Latest news with #SudhirKaushik
Time of India
6 hours ago
- Business
- Time of India
India-Oman DTAA amended: What does the new tax treaty mean for salaried professionals, freelancers, and business owners? What experts say
India and Oman have revised their Double Taxation Avoidance Agreement (DTAA), first signed in 1997, to align with evolving global tax standards and cross-border economic realities. The updated pact, which comes into effect from May 28, 2025, aims to provide relief to individuals and businesses earning income in both countries by eliminating the risk of being taxed twice. The revised DTAA will benefit Indian residents with investments or professional engagements in Oman, and vice versa. This includes salaried professionals, freelancers, and business owners earning income across both jurisdictions, according to an ET report. 'The revision aims to promote cross-border investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%,' Pankaj Agrawal, Associate Director at Grant Thornton, told the financial daily 'Further, updates have been made in definitions, mutual agreement procedures (MAP), and enhanced information exchange between the jurisdictions,' he added. Sudhir Kaushik, Cofounder and CEO of said the revised India-Oman tax treaty is a 'positive move for fair and clear taxation' that also strengthens information sharing, helping honest taxpayers and reducing tax evasion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo He was quoted as saying that the agreement also includes a non-discrimination clause that ensures tax parity between Indian and Omani entities operating in each other's countries. The revised treaty includes a stronger MAP framework to resolve tax disputes more efficiently and introduces anti-abuse provisions to prevent treaty shopping. It also enhances data exchange protocols, including access to financial and banking information, making cross-border tax evasion more difficult. Oman will also become the first Gulf Cooperation Council (GCC) nation to introduce personal income tax. As per the proposed plan, from January 2028, Oman will levy a 5% income tax on individuals earning above OMR 42,000. Until now, GCC countries such as the UAE, Saudi Arabia, Qatar, and Kuwait have not imposed personal income tax, relying largely on oil revenues. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
19 hours ago
- Business
- Economic Times
India, Oman revise DTAA: What's the income tax impact on professionals earning in both countries?
iStock This move will ensure that taxpayers who are financially active in both India and Oman are not unfairly taxed twice on the same income If you earn income in both India and Oman—say through employment in Oman and investments in India—and pay taxes in India, there's good news, whether you're a salaried professional, business owner, or freelancer. Both nations have revised their Double Taxation Avoidance Agreement (DTAA), originally signed in 1997, to reflect today's global tax norms and economic conditions. This update will be effective from 28 May 2025, ensuring that taxpayers aren't unfairly taxed twice on the same income in India and Oman. This brings relief to individuals and businesses working across both countries by creating clear rules about where and how income will be taxed. Oman will be the first country in the Gulf Cooperation Council (GCC) to start levying personal income tax at the rate of 5% for high income earners. The tax proposed with effect from January 2028 would be applicable for income above OMR 42,000. Until now, GCC nations, including Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, have relied mainly on oil exports and have not imposed personal income tax. After the introduction of GCC VAT and corporate income tax, introduction of personal income tax seems to be the next step towards expanding sources of revenue for the government. India has DTAA pacts with multiple countries Comprehensive DTAAs cover all income types, while others apply to limited or specific cases. 'The revision aims to promote crossborder investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%. Further, updates have been made in the form of changes in certain definitions, mutual agreement procedures (MAP) and enhancing the framework for information exchange between the two jurisdictions. The agreement has been amended to adapt to the changing economic conditions and global tax reforms, aligning it with the current economic realities,' says Pankaj Agrawal, Associate Director, Global People Solutions, Grand Thornton.'The revised India-Oman tax treaty is a positive move for fair and clear taxation. It also prevents misuse of the treaty and makes information sharing stronger, helping honest businesses and reducing tax evasion,' says Sudhir Kaushik, Cofounder & CEO, important change is the introduction of a non-discrimination clause, which guarantees equal tax treatment for residents of both countries. So, for example, an Indian company operating in Oman will not face a higher tax burden than a comparable Omani firm. The treaty strengthens information exchange mechanisms between the two countries. Tax authorities will now share data more freely, even from banks and financial intermediaries, making it harder to hide income across borders. The revised agreement includes a better MAP to resolve tax disputes more efficiently. It also introduces new rules to prevent abuse of treaty benefits by third-country entities through treaty both nations will assist each other in tax collection. If someone owes tax in India and relocates to Oman, the local authorities can now help recover that amount and vice versa.
Time of India
20 hours ago
- Business
- Time of India
India, Oman revise DTAA: What's the income tax impact on professionals earning in both countries?
