A notice on the tax portal, a demand you do not understand, a GST credit denied because a supplier defaulted, or a reassessment of a year you thought was closed: tax disputes are stressful because the numbers are large and the deadlines short. India also has a new Income-tax Act from April 2026. This guide explains, in plain words, what common notices mean, how to reply, how appeals and stays work in income tax and GST, when to go to the High Court, and what to do if officers arrive. When you are ready, describe your matter in the form and an enrolled advocate who handles tax cases can call you. It is free for clients.
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For most people, tax means filing a return once a year, usually through a chartered accountant. A tax lawyer comes in when something goes wrong: a notice asking why income was not reported, a reassessment of a year long closed, a GST demand running into lakhs because a supplier did not pay its taxes, a frozen bank account, a search, or the threat of prosecution. Tax advocates also advise on structuring transactions, such as property sales, business reorganisations and inheritances, so that disputes do not arise.
Chartered accountants handle compliance, accounts and many replies to notices, and can appear before tax authorities and tribunals. Advocates bring litigation skills: drafting legal objections, arguing jurisdiction and limitation, appearing before the High Court and Supreme Court in writ petitions and appeals, and handling criminal prosecutions and arrests under tax laws, which only advocates can do. In serious matters, the two usually work together.
Replies to scrutiny, mismatch, high-value transaction and reassessment notices, with the legal objections the department must answer.
Appeals to the Commissioner (Appeals) and the Tribunal, and applications to stay demands while appeals are pending.
Show cause notices, input tax credit denial, registration cancellation, e-way bill detentions, refunds and appeals up to the GST Appellate Tribunal.
Challenging notices and orders that are without jurisdiction, time-barred or passed without a hearing, directly in the High Court.
Advising during searches and surveys, defending prosecution complaints, and seeking anticipatory or regular bail in GST and customs cases.
Property sales, NRI income, family settlements and business transactions structured to stay within the law.
| Dispute | Typical trigger | Forum |
|---|---|---|
| Mismatch notices | Income in the annual information statement not shown in the return: interest, dividends, property sale, foreign income | Assessing officer, usually through faceless processes |
| Scrutiny assessment | Return selected for detailed examination | Faceless assessment, then appeals |
| Reassessment | Department believes income escaped assessment in an earlier year | Assessing officer; writ in the High Court on jurisdiction |
| Cash deposits and high-value transactions | Large cash deposits, property purchases, credit card spends, share trading | Assessing officer, appeals |
| GST demand | Input tax credit disallowed, tax on a supply disputed, mismatch between returns | Proper officer, appellate authority, GSTAT |
| GST registration cancelled | Non-filing of returns, alleged fake invoices, business not found at the address | Proper officer, appeal, writ |
| E-way bill detention | Goods in transit with document errors | Proper officer, appeal, writ |
| TDS defaults | Tax not deducted or deposited on payments | TDS officer, appeals; prosecution in serious cases |
| Refund stuck | Refund withheld or adjusted against old demands | Grievance, rectification, writ |
| Search, survey, arrest | Suspected large-scale evasion or fake invoicing | Authorities, criminal courts, High Court |
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Parliament replaced the Income-tax Act, 1961 with a new Income-tax Act, 2025, which came into force on 1 April 2026 and applies from tax year 2026-27. The government's stated aim was to simplify the language and structure rather than to change tax policy wholesale, so most rules, rates and concepts carry over.
| Change | What it means for you |
|---|---|
| "Tax year" replaces previous year and assessment year | Income of April 2026 to March 2027 is taxed for tax year 2026-27, rather than "assessment year 2027-28" |
| Renumbered sections | Familiar provisions such as the rebate, TDS and capital gains exemptions have new section numbers; older notices and documents still use the 1961 numbers |
| Renamed forms | Several forms have new numbers from tax year 2026-27, for example the TDS certificate for salary that used to be Form 16 |
| Earlier years | Assessments, reassessments and appeals for years up to 2025-26 continue under the 1961 Act |
| Rates | Rates and slabs for individuals carried over unchanged from the previous year |
Because two laws now run side by side, the first thing an advocate checks in any notice is which Act and which year it relates to. A notice that cites the wrong law, or a provision that did not apply to that year, may be challengeable on that ground alone.
