Income tax, GST and company law

23/03/2026

23/03/2026

📢 BIG AWARENESS ALERT for ALL Taxpayers – Supreme Court Steps In on Employees’ PF/ESI Contribution Controversy!

Namaste Everyone,

This message is not just for my clients – it is for awareness to every taxpayer, company, firm, and professional who is facing (or has already faced) huge Income Tax demands due to late deposit of employees’ PF & ESI contributions. Please forward it widely in your business groups, CA circles, and industry associations so maximum people can benefit.

Landmark Development – Supreme Court Order dated 27-01-2026
WOODLAND (AERO CLUB) PRIVATE LIMITED DIRECTOR
Vs.
ASSISTANT COMMISSIONER OF INCOME TAX
Petition for Special Leave to Appeal (C) No.1532/2026
(Arising out of Delhi High Court ITA No.267/2023 dated 08-09-2025)
Supreme Court of India
(Bench: Hon’ble Mr. Justice J.B. Pardiwala & Hon’ble Mr. Justice Sandeep Mehta)

The Supreme Court has issued notice (returnable in 4 weeks) after recording the two completely conflicting views of various High Courts on whether employees’ PF/ESI contribution can be claimed as deduction if deposited before ITR due date u/s 139(1) or only by the strict PF due date (15th + 5 days grace).

This means the apex court is now seized of the matter and will finally settle the law for the entire country. Thousands of taxpayers are sitting on massive disallowances, interest & penalties – this order brings real hope and relief.

Key Previous Decisions Recorded by Supreme Court:
Strict View (Revenue favourable – No deduction if late):

Madras High Court – Unifac Management Services (India) (P.) Ltd. v. Dy. CIT [2018] 409 ITR 225 (Mad.) dated 2018
Gujarat High Court – CIT v. Gujarat State Road Transport Corp. [2014] 366 ITR 170 (Guj.) dated 2014
Assessee-Friendly View (Deduction allowed if paid before ITR filing):

Delhi High Court – CIT v. Aimil Ltd. [2010] 321 ITR 508 (Delhi) dated 2010
Delhi High Court – Pr. CIT v. Plamman HR (P) Ltd., ITA No.170 of 2018 dated 12-02-2018
(The Delhi High Court in the present case followed the strict view – now Supreme Court will decide finally.)

Practical Tips & Solutions for Everyone (Act Immediately):

A. If your appeal is still pending (CIT(A) / ITAT / High Court):
→ File a short application citing this SLP No.1532/2026 and request to keep the appeal in abeyance till Supreme Court decides. Demand stay can also be requested.

B. If demand is already raised but not paid:
→ Do NOT pay disputed demand blindly. Reply to notice/letter citing this pending Supreme Court matter and ask for stay of demand.

C. Special Solution for Assessees who are NOT in appeal and have ALREADY DEPOSITED the entire demand:
Even in such cases, you still have options once Supreme Court gives its final judgment (expected soon):

Immediately after favourable SC verdict, file Rectification Application u/s 154 before the Assessing Officer – the SC judgment will make the earlier disallowance a “mistake apparent from record”.
Simultaneously file a letter/application u/s 264 before the Principal Commissioner of Income Tax for revision and refund with interest u/s 244A.
Preserve all old assessment orders, challans of demand paid, and PF/ESI deposit proofs.
If AO rejects, you can still approach High Court under Article 226 for directions to refund.
Many taxpayers have successfully got refunds in similar past cases (e.g. after Supreme Court rulings on other issues). Do not lose hope – just keep records ready.
D. General Tips for All:
→ Keep ready PF/ESI challans showing actual deposit dates.
→ Share this SLP number with your CA immediately.
→ I will personally update everyone as soon as the next Supreme Court hearing date or final judgment comes.

This one decision can wipe out lakhs and crores of wrongful demands across India. Please share widely – awareness is the first step to relief.

Stay blessed & tax-compliant!

FCA B.P. Mundra
Happiness Thinker
(Chartered Accountant)
Jaipur

25/02/2026

Subject: Important: One-Time Settlement Scheme for MCA Pending Filings – CCFS 2026

Dear Valued Client,

The Ministry of Corporate Affairs (MCA) has recently issued General Circular No. 01/2026, introducing a significant relief measure titled the “Companies Compliance Facilitation Scheme, 2026 (CCFS-2026).” This scheme is a one-time opportunity for companies to regularize any pending statutory filings (Annual Returns and Financial Statements) at a fraction of the usual cost, providing relief from the steep additional fees of ₹100 per day that have been applicable since 2018.

Key Highlights of the Scheme:
Effective Period: The scheme will be active from 15th April 2026 to 15th July 2026.

Reduced Additional Fees: You can file pending annual documents by paying only 10% of the applicable additional fees.

Amnesty for Inactive Companies:

Dormancy: Apply for “Dormant Company” status (MSC-1) at 50% of the normal fee.

Strike-Off: Opt for voluntary closure (STK-2) by paying only 25% of the filing fee.

Immunity from Prosecution: Companies availing this scheme will receive immunity from penal proceedings and penalties related to the delay in filing these specific forms.

Eligible Forms include:
Annual Filings: MGT-7, MGT-7A, AOC-4 (and variants).

Others: ADT-1 (Auditor Appointment), FC-3, FC-4, and several forms under the Companies Act, 1956.

Our Recommendation:
We strongly advise all companies with overdue filings or those that are currently inactive to utilize this three-month window to clean up their compliance records. Post-scheme, the MCA has directed Registrars (RoCs) to take strict action against defaulting entities.

Kindly review your company's current filing status to determine if you can benefit from this scheme?

Best regards,
FCA BPMUNDRA 9314501680
[email protected]

17/01/2026

Subject: Legal Alert – SC Judgment in Tiger Global Case (Jan 15, 2026)
Hi Team,
The Supreme Court has just redefined the landscape for foreign PE/VC investments in India with its judgment in the Tiger Global-Flipkart tax matter.
Key Takeaways:
• Tax Liability Confirmed: The sale of Flipkart (Singapore) shares to Walmart in 2018 is taxable in India.
• GAAR is King: The court ruled that GAAR (General Anti-Avoidance Rules) applies here. It essentially stated that treaty benefits under the India-Mauritius DTAA cannot be used as a shield for "impermissible tax avoidance."
• TRC Scrutiny: Holding a Tax Residency Certificate (TRC) no longer provides a "safe harbor" if the tax authorities can prove the entity lacks economic substance in that jurisdiction.
• The "Conduit" Test: The court noted that because the "head and brain" (decision making) was in the US, the Mauritius entities were merely conduits.
Market Impact:
This sets a massive precedent. Tax authorities may now revisit other "grandfathered" exits where structures are perceived as lacking substance. We should expect increased scrutiny on all future M&A and exit strategies involving offshore holding companies.
Estimated Tax Demand: Reported to be approx. ₹14,500 – ₹15,000 Crore. FCA BPMUNDRA

07/11/2025

Q. How can taxpayers reduce their tax liability on income from house property legally?

FCA BPMUNDRA said:
Here’s a **comprehensive guide** on how taxpayers can **legally reduce their tax liability on income from house property** under the **Income-tax Act, 1961**:

**🏠 1. Claim Standard Deduction u/s 24(a)**
* Every taxpayer is eligible for a **standard deduction of 30%** on the **Net Annual Value (NAV)** of the property.
* This deduction is **automatic** and available **irrespective of actual expenses** on maintenance, repair, or collection.
* **Example:** If rent after municipal taxes is ₹5,00,000, deduction = ₹1,50,000 (30%).

**💸 2. Deduction of Interest on Home Loan – Section 24(b)**
* **For self-occupied property:** Interest on borrowed capital is deductible up to **₹2,00,000 per annum** (if loan is for acquisition/construction and completed within 5 years).
* **For let-out property:** The **entire interest** is deductible (no upper limit), though the **overall loss from house property** that can be set off against other heads is limited to **₹2,00,000** in a year (balance can be carried forward 8 years).
* Interest paid during **pre-construction period** can also be claimed in **five equal installments** starting from the year of completion.

