The rapid shift to a digital economy in India means that heavy cash transactions can now come with a heavy cost. If you still rely on large cash payments, you could face significant tax penalties and lose out on valuable deductions. Here’s a breakdown of the key rules, limits, and penalties you need to know. … Read more
Filing your Income Tax Return (ITR) can be confusing, but choosing the correct form is essential to avoid penalties. Making a mistake can lead to a defaulted ITR and a potential tax notice. To simplify the process, here is a breakdown of the most common ITR forms—ITR-1, ITR-2, ITR-3, and ITR-4—and who should use them. … Read more
Based on the provided article and my research on the latest tax rules for the financial year 2024-25 (Assessment Year 2025-26), here is a rewritten post about claiming HRA by paying rent to your parents. Claiming HRA by Paying Rent to Your Parents? Do It Right to Avoid an Income Tax Notice Claiming House Rent … Read more
Navigating taxes as a freelancer, YouTuber, or influencer can feel complicated, especially with new rules for the 2024–25 financial year (AY 2025–26). The Income Tax Department is now closely tracking all digital income, from small UPI payments to major brand deals. This means it’s more important than ever to understand your tax obligations. Here are … Read more
HRA Claims for Rent Paid to Parents: A Guide to Staying Out of Trouble with the Taxman In the midst of tax season, many salaried employees look for clever ways to reduce their tax liability. A popular strategy that often comes up is claiming House Rent Allowance (HRA) for rent paid to parents. While this … Read more
Tax season can be stressful, and the promise of a big refund can sound tempting. But a warning from tax expert CA Nitin Kaushik highlights a dangerous new scam: the “tax refund trap.” Some tax consultants are luring clients with offers of “extra refunds.” The trick is simple: they artificially inflate your refund by manipulating … Read more
ITR Processing and Refunds: A Snapshot of AY 2025-26 The Income Tax Department has significantly cut down the time it takes to process Income Tax Returns (ITRs) and issue refunds. According to recent reports, the average processing time has dropped to a remarkable 17 days, a huge improvement from 93 days a decade ago. In … Read more
A chartered accountant, Aditi Bhardwaj, has flagged a critical technical glitch in the ITR-2 online utility that could create significant problems for taxpayers. The error, which affects how capital gains and losses are reported, could lead to incorrect filings, triggering automated adjustments under Section 143(1), and potentially causing return rejections. The primary issue is an … Read more
Tax Benefits for Indian Defence Personnel Serving and retired members of India’s defence forces, including the CAPF and other security agencies, are eligible for several specific tax exemptions and deductions under the Income Tax Act, 1961. While many general tax benefits apply to them, the following are exclusively tailored for defence personnel. Key Tax Exemptions … Read more
A Salaried Employee’s Tax Nightmare: How an ITAT Ruling Reversed a ₹1.15 Lakh Penalty A recent ruling by the Income Tax Appellate Tribunal (ITAT) in Pune has brought to light a critical issue for salaried employees: the risk of unknowingly becoming involved in tax fraud committed by their consultants. The case involves an employee who … Read more