Individuals choose between the new tax regime, which is the default, and the old regime with more deductions. The new regime rates have applied since tax year 2025-26 and were kept for 2026-27.
| Income under the new regime | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
A rebate makes income up to ₹12 lakh effectively tax-free under the new regime, and salaried employees also get a standard deduction of ₹75,000, so salary up to ₹12.75 lakh usually bears no tax. Special-rate income, such as capital gains, is treated separately. Cess and surcharge apply on top. Under the old regime, the rates are higher but deductions for savings, insurance, home loans and rent can still make it worthwhile for some taxpayers, so compare both each year.
These figures are a summary. The right answer depends on your facts, dates and the regime you choose; check with your CA or advocate before relying on them.
Most income tax notices are now issued electronically and handled through faceless processes, without visits to a tax office. For years up to 2025-26, they cite sections of the 1961 Act, which are still the ones most taxpayers see.
| Notice (1961 Act section) | What it usually means | Response |
|---|---|---|
| Intimation under 143(1) | The return was processed, sometimes with adjustments or a demand | Check the computation; file rectification or respond online if wrong |
| Defective return under 139(9) | Something is missing or inconsistent in the return | Correct within the time given, or the return can be treated as invalid |
| Scrutiny under 143(2) and 142(1) | The return has been selected for detailed assessment | Reply to each query with documents; ask for a hearing by video if needed |
| Information request under 133(6) | The department wants information, often about a specific transaction | Reply accurately; this is not yet an assessment |
| Reassessment under 148A and 148 | The department believes income escaped assessment in an earlier year | Object to the proposal under 148A with reasons; check time limits; consider a writ |
| Penalty show cause | The department proposes a penalty after assessment | Reply separately; penalty is not automatic |
| Demand and recovery | Tax is due under an order | Appeal and seek a stay; pay if not disputed |
The annual information statement collects data from banks, registrars, brokers and others. Many notices arise from a simple mismatch between that statement and your return, such as a fixed deposit's interest or the sale of a plot recorded at the circle rate. Check your statement every year before filing.
Reassessment allows the department to reopen a closed year if it has information suggesting income escaped assessment. It is one of the most litigated areas of tax law because of the strict conditions attached.
Because the arguments are often legal rather than factual, reassessment notices are frequently challenged directly in the High Court through writ petitions. Act quickly, because the window for objecting is short.
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| Stage | Against | Time limit |
|---|---|---|
| Commissioner of Income Tax (Appeals) or Joint Commissioner (Appeals) | Assessment, penalty and other appealable orders | 30 days from receiving the order; delay can be condoned for sufficient cause |
| Income Tax Appellate Tribunal | Orders of the Commissioner (Appeals) | 60 days |
| High Court | Tribunal orders, on a substantial question of law | 120 days |
| Supreme Court | High Court judgments, by special leave | As per the Supreme Court rules |
First appeals are mostly handled through the faceless appeal system, with written submissions and video hearings. The Tribunal is the final fact-finding body, so the evidence you file there matters greatly.
Filing an appeal does not by itself stop recovery. Ask the assessing officer for a stay; under CBDT instructions, a stay is ordinarily granted on payment of twenty percent of the disputed demand, and can be lower in deserving cases. If the department refuses or acts unreasonably, approach the higher authority, the Tribunal or the High Court.
Mistakes apparent from the record can be corrected through rectification without a full appeal. Government settlement schemes are announced from time to time, and the updated return facility lets taxpayers voluntarily report missed income for earlier years by paying additional tax, within the period the law allows.
