Cash Deposit Income Tax Notice: Why Cash in Hand in Your Books Is Not Enough The balance sheet shows ₹25 lakh of cash in hand. The cash book is written up and the figures tie. So when the cash is deposited in the bank, there should be nothing to explain. Yet many businesses an... Direct Tax Income Tax Tax Assessment Tax Notice 31-Oct-2026 Income Tax
Property Sale and Income Tax: How the Department Already Knows and What to Report A family sells an ancestral flat, receives the money, repays a loan and treats the matter as closed. When the return is filed, the capital gain is computed on the agreement value, the stamp duty value... Capital Gains Direct Tax Income Tax Tax Notice 31-Oct-2026 Income Tax
After Filing Your Income Tax Return: AIS Mismatches, Notices and Time Limits The return is uploaded, verified and the acknowledgement is in your inbox. For many taxpayers, that is where the year ends. In practice, it is where the department's review begins. Your return will be... Direct Tax Income Tax Tax Assessment Tax Notice 31-Oct-2026 Income Tax
Wrong Deduction Claims in Your ITR: How They Lead to Tax Notices and Penalties An employee claims the full ₹1.5 lakh under section 80C, health insurance under 80D, a donation receipt handed over by a colleague and house rent allowance for a flat owned by his parent. His employer... Direct Tax Income Tax Tax Assessment Tax Notice 31-Oct-2026 Income Tax
Gift Tax in India: When a Gift Is Tax-Free and When It Becomes Taxable Income ₹2 lakh arrives in your bank account from a close family friend who wants to help with your child's admission. Another ₹2 lakh arrives from your maternal uncle. Both transfers are genuine and through ... Direct Tax Income Tax Tax Notice Tax Planning 31-Oct-2026 Income Tax
High-Value Transactions and Income Tax: What SFT Reporting Reveals in Your AIS A business owner declares a modest taxable income. In the same year he deposits cash in his savings account, pays a large credit card bill, subscribes to mutual funds and books a flat. Each transactio... AIS Direct Tax Income Tax Tax Notice 31-Oct-2026 Income Tax
Business Expense Disallowance in Income Tax: Why Paying for It Is Not Enough The invoice is in the file, the payment has gone out and the entry is in the ledger. Yet at assessment, a significant part of the expense is added back to income. This happens because the tax law asks... Direct Tax Income Tax Internal Controls Tax Assessment 31-Oct-2026 Income Tax
Carry Forward of Losses: Why a Late Return or Weak Disclosure Can Cost You the Loss A trading company closes the year with a genuine business loss of ₹40 lakh. The books are clean and the loss is properly computed. The return, however, is filed three weeks after the due date because ... Direct Tax Income Tax Tax Assessment Tax Notice 31-Oct-2026 Income Tax
Capital Gains Tax Calculation in India: Why Your Profit Is Not Your Taxable Gain You sold a flat for ₹1 crore that you bought for ₹40 lakh, so the gain is ₹60 lakh. That is how most people think about it, and it is often wrong in both directions. The tax law asks what you sold, ho... Capital Gains Direct Tax Income Tax Tax Planning 31-Oct-2026 Income Tax
Bank Interest Income in AIS: Why Small Unreported Interest Leads to Tax Notices A salaried professional files her return carefully, reports her salary and rental income, and forgets about ₹38,000 of interest spread across a savings account, two fixed deposits and a recurring depo... AIS Direct Tax Income Tax Tax Notice 31-Oct-2026 Income Tax
Section 68 of the Income Tax Act: Unexplained Cash Credits, the 3-Test Rule and Section 102 of the New Act Every year, thousands of taxpayers receive additions in their assessment orders for one simple reason: they could not prove where the money in their books came from. Section 68 of the Income-tax Act, ... Direct Tax Income Tax Section 102 Section 68 Unexplained Credits 06-Jan-2026 Income Tax