Political donations are encouraged under the Income Tax Act to promote transparency and democratic participation. To support this objective, Section 80GGC allows taxpayers to claim a deduction for donations made to registered political parties. However, in recent years, tax authorities and courts have taken a stricter approach to verify whether such donations are genuine or …
Tax Collected at Source (TCS) is an important but often misunderstood concept under the Indian Income-tax Act, 1961. While many taxpayers are familiar with Tax Deducted at Source (TDS), TCS operates on a different principle and applies to specific transactions where the seller or service provider is required to collect tax from the buyer at …
Paying rent above ₹50,000 per month has significant income-tax implications for tenants, even if they are salaried individuals with no business income. To widen the tax base and track high-value rental transactions, the Income Tax Act introduced Section 194-IB, which mandates TDS on rent paid by certain individuals and Hindu Undivided Families (HUFs). Many taxpayers …
With the rapid growth of cryptocurrency, NFTs, and other virtual digital assets (VDAs), the Indian government introduced Section 194S under the Income Tax Act to ensure tax reporting and collection on such transactions. This section mandates Tax Deducted at Source (TDS) on payments made for the transfer of virtual digital assets. Understanding who is required …
The non-disclosure of foreign assets in the income tax return (ITR) has become a serious compliance issue in India. The Income Tax Department has intensified scrutiny and is actively issuing income tax notices for foreign assets not disclosed, even for earlier assessment years. Despite repeated system alerts, email reminders, and public advisories, many taxpayers failed …
Every year, the Income Tax Department brings in new rules, forms, and compliance requirements, but one common misunderstanding remains among taxpayers: treating the ITR filing deadline as the tax payment deadline. For FY 2024–25 (AY 2025–26), this confusion is especially important to clear up. The government has extended the due date for filing the Income …
The Income Tax Return (ITR) filing season for Financial Year 2024-25 (Assessment Year 2025-26) is underway. Filing your return not only ensures legal compliance but also allows you to claim refunds, carry forward losses, and serve as proof of income for financial transactions. Whether you are a salaried individual, a business owner, an NRI, or …
The Indian tax framework is designed not only to monitor income but also to track the assets and wealth of high-income taxpayers. Schedule AL (Assets and Liabilities), introduced by the Income Tax Department, plays a crucial role in ensuring transparency about the wealth accumulated by individuals and Hindu Undivided Families (HUFs). It requires high-income taxpayers …
It was the end of June. The monsoon had just arrived, and with it came the annual buzz of income tax return (ITR) filing. Most employees at Raj’s office were busy talking about gathering their Form 16 and investment proofs. But Raj, a 29-year-old software engineer, sat calmly sipping his coffee, convinced that ITR filing …
The income tax return (ITR) filing season is one of the most crucial times for salaried employees. For many, tax filing is not just a compliance task but also an opportunity to claim deductions, refunds, and benefits for the financial year. However, with multiple income sources, deductions, exemptions, and frequent changes in tax rules, filing …
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