Taxation

DIRECT TAX SERVICES

The Indian taxation landscape has undergone transformative change over the last decade — from sweeping legislative reforms to increasingly stringent enforcement and disclosure requirements.

Navigating this environment demands not just compliance expertise but strategic foresight. At Kapoor & Chauhan LLP, our partner-led tax practice combines deep technical knowledge with practical commercial judgment to deliver tailored solutions that minimise tax exposure, manage risk, and ensure full regulatory compliance — consistently and on time.

Kapoor and Chauhan LLP Partner-Led Advisory Office Setup

1. Income Tax Compliances

Timely and accurate compliance is the foundation of sound tax management. Regulatory requirements have grown significantly in scope and complexity, with stricter timelines, enhanced disclosure obligations, and increased scrutiny from revenue authorities.

Our compliance practice covers the full spectrum of income tax obligations for individuals, HUFs, partnership firms, LLPs, companies, and trusts:

Preparation and filing of income tax returns for all categories of assessees

Tax audit under Section 44AB [Sec 63 as per Income tax Act 2025]

Comprehensive preparation and validation of Form 3CA/3CB and Form 3CD [Form 26 as per Income tax Rules 2026].

Filing of statements and reports

Form 29B (MAT) [Form 66 as per Income tax Rules 2026], Form 67 (foreign tax credit) [Form 44 as per Income tax Rules 2026], and other required statutory forms.

Transfer pricing documentation and filing of Form 3CEB [Form 48 as per Income tax Rules 2026]

Withholding tax (TDS/TCS) compliance

End-to-end execution of precision computation, statutory deposit tracking, return filing, and prompt issuance of certificates.

Our Approach: Our approach ensures that compliance obligations are not merely discharged but are strategically managed to avoid triggers for scrutiny and litigation.

2. Tax Proceedings — Assessments, Appeals and Dispute Resolution

Tax disputes in India have grown in volume and complexity. Effective representation at every stage of the dispute cycle — from the initial assessment proceedings through first and second appeals to judicial bodies — requires a combination of procedural expertise, substantive legal knowledge, and persuasive strategy.

Our partner-led litigation and dispute resolution practice covers:

Assessments, First and Second Appeals

Handling scrutiny assessments under Sections 143(3)/147/158BC [Sec 270/ 279/294 as per Income tax Act 2025]

Drafting and filing detailed written submissions, preparing and presenting paper books of evidence, and appearing before Assessing Officers.

Faceless Assessment Scheme proceedings under Section 144B [Sec 273 as per Income tax Act 2025]

Drafting technically sound responses to show cause notices, draft assessment orders, and variation notices.

Representation in TDS/TCS default proceedings and consequential disallowance disputes under Section 201 [Sec 398 as per Income tax Act 2025]

Drafting and filing appeals before the Commissioner of Income Tax (Appeals) and the National Faceless Appeal Centre (NFAC)

Representation, preparation and filing of appeals and cross-objections before the ITAT

Assessments, First and Second Appeals

Handling scrutiny assessments under Sections 143(3)/147/158BC [Sec 270/ 279/294 as per Income tax Act 2025]

Drafting and filing detailed written submissions, preparing and presenting paper books of evidence, and appearing before Assessing Officers.

Faceless Assessment Scheme proceedings under Section 144B [Sec 273 as per Income tax Act 2025]

Drafting technically sound responses to show cause notices, draft assessment orders, and variation notices.

Representation in TDS/TCS default proceedings and consequential disallowance disputes under Section 201 [Sec 398 as per Income tax Act 2025]

Drafting and filing appeals before the Commissioner of Income Tax (Appeals) and the National Faceless Appeal Centre (NFAC)

Representation, preparation and filing of appeals and cross-objections before the ITAT

Dispute Resolution Panel (DRP)

Filing of objections before the Dispute Resolution Panel under Section 144C for eligible assessees

Tailored representation workflows for foreign companies and corporate entities managing transfer pricing adjustments.

Preparation of comprehensive DRP objection submissions

Rigorous build-outs combining explicit factual matrices, historical legal grounds, and verified supporting data sets.

Follow-up representation through the DRP directions and consequential final assessment stage

3. Tax Services for Non-Resident Indians (NRIs)

NRIs face a uniquely complex tax environment — governed simultaneously by Indian domestic tax law, the Foreign Exchange Management Act (FEMA), applicable Double Taxation Avoidance Agreements (DTAAs), and the laws of their country of residence. Our dedicated NRI tax practice provides end-to-end advisory and compliance support across all aspects of NRI taxation.

i. Lower Deduction Certificates

Payments made to NRIs — whether by way of rent, interest, capital gains, or any other income — are subject to withholding tax (TDS) at the maximum applicable rates under the Income Tax Act, often resulting in significant cash flow disruption. We assist NRIs in obtaining Lower/Nil Deduction Certificates under Section 197 [Sec 395 of Income Tax Act 2025] to ensure that TDS is deducted only at the rate commensurate with the actual tax liability, thereby improving liquidity and reducing working capital blockage.

