Category Archives: Income Tax Return

Exemption from Capital Gain under Income Tax on Profit on Sale of Property used for Residence

Exemption from Capital Gain under Income Tax on Profit on Sale of Property used for Residence (adsbygoogle = window.adsbygoogle || []).push({}); Section 54 of the Income Tax act deals with the exemption from capital gain arising on sale of property used for residential purpose (Self Occupies or Rented) by Individual and HUF. Amount of Exemption… Read More »

Income Tax Returns filed Electronically are more Prone to Scrutiny: CBDT Criteria for Selection of Returns for Scrutiny

Statement “Returns filed electronically are more prone to scrutiny” is wrong. Every year income tax department randomly pulls out the list of people to scrutinize. Also CBDT has laid down the criteria for selection of Income Tax Return for Scrutiny. There are equal chances of getting scrutinized even if you paper file your return. So, there… Read More »

Clubbing of Income of Minor Child in Parents Income under Income Tax Act 1961

All income which arises or accrues to the minor child shall be clubbed (added) in the income of his parent. As per Section 64(1A), whose total income (excluding Minor’s income) is greater. However, if parents are separated, the income of minor will be included in the income of that parent who maintains the minor child… Read More »

Myth: Having Pan card makes it compulsory to file returns: Benefits of Filing Income Tax return

Statement that “Filing of Income Tax is compulsory for all PAN CARD Holder” is False. Having PAN card does not make it compulsory to file returns. If income is taxable in a particular year, then you need to file return. However if income is below taxable limits, you can still have a PAN card and… Read More »

E-filing is unsafe: Wrong, E-Filing is Safer than Physical Filing of Income Tax Return & Compulsory for Income Above Rs 5 Lakhs

E-filing of Income Tax Return is unsafe is myth  and E-Filing of ITR is now compulsory for Income above Rs 5 Lakhs and refund for e-filed return is issued faster than those filed physically.  Also E-Filing that is paper less filing is much more accurate, safer and faster and chances of error is very less… Read More »

Interest on Fixed Deposit is NOT TAXABLE: WRONG, Only Deduction of Rs 10000 for Saving Account Interest

Myth: Interest on fixed deposit is not taxable This is incorrect. People have an assumption that interest on fixed deposit is exempt same as interest on savings bank account. But it is wrong. Interest on savings account is exempt under section 80TTA upto Rs 10000/- and any interest above in saving account will be taxable… Read More »