🧨 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.

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.

🧵 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.

🧵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.

🧵 “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)

🧵 Thread: Booked a consultation call on @topmateHQ today - Upwork freelancer client just hit ₹70 lakhs in receipts.

Here’s the advice I gave him - and it might save you from tax audit and GST penalties.

If you’re freelancing via Upwork, Fiverr, Toptal etc., and your income is growing - this is a must-read 👇

Don't forget to Like & RT 1/ A consultation client approached me today afternoon - freelance developer working via Upwork.

He said:
“My receipts are now ₹70L. Since the limit for 44ADA is ₹50L, will I need a tax audit?”

The confusion is very common. Here’s what I told him…

🧵 This ₹1.25 crore YouTube creator was about to pay double tax last year.

Until he dm'd me on X to assist him to file his ITR!

Here’s how I fixed it - and what most creators get wrong about foreign income & DTAA! 👇

🔁 RT this to help other creators avoid double tax
❤️ Like if this helped you 1️⃣
Meet Arya (name changed) - a content creator from India.

In FY 2023–24, his YouTube channel suddenly exploded:
•Revenue: ₹1.25 crore
•Source: Mostly from US viewers
•Platform: YouTube AdSense (US-based)

Google sent his payments after deducting 15% tax in the US.

But here’s where it went wrong..👇

Got contacted by a school friend today.

Turns out, he needed help with his ITR.
He’s been trading in foreign stocks (Apple, Tesla, etc.) via IndMoney for 3-4 years now - but never declared them in his ITR.

Why?

His family's CA didn’t know how to report foreign holdings, so he just skipped ’em in his ITR!

🔁 RT this 🧵 to help others 👇🏻 2/ Here’s the problem:

As a Resident & Ordinarily Resident (ROR) in India, you must disclose foreign holdings in ITR.

That includes:
✅ Schedule FA – Foreign Assets
✅ Schedule FSI – Foreign Source Income
✅ Schedule TR – Tax Relief under relevant DTAA

Ever thought of investing outside India? 🌍

Owning shares in Apple, Google, Amazon?

Turns out, it’s easier than you think.

Here’s your complete guide to investing in US stocks from India - process, benefits, taxes & more 🧵👇🏻 1. Why invest internationally?

Three key reasons:

• Diversification – Don’t rely only on Indian markets
• Global exposure – Invest in world-dominating brands
• Currency edge – Protect wealth as INR weakens vs USD

How to report MSME 43B(h) disqualification in Tax Audit Reports in case of no record maintained by auditee regarding MSME classification ? (for Non-Corporates only)

This will be beneficial to practictioners engaged in audits of small assessees of Tier-2 & Tier-3 cities where it is practically impossible to check the compliance of Section 43B(h)!

DISCLAIMER: This information is provided for informational purposes only, and should not be construed as legal advice on the subject matter. Please consult your own tax, legal and accounting advisor before implementing it in your reports. Add a point in the Notes to Accounts of the Assessee:
We do not have a system of identifying amounts due to Micro Enterprises or Small Enterprises on the basis of documents in our possession and accounting software used by us (the same of which is relied upon by the auditors).
Hence, we are unable to identify Micro Enterprises or Small Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006.
Therefore, disclosures under Section 22 of the said Act are not necessary.

Also, make an agenda to incorporate the same in your MRL - and PLEASE UPLOAD SIGNED & STAMPED BALANCE SHEETS BY THE ASSESSEE - in 3CB-3CD attachments - TO JUSTIFY GENUINETY OF THE FINANCIALS AND NOTES TO ACCOUNTS!

Its time for Full donor list (Party Wise)! 🧵

P.S. Only 4 images are allowed to be attached for a thread tweet. So, I have attached only 1st 4 pages of donors of all parties.

1. BJP - ₹60,60,51,11,000.00

#ElectoralBondScam #ElectoralBonds


2. ALL INDIA TRINAMOOL CONGRESS - ₹16,09,53,14,000.00

Conclusions from EC data published: A thread🧵

Out of total Rs. 1368 crores donated via Electroral Bonds by Future Gaming, Rs 509 crore alone were donated to DMK!



A total of Rs. 200 crore was donated to BJP Government in first 5 days of release of the Scheme - from 5th March 2018 to 9th March 2018

Its time for Black & White!! #ElectoralBondsCase

🧵 A thread...

Case 1: Wonder Cement Limited

Case 2: Future Gaming & Hotel Services Private Limited

Gone through ICAI Tax Audit GN;

Some interesting points for SME CA Firms;

Thread 📌📎

➡️ Other items of incomes not to be disclosed in 16d now.
➡️ EPF/ESI employee contt. disallowances u/s 36(1)(va) to be disclosed in 16d (should be matching with 20b details) ➡️ If immovable property held as SIT, diff. b/w FMV and SP > 10%, to be included in 16d.
➡️ Profit on sale of asset, not credited to PL to be disclosed in 16e.
➡️ Adjustment of loans by book entries = acceptance/repayment by other than account payee cheque for Clause 31 purposes