TDS Credit Denial to NRIs Due to Buyer’s Procedural Error: A Judicial Lifeline and Compliance Blueprint

A Professional Guidance Note for NRIs Selling Property in India

I. Executive Summary

A recent judgment by the Delhi High Court in [NRI v. Union of India & Ors., 2025] has redefined how the Indian tax system must balance procedural compliance with substantive justice. An NRI seller faced a ₹46 lakh tax demand because the resident buyer wrongly deposited 20% TDS in Form 26QB—meant for residents—instead of Form 27Q, applicable for non-resident transactions under Section 195. This error led to denial of TDS credit in the NRI’s AIS and ITR, triggering tax, penalty, and repatriation complications. The Court, however, ruled in favour of the NRI, directing the Revenue to rectify the credit and process refund.

This case holds critical compliance lessons and legal implications for NRIs, resident property buyers, and tax professionals.

II. Legal Framework

1. Section 195 – TDS on Payments to Non-Residents

“Any person responsible for paying to a non-resident... shall, at the time of payment, deduct income-tax thereon at the rates in force.”
— Section 195, Income-tax Act, 1961

• Applicability: Any sum (excluding salaries) paid to an NRI taxable under the Act.

• TDS Rate: 20% on capital gains from property (plus surcharge and cess).

• TAN Requirement: Mandatory for buyer to deduct and deposit TDS under Section 195.

2. Section 199 – Credit of TDS

“Any deduction made in accordance with... Chapter XVII shall be treated as a payment of tax on behalf of the person from whose income the deduction was made.”

• Credit is linked to PAN and Form 26AS/AIS.

• Procedural lapses should not override this statutory entitlement.

3. Form 26QB vs 27Q – The Core Error

Particulars	Form 26QB	Form 27Q
Section Applicable	194-IA	195
Buyer Type	Resident	Resident
Seller Type	Resident	Non-Resident (NRI)
TDS Rate	1%	20% (plus surcharge & cess)
TAN Required	Not Required	Mandatory
TDS Certificate	Form 16B	Form 16A

III. The Landmark Case: Facts & Chronology

Case Citation:

[NRI v. Union of India & Ors., Delhi High Court, W.P. (C) 5216/2025, Decided on May 27, 2025]

Summary Timeline:

Date	Event
1998	NRI (USA-based) bought a Pune property
2015	Agreed to sell for ₹2 crore; buyer deducted 20% TDS (~₹18.68 lakh)
Oct 2015	NRI paid advance tax ₹1.91 lakh and repatriated balance
Mar 2023	Notice under Section 148 issued alleging income escaped assessment
Mar 2025	Assessment order demanded ₹46 lakh tax; penalty u/s 270A initiated
Mar 2025	NRI explained TDS deposited under wrong form (26QB instead of 27Q)
May 2025	Delhi HC ordered correction and refund based on tax paid and law

IV. Key Issues & Legal Interpretation

🔸 1. Substance Over Form

• TDS @20% was deducted and deposited with the government.

• Mistake: Deposit was done in Form 26QB (meant for residents).

• Held: Revenue suffered no loss. Tax liability was discharged.

“A buyer’s procedural error cannot prejudice a compliant NRI seller.”
— Delhi HC, May 2025

🔸 2. Judicial View on SOP vs Statutory Rights

• SOP required buyer’s indemnity and consent to correct the form.

• Court held: Administrative SOP cannot override taxpayer’s statutory right to TDS credit under Section 199.

🔸 3. AIS/26AS Not Reflecting Credit

• Since Form 26QB did not link the TDS to the NRI’s PAN, credit did not reflect.

• The I-T system’s rigidity led to tax demand and penalty—even though funds were with the government.

