Legal & tax questions, answered

Free, plain-English answers to the questions Indians ask most about tax, GST, law, company and property. Have a different one? Ask our free AI assistant — it answers in seconds and on your side.

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Income Tax

Do I have to file an ITR if my income is below the taxable limit?

Not always, but it's often wise to. Filing is mandatory above the basic exemption, and also in certain cases regardless of income (e.g. high deposits, foreign assets, large electricity/travel spends). Even when not mandatory, file to claim a TDS refund and to keep a record for loans and visas.

What happens if I miss the ITR filing deadline?

You can still file a belated return under Section 139(4) until the final deadline, but with a late fee under Section 234F (up to ₹5,000) and interest on any unpaid tax. You also lose the right to carry forward some losses. File as soon as possible.

Can I switch between the old and new tax regime every year?

Salaried individuals (without business income) can choose afresh each year while filing. Those with business/professional income have more restrictions on switching back. Compare both regimes before filing — our income tax calculator does this.

Is income up to ₹12 lakh really tax-free under the new regime?

For AY 2026-27, the Section 87A rebate makes income up to ₹12 lakh effectively tax-free under the new regime. With the ₹75,000 standard deduction, a salaried person's break-even is a little higher. Above that, normal slabs apply.

How much HRA is exempt from tax?

Under the old regime, exempt HRA is the least of: actual HRA received, rent paid minus 10% of salary, and 50% of salary (metro) or 40% (non-metro). Keep rent receipts; the landlord's PAN is needed if annual rent exceeds ₹1 lakh.

Can I claim 80C under the new tax regime?

No. Most Chapter VI-A deductions, including 80C and 80D, are available only under the old regime (with limited exceptions like the employer's NPS contribution). If your deductions are large, compare both regimes before choosing.

How is cryptocurrency taxed in India?

Gains on Virtual Digital Assets are taxed at a flat 30% under Section 115BBH — only the cost is deductible, and losses cannot be set off against anything. A 1% TDS under Section 194S also applies on transfers above the threshold. Report in Schedule VDA.

What is Form 26AS and how does it differ from AIS?

Form 26AS shows TDS and TCS credited against your PAN from employer/bank records. AIS (Annual Information Statement) is broader — it includes all financial transactions the Income Tax Department knows about (securities, dividends, foreign remittances, MF purchases). Reconcile both with your ITR before filing to avoid notices.

How do I claim a refund if TDS was deducted in excess?

File your ITR correctly and claim the refund in the return. The department will credit the refund to your pre-validated bank account, typically within a few weeks of processing. If the refund is delayed beyond a year, interest under Section 244A is payable to you at 6% per annum.

What is presumptive taxation under Section 44AD?

Eligible small businesses with turnover up to ₹3 crore (if cash receipts are ≤5%) can declare 8% (or 6% for digital receipts) of turnover as taxable profit under Section 44AD — no need for books of account or tax audit. In return, you forfeit deductions for actual business expenses.

What is Section 54 capital-gains exemption for property?

If you sell a residential house property and buy (1 year before or 2 years after) or construct (within 3 years) another residential property, the capital gain is exempt under Section 54 to the extent of the reinvestment. Only one new property can be purchased (if gain is ≤₹2 crore, you may buy two properties once in a lifetime).

What is HUF and how does it save income tax?

A Hindu Undivided Family (HUF) is a separate tax entity under the Income Tax Act. An HUF has its own PAN, files its own ITR, and gets the same basic exemption and deductions as an individual. By routing ancestral income or business through the HUF, families can split income across two entities and reduce overall tax. A Deed of Declaration and HUF PAN card are needed to establish one.

What is the Section 87A rebate?

The Section 87A rebate allows taxpayers with net taxable income up to ₹12 lakh (under the new regime, AY 2026-27) to reduce their tax liability to zero. The rebate equals the computed tax up to a maximum of ₹60,000. Above ₹12 lakh, normal slab rates apply on the full income — there is no benefit.

Can I switch from new regime to old regime after filing?

Salaried individuals (without business income) can switch regimes every year while filing ITR. The deadline to choose is the due date of ITR filing; a belated return filed after the deadline is deemed to be under the new (default) regime for AY 2026-27 onwards.

