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The financial year 2026–27 is the first full financial year governed by the Income-tax Act, 2025. As 31 March 2027 approaches, private limited companies should review their tax position, pending compliances and major transactions before closing their books. Effective from 1 April 2026, the Income-tax Act, 2025 has introduced the Tax Year concept. Accordingly, income …

Year-End Tax Planning for Private Limited Companies: 10 Checks Before 31 March 2027 Read More »

Loans between group entities, sister concerns, private companies and LLPs are common in closely held businesses. However, a simple transfer of funds between two entities can have important implications under the Companies Act, 2013, particularly Sections 73, 179, 185 and 186, as well as the Companies (Acceptance of Deposits) Rules, 2014. A common question is: …

Can a Private Limited Company Give or Take a Loan from Another Company or LLP? Read More »

A common question asked by business owners is: “Our company’s profit as per the Profit & Loss Account is ₹50 lakh. Why is taxable income ₹60 lakh?” The answer is simple: accounting profit and taxable profit are not always the same. Financial statements are prepared according to applicable accounting standards and accounting policies, whereas taxable …

Why Your Company’s Profit Is Different From Its Taxable Income: A Practical Guide to Tax Adjustments Read More »

For most businesses, Income Tax and GST notices are not triggered randomly. Modern tax systems rely heavily on data analytics and reconciliation of information reported across income tax returns, GST returns, TDS returns, annual information statements (AIS), e-invoices and financial statements. The following accounting and reporting issues are among the most common reasons for scrutiny …

Financial Statement Red Flags That Frequently Trigger Income Tax and GST Notices Read More »

Directors of private limited companies often incur expenses while managing and growing the business. However, a common area of confusion is determining which expenses can legitimately be claimed by the company and which expenses are personal in nature and therefore not allowable. Incorrect classification of expenses can result in: This article discusses the practical principles …

Directors’ Expenses – What Can and Cannot Be Claimed by a Company? Read More »

A Tax Audit under Section 44AB of the Income-tax Act, 1961 is one of the most important compliance requirements for businesses and professionals in India. The objective of a tax audit is to ensure that the books of account are properly maintained and that income is correctly reported in accordance with the provisions of the …

Tax Audit under Section 44AB – Applicability, Due Dates and Penalties Read More »

India has emerged as a global hub for IT services, consulting, software development, engineering, design, and other professional services. Many Indian businesses and professionals provide services to overseas clients and receive payments in foreign currency. A common question among exporters is: “Do I need to charge GST on services provided to foreign clients?” The answer …

GST on Export of Services – Complete Guide Read More »

Limited Liability Partnerships (LLPs) have become a preferred business structure for professionals, startups, and small businesses due to their operational flexibility and lower compliance burden compared to companies. However, LLPs are still required to comply with various annual filing, tax, and regulatory obligations. Failure to comply can result in substantial penalties, disqualification of designated partners …

LLP Annual Compliance Calendar – A Practical Guide Read More »

Practical Guide for Business Owners Running a small business involves managing sales, operations, GST, income tax, and compliance. Many businesses unknowingly make tax mistakes that lead to penalties, notices, cash losses, and unnecessary tax payments. This guide highlights the most common tax mistakes made by small businesses and how to avoid them. 1. Not Maintaining …

Top 10 Tax Mistakes Small Businesses Make Read More »

Many businesses today make international payments through employees’ or directors’ personal credit cards for convenience and faster processing. Common examples include payments for software subscriptions, cloud services, online advertisements, website hosting, AI tools, and foreign consultancy services. However, companies often overlook an important point — merely because the payment is made through a personal credit …

Payments Through Employee Credit Cards – Hidden FEMA & TDS Risks Read More »