HENCY R SHAH AND ASSOCIATES

𝗠𝗬𝗧𝗛 𝗩𝗦 𝗥𝗘𝗔𝗟𝗜𝗧𝗬. 𝗦𝗜𝗗𝗘 𝗜𝗡𝗖𝗢𝗠𝗘 𝗢𝗥 𝗛𝗢𝗕𝗕𝗬 𝗜𝗡𝗖𝗢𝗠𝗘 𝗜𝗦 𝗡𝗢𝗧 𝗧𝗔𝗫𝗔𝗕𝗟𝗘. Earned money outside a regular job still matters for income tax purposes. Freelancing, online tutoring, paid content creation, affiliate marketing, and monetised hobbies often generate taxable income under the Income-tax Act. The source of income and the nature of the activity determine the tax treatment. 💡 𝗪𝗛𝗔𝗧 𝗘𝗩𝗘𝗥𝗬 𝗧𝗔𝗫𝗣𝗔𝗬𝗘𝗥 𝗦𝗛𝗢𝗨𝗟𝗗 𝗞𝗡𝗢𝗪. 📌 𝟭. 𝗙𝗿𝗲𝗲𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝘀𝗶𝗱𝗲 𝗵𝘂𝘀𝘁𝗹𝗲𝘀. Income from consulting, graphic design, coding, writing, online tutoring, or other freelance services generally falls under profits and gains from business or profession. 📌 𝟮. 𝗦𝗼𝗰𝗶𝗮𝗹 𝗺𝗲𝗱𝗶𝗮 𝗮𝗻𝗱 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻. Income from paid promotions, sponsorships, affiliate commissions, and monetised videos generally attracts tax under the applicable provisions. 📌 𝟯. 𝗛𝗼𝗯𝗯𝘆 𝗶𝗻𝗰𝗼𝗺𝗲. Selling paintings, handmade products, phot...

𝗠𝗬𝗧𝗛 𝗩𝗦 𝗥𝗘𝗔𝗟𝗜𝗧𝗬. 𝗜𝗡𝗖𝗢𝗠𝗘 𝗘𝗔𝗥𝗡𝗘𝗗 𝗔𝗕𝗥𝗢𝗔𝗗 𝗜𝗦 𝗡𝗢𝗧 𝗧𝗔𝗫𝗔𝗕𝗟𝗘 𝗜𝗡 𝗜𝗡𝗗𝗜𝗔. 🌍 Working abroad does not automatically exempt income from Indian income tax. The tax treatment depends on residential status, the nature of income, and the applicable provisions of the Income-tax Act. Here are 4 key points to understan d. 𝟭. 𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝘁𝗶𝗮𝗹 𝘀𝘁𝗮𝘁𝘂𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀. 𝘙𝘦𝘴𝘪𝘥𝘦𝘯𝘵 𝘢𝘯𝘥 𝘖𝘳𝘥𝘪𝘯𝘢𝘳𝘪𝘭𝘺 𝘙𝘦𝘴𝘪𝘥𝘦𝘯𝘵 (𝘙𝘖𝘙) individual is generally taxable in India on global income, subject to applicable provisions and relief under tax treaties. 𝘕𝘰𝘯-𝘙𝘦𝘴𝘪𝘥𝘦𝘯𝘵 (𝘕𝘙) is generally taxable on income received or deemed to be received in India, or income accruing or arising or deemed to accrue or arise in India. 𝘙𝘦𝘴𝘪𝘥𝘦𝘯𝘵 𝘣𝘶𝘵 𝘕𝘰𝘵 𝘖𝘳𝘥𝘪𝘯𝘢𝘳𝘪𝘭𝘺 𝘙𝘦𝘴𝘪𝘥𝘦𝘯𝘵 (𝘙𝘕𝘖𝘙) follows special rules for foreign income. 𝟮. 𝗦𝗮𝗹𝗮𝗿𝘆 𝗲𝗮𝗿𝗻𝗲𝗱 𝗮𝗯𝗿𝗼𝗮𝗱 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝘀 𝗰𝗮𝗿𝗲𝗳𝘂𝗹 𝗿𝗲𝘃𝗶𝗲𝘄. Salary for...

 𝗠𝗬𝗧𝗛 𝗩𝗦 𝗥𝗘𝗔𝗟𝗜𝗧𝗬: 𝗙𝗔𝗠𝗜𝗟𝗬 𝗧𝗥𝗔𝗡𝗦𝗙𝗘𝗥𝗦 𝗔𝗥𝗘 𝗔𝗟𝗪𝗔𝗬𝗦 𝗜𝗚𝗡𝗢𝗥𝗘𝗗 𝗕𝗬 𝗧𝗔𝗫 𝗟𝗔𝗪 A transfer within a family does not automatically stay outside the tax net. Under the Income Tax Act, 2025, the tax treatment depends on the type of transfer, relationship between the parties, value involved and income arising from the asset. 𝘊𝘰𝘯𝘴𝘪𝘥𝘦𝘳 𝘢 𝘴𝘪𝘮𝘱𝘭𝘦 𝘦𝘹𝘢𝘮𝘱𝘭𝘦. A father gifts ₹10 lakh to his son. The gift itself is generally not taxable for the son when received from a specified relative. But the tax analysis does not end with the gift. If the son invests ₹10 lakh in a fixed deposit and earns ₹70,000 interest, the interest is taxable in the son’s hands. There is another important point. Certain income arising from assets transferred to a spouse or minor child falls under the clubbing provisions. The law looks at the transfer and the income generated from the transferred asset separately. The Income Tax Department continues to provide for...

𝗧𝗵𝗲 𝗚𝗦𝗧 𝗜𝗻𝘃𝗼𝗶𝗰𝗶𝗻𝗴 𝗠𝘆𝘁𝗵 Businesses often believe skipping an invoice avoids GST liability. Under the Central Goods and Services Tax Act, tax liability arises from the supply of goods or services, not the creation of a billing document. Section 12 and Section 13 of the CGST Act define the time of supply. Tax liability occurs at the earliest of three events: issuance of an invoice, the last date an invoice must be issued under Section 31, or receipt of payment. A supplier delivers goods on day one, receives payment on day ten, and issues no invoice. Tax liability exists on day one or day ten, whichever comes first. Omitting the invoice does not eliminate the tax requirement. Unbilled supplies lead to unpaid tax. Section 73 and Section 74 mandate recovery of unpaid tax along with interest under Section 50 at 18 percent per annum. Penalties for non-issuance of invoices under Section 122 start at 10,000 rupees or the amount of tax evaded, whichever is higher. Record every ...