Tag: Income Tax
by Loss under the head ‘Income from House Property’ [Sec. 110]
Section 110 of the Income-tax Act, 2025 deals with the carry forward and set-off of loss under the head “Income from House Property.” Where such loss cannot be wholly adjusted against income of the relevant tax year under the applicable set-off provisions, the unadjusted amount may be carried forward to subsequent tax years. The carried-forward loss can be set off only against income from house property, subject to the prescribed conditions and time limit. This provision ensures that eligible unabsorbed house-property losses receive tax adjustment in future years.
1. Meaning of House Property Loss
A loss from house property arises when the deductions allowable while computing income from a house property exceed its taxable annual value. An important reason for such loss may be the deduction available for interest on borrowed capital, subject to the applicable provisions and limits. Where an assessee owns more than one property, income and loss from different house properties are first considered according to the applicable intra-head set-off rules. If the final computation under the head results in a loss, it may be adjusted in the current year to the extent permitted. The remaining unabsorbed amount is governed by Section 110.
2. Carry Forward of Unabsorbed Loss
Where a loss computed under Income from House Property cannot be wholly set off during the relevant tax year, Section 110 permits the remaining loss to be carried forward to subsequent tax years. The provision ensures that an eligible house-property loss is not permanently lost merely because sufficient taxable house-property income is unavailable in the year in which the loss arises. The carried-forward amount retains its character as a house-property loss and is governed by the specific restrictions prescribed under the Act. It can subsequently be adjusted only in the manner authorised by Section 110, thereby reducing eligible future house-property income.
3. Set-off in Subsequent Years
A house-property loss carried forward under Section 110 can be set off in a subsequent tax year against income chargeable under the head “Income from House Property.” It cannot be adjusted against salary, business income, capital gains or income from other sources merely because those incomes are available in the later year. This restriction distinguishes the treatment of carried-forward loss from certain current-year set-off rules. The amount set off in each subsequent year is limited to the available taxable income from house property. Any balance remaining after such adjustment may continue to be carried forward, provided the prescribed carry-forward period has not expired.
4. Period of Carry Forward
Under Section 110, an eligible unabsorbed loss from house property may be carried forward for eight tax years immediately succeeding the tax year for which the loss was first computed. During this period, the loss may be adjusted against available income under the head Income from House Property. If only part of the loss is absorbed in a particular year, the remaining eligible amount may continue to be carried forward within the prescribed period. After the expiry of the permitted period, any unadjusted balance cannot ordinarily be carried forward further. Therefore, maintaining proper year-wise records of losses and set-off is important for tax computation.
illustration
Suppose an assessee has a house-property loss of ₹4,00,000. Assume ₹2,00,000 is eligible for adjustment during the current year and the balance remains unabsorbed.
| Particulars | Amount (₹) |
|---|---|
| Loss under Income from House Property | 4,00,000 |
| Less: Current-year eligible set-off | (2,00,000) |
| Loss carried forward under Section 110 | 2,00,000 |
If the assessee earns ₹1,50,000 from house property in the next year:
| Particulars | Amount (₹) |
|---|---|
|
Income from House Property |
1,50,000 |
|
Less: Brought-forward House Property Loss |
(1,50,000) |
|
Taxable House Property Income |
Nil |
|
Balance Loss carried forward |
50,000 |
illustrations on Computation of Income from other Sources
Illustration 1 – Dividend, Interest and Family Pension
Mr. A received dividend of ₹80,000, interest on securities of ₹60,000 and family pension of ₹1,20,000 during the tax year. Assume an allowable deduction of ₹30,000 from family pension under the applicable provisions.
| Particulars | Amount (₹) |
|---|---|
| Dividend Income | 80,000 |
| Interest on Securities | 60,000 |
| Family Pension | 1,20,000 |
| Less: Allowable Family Pension Deduction | (30,000) |
| Taxable Family Pension | 90,000 |
| Income from Other Sources | 2,30,000 |
Therefore, taxable Income from Other Sources = ₹2,30,000.
illustration 2 – Lottery Winnings
Ms. B won ₹5,00,000 from a lottery. She spent ₹20,000 on purchasing lottery tickets and ₹10,000 on other related expenses. Under Section 94, expenditure or allowance relating to lottery winnings is not deductible.