The goods and services tax affects almost every business, and its dispute system is separate from income tax. Since 22 September 2025, GST rates were consolidated into two main slabs of 5 percent and 18 percent, with a 40 percent rate for a small list of luxury and sin goods. Most disputes, though, are not about the rate but about credit, classification, valuation and compliance.
| Stage | What happens |
|---|---|
| Scrutiny, audit or investigation | Returns are scrutinised for mismatches, or the department audits the business or investigates suspected evasion |
| Pre-show cause intimation | The officer may first intimate the proposed liability so you can pay or explain |
| Show cause notice | A formal notice proposing tax, interest and penalty; for periods from 2024-25, issued within 42 months of the due date of the annual return, with stricter rules where fraud is alleged |
| Reply and personal hearing | You reply in writing and are entitled to a hearing before an adverse order |
| Adjudication order | The officer confirms, reduces or drops the demand |
| Appeal | First appeal within three months with a pre-deposit, then to the GST Appellate Tribunal |
Many GST demands deny input tax credit, on grounds such as the supplier not paying its tax, the supplier's registration being cancelled, goods not actually received, credit claimed after the time limit, or the invoice not appearing in the auto-generated statement. Buyers who acted in good faith and can prove genuine purchases with payments, transport documents and stock records have a strong position, and courts have repeatedly protected bona fide purchasers in suitable cases. Keep these records for every significant purchase.
Where no fraud is alleged, paying the tax and interest within the time allowed after a notice can reduce or remove penalty. Where fraud or suppression is alleged, penalties are higher. Government amnesty schemes have from time to time waived interest and penalty for certain older periods on payment of tax.
For years, GST appeals had nowhere to go beyond the first appellate authority except the High Court, because the GST Appellate Tribunal was not set up. The tribunal, with a principal bench and state benches, began functioning in September 2025, and a special window allowed appeals against older orders to be filed until 31 July 2026. Normal time limits now apply.
| Stage | Time limit | Pre-deposit |
|---|---|---|
| First appeal to the Appellate Authority | Three months from the order, extendable by one month | Admitted tax in full, plus 10% of the disputed tax, subject to a cap |
| GST Appellate Tribunal | Three months from the appellate order | A further 10% of the disputed tax, subject to a cap |
| High Court | 180 days, on a substantial question of law | As the court directs |
Once the pre-deposit is made with the appeal, recovery of the balance demand is stayed by law while the appeal is pending. Penalty-only orders have their own lower pre-deposit. Keep the payment challans and file the appeal on the portal within time; delay beyond the condonable period can be fatal.
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Registrations are cancelled for not filing returns for a continuous period, for not being found at the declared address, or on allegations of fake invoicing. A cancelled registration stops sales and can freeze credit for buyers. You can apply for revocation within the time allowed after filing pending returns and paying dues, or appeal the cancellation. Where the cancellation order gives no reasons or was passed without a hearing, High Courts have often set it aside.
Goods moving without a valid e-way bill or with errors can be detained, and released on payment of tax and penalty, which can be as high as double the tax for taxable goods. Minor clerical errors, such as a typo in the vehicle number, should not lead to heavy penalties where there is no intent to evade, and many detentions are successfully challenged. Act within days, because storage and business losses mount quickly.
Exporters, businesses with an inverted duty structure and those who paid excess tax can claim refunds within two years from the relevant date. Refunds delayed beyond the statutory period carry interest. Rejections without a hearing or proper reasons can be appealed.
Tax law has a criminal side. Income tax searches and surveys, GST arrests for fake invoicing or large evasion, customs arrests, and prosecution complaints for wilful evasion or failure to deposit TDS all carry the risk of liberty, not just money.
Our bail lawyer guide explains anticipatory and regular bail, which apply to these cases as well.
Businesses, employers and even individuals buying property must deduct tax at source on many payments and deposit it on time. Defaults lead to interest, penalty, disallowance of the expense and, in serious cases of deducting tax and not depositing it, prosecution.
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Normally, a taxpayer must use the appeal system. But High Courts entertain writ petitions under Article 226 where the problem is not the merits of the demand but the legality of the action itself.
Writs are discretionary, and courts may send a taxpayer back to the appellate route where facts need examination. An advocate who appears regularly in the High Court's tax roster can judge which route is faster and safer.
Some of the harshest outcomes in income tax arise when the department treats money as unexplained. Cash credits, investments, expenditure or assets that a taxpayer cannot explain can be taxed at a high flat rate with surcharge, and penalty can be added.
