Tax & compliance,
demystified.

AIF Annual Compliance: Form N, Form N-2, SEBI Audit & CA Certificate Requirements

AIF sponsors must navigate multiple compliance layers annually: SAT reporting via Form N, scheme-level returns via Form N-2, statutory audit under SEBI AIF Regulations 2012, and mandatory CA certificates. Missing deadlines or filing errors attracts penalties and regulatory action.

PPM and LPA Drafting for AIFs: SEBI Mandatory Disclosures, Co-Investment Rights, and the Key-Man Clause

Alternative Investment Fund (AIF) managers in India face strict SEBI requirements for Private Placement Memoranda (PPM) and Limited Partnership Agreements (LPA). This post covers mandatory disclosures, co-investment mechanics, and the critical key-man clause that regulators and CAs scrutinise.

AIF Taxation in India: Category III Pass-Through, STCG Surcharge & Investor Reporting

Category III AIFs enjoy pass-through taxation under Section 115UB, but investors still face surcharge on short-term capital gains and must file Schedule CYLA. Understand the full tax burden, reporting requirements, and planning opportunities.

"A forensic audit is just a deeper statutory audit": what Indian law actually says

Most business owners believe a forensic audit is simply a statutory audit done more carefully, over a longer period, by someone more suspicious. That belief is wrong on every count. The trigger is different, the standard of proof is different, the output is different, and the liability the Chartered Accountant carries is different. A statutory auditor forms an opinion on whether financial statements give a true and fair view; a forensic auditor builds a case file intended to survive cross-examination. This piece sets out the four separate legal regimes that actually mandate forensic audits in India — Sections 210, 212, 213 and 143(12) of the Companies Act 2013, the RBI Red Flagged Account framework, SEBI LODR disclosure obligations, and transaction audits under IBC 2016 — and then explains the part practitioners most often get wrong: what makes forensic evidence admissible. Since 1 July 2024 the Bharatiya Sakshya Adhiniyam 2023 governs electronic records, and Section 63 certification is not optional. Includes a nine-step engagement checklist and the three distinct heads of personal liability a signing CA carries.

"Only listed companies need a secretarial audit": what Section 204 actually says

Ask most promoters of an unlisted public company whether secretarial audit applies and you will hear a confident no — the reasoning is always that secretarial audit is a SEBI matter for listed companies. That belief has cost boards a flat Rs.2,00,000 penalty under Section 204(4) of the Companies Act 2013, and more often a qualified MR-3 report discovered days before an AGM. Section 204 does not turn on listing status alone. Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 sets four independent triggers, and three of them have nothing to do with the stock exchange — including one that catches private limited companies. This article sets out exactly who is covered, how the paid-up capital, turnover and Rs.100 crore borrowing tests are measured, what a company secretary in practice actually examines in Form MR-3, the appointment and tenure rules that changed for listed entities from FY 2025-26, and the working calendar to follow so the audit is not compressed into six weeks.

"Bank branch audit is just ticking vouchers": what RBI's LFAR and IRACP norms actually demand

Bank branch audit is widely described, even inside the profession, as a week of voucher-ticking in April. That description is wrong in a way that creates real professional risk. A branch statutory audit is a regulatory certification in which the auditor independently forms a view on asset classification under RBI's IRACP Master Circular, and where a wrong call on a single large advance can understate provisioning by crores. This article sets out what Section 143 of the Companies Act 2013 and the RBI prudential norms actually require: the 90-day NPA trigger running from the day after the due date, the borrower-wise classification cascade, the out-of-order test for cash credit accounts, the Substandard to Doubtful to Loss progression with provisioning rates, and the twenty-odd heads of the Long Form Audit Report. It then walks through where branch audits go wrong in practice, most often on drawing power recomputation, manual overrides of system-flagged NPAs, restructured account provisioning, and stale security valuations, followed by a step-by-step engagement checklist and the Memorandum of Changes discipline that turns findings into actual provisioning.