V. Compliance Advisory for NRIs and Resident Buyers

✅ NRI Seller Compliance Checklist

Action	Why It Matters
Inform buyer you are an NRI	Ensures correct section (195) and form (27Q)
Verify TAN availability	Form 27Q requires TAN—not just PAN
Insist on Form 27Q and Form 16A	Critical for TDS credit in AIS/26AS
Monitor Form 26AS & AIS	Ensure timely credit before ITR filing
File ITR within timeline	Claim TDS credit or refund correctly
Document everything	Avoid disputes in case of future litigation

 Resident Buyer Responsibilities

Task	Risk of Non-Compliance
Deduct TDS @20% + cess under Sec 195	Short deduction leads to penalty
Use TAN & file Form 27Q	Filing 26QB for NRI seller is invalid
Issue Form 16A to seller	Proof of TDS deduction and deposit
Correct any filing errors swiftly	Errors in form type can delay seller’s refund for years
Cooperate in form correction	Courts may compel you to assist if NRI moves legal route

VI. Consequences of Procedural Error

Error	Outcome
Filing 26QB instead of 27Q	TDS doesn’t reflect under NRI PAN
AIS and 26AS mismatch	TDS credit cannot be claimed in ITR
Tax demand under Sec 148	Treated as income escaping assessment
Penalty under Sec 270A	Misreporting of income risk
Delay in refund	Even years after TDS deposited

VII. High Court Decision – Summary of Directions

“Revenue is directed to correct the record and reflect the TDS deposited by the buyers to the petitioner’s credit under the return filed in the Form 26QB with effect from the date, the amount was deposited... compute the amount of refund due... All contrary orders stand set aside.”
— Delhi High Court, May 2025

This ruling upholds:

• Taxpayer’s right to credit under Section 199

• Doctrine of fairness and absence of statutory bar on rectification

• Responsibility of the Revenue to uphold substance over procedure

VIII. Future Compliance & Policy Suggestions

• CBDT Clarification Needed: Permit retrospective mapping of Form 26QB to NRI PAN if TDS is deposited with valid PAN.

• Amendment to TRACES & AIS: Allow automatic re-mapping on submission of affidavit + challan copy.

• TDS Correction Portal: Create an interface for correction of form type errors with NRI consent and buyer indemnity.

IX. Conclusion: Legal & Practical Compass for NRIs

This case sets a precedent in tax administration — affirming that technical lapses should not block legitimate TDS credit, especially when tax is fully deducted and paid. It’s a wake-up call for NRIs and buyers to move beyond mere paperwork and enforce legal clarity at the transaction stage.

“In tax, as in law, intent and evidence must triumph over form.”

By internalizing these lessons and setting clear protocols, NRIs can protect themselves from litigation, wrongful tax demands, and financial stress — while the tax ecosystem moves closer to fair, transparent enforcement.

When Turnover Crosses ₹3 Crore but Digital Compliance is 98%: Is Tax Audit Mandatory in AY 2025–26

The Intersection of Section 44AD, 44AB & Digital Thresholds

In India’s evolving tax landscape, the lines between compliance and complexity often blur — especially for small businesses navigating presumptive taxation and digital incentives. One recurring dilemma is:

Can a taxpayer escape tax audit under Section 44AB despite turnover exceeding ₹3 crore, if 98% of business is digital?

Let’s decode this through a structured analysis, with law interpretation, judicial clarity, and tax planning insights.

The Case Study of Mr. P: A Sole Proprietor in a Digital World

Consider the case of Mr. P, an individual trader and sole proprietor.

Particular	Detail
Entity	Individual Proprietor
Turnover in FY 2024–25 (AY 2025–26)	₹3.5 crore
Digital Receipts & Payments	98% (via NEFT/cheques)
Net Profit	₹35 lakh (i.e. 10%)
Presumptive Scheme Usage	Opted 44AD continuously from AY 2016–17 to AY 2024–25
Books Maintained	Yes
Opted out of 44AD voluntarily?	No
Tax Return Filing	Regular ITR (not presumptive) in AY 2025–26

 Legal Landscape – Understanding the Law

Section 44AD – Presumptive Tax Scheme

Under Section 44AD(1), eligible resident individuals, HUFs, or partnership firms (excluding LLPs) engaged in eligible businesses can opt to declare profits at:

• 8% of turnover (if cash),

• 6% (if digital),
  …provided turnover does not exceed ₹2 crore.
  From AY 2024–25, the Finance Act 2023 introduced a relaxation:

If aggregate digital receipts ≥ 95%, turnover limit is increased to ₹3 crore.

Mr. P's turnover = ₹3.5 crore ➝ He is not eligible for 44AD in AY 2025–26.