Our services include:

Assessment of eligibility for lower deduction based on residential status, nature of income, and applicable DTAA provisions

Preparation and filing of application under Section 197 [Sec 395 of Income Tax Act 2025] before the jurisdictional Assessing Officer

Liaison with tax authorities for timely issuance of the certificate

Advisory on furnishing the certificate to the payer/deductor and ensuring correct TDS treatment thereafter

ii. Remittances Abroad — Form 15CA [Form 145 of Income Tax Rules 2026] and Form 15CB [Form 146 of Income Tax Rules 2026]

All remittances from India to non-residents require compliance with the RBI/FEMA framework as well as income tax certification requirements. Our team ensures that remittance transactions are structured and executed in full compliance with applicable law.

Our services include:

Analysis of the nature of remittance — whether taxable in India, exempt under a DTAA, or covered under a specific provision — to determine the applicable withholding tax rate

Issuance of Form 15CB [Form 146 of Income Tax Rules 2026] (Chartered Accountant's certificate) certifying the tax determination on the proposed remittance

Filing of Form 15CA [Form 145 of Income Tax Rules 2026] (undertaking by the remitter) on the income tax portal, in the appropriate Part (A, B, C or D) based on the nature and quantum of the remittance

Coordination with the authorised dealer (bank) to ensure smooth execution of the remittance within regulatory timelines

Advisory on FEMA permissibility of the remittance and applicable RBI guidelines

iii. Assessment Proceedings under Sections 147 and 148 [Sec 270 / 279 as per Income tax Act 2025]

NRI assessments frequently involve reopening of past years under Section 147/148 — particularly in relation to property transactions, capital gains on sale of Indian assets, offshore income having Indian sourcing, and FEMA/income tax interface issues. These proceedings carry significant stakes given the involvement of interest, penalty and in serious cases, prosecution risk.

Our services include:

Analysis of the legality of proceedings

Representation, preparation of written submissions, evidence compilation, and appearing before Assessing Officers

First and second appeals against reassessment orders before CIT(A)/NFAC and ITAT

4. International Tax and Transfer Pricing

Globalisation of business has made international tax planning both a necessity and a minefield. Indian tax laws relating to cross-border transactions — permanent establishment, business connection, deemed residency, place of effective management, and the Multilateral Instrument — have undergone significant evolution. Simultaneously, transfer pricing enforcement in India has intensified, with documentation requirements, country-by-country reporting, and secondary adjustments adding layers of compliance complexity.

International Tax Advisory

Advising on tax-efficient holding structures, investment entry routes, and business models for inbound and outbound investments

Analysis and mitigation of Permanent Establishment (PE) risk — including agency PE, service PE, and digital PE — across jurisdictions

Advisory on Place of Effective Management (POEM) and its implications for foreign companies with Indian business connections

Tax-efficient fund repatriation strategies — dividends, interest, royalties, management fees — including withholding tax optimisation and DTAA benefit eligibility

Obtaining lower withholding tax certificates for cross-border payments to reduce cash flow burden

Analysis of Principal Purpose Test (PPT) and Limitation of Benefits (LOB) provisions under applicable DTAAs as modified by the Multilateral Instrument (MLI)

Advising on Equalization Levy implications for non-resident digital service providers

Transfer Pricing

Design and review of transfer pricing policies for inter-company transactions — including goods, services, royalties, management charges, financial transactions, and cost sharing arrangements

Benchmarking analysis using comparable uncontrolled price, cost plus, profit split, and transactional net margin methods

Preparation of transfer pricing documentation in compliance with Indian regulations and OECD BEPS Action 13 standards

Advisory on Safe Harbour Rules, eligibility determination, application, and compliance

Representation before the Transfer Pricing Officer (TPO) in transfer pricing assessments — preparation of submissions, economic analysis, and comparability adjustments

Filing of objections before the Dispute Resolution Panel (DRP) against transfer pricing adjustments

Appeals before ITAT on transfer pricing disputes and assisting senior counsel in complex transfer pricing litigation

5. Black Money Act — Undisclosed Foreign Income and Assets

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 represents one of the most stringent pieces of fiscal legislation in India. Non-disclosure of foreign assets, foreign bank accounts, or foreign income attracts a flat tax rate of 30% on the undisclosed amount, a penalty of 90% of the tax (i.e., effectively 90% of the asset value) and in serious cases, prosecution with imprisonment of up to 10 years. The stakes under this legislation are among the highest in the Indian tax framework.