India has DTAA pacts with multiple countries Academy Empower your mind, elevate your skills If you earn income in both India and Oman—say through employment in Oman and investments in India—and pay taxes in India, there's good news, whether you're a salaried professional, business owner, or nations have revised their Double Taxation Avoidance Agreement (DTAA), originally signed in 1997, to reflect today's global tax norms and economic conditions. This update will be effective from 28 May 2025, ensuring that taxpayers aren't unfairly taxed twice on the same income in India and Oman. This brings relief to individuals and businesses working across both countries by creating clear rules about where and how income will be will be the first country in the Gulf Cooperation Council (GCC) to start levying personal income tax at the rate of 5% for high income tax proposed with effect from January 2028 would be applicable for income above OMR 42,000. Until now, GCC nations, including Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, have relied mainly on oil exports and have not imposed personal income tax. After the introduction of GCC VAT and corporate income tax, introduction of personal income tax seems to be the next step towards expanding sources of revenue for the DTAAs cover all income types, while others apply to limited or specific cases.'The revision aims to promote crossborder investments and technology transfer by lowering tax rates on royalties and fees for technical services from 15% to 10%. Further, updates have been made in the form of changes in certain definitions, mutual agreement procedures (MAP) and enhancing the framework for information exchange between the two jurisdictions. The agreement has been amended to adapt to the changing economic conditions and global tax reforms, aligning it with the current economic realities,' says Pankaj Agrawal, Associate Director, Global People Solutions, Grand Thornton.'The revised India-Oman tax treaty is a positive move for fair and clear taxation. It also prevents misuse of the treaty and makes information sharing stronger, helping honest businesses and reducing tax evasion,' says Sudhir Kaushik, Cofounder & CEO, important change is the introduction of a non-discrimination clause, which guarantees equal tax treatment for residents of both countries. So, for example, an Indian company operating in Oman will not face a higher tax burden than a comparable Omani firm. The treaty strengthens information exchange mechanisms between the two countries. Tax authorities will now share data more freely, even from banks and financial intermediaries, making it harder to hide income across borders. The revised agreement includes a better MAP to resolve tax disputes more efficiently. It also introduces new rules to prevent abuse of treaty benefits by third-country entities through treaty both nations will assist each other in tax collection. If someone owes tax in India and relocates to Oman, the local authorities can now help recover that amount and vice versa.
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Business Standard
6 days ago
- Business
- Business Standard
Earning from reels or brand deals? Here's how influencers must file ITR
From choreographed reels to brand shoutouts, India's growing tribe of digital influencers is turning social content into serious income. But as the money flows in from YouTube AdSense, affiliate links, Instagram collaborations and freebies, so does the tax department's scrutiny. With digital footprints becoming increasingly trackable, creators can no longer afford to ignore the tax implications of their online hustle. 'All income from reels, brand deals, affiliate links, and even barter collaborations, if total gifts exceed ~50,000 in a year, must be reported under 'business and professional income' in your ITR,' said Sudhir Kaushik, co-founder and chief executive officer of TaxSpanner. 'Even free gadgets or hotel stays count as taxable perks.' What you must report Unlike salaried employees, influencers are treated as self-employed professionals or business owners under tax laws. According to Ankit Jain, partner at a law firm, Ved Jain and Associates, 'Income from brand promotions, affiliate commissions, online workshops, event appearances, merchandise sales, or even foreign payments must be reported. Under Section 194R, brands offering free items worth over ~20,000 must deduct 10 per cent TDS on fair market value, this applies even if the influencer receives no cash.' Pallav Pradyumn Narang, partner at CNK & Associates LLP, an all-service firm, echoed this. 'Everything received in exchange for content, whether in cash, kind, crypto, or vouchers, falls under the taxable head of 'Income from Business or Profession',' Narang said. Deductions that lighten the tax load Influencers can reduce their taxable income by claiming relevant expenses. 'Costs like studio rent, internet bills, software tools, camera gear, or travel for brand shoots are deductible if used for business,' said Shefali Mundra, chartered accountant and tax expert at ClearTax. 'Even salaries paid to video editors or assistants can be claimed. For high-value items like laptops or lighting equipment, only depreciation is allowed under Section 32,' Mundra said. Jain recommended that creators 'maintain a separate business bank account to avoid mixing personal and professional expenses. This simplifies accounting and strengthens your defence in case of scrutiny.' ITR-3 or ITR-4? Choose wisely Not all influencers qualify for the presumptive taxation route. 'If your work involves skills listed under Section 44AA, like technical consultancy or film artistry, and your gross receipts are under ~75 lakh, you may opt for presumptive tax and file ITR-4,' explained Kaushik. 'Otherwise, you'll need to use ITR-3 and maintain proper books.' Savani added that content creators can choose between the old and new tax regimes based on which offers better deductions. Skip the guesswork -- be fully compliant Under-reporting income or choosing the wrong ITR form can backfire. 'AIS and Form 26AS already reflect what brands, platforms, and banks report to the tax department,' said Savani. 'Even minor mismatches can trigger notices, audits, and penalties up to 200 per cent of the tax due.' Mundra further warned that failing to pay advance tax can attract interest under Sections 234B and 234C. 'Foreign earnings, GST on sponsored posts, and high-value freebies are under the scanner. Don't wait for a notice, file cleanly and smartly.' Final word Being an influencer may feel fun and free-spirited, but when it comes to taxes, it's serious business. From the first brand deal to the last swipe-up link, every rupee (or ring light) counts. The Income Tax Department is watching your follower count and your Form 26AS, so file right, stay compliant, and keep creating without worry.
