Many taxpayers are getting emails from Income Tax dept highlighting ‘significant transactions’ and missing advance tax payment; Know what to do

Taxpayers are receiving emails from the Income Tax Department about 'significant transactions' and potential shortfalls in advance tax payments. These 'nudge' emails, sent as a taxpayer service initiative, highlight financial activities that may not align with advance tax deposited. Experts advise reviewing these alerts, as they are reminders and not statutory notices, and may contain errors.

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Rs 50 lakh insurance purchase with Rs 4.8 Lakh income triggers tax trouble: ITAT rejects HUF funding claim; here's why

A woman's Rs 50 lakh insurance policy purchase was deemed an unexplained investment. She claimed HUF funding from agricultural income. The Income Tax Appellate Tribunal Chandigarh rejected this. Lack of documentary proof for the HUF's funds and a questionable Memorandum of Understanding led to the decision. The tax department's action was upheld.

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Banks to seek more details from account holders under amended Income Tax Rules, 1962; check what new information you may have to share

New Income Tax Rules, 1962, mandate banks to gather extensive details on account holders and controlling individuals. This includes self-certification status, joint account specifics, and the nature of control for entity accounts. These changes, effective January 1, 2026, align with global standards like CRS and CARF, impacting reporting of traditional and digital assets.

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Investing in foreign stocks? Missing dividend reporting in your ITR could cost you 200% penalty; here’s how to fix it before it’s too late

Indian investors buying US stocks often overlook reporting dividend income, a common tax oversight. While foreign shares must be declared in Schedule FA, dividends are taxable in India. Failure to report can lead to penalties and scrutiny. Investors can rectify omissions via updated returns, though additional tax and interest apply.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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?

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