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Practice area · Income Tax

Two Acts, one right answer.

The 2025 Act renumbered almost everything. Cite the wrong section in an opinion and it shows. Get the position under both Acts, tied to the exact provision and case law.

Income tax in India is levied under the Income-tax Act, 1961 and the new Income-tax Act, 2025, covering the taxation of individuals, firms and companies. AskSolique answers income-tax questions with the precise section, rule and judicial authority cited - and maps the old and new provisions side by side.

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Income tax is where the 1961-to-2025 transition bites hardest - every well-known section number is in motion, and a confident citation to the old number is now a visible error.

Why Income Tax is hard

Sixty years of amendments, now renumbered overnight.

The Income-tax Act, 1961 is a six-decade accretion of amendments, provisos, circulars and thousands of judgments interpreting each line. The Income-tax Act, 2025 keeps most of the substance but moves nearly every section to a new number - so the '80C' or '195' your team has cited for years no longer points where it used to. For a transition period you have to know both: the substantive position, and which Act's numbering the reader expects. Miss that and a technically-correct opinion still reads as sloppy.

What's broken in the way you work today

You feel this on every opinion during the transition.

  1. The famous section numbers moved

    Almost every provision was renumbered in 2025. Muscle-memory citations to the 1961 numbers are now wrong, and there is no built-in map warning you.

  2. General AI blends the two Acts

    Ask a chatbot and it mixes 1961 and 2025 language into one confident answer, citing a number that belongs to neither - impossible to catch without the source open.

  3. Judicial position is scattered

    The right answer often turns on a Tribunal or High Court ruling that qualifies the section. Finding the controlling case, and whether it still holds, is the slow part.

  4. Every note gets double-checked

    Because no one is sure which Act the client expects, routine advice gets escalated or re-verified, adding delay to work the team could own.

What happens if nothing changes

A wrong citation costs more than a correction.

In income-tax work, the exposure is twofold. A substantively wrong position - a mis-read deduction, a missed TDS, a wrong capital-gains treatment - flows into the return and surfaces as demand, interest and penalty on assessment, often years later. And a citation to a superseded section number quietly erodes the one thing an advisor sells: authority. Doing nothing means shipping opinions that are either exposed on the merits or dated on their face, on the highest-volume advisory work you do.

What has to change

The provision, the case law and both Act numbers - together.

Stop reasoning from a single stale copy of the Act and stop guessing which numbering applies. The position should arrive with the exact provision, the controlling judicial authority, and the 1961 ↔ 2025 mapping side by side - from a corpus maintained as both Acts and the case law move - so the opinion is right on the merits and cites the section the reader expects.

Genuine use cases

The questions that land on an income-tax desk - answered, cited.

Real fact patterns from direct-tax work. Each returns the position with the exact provision and, where it matters, the 1961 ↔ 2025 mapping.

Home-loan interest on a let-out property

A client has a let-out property funded by a loan and wants the full interest deduction. How much is allowed?

The question

Is interest on a home loan for a let-out property fully deductible?

AskSolique answers

For a let-out property the entire interest is deductible under Sec 24(b) with no cap, but the resulting house-property loss can be set off against other heads only up to ₹2 lakh a year under Sec 71(3A); the balance carries forward.

  • ↳ Sec 24(b), IT Act 1961
  • ↳ Sec 71(3A), IT Act 1961

LTCG on listed equity after the change

A client sells listed shares held long term. How is the gain taxed under the current regime?

The question

How is long-term capital gain on listed equity taxed now?

AskSolique answers

LTCG on listed equity above the annual exemption threshold is taxed at 12.5%, replacing the earlier full exemption - so a plan built on complete exemption needs re-checking against the current provision.

  • ↳ LTCG on listed equity
  • ↳ Current capital-gains regime

TDS on a payment to a non-resident

An Indian company pays fees to a foreign vendor and needs the withholding position.

The question

Is TDS applicable on payments to a non-resident, and at what rate?

AskSolique answers

Yes - Sec 195 requires TDS on any sum chargeable to tax paid to a non-resident, applied at the rate in force read with the beneficial DTAA rate, subject to the recipient furnishing a TRC and Form 10F.

  • ↳ Sec 195, IT Act 1961
  • ↳ Applicable DTAA

What your team gets out of it

Not a discount on hours - leverage on the highest-stakes work you do.

  • Cite the right Act

    Every position surfaces the 1961 and 2025 numbering side by side, so your opinion cites the section the reader expects.

  • Grounded in case law

    Answers carry the controlling Tribunal, High Court or Supreme Court authority, not just the bare section.

  • Answer more in-house

    Routine questions - residential status, TDS, deductions - come back cited and ready to sign, without escalation.

  • Defensible on assessment

    Every conclusion traces to the exact provision and authority - the kind of position you can defend in a scrutiny reply.

Frequently asked Income Tax questions

What determines residential status for an individual?
Residential status turns on days of physical presence in India tested under Sec 6, with special rules for Indian citizens leaving for employment and for high-income individuals.
How are listed equity long-term capital gains taxed now?
LTCG on listed equity above the annual exemption threshold is taxed at 12.5% under the current regime, replacing the earlier full exemption.
Is TDS applicable on payments to non-residents?
Yes - Sec 195 requires TDS on any sum chargeable to tax paid to a non-resident, read with the applicable DTAA rate.
Can business losses be carried forward?
Business losses can generally be carried forward for eight assessment years under Sec 72, subject to timely filing of the return.

A cited answer, in context

Put an income-tax question of your own to it.

Start free, bring a real matter, and see the answer come back cited to the exact source. No card, no demo call.

Example question

Is interest on a home loan for a let-out property fully deductible?

AskSolique answers

For a let-out property, the entire interest is deductible under Sec 24(b) with no cap, though set-off of the resulting house-property loss against other heads is limited to ₹2 lakh per year.

  • ↳ Sec 24(b), IT Act 1961
  • ↳ Sec 71(3A), IT Act 1961
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