**🧾 3. Municipal Taxes Deduction**
* **Actual municipal taxes paid by the owner** during the year are deductible while calculating the annual value.
* Ensure the taxes are paid (not just due) to claim the deduction.

**🏘️ 4. Joint Ownership and Loan**
* If the property and the loan are **jointly held**, both co-owners can claim:Standard deduction (30% of their share),Interest deduction u/s 24(b), andPrincipal repayment deduction u/s 80C (up to ₹1,50,000 each).
* This can effectively **double the benefits** if both have sufficient income.

**📈 5. Claim Principal Repayment u/s 80C**
* The **principal portion** of home loan EMI qualifies for deduction under **Section 80C** (up to ₹1,50,000).
* Available only if the property is **not sold within 5 years** from possession.

**🏗️ 6. First-Time Home Buyer Benefits**
**(a) Section 80EE**
* Deduction up to **₹50,000** for interest on loan taken for first house (loan sanctioned between 01.04.2016 to 31.03.2017).
**(b) Section 80EEA**
* Additional deduction up to **₹1,50,000** for first-time buyers (loan sanctioned between 01.04.2019 to 31.03.2022; house value ≤ ₹45 lakh).

**🏢 7. Choose Self-Occupied vs Let-Out Wisely**
* If owning **two houses**, both can be treated as **self-occupied** (since AY 2020-21) — no deemed rental income for the second house.
* Additional houses are deemed to be let out, and **notional rent** becomes taxable — plan ownership accordingly.

**🧮 8. Set-Off and Carry Forward of Loss**
* Loss under “Income from House Property” (mainly due to interest) can be:Set off against other heads (salary, business, etc.) up to **₹2,00,000** in the same year, and**Carried forward for 8 years** to be set off against future house property income.

**💰 9. Letting Out to Family**
* If the property is **actually let out** to a family member (at a reasonable rent), income will be taxable as per actual rent, not notional.
* This can help claim full interest deduction while maintaining family benefit — but must be genuine with rent receipts and bank transactions.

**🏦 10. Choose Old Tax Regime**
* Under the **new tax regime (Section 115BAC)**, **most deductions** (interest on self-occupied property, 80C, etc.) are **not available**.
* Hence, taxpayers with home loans often benefit more under the **old regime**

07/11/2025

Q. If I receive income from a foreign client directly via PayPal as freelance income for giving services, is it necessary to disclose in foreign assets in schedule FA?
No — **you do not need to report such PayPal receipts in Schedule FA**, provided the following conditions are met:

**✅ 1. Nature of Income**
If you are a **freelancer providing services to a foreign client**, and the payment is received **in India through PayPal** (which credits the amount to your Indian bank account, even if routed via an intermediary foreign entity like PayPal’s U.S. server), then:
* It is **foreign-sourced income**, but **not a “foreign asset.”**
* What you must disclose is the **income in your ITR (Schedule FSI and Schedule TR, if applicable)**, **not in Schedule FA**.

**🚫 2. Schedule FA (Foreign Assets) applies only if you hold:**
* A **foreign bank account** (outside India)
* **Foreign financial interest** (e.g., shares, mutual funds, stock options in foreign entities)
* **Foreign trusts**, **foreign insurance policies**, or
* **Foreign virtual currency or digital asset accounts**
PayPal accounts **linked to an Indian bank account** and denominated in INR **do not qualify** as a “foreign financial account” under Schedule FA.

**💡 3. Key Clarification (CBDT & Practical View)**
The **CBDT’s FAQs and expert opinions** clarify that:
>“A PayPal account used only as a payment gateway for receiving export proceeds into an Indian bank account does not constitute a foreign asset.”
However, if you **maintain a PayPal balance abroad** (e.g., in USD, not transferred to India for months, earning interest or investment returns), that could be viewed as a **foreign financial interest** and may need to be reported under “Foreign Custodial Accounts.”

