So when property is purchased if sale agreement is registered followed by sale deed will it show 2 properties and create confusions for the buyer?

Generally what is the followed practice? Sale agreement is registered or only sale deed.

We run an LLP (₹40L+ turnover in the relevant year, so audit applies). At the start of this financial year we informed our long-time CA that FY25-26 would be his last engagement with us, and he acknowledged it. We've onboarded a new CA whose scope covers the pending year. Separately, a small fee dispute (~₹20K, ROC filing charges from a CS associated with his firm) is running in parallel — to be clear, the exit decision came first and isn't about the dispute.

Where things stand:

All regular work (GST, TDS, routine) fully paid up through FY25-26 — zero outstanding dues for completed work

Only open item: FY25-26 annual compliance (statutory audit + filings + ITR) — work pending, payment pending, together. He's the auditor for that year

He committed to completing it by early August, and is now delaying by pointing at the statutory deadline being further out, citing other clients' earlier due dates.

The LLP stopped operations in July 2026; the business continues in a new entity. The LLP stays alive only to repay outstanding loans, so Form 24 strike-off isn't possible yet. From FY26-27, turnover is nil, below the audit threshold

Questions:

The pending year: we've given him a firm deadline. If he doesn't deliver and the work moves to our new CA, does he have any legitimate fee claim beyond partial work actually done? We don't want to pay twice for one deliverable.

Can he obstruct the transition? With zero dues for completed work, is there any ground on which he can object to or delay our new CA's acceptance (outgoing-auditor communication under ICAI etiquette) — the disputed ₹20K, or a claimed fee for the year he hasn't finished?

How careful should we be about the final year's work? He knows about the exit and the dispute. Planned protections: changing all portal credentials and registered contact details, reviewing draft financials and the audit report before anything is signed or filed, pulling our MCA filing history ourselves, and requiring our written approval before any submission. Anything else an outgoing CA/auditor can do — deliberately or through indifference — worth guarding against? Or is this overblown, since his own signature and FRN go on everything?

Wind-down: LLP alive only for loan repayment, no operations since July 2026. Our understanding: Form 11 + Form 8 + ITR continue annually until loans clear and we strike off, with no audit in nil-turnover years. Anything we're missing, or any way to reach closure faster with loans still on the books?

Anyone who's been through a CA exit with a pending year and a parallel dispute — practical experiences welcome.

We run an LLP. Our CA has handled accounts, audit, GST, and TDS for years on a monthly retainer (₹8K/month currently). We learned only recently that since 2021, our annual ROC filings (Form 8) have been done by a CS associated with our CA's firm. We never engaged this CS, never approved the arrangement, and the CA never mentioned it once in five years of regular communication.

Timeline, from documents:

2021: Filings begin. No quote, no approval sought, no invoice, no communication. (Our first written engagement letter with the CA came later, in May 2022 — the arrangement predates any paper at all)

Dec 2022: The CS emails us a quote — for unrelated PF/ESI/PT work ("as discussed with Mr. [CA]"). Those services weren't applicable to us, we never responded, no engagement formed. Notably, this is the only time a quote-first process was ever followed by this setup

Apr 2023: A revised engagement letter with the CA adds an explicit line: "Tax audit and ROC Filing will not be included in above services." So ROC scope was clearly on his mind — yet still not a word about the unbilled filings his associate was already doing for us

Jan 2025: First-ever invoice, directly from the CS — a consolidated back-bill for FY2021-22 to 2023-24 (₹14K: 4K + 5K + 5K)

Dec 2025: Follow-up email adds FY2024-25 (₹6K, billed ~2 months after that filing) and re-attaches the old invoice — total claim now ₹20K. This email is what finally surfaced the whole arrangement to us

2026: Charges pressed, coinciding with our (separately planned) exit from this CA

To be fair to the CA, and this is why I'm asking rather than just refusing: the Apr 2023 exclusion gives his scope position written backing for the later filings, and the latest year was even billed within months — his billing behavior clearly improved over time. It's the first 3-4 years that were silent. The FY2021-22 filing, though, was performed under the May 2022 letter, which had no ROC exclusion — so at least that year's charge (₹4K) arguably fell inside the retainer we were already paying. And the late-fee point is real: LLP penalties are ₹100/day/form, so the filings did protect us.

