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The Goods and Services Tax (GST) framework in India provides a mechanism for taxpayers to claim refunds under specific circumstances. Refund eligibility is a crucial aspect of GST compliance, as it ensures that businesses do not suffer financial hardship due to excess tax payments. Understanding the eligibility conditions for claiming a GST refund is essential for every registered taxpayer.

WHAT IS A TAX REFUND?

A GST refund refers to the process through which the excess amount of tax paid by a taxpayer is returned by the government. This can occur due to multiple reasons, such as excess tax payment, zero-rated supplies, or inverted duty structure. The GST law aims to make this process transparent and time-bound, thereby maintaining the cash flow of businesses.

ELIGIBILITY CRITERIA FOR GST REFUND

Under the GST Act, the following categories of taxpayers and transactions are eligible to claim a refund:

1. Excess Tax Paid

If a taxpayer has mistakenly paid more tax than the actual liability, they are entitled to claim a refund. This situation often arises due to errors while filing GST returns or incorrect tax calculation.

2. Exports and Zero-Rated Supplies

Supplies that are zero-rated, such as exports of goods and services or supplies to Special Economic Zones (SEZs), qualify for a refund. Exporters can claim a refund of the Integrated GST (IGST) paid on exports or the unutilized Input Tax Credit (ITC) when exports are made under a Letter of Undertaking (LUT) without payment of IGST.

3. Inverted Duty Structure

An inverted duty structure occurs when the tax rate on inputs is higher than the tax rate on output supplies. In such cases, businesses accumulate excess ITC that cannot be utilized and are eligible to claim a refund of this unutilized credit.

4. Tax Paid on Supplies Not Provided

If tax has been paid on goods or services that were not supplied, or where the agreement was cancelled and a credit note has been issued, the taxpayer is eligible to claim a refund of the tax amount.

5. International Tourists

Foreign tourists visiting India are eligible to claim a refund of GST paid on goods purchased during their stay in the country, subject to prescribed conditions.

6. Deemed Exports

Supplies notified as deemed exports under GST, such as supplies made to Export Oriented Units (EOUs), are eligible for refunds. Either the supplier or the recipient can apply for a refund, based on the agreed terms.

7. Tax Paid under Wrong Head

If tax is paid under the wrong head (e.g., IGST instead of CGST/SGST or vice versa), the taxpayer can claim a refund of the amount paid incorrectly.

8. Refund for Advance Tax Deposits

In certain cases, businesses may deposit advance tax but do not go ahead with the planned supply. In such situations, the tax deposited can be claimed back through a refund application.

CONDITIONS TO KEEP IN MIND

While the above categories qualify for a GST refund, certain conditions must be fulfilled:

• The taxpayer must be registered under GST.
• The claim should be filed within two years from the relevant date as per GST law.
• Proper documentation, such as tax invoices, shipping bills, and proof of payment, is mandatory.
• The refund amount should not include any unjust enrichment, i.e., the tax burden should not have been passed on to the consumer.

CONCLUSION

GST refund eligibility is designed to reduce the financial burden on businesses and promote ease of doing business in India. By understanding the categories and conditions for refund eligibility, taxpayers can ensure timely claims and maintain healthy cash flow. However, it is equally important to maintain accurate records and comply with timelines to avoid rejection of refund claims.

Corporate Social Responsibility (CSR) has become more than a compliance requirement in India—it is now a reflection of a company’s commitment towards society and sustainable development. Under Section 135 of the Companies Act, 2013, companies meeting certain thresholds must spend at least 2% of their average net profits (of the last three years) on CSR activities.

However, fulfilling this obligation requires more than just allocating funds. A thoughtful, well-planned, and transparent implementation process ensures that CSR efforts have a meaningful and lasting impact.

Here’s a step-by-step guide to help companies implement CSR effectively.

Also read the article

Corporate Social Responsibility (CSR): Practical Implementation

1. Understand the Legal Requirements

Before initiating any CSR activity, companies must have a clear understanding of the statutory provisions under the Companies Act, 2013, and the CSR Rules.
Key points include:

• Applicability criteria (net worth, turnover, or profit thresholds).
• Minimum spending requirement of 2% of average net profits (last three years).
• Permitted CSR activities as per Schedule VII.
• Prohibition on activities that benefit employees exclusively or are part of normal business.

Being well-versed in these rules helps avoid compliance lapses and penalties.

2. Form a CSR Committee

For eligible companies, forming a CSR Committee of the Board is mandatory. The committee should:

• Consist of at least three directors (including one independent director where applicable).
• Frame and recommend a CSR policy to the Board.
• Recommend CSR activities and budgets, and monitor implementation.

This step ensures that CSR planning and execution are overseen at the highest governance level.

3. Develop a CSR Policy

The CSR policy acts as the guiding document for all CSR initiatives. It should:

• Clearly state the company’s CSR vision and objectives.
• List the types of activities the company intends to undertake.
• Define geographical focus areas.
• Set measurable targets and timelines.

The policy should be approved by the Board and disclosed on the company’s website for transparency.