| Particulars | Amount (₹) |
|---|---|
| Gross Lottery Winnings | 5,00,000 |
| Less: Cost of Lottery Tickets | Nil |
| Less: Other Related Expenses | Nil |
| Taxable Income from Lottery | 5,00,000 |
Therefore, ₹5,00,000 is taxable under Income from Other Sources. The ₹30,000 expenditure cannot be deducted.
illustration 3 – Interest on Securities
Mr. C received ₹1,50,000 as interest on securities held as investments. Assume he incurred ₹10,000 of expenditure that qualifies for deduction under the applicable provisions.
| Particulars | Amount (₹) |
|---|---|
| Gross Interest on Securities | 1,50,000 |
| Less: Eligible Deduction | (10,000) |
| Taxable Interest Income | 1,40,000 |
Thus, ₹1,40,000 will be included in Income from Other Sources, assuming the ₹10,000 expenditure satisfies all statutory conditions for deduction.
illustration 4 – Taxable Gift
Mr. D receives ₹90,000 in cash from a non-relative without consideration. Assume the receipt satisfies the statutory conditions for taxation and no exemption for a specified occasion or circumstance applies.
| Particulars | Amount (₹) |
|---|---|
| Money received without consideration | 90,000 |
| Less: Exempt amount | Nil |
| Taxable Gift | 90,000 |
Since the applicable conditions for taxation are satisfied, the taxable amount of ₹90,000 is included under Income from Other Sources.
illustration 5 – Letting of Machinery
Mr. E lets out machinery and receives ₹2,40,000 during the year. He incurs ₹20,000 on repairs, ₹10,000 on insurance and ₹30,000 as other expenditure. Assume all these expenses are specifically allowable under the applicable provisions.
| Particulars | Amount (₹) |
|---|---|
| Income from letting of machinery | 2,40,000 |
| Less: Repairs | (20,000) |
| Less: Insurance | (10,000) |
| Less: Other allowable expenditure | (30,000) |
| Taxable Income | 1,80,000 |
Therefore, taxable Income from Other Sources = ₹1,80,000.
illustration 6 – Comprehensive Computation
Mr. F has the following receipts during the tax year:
| Particulars | Amount (₹) |
|---|---|
| Dividend | 1,00,000 |
| Interest on Securities | 75,000 |
| Family Pension | 1,50,000 |
| Lottery Winnings | 2,00,000 |
| Taxable Gift | 80,000 |
Assume an allowable family-pension deduction of ₹30,000 and no other deduction.
Computation
| Particulars | Amount (₹) |
|---|---|
| Dividend Income | 1,00,000 |
| Interest on Securities | 75,000 |
| Family Pension | 1,50,000 |
| Less: Family Pension Deduction | (30,000) |
| Taxable Family Pension | 1,20,000 |
| Lottery Winnings | 2,00,000 |
| Taxable Gift | 80,000 |
| Income from Other Sources | 5,75,000 |
Hence, Mr. F’s Income from Other Sources is ₹5,75,000. The lottery income remains included in the total, although its tax treatment/rate may be governed by special provisions.
Expenditures Allowed as Deduction: Rent, Rates, Taxes, Repairs and Insurance for Building [Sec. 28], Repairs and Insurance of Machinery, Plant and Furniture [Sec. 28]
Section 28 of the Income-tax Act, 2025 permits deduction of specified expenses relating to premises, machinery, plant, or furniture used for business or profession. These include insurance premium, rent, local taxes, and current repairs, provided they are revenue in nature and not capital expenditure. Where an asset is only partly used for business, the deduction is proportionately restricted based on actual business usage, as determined by the Assessing Officer.
1. Rent, Rates, Taxes, Repairs and Insurance for Building [Sec. 28(1)(a)-(e)]
Under Section 28(1), deduction is allowed for expenses relating to premises used for business or profession. This covers insurance premium paid against risk of damage or destruction [clause (a)], land revenue, local rates or municipal taxes paid [clause (b)], and rent paid where the assessee occupies the premises as a tenant [clause (c)]. Further, current repairs to the premises are deductible — where the assessee is not a tenant, under clause (d); and where the assessee is a tenant who has contractually undertaken the cost of repairs, under clause (e). All such expenditure must be revenue, not capital, in nature.
