Terms & Definitions

• Parties of the Sale Deed

  Sales Deed must state name, age, and address of both Buyer and Seller. Both parties must sign and execute the deed with bona fide intention.

• Sales Consideration & Mode of Payment

  The payment consideration paid by the Buyer to the Seller. The mode of payment must be mentioned along with the Seller's consent to accept it in that form.

• Description of the Property

  It should describe the total plot area, identification number, construction details, exact location, and surroundings. A property schedule defines the accurate location.

• Passing of the Title

  States when the property title passes to the Buyer. A time limit for title transfer must be specified; all related rights pass to the Buyer upon transfer.

• Possession Delivery

  Confirms possession transfers to the Buyer after registration is complete. The actual date of delivery must be stated.

• Indemnity Provision

  The Seller must clear all statutory charges — electricity, property tax, water, maintenance, and society charges — before executing the transaction.

• Default Clause

  If either party defaults, they must pay a penalty to the non-offending party to ensure the deed's execution is not affected.

• Earnest Money Deposit

  The deposit paid by the Buyer to demonstrate purchase intent, held in escrow until closing, must be mentioned in the Sale Deed.

• Names of the Parties

  Full names of the lessor and lessee must be clearly stated.

• Rent Amount & Mode of Payment

  The consideration paid by the lessee to the lessor, typically on a monthly basis.

• Repairs and Maintenance

  Specifies which party — lessor or lessee — is responsible for property repairs and upkeep.

• Utilities

  Defines which utilities are included in the rent and which the tenant is independently responsible for.

• Terms of Use

  The permitted purpose of the property and associated conditions for its use.

• Deposits

  The deposit amount required, its purpose, and conditions for return or adjustment at the end of the lease term.

• Insurance

  Whether the lessee must insure the property — most commonly required in commercial rental agreements.

• Duration

  Lease validity period and provisions for renewal, including terms and conditions for renewal.

• Termination

  The circumstances under which either party may end their legal relationship and discontinue fulfilling obligations.

• Description of the Property

  Property details including area, location, address, structure, and furniture or furnishings if provided.

A Private Limited Company restricts the right to transfer its shares. It can have a maximum of 200 shareholders and cannot invite the public to subscribe to its shares or debentures. The liability of each shareholder is limited to the unpaid amount of the shares' face value. The minimum number of shareholders is 2. This route is generally adopted by small business concerns.

A Public Limited Company has no restrictions on the maximum number of shareholders, transfer of shares, or acceptance of public deposits. The liability of each shareholder is limited to the unpaid amount of the shares' face value. The minimum number of shareholders is 7.

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. Further, in LLP, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are protected from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP, as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

A subsidiary is an entity controlled by a separate (parent) entity. Control is typically achieved through the parent company's ownership of shares in the subsidiary. Subsidiaries are separate legal entities for taxation and regulation purposes, maintaining independent compliance obligations.

Joint Ventures are most preferred arrangements between two or more business entities to achieve a specific objective. They are advantageous as a risk-reducing mechanism in new-market penetration and for pooling resources on large projects. In India, there are no separate laws specifically governing joint ventures.

• A person with assets who wants to designate heirs
• Must be at least 18 years old
• Must be of sound mind
• Must not be legally barred from making a Will by any competent authority

• Testator must be at least 18 years old and of sound mind
• Document must clearly state it is the testator's Will
• Must be typed or computer-printed (except for handwritten Wills)
• Must include property disposition or guardian appointment for minors
• Appointment of an executor to carry out the Will's instructions
• Signed by the testator and witnessed by at least 2 people

A Will can be revoked by the Testator at any time during their lifetime. A registered Will can also be revoked by approaching the designated Sub-Registrar's office and filing an application with the relevant supporting documents.

A Will can be altered by the Testator at any time during their lifetime. A registered Will can also be altered by approaching the designated Sub-Registrar's office and filing an application with the relevant supporting documents.

It is a tax imposed by the Government of India on any person who earns income in India. This tax is levied on the strength of an Act called Income Tax Act which was passed by the Parliament of India.

Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.

Any Individual or group of Individual or artificial bodies who/which have earned income during the previous years are required to pay Income tax on it. The Income Tax Act recognizes the earners of income under seven (7) categories. Each category is called a Status. These are:

• Individuals
• Hindu Undivided Family (HUF)
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Firms
• Companies
• Local authority, Artificial Juridical Person

No. The Income Tax Act applies to all persons who earn income in India, whether they are resident or non-resident.

