Income Tax Advisory AI
“What TDS on the contractor?” “Gift, sale or will?” “Old regime or new?” The questions clients actually ask, answered in a table you can send — section, rate, threshold and dates for the year you pick, routes costed side by side, opinions that say when the law is against your client. Cited to the practice text, not remembered. Research is free.
Built for notices and appeals. Most of your week isn't.
"What TDS on the contractor?" "Gift, sale or will?" "Old regime or new?" "Can you put that in an opinion?" Twenty of these a week and no tribunal in sight. If that is your practice, you had little reason to open Income Tax AI until now. Advise & Plan is the first band on the page; the notices and appeals are still there, one band down.
Answers the question the client asked
Fill six fields — who pays whom, for what, how much, which year — and the TDS answer leads with one table you can forward: section, rate, threshold, time of deduction, deposit and return dates, forms. Describe a deal and the planning memo costs each route on the same figures and recommends one. Then the reasons, the grey areas, and what goes wrong if it is missed.
Tells you when it is against your client
First, not on page six. Where the statute or a binding ruling is against the position, the answer says so and gives the safer course. Settled, arguable and "what the client should actually do" are kept apart. An opinion that only argues one side is not an opinion.
Cited for the year, not remembered
Every rate, threshold, due date and form is taken from the Practice Manual's treatment of the provision, read in full, for the financial year you pick — the 1961 Act or the 2025 Act as the year requires — and the answer says which year. If a figure is not in the text, it says so instead of inventing one. Every example on the page is one click to reproduce.
Advise & Plan
Sitting beside Research on the Income Tax AI page, ahead of the thirteen litigation drafts.
TDS / Withholding Applicability
NewSix fields — who pays, who receives, resident or not, nature of payment, amount, year, PAN — and the answer leads with one table: section, rate with and without PAN, threshold, time of deduction, deposit and return dates, certificate, whether a TAN is needed. Then the test that decides between competing sections, the section 195 and treaty analysis for a non-resident with the documents to collect, the grey areas, and what goes wrong if it is missed.
- 194C vs 194J vs 194M, 194Q vs 206C(1H), 194J vs 195 — decided, with the reason
- Non-resident payee: chargeability, DTAA article and rate, TRC and Form 10F, 15CA/CB, grossing-up
- Individuals outside tax audit routed to 194M and 194-IB, not to 194C and 194-I
Tax Planning / Transaction Structuring
NewDescribe the proposed transaction before it happens. The memo computes the tax for each party with the working, runs a fifteen-line deeming and anti-avoidance screen where every line is rated attracted or not, costs two or three alternative structures on the same figures, lists the compliance each one triggers, and ends with a recommended route and a safer fallback.
- 56(2)(x), 50C/43CA, 50CA, 56(2)(viib), 2(22)(e), 40A(2), 94B, 115BBE, 79, clubbing, 269SS/ST, 9B/45(4), GAAR
- Buy-back vs dividend vs loan; gift vs sale vs trust vs will; firm to company; royalty and AE borrowing
- Lawful planning only — a sham or a GAAR-caught step is named as such and the lawful route given instead
Legal Opinion
RebuiltA formal opinion on a proposed transaction, a return position or a dispute. Facts, issues, applicable law, a precedent table, the opinion, conflicting views presented both ways, and a strength rating of Clear, Arguable or Risky. For planning facts it adds the tax cost, the compliance steps and the better alternative if one exists.
Client Advisory
RebuiltPlain-language advice the client can act on: what it costs, the options, what to do and by when, and the risk stated honestly. Written from the same manual documents as the opinion, so the figures in the letter match the figures in your file.
Two real answers, lightly trimmed
Both answered for FY 2026-27, so under the Income-tax Act, 2025, with the 1961 section shown alongside.
| Section | 393(1) Table Sl. No. 6 of the 2025 Act — successor to 194C |
| Rate (payee a firm) | 2%, on the labour component of Rs. 7 lakh only |
| Thresholds | Rs. 30,000 per payment / Rs. 1,00,000 aggregate — both crossed |
| TDS | Rs. 14,000, at credit or payment, whichever earlier |
| Deposit / return / certificate | 7th of next month; quarterly statement; certificate within 15 days of it |
| Gift now | No capital gains for father (gift to a relative); no 56(2)(x) in the son's hands. Recommended. |
| Sale at Rs. 1 crore | Gains computed on the Rs. 3.2 crore stamp duty value for Rs. 1 crore received. Plainly against the client. |
| Family trust | Arguable; trust-rate exposure on the rent; father keeps a say as trustee |
| Will | No tax, no stamp duty now, no income shift during father's life. Safer fallback. |
| Daughter-in-law's share | Not achievable without clubbing — said plainly, with the section |
From your facts to the chapter that answers them
Provisions in play
Sections you name are read directly. Plain language is mapped too: "buying an office from a builder", "loan from the company", "to his son's HUF". When neither resolves, the AI classifies the facts first.
The manual, whole
For each provision the one Practice Manual document that treats it — not the one that merely mentions it — is loaded in full: up to five documents for a TDS question, four for a planning memo.
Statute, circulars, cases
The section text with its last amendment, the CBDT circulars and notifications on the point, the treaty text for a non-resident, and the judgments that decide the grey area — each citation verified against the database.
The right Act for the year
A payment in FY 2025-26 is answered under the 1961 Act. A payment in FY 2026-27 is answered under the 2025 Act with the new section and form numbers, and the 1961 equivalent beside each.
The half of the practice that never gets to court
Tax consultants and advisory desks
Structuring, withholding and return positions answered with the manual open at the right page, in a form you can put on letterhead after your own review.
In-house tax teams
Vendor payments, cross-border fees, promoter transactions and group restructuring — the deeming screen and the compliance list before the board paper, not after the notice.
Litigation chambers that also advise
The same page, the same subscription. Advise & Plan on one band, Reply & Litigate on the other, and an analysed document can be carried into either.
Open Income Tax AI and pick TDS or Planning
Included in every Income Tax AI plan. Research stays free; the advisory and drafting workflows need a Professional plan or above.