CA Kushal Garg

Practicing Chartered Accountant | 📍Delhi | 👨‍🎓 CA AIR 19, SRCC graduate | 💼 Ex EY | 🔍 FAFD certified | 🧳Travel enthusiast

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[CA Kushal Garg @KushalGarg03]

@Finance_Bareek Interested

[CA Kushal Garg @KushalGarg03]

@onlyequities @narendramodi @nsitharaman @Infosys_GSTN You should fight it. Every case is not a fraud case

[CA Kushal Garg @KushalGarg03]

💳 UPI Transactions May Soon Carry Charges?

The proposed amendment to the Payment and Settlement Systems Act, 2007 replaces the reference to electronic payment modes prescribed under Section 269SU with a provision allowing the Central Government to notify one or more electronic modes of payment.

While this doesn't automatically impose charges on UPI, it does provide the Government with greater flexibility to specify notified electronic payment modes in the future.

This raises an important policy question:

If UPI charges are introduced, what do you think is fair?

Zero charges to keep digital payments free?

A nominal MDR for large merchants?

Charges only above a certain transaction value?

Or a completely different model?

I'd love to hear your perspective. Share your thoughts in the comments. 👇

#UPI #DigitalPayments #Fintech #PaymentSystems #IncomeTax #TaxUpdates #India #Finance #Policy #LinkedInDiscussion

[CA Kushal Garg @KushalGarg03]

@Rakeshshahbsg9 Yes right
We do file ITRs yes

[CA Kushal Garg @KushalGarg03]

🚨 Stock Traders: Are You Looking at the Wrong Head of Income?

One of the most common complaints I hear this year is:

"Why don't traders get the ₹12 lakh tax benefit available to other taxpayers?"

Before blaming the law, ask yourself a more fundamental question:

Is your trading income actually taxable under the correct head?

Many active traders continue to report their profits as Capital Gains. However, depending on the nature of their activities, frequency of trades, intention, holding period, and overall conduct, their income may instead be taxable under Profits & Gains of Business or Profession (PGBP).

This distinction is not merely a matter of terminology, it can have a significant impact on the overall tax computation.

That said, a word of caution:

✔️ You cannot simply opt for PGBP because it results in a lower tax liability.

✔️ Your trading pattern must support business treatment.

✔️ Proper books of account and compliance with the applicable provisions are essential.

The Income-tax Act looks at the substance of your activities, not just the label you choose while filing your return.

For many traders, reviewing the correct head of income before filing the return could be one of the most important tax decisions of the year.

Have you evaluated whether your trading activity is truly an investment portfolio or a business?

I'd be interested to hear your views in the comments.

#IncomeTax #StockMarket #Trading #CapitalGains #BusinessIncome #PGBP #TaxPlanning #ITR #Finance #CharteredAccountant #TaxCompliance #IndiaTax

[CA Kushal Garg @KushalGarg03]

@Rakeshshahbsg9 Wrong its not restricted to FnO or only intraday

[CA Kushal Garg @KushalGarg03]

@rishikesh237788 @NalinisKitchen @nsitharaman Sure

[CA Kushal Garg @KushalGarg03]

@rishikesh237788 @NalinisKitchen @nsitharaman Read Circular 6/2016 from CBDT. Its only 2 pages and all your doubts are mentioned in it.

[CA Kushal Garg @KushalGarg03]

@rishikesh237788 @NalinisKitchen @nsitharaman Oh! Will make a detailed post on this then

[CA Kushal Garg @KushalGarg03]

@FI_InvestIndia The answer isnt 0

[CA Kushal Garg @KushalGarg03]

@rishikesh237788 @NalinisKitchen @nsitharaman Yes correct. Just be consistent with the treatment

[CA Kushal Garg @KushalGarg03]

@rajushahemp48 @NalinisKitchen @nsitharaman Maintain proper books of accounts, maintain separate bank account for your trading business. File ITR-3 after preparing proper balance sheet and P&L and do this on a year to year consistent basis without changing the treatment year on year ass per convenience

[CA Kushal Garg @KushalGarg03]

@CA_HarshilSHETH Jio never resolves anything. Had a terrible experience with them during fiber installation.