The ‘Basic Conditions’ that trigger a Resident classification in India are as follows:

• The primary condition is a physical stay in India of 182 days or more during the current Financial Year.
• The secondary condition triggers if an individual spends 60 days or more in India during the current year, coupled with a stay of 365 days or more across the immediately preceding four years.
• A third condition relates to stateless individuals. An Indian citizen is deemed a Resident of India if total Indian-sourced income exceeds ₹1.5 million Rupees and they are not liable to pay tax in any other jurisdiction due to domicile or residence.
• If an individual becomes a Resident, one must evaluate eligibility for Resident but Not Ordinarily Resident (RNOR) status.
• Securing RNOR status requires maintaining Non-Resident status in at least 9 out of the 10 preceding financial years, or limiting total presence in India to 729 days or less over the previous 7 years.
• An Indian citizen or Person of Indian Origin (PIO) earning over ₹1.5 million Rupees of Indian income who stayed in India between 120 and 181 days will be categorized as RNOR.
• A stateless individual earning over ₹1.5 million Rupees is also classified as RNOR.

Exceptions that substitute the standard 60-day threshold:

• If an Indian citizen departs India for employment outside India or as a crew member of an Indian ship, the 60-day criterion is replaced with 182 days.
• This 182-day substitution also applies to Indian Citizens or Persons of Indian Origin visiting India.
• If this visiting individual’s Indian income exceeds ₹1.5 million, the relaxation reduces to 120 days.
• Mere job hunting or exploring business opportunities no longer qualifies for the 182-day relaxation.

Where both India and the country of residence claim an individual as a tax resident (double taxation), Double Taxation Avoidance Agreements (Tax Treaties) apply a ‘Tie Breaker Rule’ to assign residency to a single country. Claiming relief requires submission of a Tax Residency Certificate (TRC), online filing of Form 10F under Income Tax Act 1961 / Form 41 under Income Tax Act 2025, and a No PE declaration.

An individual’s residential classification directly dictates the scope of taxable income. Income that is received, deemed to be received, or accrues in India is fully taxable across all three residential statuses: Resident and Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR), and Non-Resident (NR).

• RNOR: Pure foreign income remains exempt; however, income generated from a business controlled in India or a profession set up in India is taxable.
• NR: Foreign income — including international salary, investments, and property outside India — remains entirely outside the Indian tax net.
• ROR: Global income is taxed in India regardless of where it is earned or received.

The word ‘Income’ has a very broad and inclusive meaning. For a salaried person, all that is received from an employer in cash, kind or as a facility is considered income. For a businessman, net profits constitute income. Income may also flow from investments in the form of Interest, Dividend, Commission, etc. The Income Tax Act does not differentiate between legal and illegal income for the purpose of taxation. Under the Act, all incomes are classified into 5 heads:

• Income from Salary
• Income from House Property
• Income from Business or Profession
• Income from Capital Gains
• Income from Other Sources

No. Receipts can be classified into two kinds:

• Revenue Receipt: Generally taxable unless specifically exempted under the Income Tax Act.
• Capital Receipt: Generally exempt from taxation unless there is a specific provision to tax it.

Yes. The dividend declared by Indian companies is taxable in the hands of the shareholders if the dividend is distributed on or after 01-04-2020. Indian companies are liable to deduct tax at source from such dividend if the aggregate amount of dividend distributed or paid during the financial year to a shareholder exceeds the specified threshold.

For every source of income you must maintain proof of earning and the records specified under the Income Tax Laws in India. In case no such records have been specifically prescribed, you should maintain a reasonable level of records to support your income claims.

Generally, tax on income crystallizes only on completion of the financial year. However, for ease of collection and regularity of fund flow to the Government, the Income Tax Act requires payment of taxes in advance during the year of earning itself. Taxes may also be collected on your behalf during the financial year through TDS (Tax Deducted at Source) and TCS (Tax Collected at Source).

If at the time of filing the return you find a balance tax payable after accounting for advance tax, TDS & TCS, the shortfall must be deposited as Self-Assessment Tax.

It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income Tax Department after the end of the financial year. Different forms are prescribed for filing returns for different status and nature of income.

A PAN number has been made compulsory for every transaction with the Income Tax Department. It is also mandatory for numerous other financial transactions such as:

• Opening of bank accounts
• Availing institutional financial credits
• Purchase of high-end consumer items
• Foreign travel
• Transactions involving immovable properties
• Dealing in securities

A PAN card is also a valuable means of identification accepted by all government and non-government institutions in the country.

No. Return of income is to be filed only if you have taxable income.