - but they don’t spare you from scrutiny.

If your spending doesn’t match your declared income, say hello to Section 69 to 69D 🧵

1/
Many believe:

“Filed ITR under 44AD/44ADA, so I can declare ₹2–3L income and still spend/invest ₹50L. No one will ask.”

This is FALSE, dangerous, and legally untenable.
Why?

Because of the Section 69-series of the Income-tax Act.

2/
These sections empower the Department to treat unexplained income/expenses as ‘deemed income’, taxable at a punitive flat rate of 78% (Sec 115BBE).

Let’s break it down:

🔸 69 – Unexplained Investments
🔸 69A – Unexplained Money, Bullion, Jewellery, etc.
🔸 69B – Amount of investments not fully disclosed
🔸 69C – Unexplained Expenditure
🔸 69D – Borrowed or repaid on Hundi

Read 14 tweets

CA Himank Singla

@CAHimankSingla

Jun 26, 2025

🧵 In my statutory audit experience of private limited companies, I often find one common default:

Directors casually borrow funds from their own companies - totally unaware of the trap called “Deemed Dividend” under Section 2(22)(e) of the Income-tax Act.

Here’s a detailed breakdown 👇

1/
“Apni hi company hai, apna hi paisa hai” this mindset is the starting point of most tax troubles.

Founders, directors, or major shareholders take money from the company account as an advance, loan, or adjustment - assuming it’s normal.

Legally? It’s far from normal.

2/
What is Section 2(22)(e)?

If a closely held company (not publicly listed) gives a loan or advance to:

a) A shareholder holding ≥10% voting power
b) A concern (firm, HUF, company) in which such shareholder has ≥20% beneficial interest

➡️ It is treated as a Deemed Dividend, to the extent of accumulated profits.

Read 16 tweets

CA Himank Singla

@CAHimankSingla

Jun 23, 2025

🧵Got RSUs or ESOPs from a foreign company?

You’re not alone. Many Indian employees working for US/global MNCs receive them.

But with perks come tax confusion & pains.

Here’s your complete tax & compliance guide (India) 🇮🇳👇

1/
What are RSUs/ESOPs?

🟢 RSU = Restricted Stock Unit
🟢 ESOP = Employee Stock Option Plan

These are equity-based compensation, commonly given by foreign companies (like Google, Microsoft, Amazon) to Indian employees or consultants.

2/
When are RSUs taxed?
Taxation happens at the time of vesting - not when granted.

At vesting, they are treated as perquisite income under salary and taxed at your slab rate.

✔ Value = FMV on vesting date × No. of shares
✔ Added to your Form 16 (in most cases)

Read 15 tweets

CA Himank Singla

@CAHimankSingla

Jun 20, 2025

🧵 “I have seen many legal heirs still filing ITRs of deceased persons using Aadhar OTP etc of deceased person himself.…”

👍 Like & RT to help every legal heir stay compliant

Here’s what the law actually says about filing returns for a deceased taxpayer 👇

1/
Under Section 159 of the Income‑Tax Act, that’s not just wrong - it could spell serious trouble...

When a person dies, their legal obligation to file Income Tax doesn’t vanish.

But filing the ITR in their name using login credentials or DSC after death is illegal.

Instead, you MUST act as a Representative Assessee (Section 159 of Income Tax Act)

2/
👤 Who is a Representative Assessee?

Under the Income Tax Act, a legal heir becomes responsible for filing the ITR on behalf of the deceased.

You don’t “continue their account” - you register yourself as their legal representative.

Read 12 tweets

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