4. Identify Focus Areas and Projects

Companies should choose CSR activities that align with both Schedule VII and the organisation’s values. Examples include:

• Education and skill development.
• Healthcare and sanitation.
• Environmental sustainability.
• Rural development projects.

Engaging with local communities and conducting a needs assessment survey can help select projects that address real challenges.

5. Allocate CSR Budget

Once activities are finalised, the CSR Committee should recommend the budget. Companies must ensure that:

• At least the minimum required amount (2% of average net profits) is allocated.
• Funds are earmarked for specific projects rather than scattered activities.
• A proper utilisation plan is in place to avoid unspent amounts being transferred as per the law.

6. Select Implementation Partners

CSR activities can be carried out directly or through eligible implementing agencies such as:

• Section 8 companies.
• Registered trusts or societies.
• Entities registered with the MCA for CSR purposes.

Due diligence on the credibility and track record of these agencies is essential to ensure accountability.

7. Execute the CSR Projects

Execution should be done in line with the CSR policy and approved plans. This involves:

• Coordinating with partners and beneficiaries.
• Ensuring timely disbursement of funds.
• Maintaining proper records of expenses and activities.

Strong project management ensures that the intended impact is achieved without delays or resource wastage.

8. Monitor Progress and Impact

Regular monitoring is critical. This can be done by:

• Setting measurable Key Performance Indicators (KPIs).
• Conducting periodic reviews and site visits.
• Tracking expenditure against the approved budget.

Impact assessment helps evaluate whether the project is meeting its objectives and provides insights for future improvements.

9. Maintain Proper Documentation

For compliance and transparency, companies must maintain:

• Detailed expenditure reports.
• Agreements with implementing partners.
• Project progress reports and beneficiary feedback.

These records also assist in the statutory reporting process.

10. Report CSR Activities

Companies must prepare a detailed CSR report and include it in the Board’s Report as per CSR rules. This should include:

• Details of CSR projects undertaken.
• Amount spent and unspent.
• Impact assessment results (where applicable).

The report should also be made available on the company’s website to maintain transparency.

Conclusion

CSR is more than just fulfilling a statutory obligation—it is about creating a positive and sustainable impact on society. A structured, step-by-step approach not only ensures compliance but also builds trust among stakeholders and enhances a company’s reputation.

When implemented with genuine intent and proper planning, CSR can become a bridge between corporate growth and social progress.

Corporate Social Responsibility (CSR) in India is no longer a voluntary goodwill exercise—it’s a statutory requirement for qualifying companies under the Companies Act, 2013. However, beyond legal compliance, CSR offers an opportunity for companies to make a lasting impact on communities, build goodwill, and strengthen their corporate brand.

Also read here about CSR: Step by step implementation

Corporate Social Responsibility: Step-by-Step Implementation

Who Needs to Comply with CSR?

CSR provisions under Section 135 apply to any company that, during the preceding financial year, meets at least one of these criteria:

• Net worth: ₹500 crore or more
• Turnover: ₹1,000 crore or more
• Net profit: ₹5 crore or more

If your company qualifies, you must spend at least 2% of the average net profits of the last three financial years on eligible CSR activities listed in Schedule VII of the Act.

Choosing the Right CSR Activities

The first step in meaningful CSR is selecting the right initiatives. The law provides broad categories under Schedule VII, such as

• Eradicating hunger, poverty, and malnutrition.
• Promoting education, gender equality, and women’s empowerment.
• Environmental sustainability, afforestation, and waste management.
• Rural development and slum improvement.
• Promoting art, culture, and heritage conservation.

When choosing activities, companies should consider:

• Relevance to their business values.
• Genuine community needs in their area of operation.
• Long-term sustainability of the initiative.

Modes of Implementation

CSR projects can be implemented in different ways:

1. Direct Implementation—Managed in-house by the company’s CSR department.
2. Through an implementation partner—such as a Section 8 company, registered trust, or registered society with at least three years of proven experience in similar activities.
3. Collaborative Projects – Partnering with other companies to pool resources for larger impact.

Note: From April 2021, all implementing agencies must be registered with the Ministry of Corporate Affairs (MCA) and have a valid CSR Registration Number.

Budgeting and Fund Utilisation

• CSR spending must be based on the 2% calculation, but underspending needs to be disclosed with reasons.
• Any unspent amount (except for ongoing projects) must be transferred to the specified fund within six months from the end of the financial year.
• For ongoing projects, unspent CSR funds should be transferred to a special “Unspent CSR Account” and utilized within three years.

Monitoring and Measuring Impact

Many CSR efforts fail to create a visible difference due to poor monitoring. To avoid this:

• Set clear, measurable objectives before starting.
• Use regular progress reviews and field visits.
• Focus on impact, not just expenditure—for example, number of children educated rather than just classrooms built.

Transparency and Reporting

Companies must disclose their CSR policy, project details, and expenditure in the Board’s Report and on the official website.