2. Repairs and Insurance of Machinery, Plant and Furniture [Sec. 28(1)(f) r/w (a)]
Section 28(1)(f) allows deduction for amounts paid towards current repairs to machinery, plant, or furniture, provided such expenditure is not capital in nature — for instance, ordinary maintenance restoring the asset’s existing condition rather than creating a new advantage or asset. Additionally, insurance premium paid against risk of damage or destruction of machinery, plant, or furniture is deductible under clause (a), applied jointly with premises. Where such assets are only partly used for business purposes, Section 28(2) restricts the deduction to the fair proportionate part attributable to business use, as assessed by the Assessing Officer.
TDS and ITR Filing Bangalore University 5th Semester BBA Notes
| Unit 1 | |
| Permanent Account Number (PAN), Features and Provisions | VIEW |
| Utility of PAN | VIEW |
| Transactions in which quoting of PAN is Mandatory Eligible Person Sec 262(1) | VIEW |
| Get New e-PAN | VIEW |
| Application for PAN Online/Offline | VIEW |
| Downloading of e-PAN | VIEW |
| Corrections in PAN | VIEW |
| Linking of PAN and Aadhaar Sec 139 A & 139 B | VIEW |
| Registering PAN in E-Filing Portal | VIEW |
| Unit 2 | |
| Income Tax Returns (ITR) | VIEW |
| E-Filing 263(2) | VIEW |
| Requirement of Filing ITR [Section 263(1)] | VIEW |
| E-Filing 139D | VIEW |
| Requirement of Filing ITR [Section 139(1)]- Due Date of Filing of ITR | VIEW |
| Applicability of Form ITR-1 | VIEW |
| Applicability of Form ITR-2 | VIEW |
| Applicability of Form ITR-3 | VIEW |
| Applicability of Form ITR-4 | VIEW |
| Applicability of Form ITR-5 | VIEW |
| Applicability of Form ITR-6 | VIEW |
| Applicability of Form ITR-7 | VIEW |
| Types of Returns, Original Return Sec. 263(1), Regular ITR, Revised ITR, Belated Return, Updated Returns 139(8a), Defective Return Sec. 264 | VIEW |
| Provisions Relating to Updated Returns including Interest and Penalties | VIEW |
| Unit 3 | |
| Introduction to the Concept of TDS | VIEW |
| Advance Tax | VIEW |
| Applicability of TDS Sec 392 | VIEW |
| Applicability of TDS Sec 393 | VIEW |
| Provisions In Brief Relating to Advance Payment of Tax | VIEW |
| Quarterly Filing of TDS Returns | VIEW |
| Prescribed forms for Filing of TDS Returns (From 138, 140, 141) | VIEW |
| Acknowledgement for TDS Form 130, 131 | VIEW |
| Exemption from TDS Form 128, 121 | VIEW |
| Unit 4 | |
| Income Tax Portal | VIEW |
| Practical Exposure to the Income Tax e-Filing Portal Covering PAN Services | VIEW |
| Prerequisites for TDS and ITR | VIEW |
| Preparation of Electronic Returns | VIEW |
| ITR Filing Online | VIEW |
| TDS Compliance | VIEW |
| Electronic Submission of Returns Using Sample Data | VIEW |
Direct Taxation Bangalore University 5th Semester BBA Notes
| Unit 1 | |
| Taxation, Basic Reasons to Impose Taxation | VIEW |
| Constitutional Validity of Taxes | VIEW |
| Administration of Tax Laws | VIEW |
| Component of Income Tax Law in India | VIEW |
| Basic Principles for Charging Income Tax [Sec. 4] | VIEW |
| Tax Year [Sec 3] | VIEW |
| Assessee [Sec 2(7)] | VIEW |
| Capital Asset 2(22) | VIEW |
| Person [Sec 2 (77)] | VIEW |
| Income [Section 2(24)] | VIEW |
| Heads of Income [Sec 14] | VIEW |
| Gross Total Income (GTI) [Sec. 122], Total Income (TI) [Sec. 2(108) read with section 122] | VIEW |
| Distinguish between Gross Total Income and Taxable Income | VIEW |
| Rounding-off of total income [Sec. 516] | VIEW |
| Capital Receipts -vs.- Revenue Receipts | VIEW |
| Rate of Tax Under Old Tax Regime / Regular Tax Regime | VIEW |
| Rate Of Tax Under Default Tax Regime (New Regime) U/S 202 | VIEW |
| Double Taxation Avoidance Agreement (DTAA) | VIEW |
| Residential Status and Scope of Total Income | |
| Determination of Residential Status | VIEW |
| Residential Status, Individual [Sec. 6(2)] to [Sec. 6(8)] | VIEW |
| Hindu Undivided Family (HUF) [Sec. 6(9)] | VIEW |
| Company [Sec. 6(10)] | VIEW |