What happens if my employer deducts TDS but does not deposit it?

You can still claim credit for TDS that appears in your Form 26AS / AIS, even if your employer has not deposited it — the Supreme Court has held that an employee who files their ITR honestly cannot be held liable for the employer's default. Report the employer to the Income Tax Department if needed.

How do I get a lower TDS deduction certificate (Form 13)?

If you expect your total income to be below the taxable limit or your effective tax rate to be lower than the standard TDS rate, apply online to your Jurisdictional Assessing Officer for a lower-deduction or nil-deduction certificate under Section 197. This form is particularly useful for NRIs selling property.

GST

Do I need GST registration for my small business?

Registration is generally required once your aggregate turnover crosses the threshold (commonly ₹40 lakh for goods and ₹20 lakh for services, lower in some special-category states), and is mandatory for inter-state supply and e-commerce in many cases. Verify your case on the GST portal.

What is the penalty for filing a GST return late?

A late fee per day (per Act, subject to a cap) plus interest at 18% per annum on the tax paid late. The exact late fee depends on the return and your turnover. File even a nil return on time to avoid it.

My supplier didn't file their GSTR-1, so my ITC is missing. What do I do?

Input Tax Credit can generally be claimed only for invoices appearing in your GSTR-2B. Follow up with the supplier to file/correct their GSTR-1, keep the invoice and payment proof, and reconcile monthly. If it isn't fixed, you may have to reverse that ITC.

I got a GST DRC-01 notice — what should I do?

A DRC-01 is a show-cause notice, not a final demand. Read it for the exact issue and deadline (usually 30 days), gather your invoices and evidence, and reply via Form DRC-06 — clearly and on time. Don't ignore it; consider a CA if the amount is significant.

What is the GST cancellation process if I close my business?

Apply for voluntary GST cancellation on the GST portal (Form REG-16) within 30 days of cessation of business. File all pending returns and pay any outstanding liability first. Post-cancellation, file the final return (GSTR-10) within 3 months. Your registration stays active until the officer approves cancellation.

What is the composition scheme under GST and who can opt for it?

Eligible small taxpayers with turnover up to ₹1.5 crore (₹75 lakh for some categories) can pay GST at a flat, reduced rate (1%–5% depending on business type) and file quarterly returns. They cannot issue tax invoices or claim ITC. Inter-state suppliers and e-commerce sellers cannot opt in.

What is a GST DRC-07 notice?

Form DRC-07 is a summary of the tax demand raised after a formal adjudication under GST law. If you receive it, the order has already been passed; you can pay the demand or file an appeal before the GST Appellate Authority within 3 months of the order date.

What is blocked ITC under Section 17(5) of the CGST Act?

Section 17(5) lists goods and services on which ITC cannot be claimed — including motor vehicles (except for taxis, driving schools, etc.), food and beverages, employee-related perks, construction of immovable property for own use, and memberships. Even if you have a valid invoice, claiming ITC on these is illegal.

Can I claim ITC on capital goods?

Yes — ITC on plant and machinery and other capital goods is allowed in full in the year of purchase (one-shot ITC), not depreciated over years. However, if you have both taxable and exempt supplies, you must reverse ITC attributable to exempt supplies under the Rule 42/43 formula.

Legal

What can I do if the police refuse to register my FIR?

For a cognizable offence, FIR registration is mandatory (Lalita Kumari, 2014). If refused, escalate in writing to the Superintendent of Police, and you can approach a Magistrate under BNSS Section 175(3) (old CrPC 156(3)) to direct registration. Keep copies of everything.

How do I get anticipatory bail?

Apply under BNSS Section 482 (old CrPC 438) to the Sessions Court or High Court when you fear arrest in a non-bailable case. Your advocate files a petition; the court may grant pre-arrest bail with conditions. Move quickly and with a lawyer — it is discretionary.

Is a cheque bounce a criminal offence?

Yes — dishonour of a cheque for insufficient funds is an offence under Section 138 of the Negotiable Instruments Act. Send a written demand within 30 days of the bank return; the drawer has 15 days to pay, after which you can file a complaint within 30 days.

