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 Payment for Overseas Investors Without an Indian Bank Account As an overseas investor who has sold shares in an Indian company, you are required to pay capital gains tax on the income from the transaction. If the buyer did not deduct tax at source (TDS), the responsibility to pay the tax falls on you. … Read more
In India, a recent case highlighted a significant issue with the Annual Information Statement (AIS): duplicate reporting of income. A tax professional discovered that a client’s AIS showed ₹4.1 lakh in interest income, while the actual amount was only ₹2.2 lakh. This was due to the same income being reported twice from different sources. Such … Read more
The Income Tax Department is stepping up its game, using Artificial Intelligence (AI) to keep a closer eye on taxpayers. They’re building detailed profiles by tracking your online activity, like how often you check your Annual Information Statement (AIS), and flagging high-value transactions that don’t match your tax returns. AI Uncovers Discrepancies and Targets Misleading … Read more
Decoding Long-Term Capital Gains Tax for ITR 2025 (FY 2024-25) Taxpayers who sold capital assets, such as property or jewellery, during the financial year 2024-25 (Assessment Year 2025-26) are liable for capital gains tax. Significant changes to these provisions, effective July 23, 2024, streamline holding periods and introduce new tax rates. Understanding Long-Term Capital Gains … Read more
Foreign Income and Assets from the Indian Income Tax Department? Think Again. For Indian residents, the days of discreetly stashing away global income, foreign assets, and overseas investments are long gone. The Indian Income Tax Department now has a robust system in place to track your financial footprints worldwide, thanks to international agreements like the … Read more
Hundreds of thousands of taxpayers are filing updated Income Tax Returns (ITR-U) in 2025. This surge is largely due to increased vigilance and enforcement by the Income Tax Department, which is cracking down on those who previously made false claims or hid income. In the last four months alone, roughly 40,000 taxpayers have voluntarily withdrawn … Read more
Given the current date and location, the provided information on Capital Gains Tax for mutual funds, effective July 23, 2024, is indeed highly relevant. As of today, July 9, 2025, these changes have been in effect for almost a year. Therefore, the post does not require rewriting for accuracy regarding the effective date. However, I … Read more
The Finance Ministry announced today, July 4, 2025, that the Unified Pension Scheme (UPS) will now enjoy the exact same tax benefits as the National Pension System (NPS). This move ensures fairness and provides significant tax relief and incentives for those choosing the UPS. Understanding the Tax Perks The decision means employees opting for UPS … Read more
The Hindu Undivided Family (HUF) offers Indian families a unique way to manage assets and potentially save on taxes. However, as aspiring Chartered Accountant Krishna Prasath points out, it’s crucial to understand the intricacies involved beyond just the financial benefits. An HUF isn’t merely a tax-saving loophole; it’s a separate legal entity with its own … Read more