ECLGS 5.0: 100% Guaranteed Working Capital for MSMEs Until March 2027

ECLGS 5.0, approved 6 May 2026, offers ₹2.55 lakh crore in 100% government-guaranteed working capital loans to qualifying MSMEs with existing bank or NBFC accounts. Borrowers can access up to 20% of peak Q4 FY26 utilisation (max ₹100 crore) with a 2-year principal moratorium. Applications close 31 March 2027.

Virtual CFO vs Full-Time CFO for Indian SMEs — Cost, Value & When to Hire Which

A full-time CFO in India costs ₹60–180 lakh per year once PF, bonus, and fixed overheads are included. A Virtual CFO costs ₹15,000–55,000 per month. But the decision is not just about cost — it is about the stage of your business, the complexity of your compliance, and how much CFO-level judgment you actually need. This guide breaks it down.

Business Valuation in India — EV/Revenue & EV/EBITDA Multiples by Sector for FY 2025-26

What is your business worth? In India, valuation is not just a curiosity — it is a legal requirement for FDI, ESOP grants, buybacks, and M&A deals. This guide covers the three primary valuation methods, sector-specific EV/EBITDA multiples, Rule 11UA for angel tax, and how IBBI Registered Valuers differ from a CA valuation opinion.

SME Credit Ratings: How CAs Build the Financial Package That Wins CRISIL Ratings and Lower Borrowing Costs

A strong credit rating from CRISIL can slash your SME's borrowing costs by 1-3% per annum. Learn how the CRISIL SME rating process works, what financial documentation your CA must prepare, and why the quality of your numbers matters more than the size of your balance sheet.

Working Capital Finance: CC vs OD vs Bill Discounting, DSCR Calculation & What Banks Check in Audited Financials

Banks offer three main working capital routes: Cash Credit (CC), Overdraft (OD), and bill discounting. Each carries different costs, compliance burdens, and risk profiles. Your DSCR ratio and audited financials determine approval odds and limits.

NBFC Registration with RBI: Category A vs B, Rs. 10 Crore NOF, and Annual Compliance Checklist

The RBI's Scale-Based Regulation framework classifies NBFCs into Category A (minimum Rs. 10 crore NOF) and Category B, with distinct compliance requirements. This guide clarifies the registration path, regulatory distinctions, and the annual compliance obligations your finance company must meet.

SEBI's MF-PMS Framework: ₹25L Minimum, 2.5% Fee Cap Explained

SEBI's July 2026 consultation paper proposes a new MF-PMS registration category with a ₹25 lakh minimum investment (down from ₹50 lakh), a 2.5% management fee cap, and mandatory separation between MFD and advisory operations. Here's what changes if finalised.

SEBI Clarifies Intraday Borrowing by Mutual Funds: What It Means

SEBI has issued a clarification on the intraday borrowing facility available to mutual funds, addressing the operational framework for managing liquidity mismatches within the trading day. This update matters to fund houses, asset managers, and investors tracking mutual fund risk management.

SEBI Exemption Order for Waaree Energies: What Listed Companies Should Know

SEBI has issued a specific exemption order in the matter of Waaree Energies Limited. While the full scope of the exemption requires review of the complete order, this development signals important compliance considerations for listed companies and their boards.

One audit a year isn't enough: Section 129 vs bank MIS

Section 129 of the Companies Act, 2013 requires one audited financial statement a year. Banks monitoring cash credit and term loans require monthly stock statements and quarterly MIS on top of that — and treating the annual audit as sufficient can stall your credit limit review.

CCFS-2026 extended to 31 August: file pending ROC forms at 90% off

The Ministry of Corporate Affairs has extended the Companies Compliance Facilitation Scheme 2026 to 31 August 2026. Companies with pending AOC-4, MGT-7, or MGT-7A filings can now regularise at concessional additional fees (~10% of normal) before normal penalties resume on 1 September 2026.