 Section 44AD(4) – Lockout Provision for Voluntary Opt-Outs

This is a crucial section:

If a taxpayer opts for 44AD for any five consecutive years and then opts out, he cannot re-enter presumptive taxation for the next five assessment years.

And under Section 44AD(5):

If Section 44AD(4) applies, the taxpayer must maintain books under Section 44AA and get accounts audited under Section 44AB if total income exceeds the basic exemption limit.

 Applicability to Mr. P:

• He has not opted out voluntarily.

• He is ineligible due to turnover exceeding ₹3 crore.

• Hence, Section 44AD(4) is not triggered.

Supported by Case Law:

• Yogesh Aggarwal v. ITO (ITA 373/Del/2021) – Ineligibility due to turnover does not amount to “opt-out” under 44AD(4).

• CIT v. A.A. Builders (ITA No. 2342/PUN/2018) – Opt-out must be voluntary and not caused by statutory breach.

✅ Conclusion: Mr. P is not locked out under Section 44AD(4) and hence, Section 44AD(5) does not apply.

 Section 44AB – Tax Audit Requirement

Every person carrying on business shall get accounts audited if turnover exceeds ₹1 crore [Section 44AB(a)].

However, 2nd Proviso to Section 44AB (effective AY 2021–22 onwards) provides relief:

If turnover is up to ₹10 crore and cash receipts & cash payments are both ≤ 5%, tax audit is not required.

✅ Mr. P’s status:

• Turnover = ₹3.5 crore ✔️

• Cash receipts = <2% ✔️

• Cash payments = <2% ✔️

• Digital compliance = 98% ✔️

 Hence, tax audit is not required for AY 2025–26 despite turnover exceeding ₹3 crore.

Obligation to Maintain Books – Section 44AA

Regardless of tax audit exemption, Mr. P is required to maintain books of account under Section 44AA(2)(iv) because:

• Turnover > ₹25 lakh, and

• Net income > ₹2.5 lakh

Non-compliance attracts penalty under Section 271A: ₹25,000.

Strategic Insight – When 44AD(4) Can Be Used for Tax Planning

Many advisors view Section 44AD(4) as punitive. But it can also serve as a strategic lever:

If an assessee expects low-profit years ahead, it may be advantageous to voluntarily opt out of 44AD to enter regular taxation — even at the cost of the 5-year lockout.

This allows:

• Claiming actual business expenses,

• Carry forward of business losses,

• Depreciation deductions,

• Access to Chapter VI-A benefits.

✅ Tax audit becomes mandatory only if turnover > ₹1 crore and digital compliance < 95%.

🧾 This flexibility enables tailored tax planning, especially in volatile businesses.

 Final Summary – Mr. P’s Position for AY 2025–26

Condition	Status	Audit Triggered?
Eligible for 44AD?	❌ (T/o = ₹3.5 Cr > limit)	No
Voluntary opt-out?	❌	No
44AD(4) triggered?	❌	No
44AD(5) applicable?	❌	No
Turnover > ₹1 crore?	✅	Yes
Digital compliance ≥ 95%?	✅ (98%)	No (exempted via 2nd proviso to 44AB)
Books required under 44AA?	✅	Yes
Tax audit applicable?	❌ No

 Compliance Action Points

• File ITR-3, not ITR-4.

• Maintain books even if audit is not applicable.

• Document digital receipts to establish ≥ 95% benchmark.

• Maintain consistency with earlier returns (44AD to ITR-3 shift).

Key Legal References

Provision	Summary
Section 44AD(1)	Presumptive tax for T/o ≤ ₹2 Cr (₹3 Cr if digital ≥ 95%)
Section 44AD(4)	5-year lockout on voluntary opt-out
Section 44AD(5)	Audit & books required if 44AD(4) triggered
Section 44AB	Audit required for T/o > ₹1 Cr unless 2nd proviso applies
2nd Proviso to 44AB	No audit if T/o ≤ ₹10 Cr & cash < 5%
Section 44AA	Books required if T/o > ₹25L or income > ₹2.5L
Judicial Cases	Yogesh Aggarwal (Del), A.A. Builders (Pune)

 Conclusion: Digitalization is the New Audit Exemption

Mr. P’s case illustrates how judicial clarity + digital compliance + statutory interpretation work together to exempt taxpayers from audit — even with high turnover.

