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Rental income in India is taxable under the head “Income from House Property” as defined by the Income Tax Act, 1961. To ensure compliance and minimize tax liability, it’s crucial to report it accurately in your Income Tax Return (ITR). Misreporting or ignoring this income can invite penalties and scrutiny. With recent updates under Budget 2025, taxpayers can claim deductions for municipal taxes, standard deductions, and home loan interest to optimize taxes efficiently. Platf

Under Indian tax laws, a minor child’s income must be reported following specific provisions of the Income Tax Act, 1961. Section 64(1A) requires that any income earned or accrued in a minor’s name—such as interest, dividends, or investment returns—be “clubbed” with the income of one of the parents, typically the one with a higher income. This ensures accurate tax reporting and prevents misuse of exemptions. However, the Act also provides exceptions for income earned by a min

Clubbing of income  under Section 64 of the Income Tax Act, 1961, prevents taxpayers from reducing their tax burden by transferring income-generating assets to close family members. It ensures that the income earned through such transfers—made without adequate consideration—remains taxable in the hands of the transferor. This rule primarily applies to individuals and not to firms, HUFs, or companies, thereby maintaining fairness in taxation and discouraging indirect methods o

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