| Firm or an Association of Persons (AOP) or Body of Individuals (BOI) or Any other Person [Sec. 6(11) | VIEW |
| Resident and Ordinary Resident [Sec. 6(13)] | VIEW |
| Illustrations only on Individual Incidence of Tax [Sec. 5] | VIEW |
| Unit 2 | |
| Basic Elements of Salary | VIEW |
| Employer-Employee Relationship | VIEW |
| Basis of Charge [Sec. 15] | VIEW |
| Definition of Salary [Sec. 16] | VIEW |
| Deduction from Salary [Sec. 19] | VIEW |
| Perquisite [Sec. 17] | VIEW |
| Income Not be included in the Total Income [Schedule III and Sec 11] | VIEW |
| Computation of Taxable Salary | VIEW |
| Illustrations including deduction of Retirement Benefits | VIEW |
| Employee Stock Option Plans (ESOPs) | VIEW |
| Income from House Property | |
| Chargeability [Sec. 20] | VIEW |
| Determination of Annual Value [Sec. 21], Property -Self-occupied property Deemed to be let out Property, Property not actually occupied by the Owner, Partly let out and partly Self-occupied Property, Computation of Income | VIEW |
| Recovery of Arrears of Rent and Unrealized Rent | VIEW |
| Deduction’s u/s 22 – a) Standard Deduction b) Interest on Borrowed | VIEW |
| Capital Treatment of Pre and Post Construction | VIEW |
| Interest Computation of Income from House Property, Property owned by co-owners | VIEW |
| Unit 3 | |
| Meaning of Business 2(20), Definition of Profession 2(86) | VIEW |
| Income Chargeable under the Head Profits and Gains of Business or Profession [Sec. 26] | VIEW |
| Incomes not Taxable under the Head Profits and Gains of Business or Profession [Sec. 27] | VIEW |
| Expenditures Allowed as Deduction: Rent, Rates, Taxes, Repairs and Insurance for Building [Sec. 28], Repairs and Insurance of Machinery, Plant and Furniture [Sec. 28] | VIEW |
| Deduction in Respect of employee Welfare [Sec 29 and 30], Depreciation [Sec. 33], Block of Assets [Sec. 2(17)], Scientific Research [Sec. 45] | VIEW |
| Deduction in Respect of Expenditure on Specified Business [Sec. 46] | VIEW |
| Bad Debts [Sec. 31], Provision for Bad Debts [Sec. 31] | VIEW |
| Residual Deduction [Sec. 32] | VIEW |
| illustrations on Business Income- Setoff and Carryforward of Business Loss and un Absorbed Depreciation | VIEW |
| Disallowances and Presumptive Taxation | |
| Method of the Accounting 276 | VIEW |
| Maintenance of Books of Accounts 58, List of Notified Profession under Section 58 | VIEW |
| Disallowed Expenditure [Sec. 35], Section 35. Inadmissible Expense in the Books of the Partnership form and LLP, Computation of Book profit under 35(e) | VIEW |
| Section 36 Expense Disallowed if Payment is made in excess of 10,000 in cash/other than Prescribed Mode, Certain Payment can be allowed only upon Actual Payment | VIEW |
| Presumptive Taxation [Sec. 58] | VIEW |
| Unit 4 | |
| Basis of Charge-Capital Asset [Sec. 2(22)], Types of Capital Asset-Transfer [Sec. 2(109)] | VIEW |
| Capital Gain [Sec. 67] | VIEW |
| Transactions not regarded as Transfer (Sec. 70) | VIEW |
| Meaning of “Adjusted”, “Cost of Improvement” and “Cost of Acquisition” (Sec.90) | VIEW |
| Computation of Long-Term Capital Gain (LTCG)(Sec-72) | VIEW |
| Deemed or Notional Cost of Acquisition [Sec. 73], Computation of Capital gain in Certain cases | VIEW |
| Computation of Capital gain in Case of Depreciable Assets [Sec. 74] | VIEW |
| Tax on Capital Gain- Deductions [Sec. 82, 83, 84, 85, 86] | VIEW |
| Income from Other Sources | |
| Basis of Chargeability [Sec.92] | VIEW |
| Casual Income: Winning from Lotteries, Crossword Puzzles, etc. [Sec. 92(2)(b)] | VIEW |
| Family Pension- Gift [Sec. 92(2)(m)] | VIEW |
| Interest on Securities [Sec. 92(2)(e)] | VIEW |
| Sum Received under a Life Insurance Policy [Sec. 92(2)(l)] | VIEW |
| Dividend [Sec. 2(40)] | VIEW |
| Specific Disallowance [Sec. 94] | VIEW |
| Computation of Income from other Sources – Illustrations | VIEW |
| Unit 5 | |
| Income Exempted [Schedule II Read with Sec 11] | VIEW |
| Agriculture Income, Instances of Agricultural (Agro) Income, Instances of Non-agricultural (Non-Agro) Income | VIEW |