In the era of faceless assessments and data mining, proactive compliance with digital norms now serves not just as good practice, but as a strategic shield against procedural burdens.

The Next Big Play: Why India Needs a Toy + Learning Aggregator More Than Another Gaming App

“We don’t need more distractions. We need more purpose in play.”

The Macro Pulse: One Child, Two Careers, Infinite Concern

In today’s India, 70% of urban families now raise only one child. Simultaneously, both parents work in 2 out of 3 urban households. The result?

• Rising parental guilt.

• Rising intentional spending.

• Rising demand for safe, skill-building playtime—not mindless entertainment.

Add to this:

• 📘 NEP 2020 mandating activity-based learning from early years.

• 📦 150+ homegrown D2C toy and learning brands looking for visibility.

• 💸 A $3B+ Indian toy & play market, growing 12–14% YoY.

This is not a demand gap. It’s a trust gap.

The Opportunity: What India Needs Is Not Just Toys or Games—But Trusted Play Ecosystems

We compare the three big play formats battling for this attention:

Feature	Toy Aggregators	Gaming Platforms	EdTech/Play Programs
Target	Parents (0–12 yrs), schools, play cafes	Teens, college students, casual gamers	Parents, preschools, NEP-aligned K-8 learners
Problem Solved	Safe, developmental play discovery	Digital boredom, quick dopamine	Skill-building via gamified learning
Monetization	Commission, subscription, rentals, gifting	Ads, in-app purchases, premium subscriptions	Subscription, B2B licensing, partner schools
Retention Factor	Trust, skill-filtered toys, age evolution	Engagement loops, rewards	Curriculum fit, parental approval
Top Risk	BIS compliance, hygiene (rentals)	Regulation, screen addiction	Poor pedagogy, unverifiable claims

Winning Format   Toy + Learning Aggregator with subscription, gifting, B2B, and AI personalization.

Success Stories from the Field

Brand	Domain	What They Did Right
FirstCry	Baby + Toy Ecommerce	Built India’s largest parenting ecosystem + logistics + content
Flintobox	Subscription Toys	Personalised developmental kits + retention through neuroscience-based kits
PlayShifu	AR STEM Toys	Phygital toys + exports to 30+ countries + educational tie-ins
Smartivity	DIY STEM Toys	Innovation-led + export-focused + curriculum alignment
Shumee	Wooden Toys	Clean brand + eco-filters + social commerce through Instagram parenting community
BYJU’S	Gamified EdTech	Curriculum gamification + brand + user base (though retention issues remain)

Why Gaming May Be Flattening Out

Despite its past boom, the Indian gaming ecosystem is hitting saturation:

• 🔻 WHO tags gaming addiction as a clinical issue.

• ⚖️ State bans and central scrutiny on real-money gaming.

• 💤 Parents want to decrease screen time, not increase it.

• 💣 90% of games are not designed for learning or long-term retention.

What Parents Really Want (and Will Pay For)

A modern Indian parent of 1 child, working full time, wants:

✅ Need	✅ Solution Platform Feature
Safe play	BIS-certified toys, verified brands
Skill-linked play	STEM/DIY/Montessori categories + NEP curriculum alignment
Gift-friendly	Custom bundles for birthdays, festivals
Screen-light options	DIY, tactile, creative kits over pure digital games
Subscription convenience	Monthly curation, doorstep delivery, easy returns
Sustainable values	Wooden, eco-packaged, Made in India filters

Future-Proof Business Models for Indian Founders

Model Type	Description & Monetization
🎁 Toy Aggregator	Commission, brand partnerships, gifting flows
📦 Subscription Box	Tiered kits by age/skill goals; flat recurring revenue
🧑‍🏫 B2B Edutoy Platform	Sell to schools, playschools, curriculum-mapped products
🪀 Toy Rental (TaaS)	Rent-play-return for sustainable & hygienic circular model
💻 Gamified EdTech	Hybrid play + online dashboard + tracking learning outcomes

Legal & Tax Considerations in India

Domain	Key Rules/Provisions
Toy Safety	BIS Certification under Toy Quality Control Order 2020
EdTech Claims	Avoid false claims per ASCI code + NEP guidelines
Gaming	Regulated under IT Rules; State-specific bans apply
Privacy	DPDP Act 2023 – parental consent, no child profiling
Startup Taxation	Eligible for 80-IAC benefits if DPIIT registered

Tax Tip: Use composition scheme if early stage. Ensure BIS tagging before listing to avoid GST disruption.

