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2 clusters · 2 sources · 15 days · First seen · Last updated

Indian income tax regulations and rulings

Overview

Taxation guidelines and rulings in India have addressed various forms of investment and employment income. Initial guidance emphasized the distinction between intraday equity trading, classified as speculative business income, and long-term capital gains (LTCG) from shares held for over 12 months. It noted that while the Section 87A rebate applies to income under the new tax regime, it cannot be adjusted against special rates like short-term capital gains.

Subsequent clarifications from the Income Tax Department and the Income Tax Appellate Tribunal (ITAT) expanded on relief mechanisms and specific asset types. Taxpayers can claim relief on lump-sum receipts, such as salary arrears and gratuity, to ensure income is taxed in the year it relates to rather than when received. Furthermore, a ruling by the Bangalore Bench of the ITAT determined that proceeds from the buy-back of vested but unexercised stock options should be taxed as long-term capital gains instead of salary perquisites.

Entities

Income Tax Department · Income Tax Appellate Tribunal · Flipkart Internet Private Limited · Flipkart Private Limited, Singapore

Timeline

  1. 18 days ago

    [BUSINESS] 2 sources
    India tax authorities clarify rules on arrears and ESOP buy-backs

    Indian tax authorities and the ITAT have clarified tax treatments for salary arrears, foreign pensions, and ESOP buy-backs, ruling that certain stock option repurchases qualify as capital gains.

  2. about 1 month ago

    [BUSINESS] 2 sources
    Indian tax rules for intraday trading and capital gains

    Indian taxpayers must correctly classify intraday trading as business income and capital gains separately, noting that Section 87A rebates apply only to normal income, not special rate income.

Sources

caclubindia.com · conventuslaw.com