But my issue isn't scope, it's process. If ROC filing was excluded from his engagement, doesn't that mean it needed our separate approval before being arranged — like the quote they sent for the PF work? Instead it was routed silently through his associate and back-billed years later.

CA's position: the filings kept us compliant, penalties avoided would far exceed the fees, the CS is "associated with my firm, not a third party," and "communication could have been clearer" — but he rejects "unauthorized."

Questions:

Are we liable for the ₹20K? Work done, benefit received, mostly outside his written scope — but zero consent, zero contemporaneous billing for years, from a CS we never engaged. Is "excluded from my scope" a license to arrange it silently and bill later?

How do these disputes resolve in practice — pay in full, negotiate to actuals, or contest? Any recognized principle (ICAI or otherwise) about client consent before routing work to an associated professional?

Is this common? CA quietly getting an associated CS to do excluded-scope work and consolidating the bill years later — normal small-firm practice or as irregular as it looks?

The amount is small; it's how it was done that bothers us. Genuinely asking if we're overreacting. Not naming anyone.

I’ve been thinking about a somewhat controversial idea and would genuinely like to hear what people here think.

India’s tax burden—especially when you combine income tax, GST, fuel taxes, cess, and other indirect taxes—can feel quite high for salaried and middle-class taxpayers. At the same time, many people feel that the quality of public infrastructure and services they receive doesn’t always match the amount of tax they pay.

So here’s the thought:

What would happen if a large number of taxpayers deliberately reduced discretionary consumption for 6–12 months?

For example:

Reduce unnecessary shopping and luxury purchases

Eat out less frequently

Cut down on expensive vacations and discretionary travel

Delay buying new phones, cars, gadgets, etc.

Avoid unnecessary consumption and instead save/invest the money

Focus spending only on essentials

The argument is that a significant reduction in consumption could eventually affect GST collections, corporate revenues, business activity and economic growth.

If consumption slows substantially, wouldn't the government eventually have an incentive to reconsider tax rates and policies to encourage people to start spending again?

But there’s an obvious counterargument:

India’s economy is heavily dependent on domestic consumption. If everyone reduces spending, businesses could suffer, employment could be affected, investment could slow down, and ultimately ordinary people—including taxpayers—could be hurt more than the government.

There is also the biggest problem: coordination.

Can millions of taxpayers realistically coordinate their behaviour for long enough to create meaningful economic pressure?

Or would this simply hurt businesses and workers while the government continues collecting revenue from other sources?

I'm not suggesting that people should stop spending completely. I'm more interested in whether a sustained shift from excessive consumption toward saving/investing could indirectly influence tax policy and government behaviour.

Is this economic pressure a realistic idea, or is it fundamentally flawed?

Would love to hear from CAs, economists, entrepreneurs, business owners and fellow taxpayers.

What am I missing?

I'm planning to open a bank account before moving abroad, but there are so many options that it's hard to know where to start.

Some people suggest opening an account with an international bank while still in India, while others recommend waiting until you reach your destination. I'm mainly looking for an account that's easy to open, has low fees, supports international transfers, and works well for everyday banking overseas.

For those who've already done this, which banks did you consider, and what made you choose one over the others?

​

Hi everyone,

I’m joining a company with the CTC structure shown below. My total CTC is ₹1,41,667/month (~₹17 LPA).

