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
Beware: ITR Glitch Could Lead to Penalties for Capital Gains Earners Thousands of taxpayers could face penalties for unknowingly claiming an incorrect tax rebate, warns tax advisory platform efiletax. The culprit? A default setting in the Income Tax Return (ITR) utility that miscalculates eligibility for the ₹12,500 rebate under Section 87A. Section 87A offers a … Read more
Major Overhaul for ITR-2 Utility (AY 2025-26): What Taxpayers Need to Know and Why Choosing the Right Form is Crucial The Income Tax Department has launched an updated ITR-2 Excel Utility for Assessment Year (AY) 2025-26, featuring six significant enhancements designed to simplify filing and improve compliance.1 However, tax professionals are issuing a strong warning: … Read more
Taxpayers Beware: AI Flags Fake Deductions, Hefty Penalties Loom The Income Tax Department is cracking down on bogus tax deduction claims like never before, and they’re using advanced AI and data analytics to do it. This isn’t just a warning; it’s already in motion. So far, over 40,000 taxpayers have had to retract fabricated entries … 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 In the last four months alone, roughly 40,000 taxpayers have voluntarily withdrawn … Read more
ITR Filing Deadline for FY 2024-25 Extended to September 15, 2025! Good news for individual taxpayers! The Income Tax Return (ITR) filing deadline for the Financial Year 2024-25 (Assessment Year 2025-26) has been extended by the Central Board of Direct Taxes (CBDT). The new due date for filing your ITR is now September 15, 2025. … Read more
Don’t Get Caught Off Guard: Your Rent Payments Could Lead to a ₹1 Lakh Penalty Abhishek, a salaried professional, recently faced a shocking ₹1,00,000 income tax penalty for something many of us do every month: paying rent. His case highlights a crucial, yet often overlooked, fact: individuals, not just businesses, are responsible for Tax Deducted … Read more
New ITR Rules: Up to 200% Penalty & Prosecution for Misleading Returns The Income Tax Department is cracking down on inaccurate or misleading income tax returns (ITRs) with stricter new rules. If you misreport income or claim false deductions, you could face severe consequences, including hefty penalties and even prosecution. What’s at Stake? Your CA’s … Read more
India’s Income Tax Department Cracks Down on Fake Deductions: 200% Penalty and Prosecution Await! The Indian Income Tax Department is no longer playing around when it comes to fraudulent tax deductions. A recent investigation uncovered over 90,000 salaried individuals who falsely claimed deductions, costing the national treasury a staggering ₹1,070 crore. Now, the department has … Read more