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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The Income Tax Act, 1961, includes various provisions for tax deduction at source (TDS) on rental payments. One such provision is Section 194-IB, introduced to ensure tax compliance on high-value rental transactions by individuals and Hindu Undivided Families (HUFs) who are not otherwise liable for tax audit. This section is particularly relevant for salaried employees …
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House Rent Allowance (HRA) is one of the most commonly claimed tax exemptions by salaried employees under Section 10(13A) of the Income Tax Act, 1961. However, the Income Tax Department has become more vigilant about HRA claims, and during scrutiny assessments, assessing officers often demand detailed proofs to verify the genuineness of these claims. Many …
With increasing international tax compliance measures like CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act), Indian taxpayers are required to make full and accurate disclosure of their foreign assets and income. The Indian Income Tax Department has made it mandatory for residents to declare foreign income and assets in their Income Tax …
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It was a bright sunny day in Gurgaon when Raj and his wife Neha finally decided to buy their dream home. After years of hard work, savings, and taking a home loan, they found a beautiful property worth Rs.3.40 crores. The seller, Mr. Arjun, was an NRI living in Canada for the past 12 years. …
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For Non-Resident Indians (NRIs) who invest in Indian real estate or other immovable properties, understanding capital gains taxation is crucial. One of the most practical and beneficial provisions available under the Indian Income Tax Act for reducing long-term capital gains tax liability is Section 54EC. This section offers a legal route to claim tax exemption …
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For many Non-Resident Indians (NRIs), owning property in India is both an emotional and financial investment. Over time, you may decide to sell a residential property in India, perhaps to consolidate your assets, liquidate for other goals, or upgrade to a better home. However, when you sell a long-term residential property (held for more than …
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Filing your Income Tax Return (ITR) does not always end the compliance process. In many cases, the Income Tax Department may issue a scrutiny notice under Section 143(2) to examine your return in greater detail. For Assessment Year (AY) 2024–25, the department has begun issuing such notices in large numbers. In this blog, we’ll explain …