| Treatment of Partly Agricultural and Partly Non-Agricultural Income | VIEW |
| Illustrations on Impact of Agricultural income on Tax Computation | VIEW |
| Deductions: Differences between Deduction and Exemptions | VIEW |
| General Provisions Schedule III, Rebate u/s 156 | VIEW |
| Computation Tax Gross Total Income and Tax Liability | VIEW |
| Setoff and Carry Forward of Losses | |
| Introduction Inter Source adjustment (Intra-Head adjustment) [Sec. 108], Inter head adjustment [Sec. 109] | VIEW |
| Carry Forward of Loss | VIEW |
| Loss under the head ‘Income from House Property’ [Sec. 110] | VIEW |
| Carry forward and Set off of Business Loss other than Speculation Loss [Sec. 112] | VIEW |
| Set off and Carry forward of Unabsorbed Depreciation, Carry forward and Set off of Speculation Loss [Sec. 113] | VIEW |
| Carry Forward and Set off of Loss from Specified Business Covered u/s 35AD [Sec.114] | VIEW |
| Carry Forward and Set off of Capital Loss [Sec. 111] | VIEW |
| Carry Forward and Set off of Losses from Activity of owning and Maintaining Race Horses [Sec. 115] | VIEW |
Income Tax-I Bangalore North University BBA SEP 2024-25 5th Semester Notes
| Unit 1 | |
| Tax: Introduction, Meaning, Definition, Objectives | VIEW |
| Income-Tax Act, 2025: Scope and Framework | VIEW |
| Basic Principles for Charging Income Tax [Sec. 4] | VIEW |
| Assessment, Types of Assessment, Procedure for Assessment | VIEW |
| Finance Bill and Finance Act | VIEW |
| Definitions, Tax Year [Sec. 3] | VIEW |
| Assessee [Sec. 2(11)] | VIEW |
| Person [Sec. 2(77)], | VIEW |
| Income [Sec. 2(49)] | VIEW |
| Heads of Income [Sec. 13] | VIEW |
| Gross Total Income (GTI) [Sec. 122], Total Income [Sec. 2(108)] | VIEW |
| Tax Administration – Authorities | VIEW |
| Unit 2 | |
| Structure of Income Tax Department | VIEW |
| Role and Functions of Central Board of Direct Taxes (CBDT) | VIEW |
| Powers and Duties of Income Tax Authorities: | |
| Chief Commissioner of Income Tax | VIEW |
| Commissioner of Income Tax, Assessing Officer | VIEW |
| Income Tax Officer | VIEW |
| Unit 3 | |
| Residential Status: Introduction and Need | VIEW |
| Determination of Residential Status of Individuals u/s [Sec. 6(2)] to [Sec. 6(8)] | VIEW |
| Incidence of Tax for Individual Assessee [Sec. 5] | VIEW |
| Unit 4 | |
| Salary: Introduction, Basic Elements | VIEW |
| Employer-employee relationship | VIEW |
| Basis of Charge [Sec. 15] | VIEW |
| Definition of Salary [Sec. 16] | VIEW |
| Deduction from Salary [Sec. 19] | VIEW |
| Allowances | VIEW |
| Perquisites [Sec. 17] | VIEW |
| Retirement Benefits: Gratuity, Leave Salary and Pension | VIEW |
| Computation of Taxable Salary | VIEW |
| Unit 5 | |
| Income from House Property: Introduction, Basic Concepts | VIEW |
| Chargeability [Sec. 20] | VIEW |
| Determination of Annual Value [Sec. 21]: Computation of Income: Let-out Property, Self-occupied Property, Deemed to be Let-out Property, Property not Actually occupied by the owner, Partly Let-out and Partly Self-occupied Property | VIEW |
| Recovery of Arrears of Rent and Unrealized Rent | VIEW |
| Deductions u/s 22: Standard Deduction and Interest on Borrowed Capital | VIEW |
| Treatment of Pre and Post Construction Interest | VIEW |
| Computation of Income from House Property | VIEW |
Residential Status: Introduction and Need
Residential Status is an important concept under the Income Tax law for determining the taxability of a person’s income in India. It is determined mainly on the basis of the period of stay in India during the relevant financial year and certain conditions relating to previous years. A person may generally be classified as a Resident or Non Resident. A resident may further be classified as a Resident and Ordinarily Resident or Resident but Not Ordinarily Resident. Residential status is determined separately for each financial year. It is important to note that residential status is different from citizenship or nationality.
