Over the years, the trend of placing bets on online fantasy sports apps has increased rapidly. For example, whenever the Indian Premier League takes place, people all over India start placing bets on the outcome of upcoming matches. As per court rules, these activities are legal and thus are liable for taxation. Under section 115BBJ of the Income Tax Act, 1961, the winnings from fantasy sports such as Dream 11, MPL and My11Circle is subject to flat rate 30% tax.So, if you are thinking of placing a bet on your favourite team, keep reading this article. You will get to know the applicable tax rates and much more!What is the Tax Rate on Earnings from Online Fantasy Sports Apps?In India, income earned from online game apps is taxable for every person.

Gifts received by taxpayers are both taxable and not taxable under the Income Tax Act depending on who the person gifting is. Gift received from specified relative is completely not taxable. However, gifts receoved from non-relatives is taxable as “Income From Other Source” when the aggregate value of the gifts received in the year exceeds Rs. 50,000. Gifts received on the occassion of marriage is not taxable irrespective of the value and the person gifting. What is a Gift as per the Income Tax Act?As per Section 56 of the Income-tax Act, 1961 gifts received by any person or persons are taxed in the hands of the recipient under the head ‘Income from other sources’ at applicable slab rates.

Companies and mutual funds have two ways to distribute their profits amongst their shareholders: (1) by distribution of Dividends and (2) By Issuance of Bonus Shares. Transactions of dividend distribution attract tax, so many companies and mutual funds distribute their profits by way of the issuance of additional shares/units without any cost to the recipient.What is a Bonus Issue?The bonus issue is done through profit appropriation (allocation). A company will distribute profits by issuing additional units instead of distributing the company’s profits by way of dividends. As such, a bonus issue has no tax implications on either the company issuing it or the recipient of bonus units. However, some investors smartly utilise a bonus issue as a tax planning tool.

Under section 139(9) of the Income Tax Act, 1961, if the filed Return has discrepancies or missing information, it is called a defective return. The Assessing Officer will send the taxpayer a notice about the defective return, requiring the taxpayer to rectify the issue that makes the return non-compliant with the Income Tax Act, 1961 provisions. The taxpayer is provided 15 days to fix the problem from the date of the defect return notice issued by the Income Tax department. If the issues in the tax return are not corrected within the stipulated time, the Income Tax return (ITR) will be considered as not filed, and all the consequences of non-filing ITR will be binding on the taxpayer. This article will describe how we can respond to a Defective Return notice under section 139(9).What is a Defective Return?A return is considered defective if any relevant information is omitted or reported incorrectly. In any of the above cases, the income tax department issues a defective notice u/s 139(9) to the taxpayers, intimating them about the same and asking them to correct the inaccuracies present in the return.Action Taken by Taxpayer on Receiving Defective NoticeWhen the taxpayer receives the defective return notice under section 139(9), the taxpayer should respond to the Income Tax Department after correcting the earlier return within 15 days.

Under section 132, Income Tax Raids or Search and Seizure operations are carried out by senior Income Tax officials, such as the Principal Director General, Director General, Chief Commissioner, etc., when they believe that a person holds entirely or partly undisclosed income, property or valuable items like cash, jewellery, etc. Also, if the person does not respond to the Income Tax Department’s notices or summons or believes that he won’t respond, he can come under the purview of search and seizure operations of the Income Tax Department. During the course of a Raid, the Income Tax officials can enter and search the premises, break the locks, search any person or seize assets. The objective of conducting an Income Tax Raid is to combat black money in the country.What is Black Money?Black money is funds earned illegally on which income and other taxes have not been paid. The unaccounted money hoarded illegally and concealed from the tax authorities is also called black money.