Additionally, filing CSR-2 with the Registrar of Companies (ROC) is mandatory. Non-compliance can attract penalties both for the company and its officers.

Common Errors to Avoid

• Last-minute spending leads to rushed, ineffective projects.
• Weak partner selection: May cause misuse of funds or non-compliance.
• Ignoring documentation can invite scrutiny from regulators.

Why CSR is More Than a Compliance Task

When implemented thoughtfully, CSR can:

• Strengthen community relations.
• Enhance brand image and trust.
• Improve employee morale through volunteer participation.

Instead of seeing CSR as a legal burden, companies that approach it strategically often gain both social and business benefits.

Conclusion

CSR compliance in India is about balancing responsibility with opportunity. By aligning CSR initiatives with business values, focusing on measurable results, and maintaining transparency, companies can fulfill their legal obligations and contribute meaningfully to society.
The difference between a good CSR program and a great one lies in planning, partnerships, and persistence.

Under the Goods and Services Tax (GST), e-invoicing is a major reform intended to automate and standardize how companies generate and report invoices. Implemented in stages from October 2020, this innovation guarantees real-time GST Network (GSTN) invoice authentication, enhancing compliance and transparency while lowering tax evasion.

WHAT IS E‑INVOICING UNDER GST?

Through a specific Invoice Registration Portal (IRP), the GSTN electronically authenticates business-to-business (B2B) invoices and some other documents. This process is known as e-invoicing, or electronic invoicing.

E-invoicing is not the same as creating invoices directly on the GST system, despite what many people think. Rather, companies use their own accounting or ERP software to create invoices, which are subsequently uploaded to the IRP for verification. A unique Invoice Reference Number (IRN) and QR code are issued by the IRP, and the information is automatically shared with the e-way bill system and the GST portal (for GSTR-1 filing).

APPLICABILITY OF E‑INVOICING

E‑invoicing applies to GST‑registered businesses that exceed specific turnover limits. The applicability has been extended gradually through multiple phases:

Phase	Turnover Threshold (AATO)	Effective Date
I	Above ₹500 crore	1 October 2020
II	Above ₹100 crore	1 January 2021
III	Above ₹50 crore	1 April 2021
IV	Above ₹20 crore	1 April 2022
V	Above ₹10 crore	1 October 2022
VI	Above ₹5 crore	1 August 2023

Note:

At the Indian level, the total turnover is determined by adding up all of the GSTINs under the same PAN.

Any business that crosses the threshold in any of the 2017–18 financial years will be subject to e-invoicing as of the beginning of the subsequent financial year.

Right now, all B2B transactions involving companies with yearly revenue over ₹5 crore must be done electronically.

EXEMPTIONS FOR E‑INVOICING

Some firms, irrespective of turnover, are exempt. These consist of:

• Banking companies, insurers, and NBFCs

• Goods Transport Agencies (GTA)

• Suppliers of passenger transport services

• Multiplex operators exhibiting cinematographic films

• Government departments and local authorities

• SEZ units (but not SEZ developers)

LATEST UPDATES ON E‑INVOICING (2025)

Rules related to e-invoicing are constantly changing. Among the most recent updates are

30 Day Upload Rule: Businesses with an AATO of ₹10 crore or more are required to upload invoices to the IRP within 30 days of the invoice being issued as of April 1, 2025. Invoices will become noncompliant due to delays.

Invoice numbers that are not case-sensitive: Invoice numbers are treated as case-insensitive by the IRP, which automatically converts them to uppercase prior to IRN formation, as of June 1, 2025.

Two-Factor Authentication (2FA): Businesses with a revenue of more than ₹20 crore have to adopt 2FA in order to access NIC services as of January 1, 2025. It applies to companies having a turnover of ₹5–20 crore as of February 1, 2025, and it becomes mandatory for all taxpayers on April 1, 2025.

Other Changes:

With effect from January 1, 2025, the e-way bill generation period is limited to 180 days from the invoice date.

E-way bills have a 360-day maximum validity extension.

BENEFITS OF E‑INVOICING

E-invoicing has several benefits for both tax authorities and businesses.

Standardization: Reporting is made easier and errors minimized with a consistent format.

Smooth Data Flow: GSTR-1 and e-way bill auto-population saves time and avoids inconsistencies.

Faster Input Tax Credit (ITC): Real-time invoice delivery to buyers facilitates faster ITC applications.

Reduced Tax Evasion: The possibility of fraudulent invoicing is decreased by real-time authentication.

Improved Financial Management: Automated billing raises company reputation and compliance.

CONCLUSION

One of the most important steps to digital tax compliance is e-invoicing under GST. In addition to being required by law, it offers companies the chance to increase accuracy, speed up processes, and gain the trust of customers and tax authorities. Companies need to remain active in order to avoid penalties in regard to the new updates, particularly the April 2025 30-day reporting rule.

Businesses will be able to maintain seamless operations and improve their tax governance in the changing GST framework by making sure that e-invoicing laws are followed on time.