Fundraising & Smart Utilisation Plan

Fund Use	% Allocation
Tech Platform (AI + UX)	30%
Inventory / Brand Tie-Ups	20%
Marketing (Influencers + Reels)	25%
Logistics & Rentals Infra	10%
Legal + Compliance	5%
Team + Expert Panels (Educators)	10%

Where to Raise

• 🌱 Toy/Edutoy Startups: Angel + Pre-seed + Impact VCs (Blume, 3one4, Aavishkaar)

• 🧠 EdTech Gamification: Edtech VCs (Omidyar, Sequoia Surge, Lumikai)

• 🏫 B2B Models: CSR arms, family offices, school networks

 Platform Differentiators That Win

Differentiator	Impact
🎯 AI-based Discovery	Age + brain skill + learning style mapping
🔐 Trust Layer	Safety, BIS certification, parental controls
🚚 Speed & Gifting UX	Occasion-based bundles + same-day metro delivery
🧠 Learning Playbooks	Parent education blog + toy goals + guided play
🧱 Modular UI	One platform: Toy shop + play tracker + learning hub

Strategic Playbook

Stage	Strategy
0–3 Months	Micro-Influencer campaigns + Regional parenting reels
3–6 Months	School partnerships + birthday gifting campaigns
6–12 Months	Build return/rental loop + launch Tier 2 vernacular app
Year 2+	Expand to SEA + UAE diaspora markets

The Big Takeaway

India doesn't need more games.
It needs more play with purpose.

Whether you’re a founder building a new-age toy rental service, an educator turning worksheets into DIY boxes, or an investor exploring the next EdTech, this is your moment.

“Don’t just sell toys or games. Build joy, skills, and the next generation of conscious childhood.”

Form 10F & DTAA Benefits for Non-Residents: Law, Compliance, and Judicial Landscape

Statutory Framework – Sections, Rules, and Interpretation

Section 90(2) – Beneficial DTAA Application

“Where the Central Government has entered into an agreement with the Government of any country outside India… the provisions of this Act shall apply to the extent they are more beneficial to that assessee.”

Interpretation: A non-resident may opt for the more beneficial provisions of the DTAA instead of domestic tax rates under the Income-tax Act, 1961.

 Section 90(4) – Tax Residency Certificate (TRC) is Mandatory

“An assessee, not being a resident, shall not be entitled to claim any relief under a DTAA unless a certificate, containing such particulars as may be prescribed, of his being a resident in any country… is obtained.”

Interpretation: DTAA relief is not automatic. The non-resident must furnish a TRC issued by the foreign tax authority.

 Section 90(5) – Other Prescribed Documents Required

“The assessee referred to in sub-section (4) shall also provide such other documents and information, as may be prescribed.”

Interpretation: TRC is not enough. The Income-tax Rules prescribe additional disclosures, the key one being Form 10F.

 Rule 21AB – Prescribed Disclosures

Rule 21AB lays down:

1. Form 10F must be submitted if the TRC does not contain all of the following:

   • Status of the assessee (individual/company/firm, etc.)

   • Nationality or country of incorporation

   • Tax Identification Number (TIN) or equivalent

   • Period of tax residency

   • Permanent registered address

2. Form 10F must be signed by the assessee (now electronically as per notification).

Interpretation: Since most foreign TRCs do not contain all five fields, Form 10F is functionally compulsory.

 Judicial Position on Form 10F and DTAA

✅ 1. Apollo Tyres Ltd. v. DCIT (2007) 292 ITR 45 (SC)

Held that “DTAA overrides domestic law where more beneficial; however, administrative compliance like TRC or prescribed documents are necessary.”

✅ 2. DIT v. Samsung Electronics Co. Ltd. (2011) 345 ITR 494 (Kar)

Withholding tax cannot be applied at DTAA rate unless complete documentation (TRC + 10F) is provided.

✅ 3. GFA Anlagenbau GmbH v. ITO (ITAT Delhi, 2022)

Where 10F was not submitted and TRC lacked prescribed fields, DTAA benefit was denied despite payment being covered under treaty.

