Builder delayed agreement by 5 years, tax dept denied 54F relief; why ITAT Mumbai sided with woman who sold land for Rs 70 lakh

A Mumbai woman successfully claimed capital gains tax exemption under Section 54F after selling land for Rs 70 lakh and investing in a new apartment. Despite a five-year delay by the builder in executing the sale agreement, the ITAT Mumbai ruled in her favor, acknowledging her timely payments and acquisition of rights to the property.

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Five important changes in Income Tax Act and procedures in 2025 that will impact your future taxation

New income tax rules for 2025 bring welcome changes. Salaried individuals earning up to Rs 12.75 lakh will pay no tax. TDS thresholds for rent, bank interest, and dividends are increased. Senior citizens benefit from doubled TDS limits on interest income. These updates aim to simplify compliance and offer financial relief to many taxpayers across India.

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I and two of my salaried friends have bought adjoining office spaces. Can we optimize taxes by forming an LLP?

ET Wealth Reader's Query: We are three salaried friends, one of whom is a non-resident Indian (NRI), and have individually purchased adjoining commercial office spaces in the same project. We plan to rent them out after possession and want to know if forming a partnership firm could help optimise taxes and simplify compliance.

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Stamp duty vs deal value: Homebuyer gets relief as ITAT Mumbai rejects addition of Rs 18 lakh income by tax dept for property valuation gap

A Mumbai homeowner has won a significant tax case. The Income Tax Appellate Tribunal ruled in his favour, deleting an Rs 18.95 lakh income addition. The tax department had questioned the difference between the property's agreement value and its stamp duty value. The tribunal found the allotment letter to be a valid agreement, fulfilling the conditions for relief.

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Income Tax notice for credit card spending: The red-flag transactions you must avoid

Using credit card users for 'money rotation' to earn rewards can result in tax notice if no proper explanation is given. This practice, where money is cycled through cards without real spending, is now classified as 'manufactured spending'. Tax officials are flagging these transactions as unexplained expenditure. Read more about it.

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If I already own a house, can I get capital gains tax exemption on a new property?

ET Wealth Reader's Query: ​​I plan to redeem my mutual fund units to finance a house purchase in Pune. I also intend to sell a house I own in my village. Can I still claim long-term capital gains tax exemption?

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Income tax employee got 1-year jail as CBI caught him taking Rs 600 bribe for Rs 5,826 tax refund; Patna HC orders him to surrender to serve jail term

An Income Tax Assistant from Sasaram was sentenced to one year in jail for demanding a Rs 600 bribe to process a Rs 5,826 tax refund. Caught in a CBI sting operation, the employee's appeal was dismissed by the Patna High Court, which upheld the conviction and ordered him to surrender to serve his sentence.

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Budget 2026 should raise limit to Rs 3 lakh for home loan interest, Section 80C deduction, other deductions need revision

With the introduction of the new tax regime, several deductions/exemptions under the Income Tax Act, 1961 have lost much of their relevance given that 72% (for the AY 2024-25) have filed their tax returns under the new tax regime. Although these deductions aren't available under the new regime, the income slabs and tax rates have been recalibrated, reducing the net tax outflow for a large section of taxpayers.

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Real-time income tax refund tracker on the ITR e-filing portal is needed in Budget 2026, say experts

Experts are urging the government to introduce a real-time income tax refund tracker on the e-filing portal ahead of Budget 2026. This move aims to alleviate taxpayer anxiety and financial planning challenges caused by delayed refunds. The proposed tracker would offer clear status updates and an escalation option for prolonged delays, enhancing transparency and efficiency.

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PAN–Aadhaar link deadline approaching: How to check if your PAN is linked with UID card

PAN–Aadhaar link deadline: The Income Tax Department offers convenient methods to link PAN with Aadhaar, with a January 1, 2026 deadline to avoid an inoperative PAN. Failure to link can halt tax filings, refunds, and financial transactions. Verification can be done online or via SMS, with linking taking a day or two post-submission.

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Lady sells property for Rs 94 lakh, gets Rs 38 lakh in cash; files no ITR, gets tax notice for unexplained income, wins case in ITAT Mumbai

A homeowner who sold property for Rs 61 lakh and received Rs 38 lakh in cash has won a tax case. The Income Tax Appellate Tribunal Mumbai ruled that if a sale deed and bank statements confirm cash deposits, the source is accounted for. The tribunal quashed a tax notice for unexplained income.

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Refunds, rebates and red flags: Why income taxpayers felt the heat in 2025

The year 2025 brought significant changes to India's income tax landscape, with Budget 2025 introducing beneficial hikes in rebate and exemption limits under the new tax regime. The flurry of ‘nudges’ from the income tax department heightened compliance stress for taxpayers reeling under complex return-filing processes.

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Can I set off short-term capital gains or losses against long-term capital gains on listed shares in the new tax regime?

ET Wealth Reader's Query: Please let me know if short-term capital gains (STCG) or capital losses can be adjusted against long-term capital gains (LTCG) or long-term capital losses on the sale of listed shares through an exchange under the new tax regime.

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Will your income tax refund be stopped if your ITR is not processed by December 31, 2025?

Income tax refund: Taxpayers filing revised or belated ITRs by December 31, 2025, have until December 31, 2026, for the Income Tax Department to process them. If the deadline passes without processing, the ITR becomes final, and any due refund will be issued with interest.

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PAN Aadhaar Card link deadline: How to link PAN with Aadhaar; step-by-step process and how to check status through SMS, Income Tax e-filing portal

PAN Aadhaar Card link deadline: It is crucial to prevent your PAN from becoming inoperative. A deadline of December 31, 2025, is set for certain individuals. Failure to link by this date will result in your PAN becoming inactive from January 1, 2026. A Rs 1,000 penalty applies for late linkage.

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New feature on e-filing ITR portal: Rectification request for these tax orders can be filed online directly with the respective authority; Here’s how it helps you

The Income Tax Department has introduced a new online feature on its e-filing portal, allowing taxpayers to directly file rectification requests for specific tax orders with the relevant authority. This digital shift eliminates the previous manual and time-consuming process, streamlining corrections for Transfer Pricing, DRP, and Revision Orders. Read more.

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Gift city mutual fund investment: From dividend to capital gains, know all about taxation for NRIs and residents

Indian residents can now invest in dollar-denominated mutual funds in GIFT City. This offers a way to diversify portfolios, especially with RBI restrictions on domestic overseas funds. Investments are made using the Liberalised Remittance Scheme. Taxation is handled at the fund level, not the investor level. This provides a new avenue for global investment opportunities.

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UAE tax rules change from January 1, 2026: From penalties to filings, four key amendments residents must know

Starting January 1, 2026, significant changes to UAE VAT regulations are on the horizon. Residents should be aware that refund claims will need to be submitted within a five-year window. Additionally, minor inaccuracies in tax filings can be rectified directly without hassle.

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Your income tax refund can be delayed if you don't file revised ITR by December 31, 2025 in these conditions

Income tax refund delayed: Taxpayers claiming incorrect refunds face potential delays in their income tax refunds. The Income Tax Department is notifying individuals with discrepancies in their filed returns, urging them to file a revised ITR by December 31, 2025.

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I will work for a US company in the US and get salary in my Indian bank account. Do I need to pay income tax in India?

ET Wealth Reader's Query: I am currently employed in India and work for a US-based company, with my salary paid in INR and credited to my Indian bank account. My employer has asked me to continue in the same role while working from the US, with salary to be credited to my Indian account. Will this arrangement be valid once my residential status changes to NRI?

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Will the Income Tax Department be able to access your social media and emails from April 1, 2026?

A viral social media claim that the Income Tax Department will access private digital accounts from April 1, 2026, to curb tax evasion has been debunked by the PIB Fact Check team. The department's powers are strictly limited to search and survey operations for significant tax evasion, not routine processing or law-abiding citizens.

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What if CPC misses ITR processing deadline? Here’s how taxpayers can legally claim their refund

Taxpayers are entitled to their refund if the Income Tax Department's CPC fails to process their ITR within the statutory nine-month deadline from the financial year's end. This lapse means the CPC loses its right to make adjustments, and the return becomes final as filed. Taxpayers can then pursue their refund through grievances or legal avenues.

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Reporting ULIP payout of Rs 3.22 crore under wrong head in ITR triggers tax penalty; ITAT Hyderabad cancels penalty

A man who invested Rs 75 lakh in ULIPs and surrendered them for Rs 3.22 crore was penalized Rs 2.48 crore for reporting the income under the wrong head in ITR. ITAT Hyderabad canceled the penalty, ruling that a mere reporting error does not constitute misreporting under Section 270A(9) of the Income Tax Act.

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Gifts to daughter-in-law are tax-free, but parents-in-law pay tax on income; Why Budget 2026 should fix this anomaly

Gifts to daughters-in-law are tax-free, but income from these gifts is taxed to parents-in-law due to an outdated clubbing rule. This provision, intended to prevent tax evasion, now unfairly burdens senior citizens and can lead to disputes. Budget 2026 is an opportunity to reform this rule, aligning tax law with modern realities and cultural practices.

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I gifted my wife Rs 10 lakh. Should I show it in my ITR or let her pay income tax on it?

ET Wealth Reader's Query: I gifted my wife Rs 10 lakh, which she will report as “exempt income” in her ITR. If she invests this amount in an FD, the interest earned will be clubbed with my income and shown in my ITR. How should she report this in her return to ensure the interest isn’t taxed twice in both our ITRs?

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​Income Tax Dept’s algorithm is misreading capital gains from unlisted shares as business receipts and sending intimations; Know what to do

Taxpayers are receiving incorrect mismatch alerts from the Income Tax Department. The department's automated systems are misreading capital gains from unlisted share sales as business income. This is causing confusion and stress for those who have filed their returns correctly. The issue stems from how Section 194Q is being interpreted.

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If ITR is not processed by 31 December 2025, you won't be able to file revised ITR; Here’s what you can do if you have a tax refund claim

Taxpayers face a critical deadline. After December 31, 2025, revised income tax returns cannot be filed if the original return remains unprocessed. This impacts correcting errors and claiming refunds. Options include filing an ITR-U, which has limitations, or a rectification application for apparent mistakes. Proactive steps are advised for unprocessed returns.

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Income tax dept releases FAQs on tax deduction on donation under Section 80G

Donating to charities offers tax benefits under Section 80G of the Income Tax Act. The Income Tax Department has clarified rules for these deductions. Taxpayers can claim benefits for donations to eligible institutions. Verification is done through Form 10BD. Different donation categories offer varying deduction limits. Cash donations over two thousand rupees are not eligible.

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Man cuts taxable income by Rs 25 lakh by setting off losses from shares and mutual funds against current LTCG: ITAT Delhi clarifies rules

ITAT Delhi ruled that brought forward long-term capital losses and current year's short-term capital losses from shares and mutual funds can be set off against long-term capital gains. This decision allowed a taxpayer to reduce his taxable income by Rs 25 lakh, overturning the tax department's disallowance. Read below to know how the taxpayer won.

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I-T dept clarifies why intimations on property deals, foreign assets and AIS mismatches are being sent

The Income Tax Department is sending advisories to taxpayers about potential mismatches in their income tax returns. Taxpayers have until December 31, 2025, to revise their returns or file belated ones. If a return is processed after this date and an error is found, taxpayers can apply for rectification. This process helps correct mistakes apparent from the record.

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I have a 5-year cumulative FD, do I need to pay income tax on interest annually or at maturity?

ET Wealth Reader's Query: I have a 5-year cumulative fixed deposit where the interest is payable only at maturity. To file my income tax return, should I report the accrued interest every year or should I declare the entire interest income in the year of maturity?

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Taxpayer earned Rs 81 crore tax exempt income; I-T dept disallowed tax exemption on Rs 17 crore income; Taxpayer fights and wins case in ITAT Delhi

A notable victory has been achieved in the tax arena as a taxpayer triumphed at ITAT Delhi, overcoming a significant hurdle with the Income Tax Department’s disallowance of tax exemptions on Rs 17 crore. The tribunal decisively indicated that disallowance should apply strictly to investments generating exempt income.

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Income tax refund wrong claims: Up to 200% penalty, criminal action for wrong tax refund claim; check exactly what will happen

The Income Tax Department has exposed a nationwide network of agents facilitating fraudulent tax deductions and exemptions, leading to illegitimate refunds. Sophisticated data analytics and third-party verification are used to detect these fake claims, with severe penalties including tax demands, interest, and potential prosecution for offenders.

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I plan to sell my house after 27 years and reinvest in another property. How to save LTCG tax?

ET Wealth Reader's Query: I plan to sell my residential property, held for 27 years, and use part of the long-term capital gains (LTCG) to purchase another residential property. Will I get LTCG tax exemption on the amount invested, with tax applicable only on the uninvested portion?

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Income Tax Dept is sending intimations about cash deposit, property purchase, AIS ITR mismatch; Here’s what it means

Important update for taxpayers: Be on the lookout for emails from the Income Tax Department regarding your larger financial dealings. These are friendly reminders, not tax enforcement alerts. They invite you to address any unaccounted income or to adjust your Income Tax Returns if necessary. The department's mission is to increase transparency on reported transactions.

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Extension of deadline for GST annual return is needed because of many changes, says Bombay Chartered Accountant Society

In light of recent modifications to the GSTR-9 and GSTR-9C forms, chartered accountants are advocating for a three-month extension on the submission of Goods and Services Tax annual returns for FY 2024-25. These changes have presented numerous challenges for both taxpayers and professionals, prompting a call for additional time to ensure compliance through proper data verification and system upgrades.

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Advance tax payment deadline today: Here is how much penalty will apply for late payment

Advance tax payment due today: Today's December 15th advance tax deadline is crucial for those with income beyond salary. Failing to pay or underpaying can result in accumulating interest penalties. The 'Pay as you Earn' scheme requires estimated tax payments in installments throughout the financial year to avoid these consequences.