**🧾 4. How to Report Income**
* Show this income as **“Income from Profession / Business”** under **Schedule BP**.
* If tax is deducted abroad, you can report the **foreign tax credit (FTC)** in **Schedule FSI & TR**.
* Convert receipts to INR using the **telegraphic transfer (TT) buying rate** of the RBI on the date of receipt.

**⚠️ 5. When Schedule FA Becomes Applicable**
You must disclose in Schedule FA **only if**:
* You hold **foreign PayPal or other payment platform balance** not automatically settled to Indian accounts; or
* You maintain **accounts with Payoneer, Wise, or foreign banks** directly in foreign currency

25/02/2025

FCA BPMUNDRA 9314501680 [email protected]

क्या आयकर नोटिस 148 को इशू का नोटिस धारा 149 के अनुसार उस समय माना जाएगा जब वह नोटिस धारा 282 रूल 127 के प्रावधान के अंतर्गत प्रिसक्राइब्ड मोड ऑफ सर्विस पुरी की जाए। दिल्ली हाई कोर्ट ने 21 फरवरी 2025 मारुति सुजुकी की अपील को स्वीकार करते हुए धारा 148 में इशू नोटिस को इस आधार पर रद्द कर दिया कि नोटिस भले ही 31 मार्च 2016 को डिजिटल साइन हो गया लेकिन इश्यू 1 अप्रैल 2016 time barred होने के बाद को हुआ।
Section 148, Section 282, Section 127, Section 149, time barred, notice, Delhi High Court, Quash, Quashed, Annulled

To get full order kindly click the link
https://www.bpmundraca.com/2025-02-25-148-notice-quash/

IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment reserved on: 18 October 2024
Judgment pronounced on 21 February, 2025
W.P.(C) 9786/2016 MARUTI SUZUKI INDIA LTD. versus DCIT
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE RAVINDER DUDEJA

Thus, it is apparent from the aforesaid decisions that the issuance of notice under section 149 is complete only when the same is issued in the manner as prescribed under section 282 read with rule 127 of the Income-tax Rules prescribing the mode of service of notice under the Act. The signing of notice would not amount to issuance of notice as contemplated under section 149 of the Act. In other words, the requirement of issuance of notice under section 149 is not mere signing of the notice under section 148, but is sent to the proper person within the end of the relevant assessment year.. .

Reliance was placed on decision HIGH COURT OF ALLAHABAD Daujee Abhushan Bhandar (P.) Ltd. v. Union of India Surya Prakash Kesarwani AND JAYANT BANERJI, JJ. WRIT TAX No. 78 of 2022 MARCH 10, 2022 Section 149, read with section 148, of the Income-tax Act, 1961 - Income escaping assessment - Time-limit for issuance of notice (General) - Assessment year 2013-14 - Whether mere digitally signing a notice is not issuance of notice and point of time when a digitally signed notice in form of electronic record is entered in computer resources outside control of originator, i.e., Assessing Officer, that shall be date and time of issuance of notice under section 148 read with section 149 - Held, yes - Assessee filed its return and assessment was completed accordingly - Subsequently, a notice under section 148 digitally signed by Assessing Officer was sent to assessee through e-mail and e-mail was received by assessee on his registered e-mail ID on 6-4-2021 - Assessee submitted that reassessment notice was issued on 6-4-2021 whereas limitation for issuing notice under section 148 read with section 149 expired on 31-3-2021 and, thus, notice was time-barred - Said objection was rejected on ground that since notice was digitally signed by Assessing Officer on 31-3-2021, it would be deemed to have been issued within time, i.e., on 31-3-2021 - Whether since impugned notice under section 148 was issued to assessee on 6-4-2021 through e-mail, impugned notice under section 148 was time-barred and consequently, it was to be quashed - Held, yes [Paras 22-30] [In favour of assessee]

मानवता से काम करें मन के सारे काम अपने आप हो जायेंगे