Income Tax
Latest news, explainers and analysis on Income Tax. Tracking 46 stories on Arth Vani.
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Latest on Income Tax
ITAT Deletes ₹30 Lakh Tax Addition Based Solely on Survey Statement
The Income Tax Appellate Tribunal (ITAT) has deleted a ₹30 lakh tax addition previously made by the tax department, ruling that an assessee's statement during a tax survey cannot be the sole basis for such an addition without corroborating evidence. This decision provides significant relief and clarity for taxpayers facing similar situations where additions are proposed based on statements alone.
BreakingInherited Property Redevelopment: ₹75 Lakh Income Not Taxable, ITAT Rules
An individual who received ₹75 lakh from the redevelopment of inherited land successfully argued before the Income Tax Appellate Tribunal (ITAT) in Delhi that this income was not taxable. The property owner had converted the land to freehold and completed DDA mutation before partnering with a builder.
BreakingITAT Quashes ₹1.34 Crore Tax Reassessment Over Missed Statutory Deadline
The Income Tax Appellate Tribunal (ITAT) has ruled in favor of a taxpayer, cancelling a ₹1.34 crore reassessment notice because it was issued after the legal deadline. This ruling reinforces that tax authorities must strictly adhere to the limitation periods set under the Income Tax Act.
Karnataka HC: Director Cannot Individually Challenge Income Tax Search Against Company
The Karnataka High Court has ruled that a director cannot individually challenge an income tax search conducted against their company. The court clarified that such legal challenges must be initiated by the company itself, as it is a separate legal entity from its directors.
BreakingITAT Mumbai Deletes ₹67.4 Lakh Tax Addition on Ancestral Jewellery, Rejects ₹12 Lakh HUF Brokerage Claim
The Income Tax Appellate Tribunal (ITAT) in Mumbai recently overturned a tax department's addition of ₹67.4 lakh on ancestral jewellery, accepting old records as proof. However, the same tribunal rejected a taxpayer's claim for ₹12 lakh related to Hindu Undivided Family (HUF) brokerage. This ruling highlights the critical importance of robust documentation for both inherited assets and expense claims in Income Tax Returns (ITR).
BreakingWoman's ₹67.4 Lakh Ancestral Jewellery Declaration Leads to Tax Department Additions; ITAT Involved
A taxpayer's declaration of ancestral jewellery valued at ₹67.4 lakh in her Income Tax Return (ITR) prompted the tax department to make 'additions' to her taxable income. The dispute subsequently reached the Income Tax Appellate Tribunal (ITAT) for resolution. This case highlights the critical importance of proper documentation for ancestral assets to avoid tax scrutiny.
BreakingEPF: Interest After Leaving Job Could Be Taxable, Even if Balance is Tax-Free
While your Employees' Provident Fund (EPF) balance usually remains tax-free after five years of service, interest earned on it *after* you've left your employment might be considered taxable. This interpretation, supported by some Income Tax Appellate Tribunal (ITAT) rulings, is crucial for individuals planning or undergoing career breaks.
BreakingIncome Tax Audit to Oct 21, ITR Filing to Nov 21 for AY 2026-27: Government Extends Deadlines
The Central Government has extended the deadlines for tax audit reports and Income Tax Return (ITR) filing for the Assessment Year 2026-27. Taxpayers requiring an audit now have until November 21, 2026, to file their ITR, while the deadline for tax audit reports is October 21, 2026.
BreakingCalls Grow to Address Tax Anomaly on Bank Fixed Deposit Interest
A recent report by Deccan Herald highlights ongoing discussions about rectifying a long-standing tax anomaly concerning interest earned on bank Fixed Deposits (FDs). The anomaly refers to how FD interest is taxed at an investor's slab rate, often leading to a situation where real returns after inflation and taxes can be negative, particularly for middle-income and senior citizen savers.
BreakingTax Audit Deadline Looms: Professionals Urge Extension Amidst Concerns
Tax professionals are requesting an extension for the September 30 deadline for tax audits, citing potential challenges. Taxpayers are advised to prepare their documents promptly to avoid last-minute issues.
Guwahati Tax Bar Seeks Extension for Audit Due Date
The Tax Bar Association Guwahati has formally requested an extension for the upcoming tax audit due date. This move aims to provide taxpayers and professionals with additional time to comply with the mandatory tax audit requirements under Indian tax laws.
BreakingTax Audit Deadline: Professionals Seek Extension to October 31 via Social Media
Indian tax professionals are urging authorities to extend the deadline for tax audits from the current September 30 to October 31. The request has gained traction on social media platforms as the deadline approaches.
