What to do when you get an income tax notice for claiming higher deductions in ITR?

Recently many individuals have received an income tax intimation notice asking them to explain why had they claimed higher amount of deduction than mentioned in Form 16 or Annual Information Statement (AIS). The income tax department has also said that if the explanations are not satisfactory, then a tax demand notice will be sent.

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I invested Rs 45 lakh in a Noida property in 2009; sale deed was made in 2014. Which year will be considered purpose of indexation of capital gains?

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Advance Tax Payment Due Dates: When do you have to pay it?

The due date for second quarterly payment of advance tax is September 15 for those individuals who have an estimated net tax liability of Rs 10,000 for the financial year. However not everybody is liable to pay advance tax even if their tax liability is above Rs 10,000 for the financial year.

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Advance tax penalty: What is the penalty for missing advance tax payment due date

Advance tax is income tax paid in advance during the fiscal year rather than at the end of the year. Advance tax is to be paid in four instalments, in the last month of each quarter on or before the 15th.

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NPS and other tax-free perks can cut income tax by Rs 1 lakh

Under Section 80CCD(2), up to 10% of basic salary put in the NPS is tax deductible. One can also ask his/her company for common tax-free perks, such as LTA, reimbursement of newspaper bills and meal coupons. Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their income and investments.

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Trading in cryptos on international P2P exchanges? You run the risk of your bank account being frozen

Transacting in virtual digital assets like cryptocurrency, non-fungible tokens (NFTs), others using Peer-to-Peer (P2P) mechanism carries risk. Hence experts advise to buy VDAs only through Indian KYC and other law abiding exchanges otherwise both the transacting parties i.e. buyer and seller stand at the risk of violating various Indian laws.

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Rent free house salary perk will be taxed differently from Sept 1: New CBDT rules

The new rules are notified by the Central Board of Direct Taxes (CBDT) on August 18, 2023 and became effective from September 1, 2023 i.e., today. The new rules provide for inflation adjusted rental value of house certain conditions. Read on to know about the new tax rules and how they will impact your TDS and salary.

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Do you have to pay penalty for filing revised ITR after due date?

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How can anyone register for GST in 6 steps

Anybody who wants to register or have to register for GST needs to fill up GST REG-01 form online on the GST portal website. This form has two parts- A and B. While part A is simple and easy to fill, it is part B which asks for specific operational details.

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How to correct income tax challan mistake online on e-filing portal

Now it is possible to correct mistakes made in tax payment challan online via the e-filing ITR portal. This new feature was recently introduced by the income tax department and it allows changes of tax challans from AY 2020-21 (FY 2019-20) onwards. Read here to know how to use this feature.

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ITR filing: Your income tax refund will be credited to only this type of bank account

Due to changes in bank account details, previously validated bank accounts may need to be updated and re-validated.

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How long does it take for the tax dept to process income tax return (ITR)

Although income tax return (ITR) filing deadline for individuals has passed since quite a while, there are still may ITRs which are left to be processed successfully by the income tax department. Experts advise individuals not to fret over this as generally ITR-3 or ITRs with capital gains, others take a longer time to process than ITR-1.

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TDS deducted in wrong FY? New income tax form to help you get it corrected Oct 1 onwards

The Central Board of Direct Taxes (CBDT) has notified a new Income tax form- Form 71. This form will help taxpayers resolve their problem of TDS claim when it was deducted in a wrong financial year. One need not approach the tax deductor and request them to revise their TDS return. Income tax department will directly help now.

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