Filing your Income Tax Return (ITR) is an essential responsibility for every taxpayer. Even when the return is filed correctly, the Income Tax Department may at times select it for additional verification. This process is known as scrutiny assessment under Section 143(2) of the Income Tax Act. Receiving such a notice can be stressful, but with proper understanding and preparation, it can be handled easily.

WHAT IS A SCRUTINY ASSESSMENT UNDER SECTION 143(2)

A scrutiny assessment is a detailed examination of your ITR to confirm that all information provided is accurate and complies with tax laws. The Assessing Officer (AO) issues a notice under Section 143(2) to verify whether:

• Income has been correctly reported.
• Losses are not exaggerated.
• Deductions and exemptions are genuine.
• High-value transactions are properly reported.
• Tax liability has been correctly calculated.

This process helps the department ensure that taxpayers are paying the correct amount of tax.

WHY DOES THE INCOME TAX DEPARTMENT SELECT AN ITR FOR SCRUTINY?

Not all returns are selected for scrutiny. Selection is based on specific criteria and risk factors, such as:

• High-value transactions not matching the reported income
• Large deductions or exemptions that appear unexpected
• Major changes in income compared to earlier years
• Inconsistency between data in Form 26AS, AIS, and the ITR filed
• Many changes of the return

WHEN IS THE NOTICE UNDER SECTION 143(2) ISSUED?

The notice is issued only if an ITR has already been filed. It is delivered within three months from the end of the financial year in which the return was filed.

For example, if you filed your ITR on 31 July 2024, the financial year ends on 31 March 2025, and the notice can be issued anytime up to 30 June 2025.

TYPES OF SCRUTINY ASSESSMENTS

Scrutiny assessments are classified into three types:

1. Limited Scrutiny—Focuses on specific issues identified by the system, such as property sales, foreign income, or unusual deductions.
2. Complete Scrutiny—Covers a detailed review of the entire return, including all income sources and claims.
3. Manual Scrutiny—Cases selected based on special criteria issued by the CBDT, usually involving high-risk profiles.

HOW TO HANDLE A NOTICE UNDER SECTION 143(2)?

Receiving the Notice

• The notice is sent to your registered email and is also available on the Income Tax e-filing portal.
• It mentions the reason for scrutiny and lists the documents that are required.

Reacting to the Notice

• Log in to the e-filing portal to read the notice carefully.
• Collect and prepare all supporting documents, such as:
• Salary slips, Form 16, and bank statements
• Proofs of deductions (like 80C, 80D, HRA)
• Investment statements and business expense records (if applicable)
• Submit the documents online or appear before the AO as directed.

Assessment and Final Order

After reviewing the evidence, the AO passes an order under Section 143(3), which may confirm your return, demand additional tax, or grant a refund.

TIME LIMIT FOR COMPLETING SCRUTINY ASSESSMENT

The Income Tax Department must complete the assessment within the following time limits:

Assessment Year (AY)	Time Limit from End of AY
Up to AY 2017–18	21 months
AY 2018–19	18 months
AY 2019–20 onwards	12 months

SCRUTINY FOR TAX REFUND CASES

High refund claims generally lead to scrutiny. In such cases, you may be asked to provide:

• Salary proofs and Form 16
• Deduction receipts
• Investment details
• Bank statements showing refund credits

If errors are found, the refund may be delayed or denied.

CONSEQUENCES OF IGNORING A NOTICE

Failing to respond to a scrutiny notice can lead to serious penalties:

• Penalty of ₹10,000 under Section 271(1)(b).

• Best judgement assessment under Section 144, where the AO decides tax liability without your participation.

• In extreme cases, prosecution, which may involve fines or imprisonment.

HOW TO AVOID SCRUTINY NOTICES?

To reduce the chances of scrutiny:

• Report income from all sources accurately

• Match ITR data with Form 26AS and AIS before filing.

• Claim deductions only with valid documents.

• Avoid unnecessary revisions to your return.

Disclose all high-value transactions correctly.

Conclusion

A Section 143(2) notification does not necessarily indicate misconduct. It just indicates that the authorities want to confirm specific information. You can manage the process with confidence if you react promptly, keep accurate records, and adhere to tax regulations. Seeking advice from a tax expert can assist in preventing mistakes and fines in complicated situations.

Disclaimer:

This article is only for education purpose. One must consult a tax expert / professional for the response and proper guidance for such notice from the department.

In case of any query, one can reach out to our professionals

+91-9267970588 or TAXACUMEN.CONSULTANCY@GMAIL.COM

Whether you are a professional, business owner, or salaried employee, managing taxes is an important part of your lifestyle. Not all strategies are the same, even though the majority of people aim to reduce their tax liability. Certain behaviours can get you into serious legal problems, while others are discouraged. Every taxpayer must be aware of the distinctions between tax evasion, tax avoidance, and tax planning.

1. Tax Evasion—The Illegal Way

The unlawful practice of intentionally evading taxes is known as tax evasion. This can involve fabricating invoices, hiding funds in overseas accounts, exaggerating costs, or underreporting revenue. It is a clear violation of the Income Tax Act and is punishable by law in India.