"Independent directors have no real liability": what the Companies Act actually says

A board seat as an independent director is routinely described as a low-risk honorific — four meetings a year, a sitting fee, and Section 149(12) as a shield against everything. That description is wrong on both counts. Section 150 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 makes IICA databank registration a precondition to appointment, and Rule 6(4) imposes a hard two-year deadline to clear the Online Proficiency Self-Assessment Test — miss it and your profile is permanently deleted, not fined. Section 149(12) is narrower than commonly read: it protects you only where the act did not occur with your knowledge, consent or connivance, and where you acted diligently. That last limb is an affirmative duty measured against Section 166(3). This article sets out the registration process, the exemption test under Rule 6(4), the sitting fee cap and ESOP bar under Sections 197(5) and 149(9), the Schedule IV independent directors meeting, and the board hygiene that actually evidences diligence when an inspection follows.

EPF Wage Ceiling Raised to ₹25,000: Employer Compliance Guide

The Ministry of Labour and Employment has increased the EPF wage ceiling from ₹15,000 to ₹25,000 effective 17 September 2026. This guide explains who is affected, how contributions change, and the steps employers must take to stay compliant.

EPFO VISHWAS 2026: Settle PF Default Notices Before Dec 28

EPFO's VISHWAS 2026 one-time settlement scheme lets employers close pending PF damage and penalty disputes for defaults before 14 June 2024 at sharply reduced rates. The window under Paragraph 23 of the EPF Scheme, 2026 closes on 28 December 2026, and eligibility depends on clearing Section 7Q interest in full first.

"Bonus must be 20% of my salary": what the Payment of Bonus Act and the 2026 Code on Wages rules actually say

Every October the same claim circulates: statutory bonus is 20% of your salary. It is not. Statutory bonus in India is a floor of 8.33% and a ceiling of 20%, and it is calculated not on your actual pay but on a capped wage figure of Rs 7,000 per month, or the notified minimum wage for your scheduled employment if that is higher. Eligibility itself stops at Rs 21,000 of monthly basic plus dearness allowance. On 25 August 2026 the Ministry of Labour and Employment notified the bonus eligibility and calculation rules under the Code on Wages, 2019, carrying both figures forward from the 2016 amendment to the Payment of Bonus Act, 1965. This article sets out the operative sections under both statutes, works through four real salary scenarios, explains the five-year infancy exemption under Section 16, the set-on and set-off mechanism, the Section 43B timing trap for employers, and the 30 November 2026 payment deadline for the accounting year ended 31 March 2026.

Standard Costing for Manufacturers: Bridging Product Costs and Transfer Pricing Under Section 92C

Manufacturers face a twin challenge: keeping product costs accurate via standard costing while simultaneously defending transfer prices to tax authorities. Section 92C demands robust documentation. Form 3CEB requires certified cost accounting records. This post shows how to make standard costing serve both objectives.

DPCO Compliance for Pharma: Cost Statement Format, Ceiling Price Reporting & NPPA Rules

The Drug Price Control Order (DPCO) 2013 mandates strict cost accounting and price declaration for pharma companies. We break down cost statement format, NPPA ceiling price calculations, and critical compliance deadlines.

Stock Audit for Bank Borrowers: RBI Guidelines, Ind AS 2 Valuation, and LFAR Findings

Banks require independent stock audits under RBI guidelines before releasing credit limits. This post covers RBI norms on stock and book debt valuation, Ind AS 2 compliance, and how LFAR findings impact borrower credibility and loan security.

EOU and IGCR Compliance: Duty-Free Imports Under Customs Rules 2017

Export Oriented Units (EOUs) are permitted to import capital goods, raw materials, and consumables without customs duty under the Customs (Import of Goods at Concessional Rate) Rules 2017. This concession is subject to strict compliance conditions and end-use verification by Customs authorities.

Customs Duty in India: BCD, IGST on Imports & the ITS Explained

Customs duty is not just a single levy--it's a layered system of Basic Customs Duty, additional duties, and IGST. Understanding the Integrated Tariff Schedule and how these duties interact is critical for importers, manufacturers, and NRIs bringing goods into India.

