Imagine this: after years of living abroad, you decide to sell your inherited or long-held property in India. The paperwork is sorted, a buyer is ready, and the deal is almost done. But just as you begin to celebrate, the reality of capital gains tax hits, suddenly, a sizeable portion of your hard-earned money is …
Continue reading “Section 54 for NRIs: How to Save Tax on Property Sale in India”
Once upon a time, filing taxes in India was simple for most people. But now, for Non-Resident Indians (NRIs), it has become important to understand two different paths, the old and the new tax regime. Think of it like this: the old regime is a traditional road with many stops where you can claim deductions …
Ravi, an Indian software engineer working in Dubai, was planning a short trip to India to visit his family. As the financial year was ending, he casually mentioned to a friend that he needed to file his Income Tax Return (ITR) in India. His friend asked, “Ravi, do you know your residential status for tax …
Every tax season, people flood Google with questions like “How do I file ITR‑1?” and “What’s the last date to file ITR?” But very few ask the more important question, when is Form ITR‑1 applicable and when is it not?It’s important to first check whether you’re eligible to file ITR‑1 before rushing to file your …
Every year, while assisting individuals in filing their Income Tax Returns (ITRs), we have observed a recurring oversight: many taxpayers report the interest income from multiple savings accounts, yet mention only one or two bank accounts in the return form. This may seem like a small mistake, but it can lead to misreporting as per …
Continue reading “Common ITR Mistake: Reporting Only a Few Bank Accounts in Your Income Tax Return”
Relief under Section 89(1) of the Income Tax Act, 1961, is designed to protect taxpayers from paying higher taxes due to the timing of salary payments. This provision is particularly helpful when salary, pension, gratuity, or other income is received in arrears or advance, resulting in a spike in taxable income in one year, potentially …
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For Indian residents earning foreign income, avoiding double taxation is crucial. The Indian Income Tax Act, 1961, provides mechanisms under Sections 90, 90A, and 91 to claim a Foreign Tax Credit (FTC) and reduce the burden of being taxed in both the foreign country and India. Here is a detailed step-by-step guide to help you …
Continue reading “How to Claim Foreign Tax Credit in ITR: Complete Guide for AY 2025–26”
In an increasingly globalised world, it is common for Indian residents to earn income from foreign sources—whether through employment abroad, investments, royalties, or business dealings. However, such cross-border income often attracts tax both in the foreign country and in India. To mitigate this burden of double taxation, the Income Tax Act, 1961, provides relief through …
In recent years, a growing number of Indian citizens have opted to surrender their Indian citizenship in favour of acquiring citizenship in other countries like the United States, Canada, the United Kingdom, Australia, and several Gulf nations. This shift, while often driven by better career opportunities, lifestyle preferences, or long-term settlement plans, brings with it …
Continue reading “Change in Citizenship in PAN: A Growing Concern Among NRIs”
For Assessment Year (AY) 2025-26 corresponding to Financial Year (FY) 2024-25, the Income Tax Department has released the Income Tax Return (ITR) forms, ITR-1 and ITR-4. However, it is important to understand that these two forms are meant exclusively for resident individuals and cannot be used by Non-Resident Indians (NRIs) or Resident but Not Ordinarily …