The burden of explaining the source usually falls on the taxpayer. Explanations given early, with documents, are far more persuasive than ones assembled years later in appeal.
Residential status decides what is taxable in India. A non-resident is taxed in India only on income earned or received in India, such as rent from Indian property, interest on NRO deposits, capital gains on Indian assets, or salary for work done in India.
India has no inheritance tax or estate duty. Property inherited under a will or by succession is not taxed when received. When the heir later sells it, capital gains are calculated using the original owner's cost and holding period.
| Transaction | Tax position in brief |
|---|---|
| Inheritance by will or succession | Not taxable on receipt; capital gains on later sale using the previous owner's cost |
| Gift from a relative, such as parent, spouse, sibling or lineal ascendant or descendant | Not taxable for the recipient |
| Gift from a non-relative | Taxable if the total exceeds ₹50,000 in a year, except on occasions such as marriage |
| Gift to a spouse or daughter-in-law | Income from the gifted asset is generally clubbed with the giver's income |
| Family settlement or partition | A genuine family arrangement among members usually does not attract capital gains; stamp duty depends on state law and the document |
| Hindu undivided family | Taxed as a separate entity, with its own PAN and return |
Transactions between family members are scrutinised for genuineness. Keep proper deeds, bank transfers and valuations. Our will lawyer guide and property lawyer guide cover the legal side of wills, gifts and family property.
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Our corporate lawyer guide covers business structures, and our GST registration service helps with getting registered correctly.
Income tax refunds are usually issued after the return is processed, with interest for delay in many cases. When a refund is stuck, the cause is often simple: a bank account not pre-validated, a mismatch in PAN and name, or the refund adjusted against an old demand.
Tax demands usually come with interest and, often, penalty. Interest is largely automatic; penalty is not, and it can often be reduced or avoided.
| Situation | Usual consequence | What helps |
|---|---|---|
| Under-reported income | Penalty of 50 percent of the tax on the under-reported income | A bona fide explanation with all material facts disclosed; immunity on paying tax and interest and not appealing, within the time allowed |
| Misreporting, such as false entries or suppressed facts | Penalty of 200 percent of the tax | Strong evidence that the facts were disclosed and the issue was a genuine legal view |
| Late filing of return | Late fee and interest; loss of some carry-forward of losses | File as early as possible; small taxpayers pay a lower fee |
| Advance tax shortfall | Interest for each month of shortfall | Accurate estimates and instalments |
| GST, no fraud alleged | Penalty of 10 percent of the tax or a minimum amount | Paying tax and interest within the period allowed after a notice can remove penalty |
| GST, fraud alleged | Penalty equal to the tax | Reduced penalty for early payment at specified stages |
A penalty order is a separate proceeding and can be appealed separately, even if the assessment itself is accepted. Courts have held that penalty does not follow automatically where the taxpayer took a plausible view or the addition was made on estimates.
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Most income tax assessments and first appeals are conducted electronically, with no physical meeting. This saves travel but makes your written submissions decisive.
Property sales generate many tax notices, because sub-registrars report every registered sale. Planning before the sale saves both tax and disputes.
| Option | Key conditions |
|---|---|
| Buy or build another residential house | For gains on a house: buy within one year before or two years after the sale, or build within three years; the exemption is subject to an overall cap |
| Invest in specified bonds | Within six months of the sale, up to the annual limit, with a five-year lock-in |
| Sale of any other long-term asset, investing the whole sale price in a house | Proportionate exemption if only part is invested; conditions on owning other houses |
| Not yet invested by the return due date | Deposit the unutilised amount in the Capital Gains Account Scheme with a bank to keep the exemption open |
Two further points cause frequent disputes. Where the sale price in the deed is below the stamp duty value, the stamp duty value can be taken as the sale price beyond a small tolerance band. And the cost of acquisition must be proved with documents; for property bought before 2001, a fair market value as on 1 April 2001 can be used, supported by a valuation report.
The new regime is the default, with lower rates and few deductions. The old regime keeps deductions such as investments under the popular savings schemes, health insurance, home loan interest on a self-occupied house, and house rent allowance.