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Dubai-based taxpayer gets I-T notice for unexplained investment in Rs 2 crore Mumbai property; he fights back and gets relief from ITAT Mumbai

Man returns to Mumbai with Rs 2 crore savings after working in Dubai, United Arab Emirates (UAE) for 20 years to buy property; tax dept sends notice for unexplained property investment; he wins case for this reason.

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Income Tax Department cracks down on taxpayers claiming refunds against donations to fake political parties, charities

The Income Tax Department is taking action against taxpayers who filed returns with fake deductions. Investigations revealed intermediaries helped people claim fraudulent refunds by donating to fake political parties and charities. The department is using data analytics to identify suspicious claims. A Nudge campaign is underway, urging taxpayers to correct their filings before enforcement action.

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Why Income Tax Act 2025 still criminalises small mistakes and why India needs a more trust-based approach

India's tax system is set for a major overhaul with the Income-tax Act, 2025. The Finance Bill, 2026, should consider decriminalizing minor tax offenses. This move if made can help reduce taxpayer worry and streamline enforcement. Serious crimes like tax evasion will remain criminal. Reforms will balance revenue protection with taxpayer trust.

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How can I save LTCG tax on my inherited houses and old equity shares?

ET Wealth Reader's Query: I own two residential properties in India. One was partly inherited and partly gifted to me two years ago. The second property, purchased around 15 years ago, is jointly owned by me. I seek your advice on how to avail exemption from LTCG tax under these conditions.

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Filed ITR-1 or ITR-4 but now can’t find schedule foreign assets information in revised form, here’s what you should do

Many taxpayers face issues with missing foreign asset and income details in revised Income Tax Returns. If a taxpayer has any assets outside of India, such as immovable property, bank accounts, investments, or other assets, or earns income from foreign sources, careful attention must be paid during the Income Tax Return filing process.

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Karta repays more than advance taken, I-T sends tax notice, but ITAT Mumbai rules in favour of HUF

The Mumbai branch of the Income Tax Appellate Tribunal has issued an important ruling, stating that any surplus loan refunds received by a Hindu Undivided Family (HUF) from its Karta are classified as capital receipts and therefore free from income tax obligations. This decision clearly indicates that the classification holds firm, even if the funds are employed in trading activities.

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ITR refund delay explained: Reasons why your tax refund is delayed this year and how to check status

Many taxpayers are experiencing delays in receiving their income tax refunds due to common filing errors. These include failing to verify ITRs within 30 days, not addressing defects, or having unvalidated bank accounts. Additionally, missed responses to departmental intimations regarding adjustments or outstanding demands can also lead to significant refund hold-ups.

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60% gains from cryptocurrency investment in one Indian state as Rs 1,100 crore TDS collected in 3 years

India's Income Tax Department is collecting substantial revenue from cryptocurrency transactions. Over Rs 1,100 crore in tax has been gathered in the last three financial years. Maharashtra alone contributed 60% of this amount. The government has also taken action against crypto exchanges, uncovering over Rs 1,000 crore in undisclosed income related to virtual digital assets.

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Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this

The Finance Ministry said that new Income Tax Return forms will be released before the financial year 2027-28. This follows a query in Lok Sabha regarding the issuance timeline. The ministry is working on consolidating and simplifying these forms and consultations with experts are underway to ensure user-friendliness and reduce taxpayer burden, says the minister.

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Taxation of equities: The FIFO strategy smart investors use to cut capital gains tax and save more on equity profits

Why FIFO and your demat strategy matter: smart choices can preserve big gains.

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Advance tax due date December 15: Which incomes qualify and who can pay advance tax in the next quarter?

Taxpayers can pay advance tax payments for specific incomes in FY 2025-26 after the income has happened. Capital gains, lottery winnings, and certain business income are eligible. Senior citizens without business income are exempt. Advance tax is mandatory if net tax liability exceeds Rs 10,000 after TDS. Payment deadlines are June 15, September 15, December 15, and March 15.

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ITR tax refund stuck? These 7 common errors could be the reason and how you can fix them

Tax refund delays can often stem from mistakes made by taxpayers. Make sure to double-check your Income Tax Return (ITR) within a month. If you receive any notifications regarding defective returns or proposed changes, respond quickly. Don’t forget to confirm that your bank account is set up for refund deposits. Clear any outstanding demands prior to the refund process.

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Advance tax deadline: Who needs to pay advance tax and what is penalty for missing due date?

Advance tax payments are crucial for individuals with income beyond salary. The third instalment for Assessment Year 2026-27 is due by December 15, 2025. Missing deadlines incurs penalties. Taxpayers can pay online or offline. Understanding these rules ensures timely compliance and avoids interest charges.

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