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Filing an Income Tax Return (ITR) for crypto income under Section 115BBH in India involves specific reporting rules, fixed tax rates, and detailed compliance steps. Income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs is taxed at a flat 30% rate, with no deductions or loss set-off permitted. Every crypto transaction must now be reported in the ITR under a dedicated “Schedule VDA,” ensuring transparency and compliance with Income Tax Department guidelines.

Taxpayers classified as Resident and Ordinarily Resident (ROR) in India are required to disclose all foreign income and assets in their Income Tax Return (ITR-2). This includes overseas bank accounts, shares, properties, and other financial interests held during the relevant calendar year. The reporting must be done in Schedule FA, covering assets and income from January 1 to December 31 of the previous year. The disclosure is mandatory even if such income is not taxable in I

Section 245 of the Income Tax Act, 1961, empowers the Income Tax Department to adjust a taxpayer’s refund against any outstanding tax demand from previous years. Before such adjustment, the taxpayer receives an official intimation and a 30-day window to respond. This mechanism ensures recovery of unpaid dues while maintaining transparency and safeguarding taxpayer rights. With the Finance Act 2023 merging refund withholding provisions from Section 241A into Section 245, the

Filing an Updated Income Tax Return (ITR-U) allows taxpayers to correct mistakes or declare missed income after submitting their original or belated return. Introduced under Section 139(8A) of the Income Tax Act, this provision enables individuals to file or revise their returns within 24–48 months from the end of the relevant assessment year. It’s designed to promote voluntary compliance while avoiding penalties for non-disclosure of income. Table of Contents What Is an Upda

For correcting mistakes in your Indian Income Tax Return (ITR), both ITR-U (Updated Return) and Revised Return serve as valid mechanisms. Each caters to different circumstances depending on when the error is discovered and the type of correction required. A Revised Return is suitable for timely corrections within the assessment year, while ITR-U is meant for older or missed returns discovered much later. Understanding the differences between these two ensures compliance, pr

When a refund fails due to bank validation issues, the Income Tax Department holds the amount until the correct details are provided. This usually happens when the taxpayer’s bank account is not pre-validated, inactive, or mismatched with the PAN. To reissue your income tax refund after a bank validation failure, update and revalidate your bank details on the Income Tax e-filing portal, then submit a “Refund Reissue Request.” The process ensures your refund is credited secure

Filing a revised Income Tax Return (ITR) under Section 139(5) allows taxpayers to correct any mistakes or omissions made in their original return. Whether it’s an income not reported, a missed deduction, or a wrong ITR form used, Section 139(5) provides an opportunity to fix these errors without penalty if done within the specified time. This process ensures accurate tax computation and compliance with the Income Tax Act, 1961, especially for FY 2024–25 (AY 2025–26). Table

Filing income tax returns  accurately is crucial, but errors and missed disclosures can happen. To address such issues, the Income Tax Act offers two solutions—Revised ITR under Section 139(5) and ITR-U  under Section 139(8A). Both serve distinct purposes, depending on when and why corrections are needed. With recent updates in the Finance Act 2025 extending the ITR-U filing window to 48 months, taxpayers now have a broader opportunity to fix errors, declare missed income, an

Filing an Income Tax Return (ITR) after the due date can still be done, but it comes with financial consequences and procedural limitations. Taxpayers who miss the original deadline — September 16, 2025, for most individuals — face penalties under Section 234F and interest under Sections 234A, 234B, and 234C. Late filing may also restrict loss carry-forwards and delay refunds. However, the Income Tax Act allows belated and revised returns within specific timelines, offering

Understanding the difference between advance tax and self-assessment tax is crucial for every Indian taxpayer. Both terms may sound similar, but they apply at different stages of the tax cycle. Advance tax is paid during the financial year based on estimated income, while self-assessment tax is the balance paid before filing the return once actual income is known. Knowing when and how to pay each helps prevent interest charges under Sections 234A, 234B, and 234C, ensuring s