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Senior citizens get several benefits, including higher basic exemption under the old regime and larger deductions for interest income and health insurance. Very senior citizens aged 75 and above whose income consists only of pension and interest from the same specified bank can be relieved of filing a return, with the bank deducting the tax due. Pensioners receiving notices often find the cause is interest on deposits in several banks, or a pension arrear reported in one year. Relief for arrears received in a later year can be claimed through the prescribed form.
Travellers returning to India are allowed to bring personal effects and goods within a duty-free allowance; jewellery, gold and electronic items beyond the allowance must be declared and duty paid. Undeclared goods can be seized, and gold smuggling above thresholds can lead to arrest and prosecution under the Customs Act.
Importers facing valuation, classification or exemption disputes follow a similar notice, adjudication and appeal path, with pre-deposits at the appellate stages.
Rent from a house, shop or land building is taxed as income from house property. Municipal taxes actually paid are deducted, and a standard deduction of thirty percent of the net annual value is allowed for repairs and upkeep regardless of actual spending. Interest on a loan for a let-out property is deductible, subject to limits on setting off losses. Tenants paying rent above the specified monthly threshold, including individuals, must deduct TDS, and companies and businesses paying rent have their own TDS rules. Many notices arise because a tenant's TDS shows up in your statement but the rent was not reported.
Agricultural income, such as income from growing crops on land in India, is exempt from income tax, though above a threshold it is taken into account to work out the rate on your other income. Agricultural land in rural areas, beyond specified distances from municipalities, is not a capital asset, so its sale does not attract capital gains. Land within those limits is taxed like other property. Claims of large agricultural income are scrutinised, so keep land records, sale receipts from mandis and bank deposits.
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Three laws carry particularly severe consequences and need specialist advice at the first sign of trouble.
| Law | What it targets | Why it matters |
|---|---|---|
| Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 | Undisclosed foreign bank accounts, property, shares and income of residents | Tax at a high flat rate, heavy penalty, and prosecution; amendments have eased penalties for small undisclosed movable assets |
| Prohibition of Benami Property Transactions Act, 1988 | Property held in another person's name for the real owner's benefit, outside the family exceptions | Attachment and confiscation of the property, and prosecution |
| Prevention of Money Laundering Act, 2002 | Proceeds of crime, which can include serious tax-related offences linked to other crimes | Attachment, arrest and strict bail conditions |
Residents should disclose all foreign assets in their return every year, including foreign employee stock and dormant accounts. Our property lawyer guide explains the benami law's exceptions for property bought in a spouse's or child's name from known income.
Charitable trusts, societies and Section 8 companies can be exempt from income tax if registered with the department, and donors can claim deductions if the institution has the separate approval for that. Registrations must be renewed periodically, and the institution must apply its income to its objects, file returns and audit reports on time, and report donations. Common disputes involve cancellation of registration, denial of exemption for business-like activities, anonymous donations and late filings. Institutions receiving foreign contributions must also comply with the FCRA.
For a planned transaction with an uncertain tax treatment, an advance ruling can give certainty before money changes hands. In income tax, the Board for Advance Rulings can rule on questions for non-residents and certain residents, subject to conditions and exclusions. In GST, the Authority for Advance Ruling in each state rules on questions such as classification, rate, place of supply and whether something is a supply at all, with an appeal to the appellate authority. Rulings bind only the applicant and the department for that applicant, but they prevent years of dispute on large transactions.
Every case turns on its own facts. A verified advocate can tell you what applies to yours.
Check the annual information statement and Form 26AS before filing, and keep supporting documents for at least as long as the department can reopen the year.
