If I gift money to my spouse, who pays tax on the interest, dividends and capital gains?

ET Wealth Reader's Query: If one spouse gifts money to the other and the recipient invests it in fixed deposits or similar instruments, the interest income is clubbed with the income of the donor spouse. However, if the same gifted amount is invested, the resulting capital gains and dividends are taxed in the hands of the recipient spouse. Kindly clarify.

from Tax-Wealth-Economic Times https://ift.tt/67YrVsP

Rs 20 LPA salary? Save up to Rs 1.25L under old tax regime as per new draft income tax rules 2026

Proposed 2026 Income Tax Rules could significantly benefit salaried individuals under the old tax regime. Key changes include expanded HRA exemptions for cities like Bengaluru and Hyderabad, potentially lowering tax liabilities. For a Rs 20 lakh salary, these revisions might offer substantial savings compared to the new tax regime, making the old system more attractive for many.

from Tax-Wealth-Economic Times https://ift.tt/DpPQzne

63,000 restaurants under income tax scanner: Saksham campaign urges ITR updates by March 31, 2026

The Income Tax Department has identified 63,000 restaurants for potential income under-reporting. A nationwide survey revealed suppression of sales amounting to Rs 408 crore. Restaurants are urged to file updated returns by March 31, 2026, under the Saksham Nudge campaign. This is a chance to correct mistakes before stricter actions are enforced.

from Tax-Wealth-Economic Times https://ift.tt/Z89RiLT

Advance tax deadline for fourth instalment of FY 2025-26: What will be penalty if you miss March 15 due date?

The deadline for the final advance tax payment is March 15, 2026. This payment is crucial for taxpayers to avoid interest and penalties. Advance tax is paid in instalments throughout the financial year. Individuals and businesses with a tax liability of Rs 10,000 or more after TDS must pay.

from Tax-Wealth-Economic Times https://ift.tt/AXNCtPB

March 31, 2026 deadline: Don’t forget to make these minimum deposits in PPF, SSY, NPS to keep your accounts active

Subscribers of PPF, SSY, and NPS schemes must complete all financial year-end compliances and investments by March 31. To avoid account inactivation and maintain tax benefits, ensure minimum deposits are made. For PPF, it's Rs 500 annually; for SSY, Rs 250; and for NPS, Rs 1,000.

from Tax-Wealth-Economic Times https://ift.tt/XQZIF06

Severance pay doesn't absolve you from advance tax payment; Know how much tax to pay and advance tax schedule to follow

Severance pay received after job termination is taxable. Individuals must pay advance tax by March 15 to avoid penalties. This payment is treated as salary income and taxed at normal slab rates. Ensure your employer deducts the correct tax. If not, you are liable to pay advance tax. Failure to comply can lead to interest charges.

from Tax-Wealth-Economic Times https://ift.tt/59A4WZG

Man sold land for Rs 3.21 crore, denied tax relief under Section 54F: Why ITAT Pune allowed full tax exemption

A Pune man successfully challenged the Income Tax Department, securing a full tax exemption on his Rs 3.21 crore land sale. Despite a technical error of not fully depositing sale proceeds into a special account (CGAS) before filing his ITR, the ITAT Pune ruled in his favor, citing legislative intent to encourage house investment.

from Tax-Wealth-Economic Times https://ift.tt/njSOLmT

Updated return vs black money law: Drafting gap may trigger 30% tax and 300% penalty under Finance Bill 2026

Pay additional tax, file an updated return—and still face 30% tax and 300% penalty under the Black Money Act? Unless Finance Bill 2026 resolves the mismatch between the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the Income-tax Act, this technical inconsistency could defeat the very purpose of voluntary disclosure.

from Tax-Wealth-Economic Times https://ift.tt/vdzXS7H

RBI deducted TDS on full interest on GOI Savings Bonds. How do I avoid double taxation?

ET Wealth Reader's Query: I had purchased GOI Savings Bonds issued by the RBI in 2018. These bonds carried a fixed interest rate of 7.75% per annum. I reported accrued interest yearly in my ITRs using the accrual method, though it never appeared in Form 26AS. Without documents to show yearly accruals, how can I explain this to the tax authorities?

from Tax-Wealth-Economic Times https://ift.tt/sX5uAbW

Rs 7 lakh income, Rs 2 lakh donation to a political party: How fake contributions led to Section 80GGC tax deduction claim rejection

A Mumbai man's Rs 2 lakh donation to a political party for tax deduction backfired. The Income Tax Appellate Tribunal (ITAT) Mumbai disallowed the claim, finding the party engaged in a cash-back scheme. The party, with no verifiable office, allegedly returned donations after deducting a commission, facilitating fraudulent tax claims.

from Tax-Wealth-Economic Times https://ift.tt/pVBbL6C

₹60 Lakh vs ₹1.20 crore: How Budget 2026’s foreign asset disclosure scheme cuts black money act risk for NRIs and residents with overseas assets

Budget 2026’s proposed Foreign Income & Assets Disclosure Scheme offers a calibrated settlement window for NRIs and residents with overseas assets facing exposure under the Black Money Act. By capping liability at ₹60 lakh instead of ₹1.20 crore in eligible cases—and ₹1 lakh instead of ₹10 lakh in technical lapses—the Scheme introduces proportionality, immunity and closure.

from Tax-Wealth-Economic Times https://ift.tt/8DXHSRn

You can lose your home for unpaid property taxes? Know your rights and how to fight back before it’s too late

*Homes can be legally auctioned over unpaid taxes, but the law requires a strict process of notices and appeal windows before that.*Even a small tax default can legally trigger attachment and auction, regardless of the property's market value.*If your property is auctioned, legal remedies exist, courts can overturn sales involving procedural violations, fraud, or undervaluation.*Best protection: pay taxes on time, monitor your municipal account, and verify dues before buying or inheriting property.

from Tax-Wealth-Economic Times https://ift.tt/RrxTz3C

Dubai earnings sent through banking channels, yet tax notice issued: ITAT Ahmedabad rules property purchase can’t be treated as unexplained investment

An NRI working in Dubai since 1993 successfully challenged a tax notice for unexplained property investment in India. The ITAT Ahmedabad ruled that funds remitted through proper banking channels from his Dubai earnings, even for property purchase, cannot be deemed unexplained. This decision offers significant relief to NRIs facing similar tax scrutiny.

from Tax-Wealth-Economic Times https://ift.tt/XnTDHjY