Anti-Dumping Duty in India: DGTR Investigation, Provisional vs Final Duty, and High Court Challenge

Anti-dumping duty protects Indian industry from cheap imports. The Directorate General of Trade Remedies (DGTR) conducts investigations that can result in provisional and final duties. Importers have legal grounds to challenge these findings at the High Court.

Section 54 Capital Gains Exemption: ₹10 Crore Cap, CGAS Deadline & Two‑House Rule

Section 54 lets you shelter long‑term capital gains from a residential house sale by reinvesting. Learn how the Finance Act 2023 ₹10 crore cap, the CGAS deposit deadline and the once‑only two‑house option shape your tax outcome.

Section 56(2)(x): When Family Gifts Trigger Tax in India

Section 56(2)(x) of the Income‑tax Act taxes gifts that exceed ₹50,000 unless the donor is a relative as defined by law. This article clarifies the full relatives list, common pitfalls, and planning steps for families and HUFs.

Section 87A Rebate on STCG: ITAT Jaipur Ruling Benefits Taxpayers (AY 2024‑25)

The ITAT Jaipur Bench has clarified that the Section 87A rebate is available on short‑term capital gains taxed under Section 111A for taxpayers who opted for the new tax regime. This article explains the ruling, who it helps, and how to contest a demand for AY 2024‑25.

Section 2(47A) Virtual Digital Asset Definition: NFTs, Stablecoins and CBDC Edge Cases

s.2(47A) ITA 1961 defines a VDA as any cryptographically generated token of value — expressly including NFTs — but not Indian/foreign currency, not RBI's e-Rupee, and not notified exclusions like gift cards. Stablecoins are likely VDAs, with no express CBDT exclusion.

P2P Crypto Trades and Foreign Exchanges: INR Conversion, RBI Rate and ITR Disclosure

31.2% applies to every P2P and foreign-exchange VDA sale — converted to INR at the trade-date RBI reference rate in Schedule VDA, with foreign-held VDAs disclosed in Schedule FA, and a FEMA angle on holding abroad that needs specialist review.

Schedule VDA in ITR-2: How to Report Bitcoin, Ethereum and Exchange P&L

30% plus 4% cess is the rate on every VDA gain reported in Schedule VDA of ITR-2 or ITR-3 — with type of VDA, acquisition date, transfer date, consideration, and cost in INR, not in Schedule OS or CG. The AIS shows gross sale consideration, so transaction-level disclosure is what reconciles.

Advance Authorisation under Foreign Trade Policy: Routes, SION Norms, and Closing Export Obligation

Advance Authorisation lets you import raw materials and components duty-free to manufacture and export finished goods. This guide covers the pre-import and post-import routes, SION norms, and the critical compliance rules for closing your export obligation.

Software Exports and SOFTEX Filing: STPI, FEMA 23(R), and the Non-Negotiable CA Certificate for Section 10AA

If you export software through an STPI unit, you cannot claim Section 10AA exemption without a Chartered Accountant certificate. This post explains SOFTEX filing, FEMA 23(R) compliance, and why the CA sign-off is legally mandatory, not optional.

EPCG Scheme: Zero-Duty Capital Goods Import & Export Obligation Calculator Under FTP 2023

The Export Promotion Capital Goods (EPCG) scheme lets exporters import capital goods at zero customs duty--but only if you fulfill your export obligation. This guide walks you through duty-free import eligibility, obligation calculation, and the penalties that hit hard when you fall short.

RBI Withdraws Seven ECB/MTSS Circulars – A.P. (DIR) No 21 Explained

The RBI has withdrawn seven outdated ECB and MTSS circulars via A.P. (DIR) Circular No 21. Learn how this affects your foreign borrowing, masala bond issuances, and money‑transfer service compliance, and what the current regulatory framework is.