What Happens If You Avoid Paying Taxes?

Tax evasion has serious consequences:

• Strict penalties like fines of up to 300% of the tax amount are possible.
• Interest is charged on overdue taxes.
• imprisonment in severe circumstances, imprisonment may last up to seven years.
• Tax evasion damages your financial reputation, which influences future credit or loan approvals, in addition to attracting legal action.

2. Tax Avoidance—Legal but Questionable

Tax avoidance is the practice of lowering tax obligations by taking advantage of legal loopholes or gaps. It is ethically questionable because it adheres to the law while violating its intent.

Tax Avoidance Examples

• establishing complicated corporate arrangements to transfer revenue to areas with lower tax rates.
• aggressively reducing taxable income through accounting methods.
• using tax-free jurisdictions to route transactions.
• Tax officials frequently look at tax avoidance even though it is not unlawful. Governments gradually close these loopholes, and those taxpayers who depend on them may be subject to stricter rules.

3. Tax Planning—The Correct Way to Save Taxes

Tax planning is both permitted and encouraged, in opposition to the other two. It involves using legal provisions to lower tax liabilities in a systematic and moral way. This includes using the Income Tax Act’s exclusions, deductions, and incentives.

Common Tax Planning Examples

• investing money into the National Pension System (NPS), Equity-Linked Savings Scheme (ELSS), or Public Provident Fund (PPF).
• claiming investments and insurance deductions under Section 80C or 80D.
• Using capital gains reinvestment or house rent allowance (HRA) exemptions.
• In addition to lowering your tax liability, careful tax planning also helps you accumulate wealth and maintain legal compliance.

Their Difference—A Quick Comparison

Aspect	Tax Planning	Tax Avoidance	Tax Evasion
Legality	Completely legal and encouraged	Legal but frequently considered unethical	Illegal and punishable
Intent	To reduce and simplify tax liability through lawful methods	To utilise loopholes for tax reduction	To hide income and avoid taxes
Methods Used	Deductions, exemptions, tax-saving investments	Complex structures, routing income	Misreporting income, fake documents
Ethical View	Ethical and transparent	Questionable	Unethical and fraudulent
Consequences	Saves taxes legally, no penalties	May lead to audits or law modifications	Heavy fines, interest, and imprisonment
Example	Investing in PPF or ELSS	Shifting profits to tax havens	Not declaring rental or foreign income

Why understanding the difference is important

The differences among these three methods are not merely theoretical; they also have real-world applications. For example, tax planning can increase your credit score, boost your profile, and help you get higher interest rates, but tax evasion might destroy your chances of acquiring a home loan because it affects your financial record.

Understanding these distinctions enables you to make wise choices, stay out of problems with the law, and have a clean financial record.

How to Manage Taxes Responsibly

To properly handle your taxes and maintain compliance:

• Keep thorough records of your earnings and expenses.
• Every year, submit your income tax returns on time.
• To lower liabilities, make wise tax-saving investments.
• For most effective planning, speak with a tax consultant.

Conclusion

Tax evasion, avoidance, and planning all intend to lower taxes, but they differ in their morality, legality, and consequences. Evading taxes is against the law and should be avoided at all costs. Although tax avoidance is legal, it frequently falls into an uncertain area and can have unintended consequences.

The most efficient, moral, and legal approach to maximise your taxes is through tax planning.

By making the right choice, you can make improvements to your long-term financial security by saving money and maintaining a solid financial record. You can confidently reach your financial objectives and avoid legal dangers by using responsible tax strategies.

Over the past few years, the Indian government has made significant initiatives to improve the tax system. One of the most important changes is the introduction of the Faceless Assessment Scheme—a digital-first approach to conducting income tax assessments.

The initiative, which was started as part of the 2019 E-Assessment Scheme, is a significant step in improving the transparency, efficiency, and lack of interference in tax governance.

What is the Faceless Assessment Scheme?

In standard tax assessments, taxpayers often had to meet tax officials in person, submit plenty of paperwork, and deal with long waiting periods and possible discretion. The Faceless Assessment Scheme changes all of that.

Under this system, income tax assessments are performed completely online — without any direct interaction between the taxpayer and the assessing officer. It’s designed to reduce bias, enhance fairness, and promote efficiency by using technology, automation, and artificial intelligence (AI).

Key Objectives of the Scheme

The key goals of the faceless assessment scheme are:-

• removing personal interaction in order to avoid bias and corruption.
• Unplanned case distribution to ensure fair evaluations.
• Integrated processing to keep evaluations consistent.
• Quick resolution through simplified digital correspondence.

For whom does it apply?

The Faceless Assessment Scheme is applicable to almost all taxpayers. But certain sensitive cases, such as serious fraud, major tax evasion, international tax matters, or black money-related issues, may be stayed out of the faceless scheme and handled through standard methods.

Income Tax Act Section 144B

The function of the faceless assessment system is governed by Section 144B of the Income Tax Act, which creates a legal basis for the digital procedure. This section outlines how duties should be divided among various units and how online assessments should be conducted in order to increase responsibility.

