I have LTCG tax liability of Rs 16 lakh from land sale; should I pay income tax or reinvest to save?

ET Wealth Reader's Query: I am 57. I recently sold a piece of land near Jewar airport, resulting in a long-term capital gains (LTCG) tax liability of around Rs 16 lakh. I am considering two options: reinvesting the proceeds in another property of a similar value to claim the available tax exemption, or paying the LTCG tax and investing the remaining amount in mid-cap mutual funds to grow the corpus further. Since I already have an adequate retirement corpus, would it make more sense to pay the tax and opt for the second alternative?

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Retired employee gets income tax notice over Rs 9.29 lakh leave encashment; ITAT Jaipur cancels it and gives him full tax exemption, here's why

Mr. Gupta, a former employee of the State Bank of India, found himself facing an income tax notice concerning Rs 9.29 lakh in leave encashment. Unfamiliar with tax exemption limits at his retirement, he was initially distressed. However, the ITAT Jaipur later favored him, applying a vital Rs 25 lakh tax exemption for leave encashment retroactively.

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Rs 24 crore cash sales in Form 26AS, Rs 4-crore tax demand: How a five-star hotel cook won his case in Delhi High Court

Mr. Lalit, a cook at Hotel Ashoka, received a surprising income tax notice claiming Rs 4 crore. This notice cited Rs 24 crore in cash sales attributed to him, leading to significant distress. His Form 26AS incorrectly showed these transactions, prompting Lalit to file a complaint regarding identity theft. The Delhi High Court ultimately canceled the tax demand, finding insufficient evidence from the Income Tax Department.

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Transferring immovable property? How TDS compliance is now simpler with new Form 141

With the introduction of Form 141, taxpayers can easily report TDS by combining several earlier forms into one streamlined approach. This update simplifies compliance for reporting transactions relating to rent, property transfers, and virtual digital assets.

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Rs 3.41 crore in FCNR deposits tagged as unexplained money despite being held by Dubai-based individual; ITAT Jaipur grants full relief

Mrs. Khanwani, a Dubai resident, faced tax notices for unexplained money linked to her FCNR deposits. The ITAT Jaipur ruled in her favor, highlighting the funds' clear origin from bank records. The Income Tax Department could not dispute the source of funds provided by her husband, Mr. Chand.

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NRI capital gains tax: When can you use the basic exemption limit to lower your income tax bill?

For non-resident Indians, leveraging the basic exemption limit can help mitigate normal slab rate taxes on capital gains. However, it's important to note that this exemption does not apply to capital gains taxed at special rates, such as short-term capital gains derived from listed bonds. This stipulation is clearly defined in the Income Tax law, and tax treaties may additionally offer advantages depending on the NRI's country of residence.

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Rs 3.99 lakh penalty for under-reporting income and paying Rs 2 lakh less in income tax; ITAT Jaipur cancels penalty, know why

A man from Sikar faced a penalty of Rs 3.99 lakh for under-reporting his income. The Income Tax Department initiated penalty proceedings after he filed an income tax return. However, the ITAT Jaipur found technical mistakes in the penalty notice issued by the Assessing Officer. They noted the absence of specified violation under Section 270A(9) in the penalty proceedings. Consequently, the penalty was quashed, providing full relief to the taxpayer.

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Homeowner sold redeveloped flat for Rs 1.95 crore, paid no income tax, received a tax notice; wins relief in ITAT Mumbai

After redevelopment of housing society, homeowner sold his flat for Rs 1.95 crore, pays no tax, got tax notice, wins case in ITAT Mumbai for this reason

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Canada-based senior citizen faced income tax liability of ₹83.2 lakh as STCG; here's why he wins at ITAT Bengaluru on technical ground

A recent ITAT ruling highlights the critical importance of following proper legal procedures in income tax reassessment cases. When a taxpayer living abroad was given only five days to respond, rather than the legally required seven, the tribunal quashed the notice and subsequent reassessment. This decision underscores vital procedural safeguards for taxpayers in similar situations.

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Man earns Rs 75 lakh by redeveloping property inherited from mother, pays no income tax, receives notice, wins case in ITAT Delhi

Property owner inherits mother’s land, converts it into freehold, DDA grants mutation, redevelops it, gets Rs 75 lakh from builder, pays no tax, gets tax notice, wins case in ITAT Delhi.

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How much gold and silver jewellery can you have in your home without getting into trouble with the Income Tax authorities?

How much pure silver and gold jewellery can you have in your home without getting into trouble with the Income Tax authorities? To know the answer you need to read CBDT Instruction No. 1916.

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Senior citizen gets income tax notice over Rs 65.27 lakh cash deposit in bank account; his son proves source of funds and wins case in ITAT Jaipur

Senior citizen sent income tax notice for Rs 65.27 lakh unexplained cash deposit, which was later proved to be pension and FD money; ITAT Jaipur order explained.

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VRS offer in hand? Check these tax rules before you accept the package

Contemplating a Voluntary Retirement Scheme (VRS)? Prior to making your decision, it’s crucial to analyze the overall financial implications, including taxation aspects and the treatment of different package components. Be clear on the eligibility for tax breaks and ensure that your financial security after retirement is adequately planned.

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