FEM(NDI) Third Amendment Rules 2026: Who Can Now Invest in India

The FEM(NDI) Third Amendment Rules, 2026 open Schedule III of the FEM(NDI) Rules, 2019 to all non-resident individuals, not just NRIs and OCIs, letting them buy Indian listed shares through an Authorised Dealer bank instead of registering as a Foreign Portfolio Investor. Thresholds, the border-country safeguard, and what listed Indian companies must now track are explained below.

DPIIT Press Note 3 (2026): FDI Now Allowed in Export-Only E-Commerce

DPIIT Press Note 3 (2026 Series) permits 100% automatic-route FDI in inventory-based e-commerce entities, but only where the entity exclusively exports domestically manufactured goods. The carve-out is not yet FEMA-legal until the corresponding FEM (NDI) Amendment notification is confirmed in the Gazette of India.

GST FY 2022-23 Section 73 SCN Window Closed – What Taxpayers Need to Know

The deadline for issuing Section 73 Show‑Cause Notices for FY 2022‑23 expired on 30 September 2026. This article explains the impact on taxpayers, the difference with Section 74 and 76, and the actions you should take now.

DRC-01 Is Not an SCN: GSTAT 2026 Ruling on FY 2022-23 GST Demands

A September 2026 GSTAT ruling holds that Form DRC-01 is only a summary of a show cause notice under Section 73(1) of the CGST Act and cannot substitute it. With the deadline to issue valid FY 2022-23 SCNs falling on September 30, 2026, taxpayers should check whether their demand notices meet the statutory test.

GSTR-3B Table 4 ITC Locked from July 2026: What You Must Do

From July 2026, manual editing of ITC in GSTR-3B Table 4 is no longer allowed. Your eligible ITC is now auto-populated from GSTR-2B, which reflects only invoices your suppliers have filed in GSTR-1 and you have accepted via the Invoice Management System. Missing or rejected invoices mean no ITC claim—until suppliers file.

FCRA June 2026 Changes: FC-6F, Key Functionary Rules & ₹10L Trap

The Foreign Contribution (Regulation) Rules, 2011 were amended on 22 June 2026, widening the definition of "key functionary," introducing a ₹10 lakh utilisation threshold, and mandating Form FC-6F for every FCRA-registered organisation. Here is what changed, what deadlines apply, and what registered NGOs and trusts need to do now.

Form 10BD and 10BE: Donor Statements, May 31 Filing, Section 271K Penalty, and Donation Certificates

Not-for-profit organisations must file Form 10BD and 10BE by May 31 with detailed donor information. Miss the deadline and face Section 271K penalty. Here's what triggers penalties, how to compute them, and best practices for issuing donation certificates to maintain compliance.

CSR Compliance Under Section 135: The Rs.40 Lakh Threshold, Form CSR-2, and the 2% Unspent Transfer Rule

CSR compliance under Section 135 of the Companies Act 2013 is mandatory for companies crossing the Rs.40 lakh profit threshold. This post covers the 2% spend obligation, Form CSR-2 filing mechanics, and the new unspent transfer provisions that changed corporate philanthropy.

"Every foreign remittance needs a CA certificate": What ITA 2025 actually says

Walk into almost any bank branch in India with a request to remit money abroad and you will hear the same sentence: "Sir, you need 15CA and 15CB from a CA." It is stated as though it were a universal rule. It is not. A large share of outward remittances, including some of the most common ones NRIs make, require no CA certificate at all, and a meaningful number require nothing beyond a simple self-declaration. Since 1 April 2026 the forms have been renumbered: Form 15CA is now Form 145 and Form 15CB is now Form 146 under the Income-tax Act, 2025. This guide sets out the four-part structure of Form 145, the exact circumstances in which a CA certificate in Form 146 is genuinely mandatory, the specified purposes and LRS carve-out where no filing is needed at all, the aggregate Rs.5,00,000 tax-year threshold that catches people making several mid-sized remittances, and the penalty exposure under Section 201 when withholding goes wrong.