An Income Tax Notice is an official communication from the Income Tax Department alerting a taxpayer to discrepancies, missing information, overdue filing, or unreported income. Notice can be issued to the taxpayer irrespective of whether returns are filed or not. It is important to understand the type of notice, primary issue involed, and the time limit for response to stay compliant and avoid adverse consequences.What is Income Tax Notice?An income tax notice is an official communication issued by the Income Tax Department to a taxpayer regarding discrepancies, non-compliance, or additional information required related to their Income Tax Return (ITR). Each notice is issued under a specific section of the Income Tax Act and requires timely action to avoid penalties or legal consequences. It may be sent for reasons such as:Non-filing of returns Mismatch in reported income Verification of claimsDemand for outstanding tax. Popular Notices issued under the Income Tax ActSection numberNoticeSection 142(1)Inquiry before assessmentSection 143(1)IntimationSection 143(2)Notice for scrutiny assessmentSection 148Income Escaping AssessmentSection 245Demand noticeHow to Verify or Authenticate Income Tax Notices?Before responding to any notice or order from the Income Tax Department, it is crucial to verify its authenticity. You can check whether the income tax notice is genuine by using the ‘Authenticate Notice/Order’ feature on the Income Tax e-filing portal.

The Income Tax department imposes penalties on taxpayers to prevent tax evasion and non-compliance with the Income Tax rules. However, under sections 273 and 273AA, the Income Tax Department has empowered the Principal Commissioner or the Commissioner of Income Tax to grant relief from penalties to the taxpayer in genuine cases. These penalties are related to underreporting, misreporting or concealment of income. Let’s talk about the power the Commissioner of the Income Tax Department has to reduce or waive penalties for the taxpayer.Why are Taxpayers Imposed with Penalty?The taxpayers are required by law to make tax payments, pay any applicable interest for delays, and penalties for defaults. The penalties are levied on the taxpayers for various defaults which can be majorly classified as:Default in payment of any taxFailure to disclose appropriate incomeFailure to maintain books of accounts and perform auditsFailure to furnish the requisite informationA penalty in case of search Other transactional defaultsThe penalties in some of the cases can be as high as 300% (in case of section 271(1)(c)) or 200% (in case of section 270A) of tax leviable. In some cases, it can be a per day charge for as many days as the default continues.

DTAA or Double Tax Avoidance Agreement, is a tax treaty between two or more countries. The main objective behind signing this treaty is to avoid taxing the same income twice. If a non-resident Indian is residing in another country and earning there, the tax applicable comes under the consideration of DTAA. While signing the agreement, both contracting states decide on the tax rates and jurisdictions for income arising from both nations. India has signed DTAAs with almost 100 countries. DTAAs are beneficial for NRIs and help resolve inconsistencies in tax collection from non-residents.

E-verification of ITR is the final step in the income tax return filing process, completed after you successfully submit your return. It can be done online through the Income Tax Department of India portal, making the process quick and paperless.Every ITR must be e-verified within 30 days of filing, failing which the return will be treated as invalid. Timely e-verification ensures that your return is processed and any eligible refund is issued without delays.Methods to E-verify ITRThere are several methods available to e-verify ITR:Aadhaar OTPExisting EVCDigital Signature Certificate (DSC)Generate EVC through a bank accountGenerate EVC through the Net BankingGenerate EVC through DEMAT accountGenerate EVC through the bank ATM option (offline)What is Income Tax Return (ITR) e-Verification?Income Tax E-verification is the process by which the taxpayers agrees or authenticates that the return filed under his PAN was done by himself, or with his knowledge. This process ensures that the ITR filed is authentic and not tampered.1. E-Verify ITR through Aadhaar OTPLog in to your Income Tax e-filing account.

Any amount paid as rent or consideration towards a contract, exceeding the prescribed limit is subject to Tax Deduction at Source (TDS) as per the provisions of the Income Tax Act 1961. Both these are covered under different sections of the act and have different implications. The issue was whether the nature of amount paid to the Airport Authority of India (AAI) for the use of airports, by airlines for landing and parking facilities was in the form of rent or contract agreement. This resulted in confusion with regard to TDS applicability on such an amount. This article will discuss the nature of such a payment and the implications of TDS on it, based on the Supreme Court’s verdict.What Is Section 194I And 194C Of The Income Tax Act?Section 194I lays down provisions for TDS deduction on rent paid by assessees (other than Individuals and HUFs) and Individuals/HUFs who are subject to a tax audit, to deduct 10% of the amount if it exceeds Rs. 2,40,000 in a year (This limit has been increased to Rs.