Inference: Courts support the strict requirement of furnishing both TRC and 10F, failing which domestic TDS rates apply.

CBDT Circulars and Notifications

 Notification No. 03/2022, dated 16.07.2022

• Mandatory e-filing of Form 10F via income tax portal

• Applies even if the non-resident does not have a PAN or is not required to file an ITR in India

 Circular No. 01/2023, dated 12.01.2023

• Gave temporary manual filing relief for non-residents not having PAN

• Relief valid up to 31 March 2023

 Notification dated 28.03.2023

• Extended manual filing relief till 30 September 2023

Post 01.10.2023: Only e-filing through the income tax portal is valid.

Filing Procedure of Form 10F (Post PAN Exemption)

✅ 1. Who Must File

Every non-resident assessee seeking DTAA benefit must file Form 10F, electronically, whether or not they have a PAN or are filing a return in India.

✅ 2. PAN Not Required Anymore

The Income Tax Department has allowed foreign taxpayers to register using their Foreign TIN or passport.

 Even if the non-resident does not have PAN, they can now register and e-file Form 10F using their TIN/passport number.

 3. Step-by-Step Procedure to E-File Form 10F

A. For Non-Residents Without PAN:

1. Visit https://www.incometax.gov.in

2. Click on Register > Non-resident

3. Enter:

   • Name, Country of Residence

   • TIN or Passport Number

   • Email and Mobile (for OTP)

4. Login after verification

5. Navigate to:
   e-File → Income Tax Forms → File Income Tax Forms → Form 10F

6. Fill the form:

   • Status, Nationality

   • TIN and Address

   • TRC validity period

7. E-verify via email OTP

8. Download acknowledgment

B. For Non-Residents With PAN:

• Login with PAN

• File as above

Implications of Non-Filing

Issue	Consequence
TRC not furnished	No DTAA benefit, full rate TDS
Form 10F not filed	DTAA benefit denied due to non-compliance
Filed manually post 30.09.2023	Invalid – must file electronically
No PAN or registration	Register using TIN or passport

Withholding tax under Section 195 must be at higher domestic rates if Form 10F is not e-filed.

Implications for Indian Payers and Tax Professionals

1. Ensure TRC + e-acknowledged Form 10F before accepting lower DTAA rate

2. Manual 10F post 30.09.2023 should be rejected

3. Document and archive 10F + TRC along with Form 15CB/15CA

4. Train clients and overseas vendors to complete e-registration

5. Apply conservatism in absence of compliance → deduct tax at full rate

Conclusion

The Form 10F regime has moved from discretionary to statutory. Courts have upheld its significance, and with the e-filing mandate in place, there is no excuse for procedural non-compliance.

For any non-resident seeking DTAA relief in India:

• TRC + electronically filed Form 10F = minimum eligibility condition

• No Form 10F = No DTAA benefit

Advisors, businesses, and multinational clients must be sensitized to this rule and integrate it into their cross-border compliance checklists.

Complete Guide to Paying Income Tax & TDS (FY 2025–26 / AY 2026–27)

With Login | Without Login | All Modes | TDS Sections | Avoid Defaults

🔹 A. Without Login – PAN or TAN-Based (Quick Payment)

Who can use:

• Individuals for Advance Tax / Self-Assessment Tax

• Deductors using TAN for TDS payments

✅ Steps:

1. Go to 👉 https://www.incometax.gov.in/iec/foportal

2. Click ‘e-Pay Tax’ under Quick Links

3. Enter PAN (for income tax) or TAN (for TDS)

4. Authenticate via OTP

5. Choose the correct Challan Form:

   • ITNS 280 → Income Tax (PAN-based)

   • ITNS 281 → TDS/TCS (TAN-based)

6. Select tax type:

   • Code 100 – Advance Tax

   • Code 300 – Self-Assessment Tax

   • Code 200 – TDS Payment

7. Choose correct Assessment Year (e.g., FY 2025–26 → AY 2026–27)

8. Enter amount → Select payment mode → Pay → Download Challan

B. With Login – Full Access via Income Tax Portal

Who can use:

• Registered users, businesses, regular filers, companies

✅ Steps:

1. Visit 👉 https://www.incometax.gov.in

2. Login using PAN

3. Go to: e-File > e-Pay Tax > New Payment

4. Choose:

   • Advance Tax

   • Self-Assessment Tax

   • Demand Payment

   • TDS on salary/professional/contract (if TAN added)

5. Select correct AY and category

6. Enter amount (Tax + Interest + Penalty if any)

7. Choose payment mode and complete payment

8. Download Challan Receipt PDF

Accepted Payment Modes (All Platforms)

Mode	Available?	Notes
🏦 Net Banking	✅ Yes	All major banks supported
💳 Debit Card	✅ Yes	Visa, RuPay, MasterCard
💸 UPI	✅ Yes	UPI Apps like Google Pay, Paytm, BHIM
🏧 NEFT/RTGS	✅ Yes	Via generated challan
🏦 Pay at Branch	✅ Yes	Use printed challan (cash/cheque)
💳 Credit Card	✅ Yes	Through SBIePay; convenience fee applies

Most Common TDS Sections (FY 2025–26 | AY 2026–27)

Use Challan No. ITNS 281 with Code 200 (TDS Payment by Deductor)

Section	Nature of Payment	Deductor Type	Deductee Type	Due Date to Pay
192	Salary	Employer (Business)	Employee	7th of next month
194C	Contractor/Works Payment	Business/Individual	Resident Contractor	7th of next month
194I	Rent (Land, Building, Furniture)	Business or Individual (Audit Case)	Resident	7th of next month
194J	Professional/Technical Fees	Business/Individual	Resident Professional	7th of next month
194A	Interest (not on securities)	Firms, Banks	Resident Individual	7th of next month

🔔 Monthly TDS Due Date: On or before the 7th of the following month

For March deductions: 30th April

🗓️ Financial Year vs. Assessment Year Mapping

Transaction Period	Financial Year	Assessment Year
April 2024 – March 2025	2024–25	2025–26
April 2025 – March 2026	2025–26	2026–27

⚠️ Avoid Common Defaults

Error	Consequence	Prevention Tip
Incorrect PAN/TAN	Payment not reflected in AIS/26AS	Double-check credentials
Wrong AY selection	Demand raised later	Use FY → AY chart above
Missed TDS due date	Interest u/s 201 (1.5% per month)	Pay TDS by 7th of next month
Advance Tax missed	Interest u/s 234B/234C	Pay quarterly installments
Wrong Challan (280 vs 281)	Credit not matched by system	Use 280 for Income Tax, 281 for TDS

Filing of Form MGT-14 under Companies Act, 2013: Complete Guide with Section-wise Filing Requirements, Triggers & Exemptions

Introduction

Under Section 117 of the Companies Act, 2013, companies are required to file Form MGT-14 with the Registrar of Companies (ROC) to intimate certain resolutions or agreements passed by the Board of Directors or Members. This filing ensures transparency and legal compliance by making important corporate decisions a matter of public record.

Form MGT-14 must be filed within 30 days from the date of passing the resolution or entering into the agreement, except where specific exemptions apply.

This table consolidates the key resolutions/agreements requiring filing, their legal provisions, trigger points, exemptions based on MCA Circulars and Rules, and important notes to assist company secretaries, compliance professionals, and businesses in timely compliance.

