Library / Income-tax Act, 2025: The Professional's Master Guide
Appendix D: Common Mistakes Checklist
- Quoting 1961 Act sections for Tax Year 2026-27 matters, or 2025 Act sections for FY 2025-26 returns.
- Using old section codes (194C, 194J) in challans for payments after 31 March 2026.
- Claiming HRA, 80C, 80D or self-occupied home loan interest in the new regime.
- Setting off house property loss against salary in the new regime.
- Missing the section 37 rule for micro and small enterprise dues.
- Missing the stamp value checks under sections 53 and 78, and the buyer side tax under section 92.
- Applying the section 156 rebate to tax on special rate capital gains.
- Filing a loss return late and losing the carry forward.
- Not deducting TDS on partner remuneration and interest above Rs. 20,000.
- Not reconciling TDS with Form 168 and AIS before filing.
- Treating a buyback in Tax Year 2026-27 as dividend; it is now capital gains.
- Staying in the normal company regime to build MAT credit; MAT is a final tax from Tax Year 2026-27.
- Ignoring the 51% continuity test in section 119 during share deals.
- Assuming a merger carries forward losses for 8 fresh years; only the remaining period is available.
- Claiming treaty rates without a TRC, Form 41 or beneficial ownership.
- Not grossing up where the Indian payer bears the tax on a foreign payment.
- Filing Form 48 (TP report) without contemporaneous documentation and benchmarking.
- Overlooking the thin capitalisation cap for interest to foreign group companies.
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