Businesses with turnover below the registration threshold for their state and type of supply need not register for GST, unless they make inter-state supplies of goods, sell through e-commerce operators in most cases, or fall in another compulsory category. Small businesses can opt for the composition scheme, paying tax at a low flat rate on turnover with simpler returns, but they cannot collect GST from customers or claim input tax credit, and most service providers and inter-state sellers are not eligible. Choosing the wrong option, or crossing the threshold without registering, is a common source of demands with interest and penalty. If your turnover is growing, review your GST position every quarter.
| What | Usual due date |
|---|---|
| Income tax return, salaried and other non-business taxpayers | 31 July after the end of the tax year |
| Income tax return, business or profession not requiring audit | 31 August, from 2026 |
| Income tax return, cases requiring tax audit | 31 October |
| Revised return | Up to 31 March after the tax year, with a fee for revisions after 31 December |
| Advance tax instalments | 15 June, 15 September, 15 December and 15 March |
| GST monthly sales return and summary return | Around the 11th and 20th of the following month, or quarterly for eligible small taxpayers |
| GST annual return | 31 December after the financial year, for those required to file |
Dates are sometimes extended by notification, and state-specific GST due dates can be staggered. Confirm the current date on the official portal before relying on it.
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These are composite examples, not real cases. Every tax matter turns on its own documents and years.
A retired teacher in Indore receives a notice because the annual information statement shows a property sale she inherited from her father and sold for ₹38 lakh. She had assumed inherited property was tax-free. Her advocate explains that inheritance is not taxed but the sale is, using her father's cost and holding period, and that indexation is available for property bought before July 2024. The revised computation shows a modest gain, which she pays with interest, and no penalty is levied because she disclosed it fully once asked.
A trader receives a reassessment notice for a year well beyond the outer time limit, on the basis of information about a cash deposit of ₹12 lakh. His advocate files objections and then a writ petition, arguing that reassessment is time-barred because the alleged escaped income is below the ₹50 lakh threshold for the extended period. The High Court quashes the notice.
A small manufacturer bought raw material from a dealer who later stopped filing returns. The department denies the credit. The manufacturer's advocate files a detailed reply with the invoices, bank payments, e-way bills, transport receipts and stock registers, showing genuine purchases. The officer confirms part of the demand; on appeal, with the pre-deposit made, the appellate authority allows most of the credit, and the matter goes to the GST Appellate Tribunal on the rest.
Goods worth ₹6 lakh are detained because the e-way bill shows a vehicle number with one digit wrong. The officer proposes a penalty of double the tax. The transporter's advocate shows that the invoice, consignment and route all match and that the error was clerical. The goods are released, and the penalty is reduced on appeal to the minimum.
A trader is called for a statement in an alleged fake invoicing case and fears arrest. His advocate applies for anticipatory bail, relying on the Supreme Court's 2025 ruling that criminal procedure safeguards apply to GST arrests. The court grants interim protection on condition that he joins the investigation, and he answers the summons with his advocate.
A pensioner receives a demand because arrears of pension for three years were paid in one year and taxed at a higher slab. His advocate files the claim for relief on arrears with the prescribed form and a rectification request, spreading the income over the years it related to. The demand is reduced to a small amount.
Costs depend on the size and complexity of the matter. Simple replies to mismatch notices are often handled by chartered accountants for a modest fee. Advocates usually charge per stage, for example drafting a reply, appearing at a hearing, filing an appeal or a writ petition. Besides fees, budget for statutory pre-deposits in GST appeals and the payment needed for a stay in income tax. For large demands, a strong reply at the notice stage is usually far cheaper than years of appeals. Advocates cannot charge a percentage of the tax saved as their fee under Bar Council rules.
Our legal fees guide explains common fee structures.
Under the Bar Council rules, advocates cannot advertise or rank themselves, so directories of the "best tax lawyers" have no official standing. In tax, the right fit depends heavily on the forum and the tax involved.
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Many notices are automatic queries about mismatches. A clear reply with documents often closes them.
Inheritance is not taxed, but the sale is, using the previous owner's cost and holding period.
In income tax, you must apply for a stay, usually with a part payment. In GST, the statutory pre-deposit with the appeal stays recovery of the balance.
Reassessment is subject to strict time limits and conditions, and late notices can be quashed.
Arrest needs recorded reasons and is limited to specified offences above thresholds, and anticipatory bail can be sought.
Have your documents ready? Book a free call back and share the details with the advocate.
Yes. The Income-tax Act, 2025 came into force on 1 April 2026 and applies from tax year 2026-27. Earlier years continue to be assessed under the 1961 Act.
The new Act uses "tax year" for the April to March period whose income is taxed, replacing the old terms "previous year" and "assessment year".
Because of the rebate, income up to ₹12 lakh is effectively tax-free under the new regime, and salaried employees with the ₹75,000 standard deduction usually pay no tax on salary up to ₹12.75 lakh. Special-rate income like capital gains is treated separately.
Verify it on the e-filing portal, read what is asked and the deadline, gather your documents, and reply online before the due date or ask for more time. Take advice before admitting anything in a large matter.
Ordinarily three years from the end of the relevant assessment year, and up to five years only where the escaped income is ₹50 lakh or more, after following the required procedure. Notices outside these limits can be challenged.
Thirty days to the Commissioner (Appeals), sixty days from that order to the Income Tax Appellate Tribunal, and 120 days to the High Court on a substantial question of law. Delay can be condoned for sufficient cause.
File the appeal and apply for a stay. Under CBDT instructions, a stay is ordinarily granted on paying twenty percent of the disputed demand, and can be lower in deserving cases.
For the first appeal, the admitted tax plus ten percent of the disputed tax, subject to a cap; for the GST Appellate Tribunal, a further ten percent. The pre-deposit stays recovery of the rest.
Yes. It began functioning in September 2025. Appeals against older orders had a special window until 31 July 2026; normal time limits of three months now apply.
Reply with proof of genuine purchase: invoices, bank payments, e-way bills, transport documents and stock records. If the demand is confirmed, appeal with the pre-deposit. Courts have protected bona fide purchasers in suitable cases.
Only for specified offences above monetary thresholds, with recorded reasons to believe. The Supreme Court held in 2025 that criminal procedure safeguards apply and that anticipatory bail can be sought.
There is no inheritance tax. Receiving property by inheritance is not taxed, but selling it later attracts capital gains calculated using the original owner's cost and holding period.
Gifts from specified relatives, such as parents, spouse and siblings, are not taxable for the recipient. Gifts from others above ₹50,000 in a year generally are, except on occasions such as marriage.
The buyer must deduct tax at the rates for non-residents on the capital gains or the sale value, which can exceed the final tax. The NRI can apply for a lower deduction certificate before the sale and claim any excess as a refund.
Check the status, pre-validate your bank account, respond to any adjustment notice, and raise a grievance. A refund withheld for long without an order can be challenged in a writ petition.
Yes. A revised return can be filed within the time allowed, and the updated return facility lets you report missed income for earlier years on payment of additional tax.
A CA can handle most compliance queries and many replies. An advocate is especially useful for legal objections, reassessment, writs, High Court appeals, searches, arrests and prosecution. In serious matters, both work together.
Generally 50 percent of the tax on the under-reported income, and 200 percent where the income was misreported through false entries or suppression. Immunity is possible in some cases on paying the tax and interest within time and not appealing.
By buying or building another residential house within the time limits, investing in specified bonds within six months, or depositing the amount in the Capital Gains Account Scheme until you invest, subject to the conditions and caps in the law.
The new regime has lower rates and few deductions; the old regime suits people with large deductions such as home loan interest, savings investments and HRA. Compare both before filing each year.
Agricultural income from land in India is exempt from income tax, though above a threshold it is considered to work out the rate on other income. Sale of rural agricultural land outside specified municipal limits does not attract capital gains.
Only above the turnover threshold for their state and type of supply, unless they fall in a compulsory category such as inter-state supply of goods or most e-commerce sales. The composition scheme is an option for eligible small businesses.
Usually 31 July for salaried and other non-business taxpayers, 31 August from 2026 for businesses and professionals not needing audit, and 31 October for audit cases. Dates can be extended by notification.
Yes. Residents must report foreign assets, including employee stock and foreign bank accounts, in the return every year. Non-disclosure can attract the Black Money Act.
No. Posting your tax matter and getting a call from an enrolled advocate is free. Any fee is agreed directly with the advocate. Mara Vakil is a technology platform, not a law firm.
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