UK-based taxpayer ignored tax notices, still escaped Rs 10,000 penalty; here’s why

A UK resident successfully challenged a Rs 10,000 tax penalty imposed for not responding to a notice. The Income Tax Appellate Tribunal (ITAT) Delhi ruled that the penalty was invalid as there was no proof the notice was actually served on the taxpayer. This decision highlights the importance of proper notice delivery for tax proceedings.

from Tax-Wealth-Economic Times https://ift.tt/o6ehUrq

8 years delay in tax refund: Delhi HC raps Income Tax Department, warns of Rs 1 lakh personal cost on Deputy Commissioner

Delhi High Court raps Income Tax Dept over 8-year delay, in tax refund and thus orders Rs 5.37 crore tax refund with interest to Microsoft India; warns Rs 1 lakh personal cost on on Deputy Commissioner if deadline missed. Read below to what else Delhi High Court said to Income Tax Department.

from Tax-Wealth-Economic Times https://ift.tt/grlA3FE

Should I invest in a residential unit, a commercial shop, or an office to get capital gains tax exemption on a property that I sold?

ET Wealth Reader's Query: I am a 76-year-old Indian resident planning to sell a 37-year-old 3-guntha plot located within municipal corporation limits. The sale price has appreciated nearly 17 times over the original purchase price. To save on capital gains tax, can I reinvest the proceeds in a residential unit, a commercial shop, or a commercial office?

from Tax-Wealth-Economic Times https://ift.tt/D57rHCy

Man sells 350 grams gold for Rs 11 lakh, income tax dept doubts it and sends tax notice for unexplained money; he wins case in ITAT Ahmedabad

A gold trader successfully challenged a tax notice deeming his Rs 11 lakh sale of 350 grams of gold as an accommodation entry. Despite the tax department's claims, the Income Tax Appellate Tribunal (ITAT) Ahmedabad ruled in his favor, citing banking channel transactions and a lack of contrary evidence from the revenue.

from Tax-Wealth-Economic Times https://ift.tt/COMvGB1

Income Tax refund delays: Why refunds for FY 2024-25 ITR filings are taking longer and what you can do

Income Tax Refunds Delay News: Taxpayers filing for FY 2024-25 are experiencing delayed refunds, though the Income Tax Department remains within statutory processing timelines. Delays often stem from high-value claims, pending demands, or simple taxpayer errors like claiming deductions not reported to employers.

from Tax-Wealth-Economic Times https://ift.tt/7OIDpfK

Section 87A rebate on capital gains from debt mutual fund: ITAT Chandigarh gives relief to taxpayer and cancels Rs 25,710 tax demand notice from Income Tax Dept

The Income Tax Appellate Tribunal in Chandigarh has ruled that taxpayers can claim the Section 87A tax rebate on long-term capital gains from debt mutual funds. This decision overturns a tax demand of Rs 25,710 for a taxpayer. The tribunal clarified that the restriction on this rebate applies only to equity-oriented gains. Read more.

from Tax-Wealth-Economic Times https://ift.tt/L5kaV9X

I want to sell a property and redeem mutual funds to finance a new house purchase. Can I get LTCG tax exemption on both?

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?

from Tax-Wealth-Economic Times https://ift.tt/4Njli95

Big win for NRI taxpayers: ITAT Chennai rules he qualifies as non-resident, no tax in India on overseas earnings

An NRI successfully challenged the Indian tax department's decision to tax his global income. The Income Tax Appellate Tribunal (ITAT) Chennai ruled that Mr. Dhinakaran qualified as a non-resident, restoring his tax benefits. The tribunal emphasized that holding a managerial position doesn't disqualify one from being considered an employee under tax law, provided a contractual service relationship exists.

from Tax-Wealth-Economic Times https://ift.tt/4LaMvh9

Tax Dept accuses lady of taking Rs 3 crore cash in property deal; ITAT Mumbai disregards WhatsApp chat evidence, says no proof, no tax

Smt. Shah successfully challenged the Income Tax Department's claim of receiving Rs 3 crore in cash during a property sale. The ITAT Mumbai ruled that a WhatsApp chat screenshot, lacking authenticity and corroboration, was insufficient evidence. The tribunal emphasized that assumptions do not constitute proof, leading to the dismissal of the tax department's appeal.

from Tax-Wealth-Economic Times https://ift.tt/Xwg0DO5

I have earned over Rs 50,000 by trading in RBI-approved currency pairs. How should I file my ITR?

ET Wealth Reader's Query: I frequently trade in Sebi-registered and RBI-approved currency pairs (USD/INR, GBP/INR, EUR/INR) through the Zerodha app. In this financial year, my short-term gains have exceeded Rs 50,000. How should I file my ITR?

from Tax-Wealth-Economic Times https://ift.tt/aMZFG32

NRI woman earns Rs 1.35 crore from mutual funds, pays zero tax in India, gets income tax notice: How India-Singapore DTAA saved her

A Singapore-based NRI woman earned Rs 1.35 crore from selling Indian mutual funds. She claimed tax exemption under the India-Singapore DTAA. The tax department rejected her claim, but the Income Tax Appellate Tribunal (ITAT) Mumbai ruled in her favour. Know how she won the case in ITAT Mumbai.

from Tax-Wealth-Economic Times https://ift.tt/bWk5fu9

ICICI Bank launches Capital Gains Account Scheme: Know how you can deposit uninvested capital gains to save income tax

ICICI Bank introduces a Capital Gains Account Scheme starting January 1, 2025. This scheme allows resident individuals and HUFs to deposit long-term capital gains for tax exemption. Funds can be parked for up to three years in savings or term deposit accounts. This offers a solution for taxpayers unable to reinvest gains before the ITR deadline.

from Tax-Wealth-Economic Times https://ift.tt/DPOCq4X

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.

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