Time of India
09-06-2025
- Business
- Time of India
ITR Filing FY 2024-25: Have you got an Income Tax notice? Don't ignore it! Top types of tax notices & actions required
ITR filing. A proper understanding and appropriate response to these notices can help you avoid penalties, conserve time and remain stress-free. (AI image) ITR filing FY 2024-25: As the Income Tax Return filing season for FY 2024-25 (AY 2025-26) begins, it's important to understand that merely filing your ITR does not end your responsibility. In some cases, the Income Tax Department might issue notices even after you have submitted and verified your returns. Whilst this can be concerning, most notices are standard procedures that can be handled systematically. A proper understanding and appropriate response to these notices can help you avoid penalties, conserve time and remain stress-free. Consider these essential guidelines if you receive a notice, as listed by Sudhir Kaushik, Founder & CEO of in a column in ET Wealth: * Never Ignore: Every notice has a deadline; missing it can result in penalties. * Importance of 26AS & AIS: These will help you to verify and reconcile your income and TDS data. * Accuracy: Mismatches can lead to additional scrutiny or tax demands. * Prompt action: Even minor notices can lead to complications if unaddressed. * Expert help: For complex notices, consult a chartered accountant or a tax professional immediately. Also Read | Big cheer! Home loan rates head below 8% - how much will 1% RBI repo rate cut reduce your EMI or tenure? Check calculations Here is a straightforward guide regarding common income tax notices and their appropriate handling procedures provided by Sudhir Kaushik: Section 245: Adjustment against Previous Dues When you qualify for a tax refund whilst having outstanding tax liabilities from earlier assessment years, the tax authorities retain the right to offset it. Required Actions: * Review the notification available in your account under 'e-Proceedings'. * Within 15 days, you must either accept or contest the stated grounds. * Should you fail to respond, your refund will be automatically adjusted against the dues. Section 142(1): Initial Assessment Investigation This represents a preliminary verification process initiated when tax returns remain unfiled or additional information is required by the tax authorities. Required Actions: * Submit your pending tax return. * Provide all requested documentation within the specified time frame. * Non-compliance may result in financial penalties or detailed examination. Also Read | ITR e-filing FY 2024-25: ITR-1 and ITR 4 forms enabled online for return filing on income tax e-filing portal; check details Section 143(1): Assessment Notice Post Return Processing This notice is commonly issued by the tax department to verify your submitted return against their database. The Income Tax department sends this when they detect discrepancies in TDS, mathematical errors, claims for deductions that appear incorrect, or when returns are submitted late. Required Actions: * Access your account on the income tax website to examine the notice * No response required if the assessment is accurate * Clear any tax dues within 30 days if applicable * Submit a correction request with supporting evidence if the assessment contains errors Section 139(9): Defective return When a tax return contains errors or lacks required information, the tax authorities classify it as defective. The primary concerns typically involve incomplete income information and inaccurate entries related to deductions. Required Actions: * A period of 15 days is provided to make corrections and submit again. * Access your account, locate the notice in the 'e-Proceedings' section, and submit your response. * Non-compliance within the stipulated time frame could result in invalidation of your return. Section 133(6): Information Request for Financial Details This formal notice requires explanation regarding specific financial activities, including substantial cash deposits and real estate acquisitions. Required Actions: * Provide supporting documentation, including banking records and contractual papers. * Ensure timely submission to prevent additional investigation. Also Read | ITR filing FY 2024-25: Income tax payers take note! These 7 mistakes in income tax return filing this year can cost you big HRA and TDS Discrepancy Notifications These notifications are issued when discrepancies are detected between your claimed house rent allowance (HRA) or TDS information and the tax department's database. Required Actions: * Verify that TDS requirements are met for monthly rent payments above Rs. 50,000 * Maintain proper documentation including rent receipts and landlord's PAN details * Should the discrepancy be confirmed, submit a revised return and safeguard all supporting documents for future reference Section 143(2) Detailed Review Notice under Section 143(2): This notification indicates that your tax return requires comprehensive verification through detailed scrutiny. Required Actions: * Submit all supporting documentation to validate your income, claimed deductions and expenses * If summoned, attend the scheduled hearings or provide responses via the online portal * Failure to respond could result in estimated tax assessments being made by authorities Section 148: Assessment of Undisclosed Income This notice is issued when tax authorities have reason to believe that certain income was not disclosed in previously filed returns. Required Actions: * Submit an updated return or provide clarification as requested in the notice. * Present evidence to validate the income source and attach supporting documentation. * Non-compliance may result in reassessment of previous years and monetary penalties. Section 271AAC(1): Penalty for Undisclosed Income When substantial unexplained deposits are discovered during assessment proceedings, authorities may issue this notification. Required Actions: * Submit supporting documents that establish the origin of funds. * Failure to justify the income source can result in penalties amounting to 60% of the undisclosed amount. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
