Income Tax Bulletin July 2026
Judicial Updates
- Sec. 54 exemption covers multiple houses constructed up to number of houses sold, not restricted to one residential house.
- Assignment/sale of rent receivable not borrowings u/s 2(28A) & 36(1)(iii), as no liability to repay.
- Corporate support services aren’t FTS and doesn’t trigger PE. Therefore, disallowance u/s 40(a)(i) for non-deduction of TDS on foreign remittance not sustainable
- Revenue cannot deny rebate u/s 87A on Sec. 111A STCG absent express statutory prohibition:
- Premeditated derivative losses crafted to offset taxable income bound to be rejected. Addition on fictitious option trades to be upheld: