New tax utility explained: Compare old and new Income-tax Act sections before filing

India's Income Tax Act, 1961, is set to be replaced by the Income Tax Act, 2025, effective April 1, 2026. To ease this transition, the Income Tax Department has launched an online tool. This utility allows taxpayers to compare provisions side-by-side, mapping old sections to new ones. It simplifies understanding changes in tax laws and aids informed decision-making.

from Tax-Wealth-Economic Times https://ift.tt/Tnh4Xjr

Equity shares received by private trust for relatives’ benefit is exempt from income tax, ITAT Chennai rules

A private trust received shares worth Rs 15.78 crore from its creator for family benefit. The Income Tax Appellate Tribunal ruled this transfer tax-exempt. The tribunal considered a supplemental deed that clarified beneficiaries were exclusively relatives. This decision reinforces tax exemptions for family trusts and clarifies treatment of advance tax deposits.

from Tax-Wealth-Economic Times https://ift.tt/3QZmIRP

New Income Tax Act 2025: Old vs new regime debate returns as allowance hikes and HRA changes shift tax math

Indian taxpayers will transition to the new Income Tax Act, 2025, from April 1st. While the new regime offers lower rates, revised allowance exemptions under the old regime, particularly for HRA, may make it more attractive for some. Taxpayers must now recalculate to determine their optimal tax strategy.

from Tax-Wealth-Economic Times https://ift.tt/O4W8dkw

New tax rules notified: From HRA to company car to meal card, top 5 prominent changes which will impact salaried taxpayers

The Income Tax Rules, 2026 have been notified, introducing significant changes for salaried taxpayers. Key updates include revised motor car perquisite valuations, an increased tax-free loan limit to Rs 2 lakh, and enhanced meal voucher exemptions under the old tax regime. HRA benefits now extend to more major cities, with new disclosure requirements for landlords.

from Tax-Wealth-Economic Times https://ift.tt/5nUFKrS

Good news for salaried employees in these cities as they can get higher HRA exemption; disclosure of relationship with landlord a must as Income Tax Rules 2026 notified

New Income Tax Rules, 2026, offer higher HRA tax exemptions for salaried individuals in eight major cities, including Mumbai, Delhi, and Bengaluru. A key change requires disclosing relationships with landlords in Form 124, especially for family rentals, to ensure genuine transactions and enhance transparency for tax authorities.

from Tax-Wealth-Economic Times https://ift.tt/Uto07a6

Property buyer deposited TDS in wrong year? How Form 71 can help sellers claim credit and rectify the error within 2 years

Property sellers can now fix TDS credit mistakes. If a buyer incorrectly deposited TDS, sellers can file Form 71 within two years. This form helps align TDS credit with the correct assessment year. The ITAT Delhi recently upheld this, ensuring sellers receive credit even if the buyer erred. This mechanism aids taxpayers in claiming their rightful TDS.

from Tax-Wealth-Economic Times https://ift.tt/oySL7kN

Sold two farm lands for Rs 8.75 crore capital gains but paid no tax or filed ITR; ITAT Ahmedabad rules in favour of taxpayer

A man from Bharuch, Gujarat had sold two agricultural lands for Rs 8.75 crore capital gains to a company who subsequently used the lands for industrial purposes. This man however, paid no income tax The Income Tax Department issued a notice. The ITAT Ahmedabad ruled in his favour for this reason.

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

Facing GSTR-3B filing issues despite no late invoice reporting? GSTN acknowledges problem and suggests interim workaround

GSTN has issued a new advisory for GSTR-3B filings. Starting February 2026, taxpayers must confirm the 'Tax Liability Breakup, As Applicable' section. This feature auto-populates based on previous period supplies. Taxpayers need to save this breakup before filing. GSTN acknowledges feedback and is working on a resolution for cases without prior period liabilities.

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

No more double GST while filing appeals: GSTN fixes issue with new GST DRC- 03A form; what taxpayers should know

GSTN has resolved a long-standing issue where taxpayers faced double GST payments when filing appeals. The new GST DRC-03A form now allows payments made under protest via Form GST DRC-03 to be correctly adjusted against demand IDs. This ensures that pre-deposit amounts are accurately calculated, preventing taxpayers from having to pay the same GST amount twice.

from Tax-Wealth-Economic Times https://ift.tt/VA5ZeUE

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.

from Tax-Wealth-Economic Times https://ift.tt/6ydYZEm

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.

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

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.

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

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.

from Tax-Wealth-Economic Times https://ift.tt/hFN2E9n