Need of Residential Status:
1. Determines Scope of Taxable Income
The primary need for determining residential status under the Income-tax Act, 2025 is to ascertain the scope of an individual’s taxable income in India. Section 6 of the new Act lays down the provisions for this determination, which governs the extent of income chargeable to tax. This classification forms the foundational step before any tax computation begins, as tax liability is not based on citizenship but on the taxpayer’s residential classification during the Tax Year.
2. Classifies Taxpayers into Specific Categories
Under Section 6 of the Income-tax Act, 2025, residential status classifies taxpayers into three distinct categories: Resident, Resident but Not Ordinarily Resident (RNOR), and Non-Resident (NR). Each category carries different tax implications. The RNOR category provides a transitional status between resident and non-resident, ensuring certain foreign incomes may remain outside the scope of Indian taxation.
3. Defines Taxability of Global Income
Under Section 5 of the Act, a resident individual is taxed on their worldwide income, regardless of where it is earned or received. This comprehensive coverage ensures that residents with substantial global earnings contribute fairly to the Indian exchequer. The scope of total income for residents includes all income received, deemed to be received, or accruing in India, as well as income accruing outside India.
4. Limits Taxation for Non-Residents
For NRs, tax liability under Section 5(2) of the Act is restricted only to income received or deemed to be received in India, or income that accrues or arises in India. Income earned and received outside India is completely exempt from Indian taxation. This limitation prevents undue tax burden on individuals who maintain minimal economic ties with the country.
5. Protects Against Double Taxation
Residential status helps implement Double Taxation Avoidance Agreements (DTAAs) effectively under the new Act. By determining where an individual’s global income is taxable, the status guides the application of treaty provisions. Taxpayers can claim relief under DTAAs based on their residential classification, ensuring they are not taxed twice on the same income in different countries.
6. Determines Compliance and Filing Obligations
The residential status dictates various compliance requirements under the Income-tax Act, 2025, including the obligation to file income tax returns. It also influences the applicability of reporting requirements for foreign assets and bank accounts. Proper classification ensures taxpayers meet all statutory obligations without unnecessary burdens or penalties.
7. Affects Eligibility for Tax Benefits
Certain deductions, exemptions, and rebates under the Income-tax Act, 2025 are available only to residents or specific categories of residents. For instance, the rebate under Section 87A or certain investment deductions may have different thresholds based on residential status. This ensures that tax benefits are targeted appropriately to those with stronger economic ties to India.
8. Establishes Nexus for Taxation
The concept of residential status establishes a clear nexus between the taxpayer and India for taxation purposes. It reflects the principle that individuals who derive economic benefits from India or have strong economic ties should contribute to the country’s revenue. This nexus-based approach ensures fairness and equity in the tax system under the new regime.
9. Guides Advance Tax and TDS Provisions
Residential status influences the application of Tax Deducted at Source (TDS) and Advance Tax provisions under the Act. For NRs, different TDS rates may apply, and certain payments to NRs attract additional compliance requirements. Proper classification ensures correct deduction and payment of taxes at the appropriate stages.
10. Facilitates Transition Under New Act
Under the Income-tax Act, 2025, the concept of residential status remains crucial with the introduction of the ‘Tax Year’ concept. Determining status correctly ensures smooth transition and compliance under the new regime, especially for individuals with cross-border income or assets. The transitional provisions under the Act preserve the continuity of tax credits and carry forward of losses.