DIRECT TAXATION

Direct Taxation, in the context of Indian taxation laws, refers to the category of taxes where the liability to pay tax and the burden of tax fall on the same person. The most prominent form of direct tax in India is the Income Tax, governed by the provisions of the Income Tax Act, 1961, and administered by the Central Board of Direct Taxes (CBDT). Income Tax is levied on the income earned by individuals, Hindu Undivided Families (HUFs), firms, LLPs, companies, and other artificial juridical persons. The revenue collected through direct taxes is used by the Government of India to fund nation-building initiatives such as infrastructure development, healthcare, education, public welfare schemes, and defense.

Budgetary Process and Amendments to Income Tax Law

Each year, the Union Finance Minister presents the Annual Union Budget, typically in February, which outlines the Government’s fiscal policies, proposed tax reforms, and expenditure plans.

The budget introduces various amendments to the Income Tax Act, 1961, including but not limited to:

  • Revision in income tax slabs and rates
  • Changes to deductions, exemptions, and rebates
  • New compliance requirements and penalty provisions
  • Introduction or amendments to taxation schemes (e.g., presumptive taxation, faceless assessment, Vivad se Vishwas schemes, etc.)
  • Policy changes affecting international taxation and transfer pricing

Staying updated with these annual changes is critical for both individuals and businesses to ensure tax efficiency and regulatory compliance.

Our Areas of Practice – Direct Taxation Services

Our firm offers a comprehensive range of direct taxation services for corporates, individuals, NRIs, and global entities, with a focus on tax planning, compliance, representation, and advisory. We ensure accurate tax liability assessment, timely filings, and strategic guidance to help you optimize your tax position while staying fully compliant with Indian tax laws.

We specialize in the following areas:

  • Advisory on tax computation under normal and concessional regimes (e.g., Section 115BAA, 115BAB)
  • Preparation and filing of corporate income tax returns
  • Advance tax computation, MAT, AMT, and tax provisioning
  • Compliance with Section 115JB (Minimum Alternate Tax) and transfer pricing norms
  • Tax planning and return filing for salaried individuals, professionals, HNIs, and business owners
  • Comparison and advisory between Old Tax Regime and New Tax Regime (Section 115BAC)
  • Assistance with capital gains tax, rental income, and dividend income taxation
  • Strategic advisory for tax optimization within legal framework
  • Structuring income and investments to avail maximum deductions under sections like 80C, 80D, 80G, etc.
  • Planning for capital gains exemptions, retirement benefits, and wealth transfer
  • Filing of ITRs for all categories of taxpayers (ITR-1 to ITR-7)
  • Assistance with revised returns, belated returns, and rectifications
  • Representation in case of intimations under Section 143(1) or notices under Section 139(9)
  • End-to-end support for Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) compliance
  • Filing of quarterly TDS returns (Form 24Q, 26Q, 27Q) and issuance of Form 16 / 16A
  • Reconciliation with Form 26AS and AIS/TIS
  • Preparation and filing of appeals before CIT(A), ITAT, and other appellate forums
  • Drafting of responses for notices under Section 142(1), 143(2), 148, 263, etc.
  • Handling faceless assessments and appeals under the new electronic system
  • Tax advisory and filing for Non-Resident Indians (NRIs) and PIOs
  • Analysis of residential status under Section 6 of the Income Tax Act
  • Guidance on remittance, income from Indian assets, and capital gains taxation
  • Assistance with Lower/Nil TDS Certificates under Section 197
  • Advisory on benefits under applicable DTAA treaties
  • Claiming of foreign tax credits and avoidance of double taxation
  • Filing Form 10F, Tax Residency Certificate (TRC), and other documentation
  • Assistance with Transfer Pricing Documentation as per Section 92E
  • Advisory on Arm’s Length Price (ALP), inter-company transactions, and BEPS compliance
  • Filing of Form 3CEB and conducting transfer pricing audits
  • Advisory on cross-border transactions, permanent establishment (PE) rules, and equalization levy
  • Tax implications for foreign companies, expatriates, and global digital platforms
  • Guidance on withholding tax (WHT) on foreign remittances and royalty payments