Income Tax
Latest news, explainers and analysis on Income Tax. Tracking 27 stories on Arth Vani.
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Latest on Income Tax
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.
BreakingITR Filing Deadline August 31: Choose the Right Form for Business Income
With the August 31 deadline for filing Income Tax Returns (ITR) approaching, taxpayers with business or professional income must select the correct ITR form. Understanding the nuances between ITR-3 and ITR-4, along with relevant TDS and audit forms, is crucial for accurate filing.
BreakingIncome Tax Scams: How Indian Taxpayers Can Spot Fake Emails, Websites
Indian taxpayers are increasingly targeted by sophisticated email scams and fake websites impersonating the Income Tax Department. These fraudulent communications often feature suspicious links and requests for sensitive personal and financial details. Recognizing key warning signs and knowing how to report these scams is crucial for protecting your data and finances.
BreakingDefective ITR Notice for AY 2026-27: What to Do and Deadlines
Taxpayers may receive a defective Income Tax Return (ITR) notice under Section 139(9) if their filing for Assessment Year (AY) 2026-27 contains errors. Understanding the response deadline and consequences of ignoring such a notice is crucial to avoid further complications.
Proactive Retirement Tax Planning: US Example Shows How to Avoid Withdrawals Tax at 73
An individual in the United States successfully avoided all tax on his retirement withdrawals at age 73 by strategically restructuring his savings during his 60s. This case highlights the critical importance of long-term tax planning to minimise liabilities on retirement income, a principle highly relevant for Indian investors.
Tax Liability for Trusts, Political Parties Nearly Triples to ₹1,043 Cr
Entities filing ITR-7, which include charitable trusts, universities, and political parties, saw their total income tax liability jump from ₹356 crore in Assessment Year (AY) 2021-22 to ₹1,043 crore in AY 2025-26. This nearly threefold increase over five years signals growing financial obligations for these significant institutions.
NRI & Resident Co-Owners Face Different Capital Gains Tax on Joint Property Sale
When an NRI and a resident Indian jointly sell a property, their capital gains tax liabilities can differ significantly. The resident co-owner may also independently claim reinvestment exemptions, unlike their NRI counterpart.
BreakingIndia's Direct Tax Collection Jumps 23% to ₹8.11 Lakh Crore by August 10
India's net direct tax collections surged by 23.09% year-on-year to ₹8.11 lakh crore as of August 10, driven by strong corporate tax and Securities Transaction Tax (STT) growth. This robust increase indicates healthy economic activity and improved tax compliance across the country.
BreakingITAT Chennai Rules: Gratuity Tax Deduction Cannot Be Denied Due to ITR Filing Errors
The Income Tax Appellate Tribunal (ITAT) Chennai has ruled that taxpayers cannot be denied genuine gratuity deductions under Section 43B simply for reporting them in the wrong schedule of their tax return. This decision provides significant relief to businesses and taxpayers facing technical disallowances due to clerical mistakes in ITR forms.
BreakingNPS Tier II Withdrawals: How Capital Gains Are Taxed
Withdrawals from National Pension System (NPS) Tier II accounts are subject to income tax based on your income slab. The eNPS portal does not currently offer a separate capital gains statement for these accounts, requiring investors to calculate and report gains manually.
BreakingTaxpayers Alerted on Undeclared Foreign Assets; July 31 Deadline Nears
The Indian Income Tax (I-T) Department is sending alerts to taxpayers regarding undeclared foreign assets, prompting a review of overseas holdings before the July 31 income tax filing deadline. Taxpayers are encouraged to reconcile discrepancies identified through I-T portal data and SMS alerts to ensure compliance.
BreakingITR Filing Deadline Approaching: Key Facts for Taxpayers
The deadline for filing Income Tax Returns (ITR) is fast approaching. Taxpayers should be aware of crucial details to ensure timely and accurate filing, especially first-time filers.
BreakingIncome Tax Dept Launches Foreign Assets Report: How to Check Your Overseas Holdings
The Income Tax Department has introduced a new 'Foreign Assets Information' report on the e-filing portal to help taxpayers track overseas financial data. This tool allows individuals to verify information received from foreign jurisdictions under automatic exchange agreements before filing their returns.
BreakingITAT Rules: Property Bought With NRI Husband's Funds Not Taxable as Unexplained Income
The Mumbai Income Tax Appellate Tribunal (ITAT) has deleted an ₹80 lakh tax addition, ruling that a taxpayer cannot be penalized for a missing document if the source of funds is otherwise proven. The case involved a woman who purchased property using funds remitted by her NRI husband through official banking channels.
BreakingChoose Your ITR Form for AY 2026-27: A Simple Guide
Selecting the correct Income Tax Return (ITR) form for Assessment Year (AY) 2026-27 depends on your income sources. Understanding these distinctions can help you file accurately and avoid potential issues.
BreakingProperty Sellers: Recalculate Advance Tax After New Cost Inflation Index Release
Individuals who sold property acquired before July 23, 2024, must re-evaluate their tax liabilities following the delayed notification of the Cost Inflation Index (CII). Failure to adjust advance tax payments in upcoming installments could lead to interest penalties under Income Tax rules.
India and Sri Lanka Amend Tax Treaty to Prevent Misuse and Tax Evasion
India has updated its Double Taxation Avoidance Agreement (DTAA) with Sri Lanka to include a new anti-abuse rule. The Principal Purpose Test (PPT) will allow tax authorities to deny treaty benefits if the primary goal of a transaction is to avoid taxes.
BreakingSave Tax on Your Child’s Education: Section 80C and Allowance Benefits Explained
Indian parents can reduce their tax liability by claiming deductions on school tuition fees and specific employer-provided education allowances. These benefits cover both school fees under Section 80C and additional exemptions for hostel expenses.
BreakingConfused Which ITR Form to File? Income Tax Portal Guides You
The Income Tax e-filing portal now simplifies the process of choosing the correct Income Tax Return (ITR) form for taxpayers. It uses eligibility conditions and a guided questionnaire to help users identify the right form and applicable schedules, making tax filing easier.
BreakingForeign Investments to Appear in Your AIS: CBDT Boosts Tax Transparency
The CBDT is integrating foreign investment and overseas financial account details into taxpayers' Annual Information Statement (AIS) within 90 days. This initiative, part of the AEOI framework, aims to enhance tax transparency and simplify compliance for Indian residents with international assets.
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