How long do I have to file a consumer complaint?

Generally within two years of the cause of action, under the Consumer Protection Act 2019. You can file online for free via the e-Daakhil portal, before the District, State or National Commission depending on the value.

How do I file an RTI application?

Write to the Public Information Officer of the relevant department, clearly stating the information you want, with a small fee (commonly ₹10). The PIO must reply within 30 days. If refused or ignored, file a First Appeal, then a complaint/second appeal to the Information Commission.

Company

What's the cheapest way to register a company in India?

A sole proprietorship is the cheapest and simplest but gives no limited liability. For limited liability, an LLP is usually cheaper to run than a Private Limited company. Incorporate a company via the MCA's SPICe+ form. Choose by your funding and liability needs.

Private Limited vs LLP — which should I choose?

Choose a Private Limited company if you'll raise equity/VC funding or issue ESOPs — investors prefer it. Choose an LLP for a services/consulting business that wants limited liability with lighter compliance and no shareholding structure. Both give limited liability.

Do I need to register a sole proprietorship?

There's no single 'proprietorship registration'. You operate under your PAN, and register for what applies — GST (if over the threshold), Udyam (MSME), a Shops & Establishment licence, and a current account. It's the simplest structure but has unlimited liability.

Property

Is TDS deducted when I buy property?

Yes — under Section 194-IA the buyer deducts 1% TDS if the consideration is ₹50 lakh or more (for a resident seller), deposits it via Form 26QB within 30 days of the month-end, and gives the seller Form 16B. For an NRI seller, Section 195 applies instead.

Is an 11-month rent agreement valid, and why 11 months?

Yes. Rent agreements of less than 12 months are commonly used because leases of 12 months or more require compulsory registration (and higher stamp duty) under the Registration Act. An 11-month agreement on stamp paper, signed and ideally notarised, is valid.

Am I eligible for gratuity, and how is it calculated?

Under the Payment of Gratuity Act, gratuity is generally payable after five years of continuous service (waived on death/disablement). It is calculated as 15 ÷ 26 × last drawn salary (Basic + DA) × years of service, tax-exempt up to ₹20 lakh.

Is a rental agreement without registration valid?

An unregistered rent agreement is admissible as evidence to prove the tenancy, but cannot be used as primary evidence in court for enforcing specific clauses. Most 11-month agreements on stamp paper are not registered (to save stamp duty) and are still routinely accepted by landlords and banks. Agreements for 12 months or more must be registered.

Can a landlord increase rent during an existing lease?

During the fixed term of a registered lease, rent cannot be increased unilaterally unless the agreement has an escalation clause. For month-to-month tenancies under state rent-control acts, increases are regulated. Check your state's rent control legislation.

What is the stamp duty on a rental agreement?

Stamp duty on rent agreements varies by state. Most states charge based on the rent amount and tenure. Karnataka, for example, charges 0.1% of the annual rent for 11-month agreements. Maharashtra has its own Schedule I rates. Understamping makes the document inadmissible.

What is the RERA complaint process for a builder dispute?

File a complaint online on your state's RERA portal (e.g. MahaRERA for Maharashtra) against the builder, paying a small fee. The authority hears both parties and can order refunds, possession or compensation. RERA is faster than consumer courts for real-estate matters and limits the builder's defences.

What documents do I need to verify before buying property?

Check: (1) Title deed chain (last 30 years); (2) Encumbrance Certificate (EC) from the sub-registrar to confirm no pending loans or charges; (3) Khata/Property tax receipts; (4) RERA registration for under-construction projects; (5) Completion and occupancy certificate for ready flats; (6) Society NOC; (7) Approved building plan. Engage a property lawyer for a title search.

NRI

Is an NRI taxed on foreign income in India?

No. An NRI is taxed in India only on income earned or received in India — Indian salary, rent, capital gains and NRO interest. Foreign salary and foreign investments are not taxed in India.

How is residential status decided for tax?

It depends on the number of days you stay in India in the financial year (and across earlier years). Based on that you are a Resident, RNOR or Non-Resident, which decides what income India can tax. Count your days carefully each year.

Is NRE and FCNR interest taxable in India?