"Any LRS transfer above Rs.7 lakh attracts 20% TCS": What ITA 2025 actually says

Ask anyone remitting money out of India what the TCS rule is and you will hear the same sentence: anything above Rs.7 lakh attracts 20% TCS. It is wrong. The threshold has been Rs.10 lakh since 1 April 2025, education and medical remittances now attract a flat 2%, overseas tour packages attract 2% with no threshold at all, and the provision itself no longer sits where most people think it does — Section 206C(1G) of the Income-tax Act 1961 has been renumbered as Section 394(1) under the Income-tax Act 2025. This piece separates the two legal regimes that govern an outward remittance — FEMA and the LRS USD 250,000 annual ceiling on one side, income tax and TCS on the other — and works through what each actually costs. It covers the cumulative nature of the Rs.10 lakh threshold across banks, the education loan route that reduces TCS to nil, why TCS is a refundable credit rather than a tax, the redesignation trap for returning NRIs who use the wrong route, and a nine-step compliance sequence for getting a remittance out of India correctly.

NRE vs NRO vs FCNR: FEMA Account Matrix for NRI, OCI and Returning Residents

Foreign salary belongs in an NRE account — its interest is exempt under s.10(4) and the balance is freely repatriable — while NRO accounts, funded by Indian rent and dividends, suffer 30% TDS on interest and limit repatriation to USD 1 million a year. FCNR holds foreign currency deposits with no exchange risk.

Financial Projections for Fundraising: 3-Statement Model, Ind AS 115 Revenue Recognition & Board Approval Under Section 179

Fundraising demands credible 3-statement projections: P&L, balance sheet, and cash flow. Investors scrutinize revenue recognition under Ind AS 115, debt capacity, and working capital. Board approval under Section 179 is mandatory, not optional.

MIS Reporting for Growing Businesses: P&L, Cash Flow & KPI Dashboards

Growing businesses live and die by visibility. Management Information Systems (MIS) reporting transforms raw financial data into dashboards that drive decisions. Learn what your P&L, cash-flow, and KPI dashboards should track, and how Ind AS schedules integrate into monthly management accounts.

CMA Report for Bank Credit: What Banks Look for in Form CMA and How to Prepare a Winning DPR

Banks don't lend on hope. The Composite Management Account (CMA) is the backbone of any credit appraisal. This post explains what banks actually scrutinise in Form CMA and how a CA structures a defensible DPR (Detailed Project Report) for project finance.

Income Tax for Resident Welfare Associations: Mutuality, Exemptions, and ITR-5 Filing

Resident Welfare Associations operate under the mutuality principle under Section 2(24) of the Income Tax Act. Learn which RWA income is exempt, exemption limits, and when ITR-5 filing becomes mandatory.

TDS Obligations for RWAs: Section 194C & 194J, and Monthly Form 26Q Filing

Residential Welfare Associations often overlook their TDS filing duties. This post covers Section 194C on maintenance contractor payments, Section 194J on professional fees, and the critical monthly Form 26Q deadline--with compliance checklists for RWA treasurers and accountants.

GST on RWA Maintenance Charges: The Rs.7,500 Threshold and ITC Compliance

Residential Welfare Associations collecting maintenance charges under Rs.7,500 per member per month enjoy GST exemption under Notification 12/2017-CT(R). But the threshold is strict, ITC reversal rules bite hard, and GSTR-1 disclosure matters. Here's how to stay compliant.

Copyright Registration Under Section 44 of the Copyright Act 1957: Why Software Companies Need It

Copyright registration under Section 44 of the Copyright Act 1957 provides statutory evidence of ownership and is essential for software companies enforcing IP rights. We explain what qualifies for registration, the procedure, and why it matters for your business.

Trademark Objection Reply Under Rule 45: Common Grounds and Winning Strategies

A trademark objection under Rule 45 of the Trade Marks Rules 2017 is not a death sentence for your application. The Trademark Registry issues objections on specific grounds--many of which are defensible with solid evidence and case law. Learn how to draft a response that actually persuades the examiner.