Structure of the Faceless Assessment Mechanism

A clear framework has been established to conduct assessments under this programme. It consists of:

National Faceless Assessment Centre (NFAC) – This is the central body that oversees the entire process. It sends notices, allocates cases, and issues final assessment orders.

Regional Faceless Assessment Centres (RFACs) – These act as support arms to the NFAC, spread across different parts of the country.

Assessment Units (AUs) – Responsible for examining returns, asking for further information, and preparing assessment proposals.

Verification Units (VUs) – These teams verify evidence, conduct enquiries, and authenticate submitted documents.

Technical Units (TUs) – These consist of experts (e.g., in accounting, transfer pricing, or legal matters) who advise on complex issues.

Review Units (RUs) – These units ensure that the draft assessment orders are legally sound and consistent with tax laws.

Each unit works independently and is digitally connected, making the entire process paperless, structured, and transparent.

Step-by-Step Procedure in a Faceless Assessment

This is the basic procedure for a faceless assessment:

Notice Issued: In accordance with Section 143(2), the NFAC sends out an electronic notice to start the procedure.

Taxpayer’s Response: Within a specified time frame, the taxpayer must reply via the income tax portal.

Case Assignment: The case is assigned to an AU at random by the NFAC.

Information Request (if necessary): The AU has the right to request more details or supporting material.

Technical input or verification: The AU may ask a VU or TU for assistance if needed.

Draft Order: Following assessment, an order is draughted by the AU and forwarded to an RU for approval.

Final Order: The taxpayer receives the final order through the NFAC following review and approval.

In order to promote fairness, this procedure eliminates any direct communication between the taxpayer and the concerned officer.

Effects and Advantages of the Scheme

India’s tax assessment process has evolved as a result of the Faceless Assessment Scheme. Among its advantages are:-

Transparency: All procedures are digitally recorded, which lowers the possibility of unjust treatment.

Efficiency: Automation minimises delays and speeds up the process.

Consistency: Taxpayers across the board receive consistent treatment because of standardised procedures.

Reduced Litigation: Unnecessary disputes can be avoided with a fair and documented assessment.

Conclusion

Knowing how this scheme operates can help taxpayers stay compliant without worrying about excessive pressure or influence, act on signals more effectively, and keep accurate records.

In this new era where digital change is influencing every industry, faceless assessment is an indication of a more reliable and adaptable governance approach rather than only a tax reform.

The Goods and Services Tax (GST) system in India mandates different returns for taxpayers depending on their business nature and turnover. Among these, GSTR-9 is the annual return that consolidates all monthly or quarterly filings made during a financial year. It is a crucial compliance document designed to ensure transparency and accuracy in tax reporting.

What is GSTR-9?

GSTR-9 is an annual return form to be filed by all regular taxpayers registered under the GST Act. It provides a comprehensive summary of outward supplies (sales), inward supplies (purchases), tax paid, input tax credit (ITC) claimed, and any tax liability adjustments made during the year.

It acts as a reconciliation statement between returns like GSTR-1, GSTR-2A/2B, and GSTR-3B. Filing GSTR-9 helps both the taxpayer and the government identify mismatches in reporting and ensures that all dues are settled properly before closing the financial year.

The due date to file GSTR-9 is 31st December of the year following the particular financial year. For example, the due date for the financial year 2024–25 is 31st December 2025.

Who Must File GSTR-9?

As per the latest updates:

• Mandatory Filing: All regular taxpayers registered under the GST regime are required to file the GSTR-9 annual return, provided their aggregate annual turnover exceeds ₹2 crore during a financial year.
• Exemption for Small Taxpayers: Taxpayers with an aggregate annual turnover up to ₹2 crore are exempted from filing GSTR-9 for the financial year 2024–25, as per Notification No. 15/2025-CT dated 17th September 2025.
• Multiple GSTINs: Regular taxpayers having multiple GSTINs under the same PAN must file a separate GSTR-9 for each GSTIN.
• Taxpayers Opting Out of Composition Scheme: Taxpayers who have opted out of the composition scheme during the financial year and shifted to the regular scheme are required to file GSTR-9.

Who Is Not Required to File GSTR-9?

The following registered persons under GST are not required to file the annual return in GSTR-9 format:

• Composition Taxpayers: They are required to file GSTR-4 (annual return for composition scheme) instead.
• Casual Taxable Persons: Individuals who undertake occasional taxable supplies in a state or union territory.
• Input Service Distributors (ISD): Entities distributing input tax credit to branches or units.
• Non-Resident Taxable Persons: Foreign entities engaged in business temporarily in India.
• Tax Deductors (TDS) under Section 51 of the CGST Act: Entities deducting tax at source.
• Tax Collectors (TCS) under Section 52 – E-commerce Operators: E-commerce operators collecting tax at source.