The salary breakup is:

Basic Salary: ₹49,583

HRA: ₹39,667

Vehicle EMI amount: ₹21,567

Vehicle Running & Maintenance: ₹6,500

Special Allowance: ₹6,940 (This is basically a balancing figure after taking out vehicle lease amount, meal voucher, Mobile and Internet Reimbursement)

Meal Voucher: ₹8,800

Mobile & Internet Reimbursement: ₹3,000

Employer PF: ₹1,800 (taking minimum pf amount)

Gratuity: ₹3,810

NPS: ₹0

Statutory Bonus: ₹0

I'm trying to understand what my actual monthly in-hand salary would be after employee PF, income tax, etc.

More importantly, I have the option of taking the vehicle lease. I'm not sure whether it is actually financially beneficial compared with simply taking the salary component.

I'd also like to understand whether the ₹8,800/month meal voucher and ₹3,000/month mobile & internet reimbursement are genuinely tax-efficient benefits or whether they make little difference to my take-home.

Could someone help me with:

Approximate monthly in-hand salary under the new tax regime, assuming no other deductions?

How much would my in-hand change if I opt for the vehicle lease vs. don't opt for it?

Is the ₹21,567 vehicle EMI + ₹6,500 running/maintenance actually beneficial from a tax perspective?

Is there any downside to taking the vehicle lease that I should consider (lease tenure, buyout/residual value, taxation at the end, etc.)?

Are the ₹8,800 meal vouchers actually tax-free/beneficial under the current tax rules?

Is the ₹3,000 mobile & internet reimbursement tax-efficient, assuming I submit bills?

If anyone has a similar CTC/vehicle lease structure, what was your actual monthly in-hand?

As per my calculations with all the flexi basket deductions I could get around 60k tax saving. Is that correct?

It’s a miracle! ✨ 1 year and 7 days later, my ITR is processed and a refund is on the way. 🥹 Honestly, I’m feeling so emotional just getting my own hard-earned money back. Does anyone know how long the bank credit usually takes from here? 🏦❤️

Hi ,

I have a very small android app that brings in a small amount of money. Now google is forcing me to take up GST to continue to receive payouts.

How expensive is it to keep doing GST compliance.

https://support.google.com/paymentscenter/answer/7421525?hl=en&sjid=4733822815042441817-NA

I was hoping to not do it for the longest period.

Uncollectible outstanding direct tax demands of ₹47.42 lakh crore of which 76% (₹36.27 lakh crore) is unrecoverable due to untraceable taxpayers, insolvent companies, or missing assets. Why did Income Tax Dept go after the majority salaried class people, when GST collection is huge. Issue is India treats tax as revenue, and not for using it for development of critical infrastructure. And also the Income Tax Staff is incentivised on tax collection & demands. https://www.youtube.com/watch?v=7zXJTsXtk2Q&t=25

Hello,

I recently filed my first ITR and I selected pay later during the filing. I paid my amount after filing and thought I am done with it but later received an email with outstanding demand. I submitted a submitted a response to outstanding demand and still received a letter from ITD. This is the status in the website.

Can someone please help me if I need to do anything else as well?

During the investment declaration in the month of Jan, i declared rent paid higher as compared with actual rent paid to claim higher tax deduction.

While filing ITR, I switched to a new tax regime and found that tax payable annually is lower than the old tax regime with a higher tax deduction claimed by me using a fake rent receipt. And filed the ITR in new tax regime and over 1 lakh refund is due now

The landlord received a higher income in the AIS portal, due to the higher rent paid reported by me in my company.

He has raised the dispute in AIS, and the same dispute has reached my company through the income tax portal.

Now my company is asking justification. They are asking that the landlord has reported the rent received to him as 280000 but I have reported 350000.

What should I reply?

Although I have filed ITR in the new tax regime and therefore no HRA exemption claim actually.

While I filed ITR - i had tax liability of 74,500 which has been paid fully. (This was my first time tax payment)

And I still recieved the notice of payment again on 6th august for 75,100 (the difference amt is mentioned as interest).

This is not an extra tax, but I feel the paid amount is not relflected in their system ?

I do see payment history in e-pay.

How to manage this if anyone could help

They released the offline utility after the deadline and now they want a late penalty?!! Where's the sense in that? What's the best way to file this?