IP Due Diligence in M&A: Valuing Trademarks, Checking Encumbrances & Schedule III Disclosures

In M&A transactions, intellectual property due diligence is non-negotiable. Here's how to value trademarks, spot encumbrances, and comply with Schedule III disclosure rules under the Companies Act 2013.

JDA landowner tax: when the ₹0-till-CC deferral holds, and when it doesn't

The 70%-account: a CA certificate every withdrawal, an audit every year

Pre-launch = ₹1 in every ₹10: the RERA penalties builders keep underestimating

FCNR(B) Deposits Under RBI Swap Facility: Why NRIs Have Until August 31 to Lock In Elevated Rates

The Reserve Bank of India confirmed on August 14, 2026 that its USD-INR Forex Swap Facility will close its FCNR(B) channel for new deposits on August 31, 2026. NRIs with idle foreign currency must act before this date to lock in elevated rates — supported by RBI's swap hedge — for up to 5 years. Interest on FCNR(B) deposits is exempt from Indian income tax under Section 10(4)(ii) of the Income-tax Act, 2025 for NRI and RNOR account holders.

"Just sell and rebuy on March 31 to reset your gains": What ITA 2025 actually says about capital gains harvesting

Every February the same message circulates in NRI investor groups: sell your equity funds on March 30, book Rs.1.25 lakh of long-term gains tax-free, buy back on March 31, and you have reset your cost base for free. The strategy is real. The way most people describe it is wrong on three separate counts. The Rs.1.25 lakh LTCG exemption under ITA 2025 is an aggregate per taxpayer per tax year, not per folio, per demat account or per sale. India genuinely has no wash-sale rule for listed securities, so the sell-and-rebuy gap is legal, but the repurchase restarts the 12-month holding clock at zero. And for NRIs specifically, a TDS layer sits between the sale proceeds and the bank account that resident investors never encounter: the AMC deducts on the computed gain without knowing your exemption headroom, so tax is collected first and refunded a year later. The entire strategy is capped at Rs.15,625 of annual benefit. This article sets out what the law says, what the TDS arithmetic does to NRI portfolios, and a nine-step process to execute it correctly before Tax Year 2026-27 closes.

"Book ₹1.25 lakh of gains every year and pay zero tax": What ITA 2025 actually says

Every February the same message circulates: sell shares worth ₹1.25 lakh of profit before 31 March, buy them back the next morning, and you have legally erased that tax forever. The strategy is real and legal — but the people repeating it get three things wrong that cost more than the tax saved. India has no general wash-sale rule for harvesting gains; Sections 94(7) and 94(8) target dividend and bonus stripping only, and GAAR needs a ₹3 crore benefit before it bites. The ₹1.25 lakh exemption under Section 112A is per PAN per tax year, not per demat account — three brokers does not mean ₹3.75 lakh. And for NRIs the AMC deducts TDS under Section 195 without applying the exemption at all, locking up the refund for 9 to 15 months. This piece sets out the exact arithmetic, the assets the exemption does not cover, and a nine-step execution sequence under ITA 2025.

"I'll just park it in NHAI bonds": What Section 54EC actually says in 2026

Almost every property seller says the same sentence: "I'll put the gain into NHAI bonds and the tax goes away." Two things are wrong with it. NHAI stopped issuing capital gains bonds years ago, so the instrument no longer exists. And the relief itself is capped, time-bound, and structured in a way that quietly disqualifies a large share of the people who assume they qualify. This article sets out what Section 54EC actually covers under the Income Tax Act 2025 — why only land and building gains qualify, why the Rs.50 lakh ceiling now spans two Tax Years rather than one, why the six-month window runs from the date of transfer and not from the date consideration is received, and why the five-year lock-in cannot be broken even by pledging the bonds. It also covers the issuers still in the market — REC, PFC and IRFC, all at 5.25% with fully taxable interest — and the specific Section 195 withholding problem that strands NRI sellers' liquidity before they can fund the investment, plus the Section 197 certificate that solves it.