Turnover Limit and Applicability

The turnover threshold plays a key role in determining who must file GSTR-9. As per the latest notifications and decisions by the GST Council:

• Businesses with turnover up to ₹2 crore: Filing GSTR-9 is optional (as exempted via notifications for FY 2017–18 up to FY 2024–25).
• Businesses with turnover above ₹2 crore: Filing GSTR-9 is mandatory.
• Businesses with turnover exceeding ₹5 crore must also file GSTR-9C, the Reconciliation Statement, which needs to be self-certified.

These provisions are covered under Rule 80 of the CGST Rules, 2017, which governs annual return compliance.

Types of GSTR-9 Forms

There are four types of annual return forms under the GST framework, depending on taxpayer classification:

Form	Applicable To	Description
GSTR-9	Regular taxpayers	Consolidated annual return based on monthly/quarterly filings.
GSTR-9A	Composition taxpayers (up to FY 2018–19)	Replaced by GSTR-4 (Annual Return for Composition Taxpayers) annual return from FY 2019–20.
GSTR-9B	E-commerce operators (TCS collectors)	Annual Statement for E-commerce Operators (TCS collectors) under Section 52(5).
GSTR-9C	Taxpayers with turnover above ₹5 crore	Reconciliation statement, self-certified by the taxpayer.

Note: Additional liability identified in GSTR-9C can now be paid using either cash or available ITC.

Late Fee and Penalties for Non-Filing

Failure to file GSTR-9 within the due date attracts a late fee under Section 47(2) of the CGST Act, 2017. The penalty varies based on the taxpayer’s turnover (as rationalized from FY 2022-23 onwards):

Turnover (₹)	Late Fee per Day	Maximum Penalty (CGST + SGST)
Up to 5 crore	₹50 (₹25 under CGST + ₹25 under SGST)	0.04% of turnover in State/UT
5–20 crore	₹100 (₹50 + ₹50)	0.04% of turnover in State/UT
Above 20 crore	₹200 (₹100 + ₹100)	0.50% of turnover in State/UT (0.25% under CGST + 0.25% under SGST)

For earlier financial years (up to FY 2021–22), a late fee of ₹200 per day (₹100 under each act) applied, subject to a maximum of 0.50% of turnover.

Conclusion

Filing GSTR-9 is not just a legal compliance but also a vital financial exercise that promotes accuracy and transparency in a business’s GST reporting. It helps reconcile sales, purchases, and tax credits throughout the financial year while preventing future disputes or notices from tax authorities.

For businesses with turnover above ₹2 crore, timely filing of GSTR-9 ensures smooth compliance and enhances credibility with tax authorities. Proper reconciliation, supported by digital tools and accounting software, can make this complex process seamless and error-free—strengthening a business’s compliance foundation under India’s evolving GST regime.

Many people pay more tax than they actually owe, either because of advance tax, TDS deductions, or calculation errors. When this happens, the extra amount you paid can be claimed back as an income tax refund. The process is completely online and easy to follow if you know the right steps.

What is an income tax refund?

An income tax refund is the money returned by the Income Tax Department when the tax you paid is more than your actual liability. This usually happens if:

• Too much TDS was deducted by your employer or bank.
• You paid advance tax or self-assessment tax that turned out to be higher than the actual amount due.
• You claimed deductions or exemptions later that reduce your taxable income.
• There is double taxation on your income in India and another country.

The rules for tax refunds are given under Sections 237 to 245 of the Income Tax Act, 1961.

Who Can Claim a Tax Refund?

You are eligible for a refund in the following cases:

• Advance tax paid exceeds your actual liability.
• Self-assessment tax is more than the payable amount.
• TDS deducted is more than your final tax calculation.
• An error occurred in the tax assessment, and you corrected it.
• You declared deductions or investments later (e.g., under Section 80C).
• Your income was taxed both in India and abroad (covered under DTAA).

Step-by-Step Process to Claim Your Tax Refund

The Income Tax Department has made the refund process simple and digital through the Income Tax e-filing portal (www.incometax.gov.in). Follow these steps:

Step 1: File Your Income Tax Return (ITR)

You must file your ITR before the deadline (usually July 31 unless extended). While filing, enter all income details, deductions, and exemptions. For example, investments in PPF, ELSS, or life insurance can be claimed under Section 80C up to ₹1.5 lakh.

Step 2: System Calculates Refund

After you submit the details, the system automatically compares your tax liability with the taxes you have paid. If you paid extra, the refund amount will be shown on the ITR form.

Step 3: Verify Your ITR

Once the return is filed, you need to verify it online using Aadhaar OTP, net banking, or by sending a signed physical copy (ITR-V) to CPC Bengaluru. Without verification, the return is not processed, and no refund will be issued.

Step 4: Processing and Intimation

The Centralised Processing Centre (CPC) checks your return and sends an intimation under Section 143(1) to your registered email. It will mention:

• No refund is due.
• The refund was accepted and will be credited soon.
• Claim rejected or additional tax payable.

Step 5: Refund Credited to Bank Account

If your claim is approved, the refund will be directly credited to your bank account linked with your PAN and pre-validated on the portal. Always check that your account details are correct to avoid delays.

