As a salaried individual who has foreign income, receiving an income tax notice can be a daunting experience. However, it’s essential to understand that foreign income is subject to taxation in your home country, just like your domestic income. If you’ve received an income tax notice for your foreign income, the first step is not …
In a recent judgment, the Delhi Income Tax Appellate Tribunal (ITAT) dismissed the appeal filed by the Revenue and upheld the Commissioner of Income Tax (Appeals) order, which granted the Section 54F benefit to the Assessee. The case pertained to the assessment year 2013-14 when the Revenue computed the long-term capital gains of Rs. 1,23,01,476/-. …
The Assessee in this case was involved in trading cryptocurrency and had made investments worth Rs. 4,65,72,546 towards the purchase of cryptocurrency during the assessment year 2018-19. However, the source of these investments was not verified and the Assessee had only declared a nominal income of Rs. 5,46,500 in the ITR filed. The Directorate of …
In a recent tax dispute, the issue of deductibility of car expenses by a partner was brought to light. The assessee in question was a partner in five different firms and received a share of profit, remuneration, and interest from each. The partner had claimed a deduction for the interest paid on their car loan …
The Income Tax Appellate Tribunal (ITAT) Chennai recently delivered a judgement in the case of DCIT, Trichy. v. Srinivasan Devendran. The case pertained to a civil contractor who had a turnover of Rs. 74 crores from PWD contracts, which was reflected in Form 26AS and had been subjected to Tax Deducted at Source (TDS). However, …
The taxation rules for interest earned on fixed deposits held with a bank have been clarified by the recent Krishna Kumar Agrawal v. ITO (2023) case. According to section 44AD, an assessee can disclose income from their business and receive the benefit of presumptive taxation. However, if an assessee earns interest on FDR/deposits held with …
This is a legal case where the appellant, an individual, had failed to file his income tax return for the assessment year 2011-12, even though he derived income from salary and interest. He subsequently filed his income tax return in response to a notice issued under section 148 of the Income Tax Act, 1961, and …
Are you a taxpayer who mistakenly declared a much higher income on your income tax return? Did the assessing officer process your income tax return under section 143(1) and raise a tax demand that you’re struggling to pay? You’re not alone. But don’t worry, there’s hope. A recent case, Smt. Chandrikaben Thakarshibhai Langhnoja v. ITO, …
Receiving an income tax notice can be a source of stress and confusion for salaried employees. However, it is important to comprehend why the notice was sent and what measures can be taken to address any issues. One reason for receiving an income tax notice may be due to errors or discrepancies in tax filings. …
In the realm of tax law, the processing of an Income tax return under section 143(1) does not equate to an assessment of an opinion on the Income tax return filed by the taxpayer. This was highlighted in the case of Ernst & Young U.S. LLP v. ACIT (International Taxation), where the assessment of the …