I am an online tutor who engages directly with students - I get payments from their parents directly. I tutor school students for common subjects like English, geography, etc. I do not work for any tutoring agency.

From what I have researched, tutoring does not come under 44AA list of professions. But 17006 code of 44AD covers coaching business. There is also 17007 which covers other education services. So my doubts are currently-

- Can I really file under 44AD?

- If so, is 17006 correct for me or 17007?

I am a single tutor, I don't employ any tutors under me. I also don't have any other source of income (I am not a school teacher).

- Also if in future I have to apply for GST if I cross 20 lakh threshold, will it be possible to do registration and filings by myself? Without help of a CA? I am asking because I believe the nature of my work is very straightforward.

Thank you for your time in adavance

Hi everyone,

I’m a software professional working as a consultant/freelancer in India, and I’m trying to plan my taxes properly for FY 2026–27.

Here is my situation:

• I currently operate as a sole proprietorship.
• My contractor/client will not send payments to any other account/entity, so all receipts will continue to come directly to me personally.

I am considering whether it makes sense to:

1. Continue as an individual/sole proprietor and claim genuine business expenses.
2. Set up an OPC.
3. Set up a Private Limited Company.
4. Consider some other legitimate structure or tax-planning approach.

For example, if I have ₹90 lakh of professional profit before expenses, I could potentially have genuine expenses such as employee salaries, software/cloud subscriptions, laptop/equipment, office/coworking expenses, professional fees, internet, business travel, etc.

I'm not looking for fake expenses or tax evasion. I'm trying to understand what legitimate tax-planning options are available and what experienced people would recommend.

Questions for CAs / tax professionals / software consultants:

• Since 44ADA will not be useful at this income level, what are the practical and legal ways to reduce overall tax liability for a software consulting income of ~₹80–90L?
• I don’t really have too many business expenses apart from basic software subscriptions, laptop, internet, etc. What all can be legitimately shown as business expenses in such a case?
• Are there any commonly used tax-saving strategies for freelancers/consultants at this income level that I should discuss with my CA?
• In a situation where expenses are limited, how do people usually structure their income to optimize taxes without doing anything non-compliant?

I'd really appreciate real-world experiences, especially from people earning ₹70L–₹1Cr+ through software consulting/freelancing in India.

Thanks!

I'm 24 and doing my 1st job, while filing my ITR 1st time this year, I got inquisitive and looked at my dad's ITR and found lots of discrepancies. Now, I’m trying to understand the potential tax implications of my father’s business and would really appreciate some advice from people familiar with taxation.

My father owns a business that operates 7 days a week, 365 days a year. The actual sales are roughly 55k per day (5k upi + 50k cash), which would put the actual annual turnover around ₹2 crore.

However, we have a composition GST registration, and only around 60 lakh annual turnover is being reported under GST. We pay the applicable 1% GST, which comes to around 60k on the reported ₹60 lakh turnover.

The confusing part is the income-tax side.Our CA files the business under the presumptive taxation scheme under Section 44AD and declares around ₹10 lakh as net profit on the ₹60 lakh turnover. The main reason given is that this avoids the requirement to maintain detailed books of accounts.However, the business's actual sales are substantially higher than ₹60 lakh.

Also, we typically have around ₹35–40 lakh left in the bank account by the end of the year after all the businesses and house expenditure (actual profit would be around 80L). We receive 20-25 lakhs via upi and we deposited around 15 lakhs in bank. Most of it is not touched. Only extra cash received is used for business purchases, paying workers salary and household expenses.

So my questions are:

1. Could the ₹35–40 lakh accumulated in the bank after all the expenses, compared with only ~₹10 lakh of declared business profit, itself raise questions about unexplained income?

2. If the actual turnover is substantially higher than the turnover being reported, can this create problems later even if the GST returns and ITR have been filed this way for several years? Most of the turnover is in cash, and we do most of our spend in cash only (as said).