[CA Kushal Garg @KushalGarg03]

@ElavarasanP26 You can if you are eligible despite form 16

[CA Kushal Garg @KushalGarg03]

🚨 Planning to claim Section 10(14)(i) exemption in the New Tax Regime? Read this before filing your ITR.

⚠️ There is a growing trend of taxpayers trying to claim exemptions under Section 10(14)(i) while filing returns under the New Tax Regime (Section 115BAC).

📖 However, Rule 2BB(3) of the Income-tax Rules clearly restricts the exemptions available under the new regime.

✅ Only these 3 allowances continue to be exempt:

✈️ Travelling Allowance (for official tour/transfer)

🧳 Daily Allowance (while on official duty away from the normal place of work)

🚗 Conveyance Allowance (for official duties where transport is not provided by the employer)

❌ Most other allowances are NOT exempt, including:

• 🎓 Children's Education Allowance

• 🏠 Hostel Expenditure Allowance

• 👔 Uniform Allowance

• 👨‍💼 Helper Allowance

• 📦 And several other allowances covered under Section 10(14)(i).

🤖 With the Income-tax Department relying increasingly on automated validations and analytics, incorrect exemption claims may result in:

🔸 Refund adjustments

🔸 CPC communications/notices

🔸 Scrutiny or verification of salary claims

💡 Just because your payroll software or ITR utility allows an entry doesn't mean the exemption is legally available.

📌 This filing season, expect authorities to closely examine incorrect claims made under Section 10(14)(i) by taxpayers opting for the New Tax Regime.

✅ A few extra minutes spent verifying exemptions today can save months of responding to notices later.

💬 Have you noticed taxpayers or employers misunderstanding the exemptions available under the New Tax Regime? Share your experience in the comments.

#IncomeTax #ITR #ITRFiling #NewTaxRegime #Section115BAC #Section1014 #SalaryIncome #TaxCompliance #IncomeTaxIndia #CharteredAccountant #TaxPlanning #Refund #TaxNotice #Finance #CAKushalGarg

[CA Kushal Garg @KushalGarg03]

@abhishekrajaram Sir, can you pl share judgement copy, its not available on website

[CA Kushal Garg @KushalGarg03]

@NikunjJaviya1 @IncomeTaxIndia It is possible

[CA Kushal Garg @KushalGarg03]

🚨 Fake cases cited by Department. Delhi High Court Sends a Strong Message

A significant ruling for tax professionals, appellate authorities, and anyone relying on AI-assisted legal research.

The Delhi High Court recently set aside an order passed by the Commissioner of Income Tax (Appeals) after discovering that all six judicial precedents cited in the order simply did not exist. The Court itself verified the reported citations and found them to be fictitious.

⚖️ What the Court observed:

✅ Orders based on non-existent or hallucinated judgments amount to a fraud on the justice delivery system.

✅ Authorities are free to rely on their own legal reasoning, but they cannot support conclusions with fabricated precedents.

✅ The Court remarked that the growing practice of citing AI-generated or otherwise non-existent judgments is a serious concern and even suggested that strict disciplinary action should be considered in such cases in the future.

In this case, the retired CIT(A) explained that due to workload, the citations were inserted based on information provided by an Inspector without independent verification. However, the Court still set aside the appellate order and remanded the matter for fresh adjudication.

💡 Key takeaway for professionals:

Artificial Intelligence is an excellent research assistant but never a substitute for professional verification. Every case law, citation, and legal proposition must be independently cross-checked before being relied upon in an order, opinion, appeal, or representation.

In the era of AI, verification is no longer optional, it is a professional responsibility.

[CA Kushal Garg @KushalGarg03]

@CAChirag Sad to witness such views from you sir