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The Income Tax Department requires taxpayers filing ITR -1 (Sahaj) to report exempt income even if it is not taxable. Accurate disclosure ensures transparency and prevents notices or mismatched entries in the Annual Information Statement (AIS). Exempt income includes items like interest from PPF, HRA , gratuity, dividends, and agricultural income up to ₹5,000. Understanding how to fill this schedule correctly helps avoid errors and keeps your ITR fully compliant with CBDT gui

Agricultural income in India enjoys a unique position under the Income Tax Act, 1961. While it is exempt under Section 10(1), accurate reporting in your Income Tax Return (ITR) is crucial to avoid scrutiny and maintain compliance. Whether derived from cultivation, rent, or the sale of produce, this income must be declared with proper documentation. The exemption applies only when the income genuinely arises from land used for agricultural purposes within India. The key lies i

Interest earned from fixed deposits (FDs) and savings bank accounts is fully taxable under the head “Income from Other Sources” as per the Income Tax Act, 1961. Many taxpayers often overlook this income or report it incorrectly, leading to mismatches in the Annual Information Statement (AIS). Whether the amount is small or substantial, it must be disclosed while filing your Income Tax Return (ITR) . Correct reporting ensures compliance, prevents penalty notices, and helps cla

Section 270A of the Income Tax Act, 1961, lays down penalties for taxpayers who fail to accurately report their income. Introduced through the Finance Act, 2016, this provision differentiates between underreporting—caused by errors or omissions—and misreporting, which involves deliberate concealment or falsification. The law imposes a penalty of 50% of the tax on underreported income and up to 200% for misreporting. With tighter digital monitoring through AIS and Form 26AS,

A notice under Section 142(1) of the Income Tax Act, 1961, is sent by the Assessing Officer when additional information or documents are required before completing your income tax assessment. It may be issued whether a return has been filed or not, and is meant to verify income details, deductions, or transactions. Receiving this notice does not always imply an error or wrongdoing; it’s often a standard verification step to ensure accuracy and compliance with tax laws. Table

Section 148A of the Income Tax Act, 1961, introduced through the Finance Act, 2021, redefined how reassessment proceedings are initiated by ensuring fairness, transparency, and accountability. Before issuing a reassessment notice under Section 148 , the Assessing Officer must conduct an inquiry, verify evidence, and offer the taxpayer an opportunity to respond. This change strengthens taxpayer protection, ensuring no reassessment is initiated arbitrarily and that income disc

The Annual Information Statement (AIS) serves as a consolidated record of your income and financial transactions reported by employers, banks, and financial institutions. However, discrepancies like unreported income or incorrect TDS entries can disrupt your income tax return filing process. Correcting these issues before filing ensures accuracy, prevents penalties, and helps maintain compliance with the Income Tax Act, 1961. Filing accurate returns begins with ensuring tha

The Annual Information Statement (AIS) is a detailed record of your financial transactions, including income, investments, and TDS details, reported to the Income Tax Department. Submitting accurate feedback on AIS ensures that your financial data is correctly reflected in your income tax records, minimising errors during return filing . The process can be completed easily online through the e-filing portal, where users can review, correct, and verify details in just a few s

TDS  on property sale under  Section 194-IA ensures that tax is collected at the source during the sale of immovable property valued above ₹50 lakh. The buyer is responsible for deducting 1% TDS on the higher of the sale price or stamp duty value and depositing it with the government through Form 26QB. The seller, on the other hand, must ensure this TDS is reflected in Form 26AS to claim credit while filing the Income Tax Return . Understanding these obligations prevents mism

Reporting capital gains  accurately in ITR-2 is critical for taxpayers who have sold assets like property, shares, or mutual funds. Even minor errors in Schedule CG can lead to defective return notices or delays in refund processing. ITR-2 is specifically designed for individuals and HUFs who earn income from capital gains but not from business or profession. The process involves identifying short-term and long-term gains, applying relevant exemptions, and ensuring precise re