BreakingCentral Government HRA: New Rates from Jan 2024 for X, Y, Z Cities Explained
Central Government employees now receive revised House Rent Allowance (HRA) rates, effective January 1, 2024, following the Dearness Allowance (DA) crossing 50%. HRA percentages vary significantly across X, Y, and Z category cities, impacting take-home pay and tax exemptions for millions of employees nationwide.
BreakingCentre Challenges High Court's Ruling on Income Tax Act Section 147A in Supreme Court
The Indian government has approached the Supreme Court to challenge various High Court decisions that struck down Section 147A of the Income Tax Act. This legal battle concerns the validity of reassessment proceedings initiated after April 1, 2021, creating uncertainty for taxpayers who have received such notices.
Tax Professionals Group AIMTPA Seeks Extension for Audit ITR, TAR Due Dates
AIMTPA, an association representing tax professionals, has formally requested the Finance Ministry to extend the due dates for Tax Audit Reports (TAR) and Income Tax Returns (Audit ITR). The group cites a significant increase in workload, making it challenging for professionals to meet current deadlines.
ITAT Deletes ₹1.13 Crore Tax Adjustment Citing Inconsistent Depreciation Treatment
The Income Tax Appellate Tribunal (ITAT) has cancelled a significant ₹1.13 crore transfer pricing adjustment against a taxpayer. The tribunal's decision highlighted an inconsistent approach by tax authorities regarding depreciation treatment, which led to the deletion of the demand.
BreakingLandlords Can Claim TDS Tax Credit Even If Tenant Defaults on Deposit: ITAT Ruling
A recent Income Tax Appellate Tribunal (ITAT) ruling clarifies that landlords can claim tax credit for TDS deducted by tenants on rent, even if the tenant fails to deposit the TDS amount with the government. This decision offers significant relief to property owners, ensuring they are not unfairly penalized for a tenant's non-compliance. Landlords must, however, maintain proof of TDS deduction to avail this credit.
BreakingBengaluru Man Wins ITAT Case Over ₹2.33 Crore Online Gaming Tax Demand
A Bengaluru resident successfully challenged an income tax demand of ₹2.33 crore on his online gaming winnings at the Income Tax Appellate Tribunal (ITAT). The ITAT ruled in his favour, providing relief from the significant tax assessment. This outcome highlights the ongoing scrutiny and evolving interpretations surrounding the taxation of online gaming income in India.
Anticipating ITR Filing Deadlines for FY 2025-26 (AY 2026-27)
Individual taxpayers in India should start preparing for the upcoming income tax return (ITR) filing season for Financial Year 2025-26 (Assessment Year 2026-27). While specific due dates are yet to be officially announced by the Income Tax Department, understanding the process and gathering documents beforehand is crucial for timely compliance.
US Expert: High-Income Earners Often Miss Tax Deductions Due to Common Errors
According to US tax expert Sal Julian, high-income individuals frequently overlook tax deductions, not from ignorance of their existence, but due to poor timing, exceeding limits, or lack of coordination. This insight from HelloNation emphasizes general principles of tax planning that can help taxpayers globally, though specific tax laws differ.
BreakingOnline Winnings Tax: You May Pay Even If You Break Even, Warns Case Study
A global case highlights a critical tax pitfall for online gamers: despite winning and losing equivalent amounts, leading to no net profit, an individual still faced a tax liability. This scenario underscores the importance of understanding gross versus net income tax rules, particularly for online gaming and betting in India.
Many Workers Overestimate Overtime Tax Breaks: Understanding The 'Half' Vs. 'Time-and-a-Half'
Many individuals worldwide miscalculate the tax benefits they expect from overtime pay, often overestimating the relief by double. This common error stems from focusing on the 'time-and-a-half' overtime rate rather than only the 'half' portion that typically qualifies for specific tax breaks.
BreakingTax-Loss Harvesting: How Booking Losses Can Cut Your Capital Gains Tax Bill
A US investor saved capital gains tax since 2022 by strategically booking a $90,000 loss during the market downturn. This tactic, known as tax-loss harvesting, is a legitimate strategy Indian investors can also use to reduce their tax liabilities on investments.
New LaunchBreakingNew FAST-DS 2026 Window: Disclose Dormant Foreign Accounts by Dec 2026
The Indian government has introduced FAST-DS 2026, a one-time disclosure scheme for taxpayers to report certain foreign assets and dormant overseas bank accounts. This window closes on December 31, 2026, offering a chance to regularize previously unreported foreign holdings.
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