How to Track Your Refund Status?

You can easily check the status of your refund:

• On the e-filing portal: Login → “View Returns/Forms” → “Refund/Demand Status.”
• On the NSDL Refund Portal: Enter your PAN and assessment year.

Interest on Income Tax Refund

Under Section 244A, if the refund is delayed, you will get simple interest at 6% per year (0.5% per month). The interest is calculated:

• From 1st April of the assessment year till the refund date if you filed on time.
• From the filing date if you filed late.

This interest is taxable under “Income from Other Sources.”

Conclusion

Getting an income tax refund in India is simple if you file your return on time and provide correct details. The entire process is online, quick, and transparent. If you are eligible for a refund, make sure to claim it promptly and track the status regularly. Filing accurate returns not only ensures refunds but also keeps you compliant with tax laws.

Taxes are the basis of a nation’s economy since they generate the money required for welfare and development initiatives. Both individuals and companies are subject to taxation in India under the Income Tax Act, 1961.

Despite having direct taxes, corporate tax and personal income tax have different regulations and apply to different entities. For the purpose of financial planning and compliance, it is crucial to understand the differences between these two.

WHAT IS CORPORATE TAX?

Corporate tax is the tax charged on the profits of companies registered under the Companies Act, 2013. It applies to both domestic and foreign companies that earn income in India. Corporate tax is calculated on the net taxable income, which is total revenue minus permissible expenses, depreciation, and deductions.

In India, the corporate tax rate has undergone significant changes in recent years. As of August 2025, the basic rates are

• Domestic Companies:

22% (plus surcharge and cess) for companies not claiming exemptions or incentives under Section 115BAA.

15% for new manufacturing companies incorporated after October 1, 2019, and commencing production before March 31, 2025, under Section 115BAB.

• Foreign Companies:

Taxed at 40% on income earned in India, plus applicable surcharge and cess.

Additional components like Minimum Alternate Tax (MAT) at 15% (Section 115JB) may apply if the company’s tax liability is lower than the prescribed threshold.

Corporate tax applies to:

• All Indian companies (small, medium, and large).
• Foreign companies operating through a permanent establishment in India.

The revenue collected through corporate taxes is a major source of funds for the government and is used to finance infrastructure, social welfare, and public services.

WHAT IS PERSONAL INCOME TAX?

Personal income tax is the tax imposed on the income of individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and similar entities. It is payable on income from all sources combined, such as salary, house property, business or profession, capital gains, and other sources.

In India, individuals can choose between two tax regimes:

• Old Regime: Offers higher tax rates but allows deductions and exemptions under various sections like 80C, 80D, HRA, and LTA.
• New Regime: Provides lower tax rates with fewer deductions and exemptions.

As of FY 2025-26, under the new tax regime (which is now the default option), the slab rates for individuals are

• ₹0 – ₹300,000: Nil
• ₹300,001 – ₹700,000: 5%
• ₹700,001 – ₹1,000,000: 10%
• ₹10,00,001 – ₹12,00,000: 15%
• ₹12,00,001 – ₹15,00,000: 20%
• Above ₹15,00,000: 30%

For individuals, the tax is levied on the total income after allowing deductions and exemptions (if opted under the old regime). For example, if someone earns ₹10,00,000 and has deductions of ₹1,50,000 under Section 80C, the taxable income will be ₹8,50,000.

Most individuals pay tax based on progressive tax slabs, meaning higher income attracts higher rates.

Corporate vs Personal Income Tax: The Key Differences

Although both taxes serve the same purpose—raising revenue for the government—they differ in several ways:

• Taxpayer: Corporate tax is paid by companies, while personal income tax is paid by individuals and certain other entities like HUFs.
• Tax Rate: Corporate tax rates are fixed, whereas personal income tax follows a slab system under progressive taxation.
• Deductions: Companies can claim business-related expenses and incentives, while individuals claim personal deductions like investments under Section 80C or medical expenses under 80D (if the old regime is chosen).
• Compliance: Companies must file detailed financial statements and tax audit reports along with their ITR (Form ITR-6 for most companies). Individuals file simpler returns like ITR-1 or ITR-2, depending on their income sources.
• Minimum Tax: Companies are subject to MAT, while individuals are not.

WHY UNDERSTANDING THE DIFFERENCE MATTERS

For business owners, tax planning must address both personal and corporate tax obligations. For example, if you draw a salary from your own company, it will be taxed under personal income tax, while your company’s profits will face corporate tax. Understanding both ensures proper compliance, avoids penalties, and helps optimize your tax liability through legitimate deductions and planning.

CONCLUSION

The two main foundations of India’s direct taxation system are personal income tax and corporate tax. Individuals’ income is subject to personal income tax, whilst companies’ profits are subject to corporate tax. Each has its own set of regulations, fees, and standards for compliance. Being informed is essential due to the constant changes made to the Finance Acts, such as the latest modifications to business tax benefits and the updated slab structure for individuals. It is always advised to consult a tax professional for appropriate filing and tax preparation.