Interest on NRE and FCNR accounts is generally tax-free in India for an NRI. NRO account interest is taxable and subject to TDS. Verify your status before relying on the exemption.

What is Form 15CA and 15CB?

To remit money abroad from India, you generally file Form 15CA (a declaration), and for many remittances a chartered accountant issues Form 15CB certifying that the correct tax has been paid. Your bank needs these before processing the transfer.

Do NRIs have to file an ITR in India?

If you have taxable Indian income above the basic exemption, or want to claim a refund of TDS (e.g. on a property sale or NRO interest), you should file an ITR in India. It also helps you claim DTAA relief.

Freelancer

Do freelancers need to register for GST?

You must register for GST once turnover crosses the threshold (broadly ₹20 lakh for services, lower in special-category states), or if you provide inter-state services or supply through certain platforms. Many freelancers exporting services register to file under LUT.

Can a freelancer use the presumptive scheme (44ADA)?

Yes — eligible professionals can declare 50% of gross receipts as income under Section 44ADA (within the prescribed receipts limit), without maintaining full books. Check it is actually beneficial versus your real expenses.

How do freelancers pay income tax?

Freelancers pay tax at slab rates on net professional income, usually via advance tax in four instalments through the year, and file ITR-3 (or ITR-4 under 44ADA). Keep your invoices and expense records.

E-commerce

Do I need GST to sell on Amazon or Flipkart?

Generally yes — selling through an e-commerce operator that collects TCS usually requires GST registration regardless of turnover. Confirm the current rule for your category before listing.

What is TCS under GST for e-commerce?

E-commerce operators collect a small percentage of net taxable sales as Tax Collected at Source (TCS) and deposit it against your GSTIN. You claim it in your GST returns after reconciling with the operator's statement.

Startup

Is Udyam (MSME) registration free?

Yes — Udyam registration on the official portal is completely free using Aadhaar and PAN. It gives access to MSME loan schemes, tender preferences and protection against delayed payments (the 45-day rule).

What is the difference between the ™ and ® symbols?

You can use ™ as soon as you file a trademark application; ® can be used only after the mark is registered. A registered trademark is valid for 10 years and is renewable.

Which is better for a startup — LLP or Private Limited?

Choose a Private Limited if you plan to raise equity or issue ESOPs; choose an LLP for a low-compliance partnership without external funding. See our Pvt Ltd vs LLP vs OPC comparison for the full picture.

What is DPIIT startup recognition?

DPIIT recognition under Startup India gives eligible startups benefits like self-certification, easier compliance and access to the Section 80-IAC tax holiday (with separate approval). Apply free on the Startup India portal.

Cheque Bounce

What is the time limit to file a cheque-bounce case under Section 138?

You must send a written demand notice within 30 days of the bank's memo of return. If the drawer does not pay within 15 days of receiving the notice, you have a further 30 days to file a complaint before the Magistrate. Miss any deadline and the complaint becomes time-barred.

Can I file a cheque-bounce case if the cheque was given as security?

Courts have held that Section 138 applies to cheques given 'for the discharge of any debt or liability' — but whether a security cheque qualifies depends on the facts. If the underlying debt was due when the cheque was presented, a complaint is maintainable; consult a lawyer for your specific facts.

What is the maximum punishment for cheque bounce under Section 138?

Imprisonment up to two years, a fine up to twice the cheque amount, or both. The primary aim is recovery — courts usually impose a fine equal to the cheque amount plus interest rather than imprisonment for first-time matters.

Can a cheque-bounce case be settled out of court?

Yes — Section 138 cases are compoundable, meaning the parties can settle. If the accused pays the cheque amount plus agreed compensation, the complainant can withdraw the complaint. Courts also actively encourage settlement through Lok Adalats.

Is a post-dated cheque covered under Section 138?

Yes — a post-dated cheque is covered. What matters is that the cheque was issued for a legally enforceable debt and bounced when presented after the date on the cheque.

Consumer

How do I file a consumer complaint against an e-commerce seller?

File online on the e-Daakhil portal (edaakhil.nic.in) — free to access. Choose the District Consumer Commission if your claim is under ₹50 lakh, State Commission for ₹50 lakh–₹2 crore, or National Commission above that. Attach all invoices, screenshots of listings and any communication proving the deficiency.

