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Apr 04, 2026
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Delhi High Court asks CBDT to clarify tax on partners’ bonuses, stays recovery
India's apex authority has been told by the court to step in amid a flurry of orders across the country demanding tax on bonuses and performance-driven remunerations received by partners of large tax, audit, consultancy and other professional partnership firms, including some belonging to Big 4 members.
Those grappling with such orders argue that the Income tax (I-T) department stands on flimsy ground as their firms have already paid tax on such payments.
Nonetheless, tax offices in Delhi, Mumbai, Chennai, Indore, Bhubaneshwar and few other cities have pursued the issue.
A partner with S R Batloi & Co (SRB), the audit arm of EY, and a partner of a Big 4 firm have separately moved the Delhi High Court, challenging the actions of the tax officers.
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