Our services under the Black Money Act include:

Advisory on the scope and applicability of the Act — determining what constitutes "undisclosed foreign income or assets" for a given assessee's fact pattern

Advising on the obligation to disclose foreign assets in Schedule FA of the income tax return and the consequences of non-disclosure or incorrect disclosure

Representing assessees in proceedings initiated by the Assessing Officer under the Black Money Act — responding to notices, preparing factual submissions, and presenting documentary evidence of the source and nature of foreign assets

Advising on the interaction between the Black Money Act, FEMA, and the Foreign Contribution (Regulation) Act in situations involving foreign assets

Mitigation advice in cases of inadvertent non-disclosure — including voluntary disclosure strategy, amended return filing, and proactive engagement with authorities

Representation in penalty proceedings and assessment orders passed under the Black Money Act

Advising on treaty exchange of information (AEOI/CRS) implications and the risk of automatic disclosure of foreign accounts to Indian tax authorities under the Common Reporting Standard framework

6. Benami Property Transactions — PBPT Act, 1988

The Prohibition of Benami Property Transactions Act, 1988 as substantially amended in 2016 has emerged as a powerful enforcement tool for the Indian revenue authorities. Benami transactions — where property is held in one person's name while the consideration is provided by and the benefit flows to another — attract provisional and confirmed attachment of the benami property, a tax of 25% on the fair market value of the attached property, a penalty of 25% of such value, and prosecution with imprisonment of up to 7 years. The scope of the Act extends to all forms of property — movable, immovable, tangible, intangible — and significantly, to monetary proceeds held in bank accounts.

Our services under the Benami Property Transactions Act include:

Advisory and Risk Assessment

Reviewing transactions and arrangements — including accommodation entries, circular fund flows, corporate structures, and property holding patterns — for benami character and advising on risk mitigation before enforcement action is initiated.

Provisional Attachment Proceedings (Section 24(3) and 24(4))

Advising on and challenging provisional attachment orders — including applications for revocation and representation before the Initiating Officer and Approving Authority.

Adjudicating Authority Proceedings (Section 26)

Preparation and presentation of submissions before the Adjudicating Authority at the confirmation stage — the critical juncture at which the attachment either stands confirmed or is vacated.

Appeals before SAFEMA/Appellate Tribunal (Section 46)

Filing and arguing appeals against Adjudicating Authority orders before the Appellate Tribunal (presently functioning as SAFEMA) — including preparation of grounds of appeal, factual paper books, and legal submissions.

Interaction with Income Tax Proceedings

Advising on the interface between Benami Act proceedings and concurrent income tax assessments, search and seizure, and TDS/black money investigations — ensuring a coordinated, consistent defence across all parallel proceedings.

At Kapoor & Chauhan LLP, we believe that effective tax practice is built on three pillars — technical depth, commercial pragmatism, and proactive client communication. Our partner-led engagement model ensures that every matter — whether a routine compliance filing or a high-stakes enforcement proceeding — receives the senior attention it deserves.

INDIRECT TAX SERVICES (GST)

GST has fundamentally reshaped India's indirect tax framework — bringing greater compliance obligations, tighter return timelines, and increasingly sophisticated enforcement.

At Kapoor & Chauhan LLP, our GST practice provides businesses with end-to-end compliance support, strategic advisory, and experienced representation — ensuring your GST position is accurate, defensible, and optimised.

1. GST Compliance

Accurate, timely compliance across all GST return types and registrations.

GST registration, amendment, and cancellation — regular, composition, and voluntary registrations

Monthly, quarterly, and annual return filing — GSTR-1, GSTR-3B, GSTR-9, and GSTR-9C

Input Tax Credit (ITC) reconciliation — GSTR-2B matching, reversal computation, and blocked credit analysis under Section 17(5)

E-invoicing and e-way bill compliance advisory

GST on cross-border transactions — export of goods/services, LUT filing, and refund of accumulated ITC

TDS/TCS compliance under GST for applicable entities

2. GST Advisory & Structuring

Strategic guidance on GST implications across business structures, transactions, and supply chains.

Classification of goods and services — HSN/SAC determination and applicable GST rate analysis

Place of supply analysis for inter-state, intra-state, and cross-border transactions

ITC eligibility assessment and optimisation — including credit chains in multi-tier supply structures

GST implications of mergers, demergers, slump sales, and business restructurings

Advisory on real estate transactions — joint development agreements, under-construction properties, and works contracts

Sector-specific advisory — e-commerce, financial services, healthcare, IT/ITeS, and manufacturing

3. Assessments, Notices & Dispute Resolution

Partner-led representation across all stages of GST enforcement and litigation.

Response to SCNs (Show Cause Notices) — factual submissions, legal grounds, and supporting evidence

Representation in assessment proceedings — scrutiny assessments, best judgement assessments, and audit under Section 65/66

Appeals before the Appellate Authority (AA) and GST Appellate Tribunal (GSTAT) — once constituted

Writ petitions before High Courts challenging jurisdictional or constitutional issues in GST proceedings

Pre-litigation risk assessment and demand mitigation strategy

GST investigations, summons responses, and dawn raid advisory

At Kapoor & Chauhan LLP, our GST practice combines technical rigour with practical business sense — helping clients manage compliance confidently and resolve disputes efficiently.