What is the time limit to file a consumer complaint?

Generally two years from the date on which the cause of action arose, under the Consumer Protection Act 2019. The Commission may condone delay if sufficient cause is shown, but file promptly.

Can I get a refund plus compensation in a consumer complaint?

Yes — the Consumer Commission can order a refund, replacement, repair, removal of deficiency, and also award compensation for mental agony and costs of litigation. The amount of compensation depends on the facts.

Who is a 'consumer' under the Consumer Protection Act 2019?

A person who buys goods or hires services for personal use, not for commercial resale. If you bought something for business resale, you do not qualify as a consumer.

Can I file a consumer complaint against a builder for delayed possession?

Yes — delay in handing over possession is a 'deficiency in service'. You can file before the Consumer Commission for a refund (with interest) or possession with compensation. RERA (where available) is another faster option for real-estate disputes.

EPF

How do I withdraw my EPF online?

Log in to the EPFO Member Portal with your UAN and Aadhaar-linked mobile number, go to 'Online Services' → 'Claim (Form 31/19/10C/10D)' and submit the relevant form. Your bank account must be linked and verified in the portal. Partial withdrawals (Form 31) are for specific purposes like marriage, medical or house purchase.

When can I withdraw my EPF fully?

Full PF withdrawal is allowed on retirement (age 58), or after two months of continuous unemployment (under EPFO's latest rules, one month for basic and one month for pension fund). You can also withdraw 90% on reaching age 57.

Is EPF withdrawal taxable?

If you withdraw before completing 5 continuous years of service (across employers, if the PF was transferred), the withdrawal is fully taxable. After 5 years, it is tax-free. TDS is deducted at 10% if you provide PAN; without PAN, TDS is at the maximum marginal rate.

How do I transfer PF when I change jobs?

Generate a PF transfer request online (Form 13) through the EPFO Member Portal using your UAN. Your old employer (or new employer in some cases) must attest and approve it. Never withdraw — transferring preserves the 5-year continuity for tax purposes and keeps your pension fund intact.

What is the EPFO pension scheme (EPS) and am I eligible?

The Employees' Pension Scheme 1995 (EPS) is funded by 8.33% of your basic salary (employer's share) up to ₹15,000 per month. You become eligible for a pension after 10 years of qualifying service. Monthly pension commences at age 58 (or 50 with a reduced rate); a lump-sum withdrawal is available if you have less than 10 years of service.

Trademark

How long does trademark registration take in India?

Straightforward applications typically take 18–24 months from filing to registration — the examination report comes in 2–3 months, and after advertising, there is a 4-month opposition window. Expedited examination (with a higher government fee) can shorten the examination step.

What is a trademark class, and which class should I file in?

India follows the Nice Classification — 45 classes covering different goods (1–34) and services (35–45). File in every class your business actively uses. A single-class application covers one class. Check what competitors have filed to avoid opposition.

What happens if someone copies my trademark?

You can send a cease-and-desist letter, file a complaint for trademark infringement under the Trade Marks Act 1999, or apply for an injunction in the High Court. A registered mark gives stronger remedies than an unregistered one; your ™ sign puts competitors on notice.

How much does it cost to register a trademark in India?

Government fees are ₹4,500 per class for individuals, startups and small enterprises, and ₹9,000 per class for others. Professional fees to a trademark agent are extra. Expedited examination adds another ₹20,000 (for individuals) or ₹40,000 (for others).

Criminal

What is the difference between bailable and non-bailable offences?

For bailable offences, bail is a right and the police must release you on bail. For non-bailable offences, bail is discretionary — you must apply to a Magistrate or Sessions Court. The categorisation is in Schedule I of the BNSS (Bharatiya Nagarik Suraksha Sanhita) 2023.

How long can police detain me without producing me before a Magistrate?

Under BNSS 2023 (BNSS § 58), police cannot detain a person for more than 24 hours without producing them before the nearest Magistrate. The Magistrate can then remand the accused to judicial custody (jail) or police custody for further investigation, with limits.

What is remand and judicial custody?