Table: MGT-14 Filing Requirements — Sections, Trigger Points, and Exemptions

Section(s) & Rule Reference	Resolution / Agreement Type	Trigger Point for Filing	Is Filing Mandatory?	Exemptions / Notes / Circular Reference
Section 117(1) & 117(3)	All resolutions or agreements requiring filing under the Act	Upon passing the resolution or entering agreement	✅ Yes	File within 30 days of passing
Section 179(3)	Board resolutions on powers listed under Section 179(3)	When Board passes the resolution	✅ Yes	Except loans, guarantees, securities given in ordinary course of business (Rule 8, MCA Circular 05/2022 dated 19-May-2022)
Section 179(3)(f)	Approval of loans, guarantees, providing securities by the company	Board approval of such transactions	⚠️ Conditional	Exempt if in ordinary course of business per MCA Circular 05/2022
Section 196, 197 & 203	Appointment, reappointment, renewal, or modification of Managing Director / Whole-Time Directors / Key Managerial Personnel	Upon passing Board resolution	✅ Yes	No exemptions
Section 68	Buy-back of shares	Passing special resolution approving buy-back	✅ Yes	No exemptions
Section 13 & 14	Alteration of Memorandum of Association (MOA) or Articles of Association (AOA)	Passing special resolution	✅ Yes	No exemptions
Section 230 & 232	Approval of schemes of amalgamation, merger, demerger, or arrangement	Upon approval of scheme by the company	✅ Yes	No exemptions
Section 59 of IBC 2016	Resolutions for winding up under Insolvency and Bankruptcy Code	Passing winding up resolution	✅ Yes	No exemptions
Section 62(1)(c)	Issuance of securities by private placement	When resolution approving private placement is passed	✅ Yes	No exemptions
Section 179(3)(b)	Borrowing money exceeding aggregate paid-up share capital and free reserves	Passing Board resolution approving borrowing	✅ Yes	No exemptions
Section 180(1)(c)	Creation of charge on company assets	Passing special resolution	✅ Yes	No exemptions
Section 186	Loans and investments by the company	Passing Board resolution approving loans/investments exceeding prescribed limits	✅ Yes	No exemptions
Section 188	Approval of related party transactions (RPT)	Passing Board or Shareholder resolution (as applicable)	✅ Yes	Only if thresholds prescribed under Companies (Meeting of Board and its Powers) Rules, 2014 are crossed
Section 117(3)(c)	Resolutions requiring special or unanimous consent	Upon passing such resolutions	✅ Yes	No exemptions
Section 179(3)(h)	Approval of contracts or arrangements with related parties	Board resolution passed	✅ Yes	Subject to prescribed limits and compliance
Section 179(3)(a)	Approval of financial statements and Board’s report	Board resolution approving annual financials	✅ Yes	No exemptions
Section 179(3)(k)	Approval of political contributions	Board resolution authorizing contributions	✅ Yes	No exemptions
Section 179(3)(m)	Appointment of internal auditors	Board resolution appointing auditors	✅ Yes	No exemptions
Section 179(3)(j)	Appointment of directors including independent directors	Board resolution passed	✅ Yes	No exemptions

Exemptions Summary

Exemption Area	Description	Legal/Rule/Circular Reference
Loans, guarantees, securities in ordinary course	Exempt from filing MGT-14 if given in ordinary course of business	MCA Circular No. 05/2022 (dated 19-May-2022), Rule 8
Non-material related party transactions	Threshold limits prescribed under Rule 15 of Companies (Meeting of Board and its Powers) Rules, 2014	Rule 15, Companies (Meeting of Board and its Powers) Rules, 2014
Resolutions passed by certain banking or NBFC companies	Specific RBI or NHB regulations may apply	RBI / NHB Regulations

Penalty for Non-filing (Section 117(5))

Defaulting Party	Penalty Details
Company	Minimum Rs. 10,000; Rs. 100 per day of default after that; Maximum Rs. 2,00,000
Every officer in default	Minimum Rs. 10,000; Rs. 100 per day of default after that; Maximum Rs. 50,000

SOP / Checklist for Filing Form MGT-14

1. Identify the type of resolution or agreement passed that requires filing as per Section 117(3).

2. Verify the applicable section(s) under the Companies Act 2013 governing the filing.

3. Check if any exemption applies, especially regarding loans, guarantees, and securities in the ordinary course of business (MCA Circular 05/2022).

4. Prepare the certified true copy of the resolution/agreement duly signed by the authorized signatories.

5. File Form MGT-14 with the Registrar of Companies within 30 days from the date of passing the resolution or entering the agreement.

6. In case of delay, file Form CG-1 to seek condonation of delay and pay applicable penalty before filing MGT-14.

7. Maintain copies of all filings and penalty receipts for record and audit.

8. Regularly review the latest circulars and amendments issued by MCA for changes in filing requirements or exemptions.

Conclusion

Filing Form MGT-14 is a critical statutory compliance step to maintain corporate transparency and regulatory conformity under the Companies Act, 2013. Timely filing protects the company and its officers from heavy penalties and ensures stakeholders have access to important corporate decisions. Using this comprehensive guide and checklist, companies can navigate the complex filing landscape with confidence and accuracy.