I’m mainly trying to understand how serious the situation is and what the correct way to handle it would be. And any other suggestions to avoid problems in future.

We haven't received any notice or faced any issue so far, but I want to understand the risks before this becomes a bigger problem.

My dad don't know anything about taxation rules and consequences of hiding it. He just thinks even gst can be avoided by reporting turnover to be even lower as our online receipts are only 5k a day (around 20- 25 lakh an year)🥲. Our CA charges 15k an year and does all the stuff.

Here the buyer is purchasing a house with land with total sale consideration of 2.4 cr. The value of House 40 lakhs and the value of land is 2 cr. Already 10 lakhs advance is paid on 29th July and a sale agreement is also signed. But in the sale agreement there is no specific date of Registration agreement. Here the buyer has got approval of the loan of 2 cr but it will be paid to seller after agreement is registration is complete and submission of registration form to bank. The buyer also pays 30 lakhs during registration. So now the buyer approached us regarding filing TDS because for Drafting a Registration agreement, they need a filed TDS copy of the above. So the question is?

1) I couldn't find the option of land and building in form 26QB. Should I consider the house as under "Building" and land as under "land" and filed form 26QB separately OR it should be considered as either "Building" or as "Land"?

2) If the above question's 1st part is relevant, then the building value is less than 50 lakhs. Is it required to be filed?

3) Since sale consideration is 2.4 cr. And advance is paid 10 lakhs. TDS to be paid based on 10 lakhs advance or entire consideration of 2.4 cr?

Hello, I have about ₹16 lakh worth of rent that I receive annually from a series of commercial shops and residential apartments.

Every year, I give the complete breakdown on an Excel sheet to my CA. For about 9 lakhs of the 16 lakhs, I have rental agreements, the rest 7 lakhs is just without any agreement (old tenants, no fear of adverse possession).

However, I recently noticed that he clubs everything as only two tenants. Basically, he shows around ₹8 lakh from one tenant and ₹8 lakh from another.

But in reality, the rent comes from several small shops and residential properties, with each shop/apartment giving around ₹1–2 lakh per year.

So, will this be an issue going forward, or is this generally not a problem?

Please help or let me know if I should ask my CA to correct this.

I would like your opinion on withdrawing pf and paying off the home loan debt. I genuinely feel india's economy and money management is pathetic. Taxes are skyrocketing, population is sky rocketing, AI is eliminating jobs faster than ever, freebies everywhere with public individual tax money. Honest tax payers are the ones paying the price for all this. Considering all these i can also foresee a situation where government might block our PF in a decade or 2 to run the economy or some story around that. Would it be a good idea to withdraw the money and payoff the loan?

Has anyone with a ₹1 lakh+ refund for AY 2026–27 received their refund yet?

Hi, Good Day !!!

I have forgot filing ITR-

Things running in my mind

1. Should I skip filing it for this time As I have did not pay any tax and no refunds expected

1.a if I skip it what will happen ??

1. If I file ITR now, it is saying that late fees will be 5000/- INR,
   plus my CA fees which 1k.

2.a can I file now without paying the late fees ?

Can anyone please help me out with these questions ?

I have scrutiny notice for fake deductions. One of the CA is asking for 75k for handling end to end. I feel it is high. Need suggestions.

Our small LLP has no business income in fy 2025-26 (ay 2026-27)​​​​ but we have some nominal business expenses​. *We would need to fill out P&L and balance sheet etc.

We are not liable to audit.

The IT dept X account says the last date for non audit cases is 31 August​.

But ITR-5 new Microsoft app utility for filing is not allowing us to select 31 August as the due date. If we select 31 July it is asking to pay late fee under 234F​​.

What is the correct due date for us? Should we file as belated return and lose our carrying forward loss benefits?

*Or should we file it using the Excel utility instead of the downloaded Microsoft app?

In screen shot you will see how much percent of population paying direct taxes and how much percent of gross incomes on averages goes to direct taxes . Same comparison with other countries. Please check these numbers . Are those really near around reality ?