Remand means an accused is kept in custody while investigation continues. 'Police remand' (police custody, typically up to 15 days in total) allows police to interrogate; 'judicial custody' means the accused is held in prison under court supervision. A Magistrate must approve every extension.

What is a chargesheet and when must police file it?

A chargesheet (under BNSS: 'police report' or 'final report') is the document police file in court when investigation is complete, formally accusing named persons. For serious offences, it must be filed within 60 days of arrest; the limit extends to 90 days for cases punishable with 10+ years or life. If not filed in time, the accused gets default bail.

What is default bail (BNSS § 187)?

If the police fail to file a chargesheet within the statutory deadline (60 or 90 days depending on the offence), the accused is entitled to bail as a right — called default or statutory bail — on executing a personal bond. The accused must apply immediately once the time lapses, as this right can be waived.

Family Law

Who is entitled to maintenance under Indian law?

Under BNSS § 144 (earlier CrPC § 125), a Magistrate can order maintenance for a wife, minor children, adult children who are unable to maintain themselves, and parents who cannot maintain themselves, against a person with sufficient means. The order does not require a divorce and can be obtained quickly.

Who inherits property if someone dies without a will?

For Hindus (including Sikhs, Buddhists and Jains), the Hindu Succession Act 1956 applies. Class I heirs (spouse, sons, daughters, mother and specified others) inherit equally. If there are no Class I heirs, Class II heirs take. Muslims are governed by personal law (Sharia); Christians and Parsis by the Indian Succession Act 1925.

What are the rights of a daughter in ancestral property after the 2005 amendment?

After the Hindu Succession (Amendment) Act 2005, daughters have the same birth-right share as sons in Hindu coparcenary (ancestral) property — a right that exists from birth, not from the father's death. The Supreme Court in Vineeta Sharma (2020) confirmed this applies retrospectively even if the father died before 2005.

Cyber

How do I report a UPI fraud or online payment scam?

Immediately call the National Cyber Crime Helpline (1930) and file a complaint on cybercrime.gov.in. Also report to your bank to raise a chargeback or dispute. Acting within a few hours increases the chance of freezing the fraudster's account before funds are moved. Keep screenshots of all transactions.

Is WhatsApp call recording admissible as evidence in India?

Electronic records (including recorded calls) are admissible under the Bharatiya Sakshya Adhiniyam 2023 (BSA) if authenticated properly. However, recording a call without the other party's consent may violate their privacy and could be challenged in court. Consult a lawyer before relying solely on a covertly recorded call.

What is the penalty for defamation on social media in India?

Criminal defamation under BNS § 356 (replacing IPC § 499) carries up to 2 years' imprisonment and/or a fine. Civil defamation (tort) allows you to sue for damages in a civil court. Defamation via electronic means is also covered under the IT Act provisions. Truth and fair comment are defences.

How do I get content removed from the internet in India?

For illegal content (CSAM, defamation, impersonation, copyright infringement), file a complaint on the platform's grievance portal; escalate to the Grievance Appellate Committee under IT Rules 2021 if not resolved in 15 days. For court orders, Section 69A IT Act allows government-ordered blocking; you can also seek an injunction from the High Court.

Employment

Is a non-compete clause in an Indian employment agreement enforceable?

Post-termination non-compete clauses are generally unenforceable in India — Section 27 of the Contract Act 1872 voids agreements in restraint of trade. Clauses that restrict only during employment or protect legitimate trade secrets (confidentiality clauses) have better enforceability. Courts rarely enforce job-scope restrictions on former employees.

What notice period must an employer give before termination?

For workmen covered under the Industrial Disputes Act, 1 month's notice (and in some cases retrenchment compensation) is required. For employees not covered under the ID Act (managerial, supervisory staff), the employment contract governs — typically 30–90 days. Without a contract clause, 'reasonable notice' applies.

When is a sexual harassment complaint (POSH) mandatory for employers?

Every employer with 10 or more employees must constitute an Internal Complaints Committee (ICC) under the POSH Act 2013 and file an annual report. Failure is a criminal offence for the company and its management. Employees can approach the ICC within 3 months of the last incident.

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General information, not professional advice. Rules change and depend on your facts — verify with a licensed advocate or CA before acting.