Taxpayers receiving Section 143(1) intimations from the Income Tax Department with tax demands must respond within 30 days. Failure to do so can lead to 1% monthly interest penalties, classification as an 'assessee in default,' and initiation of recovery proceedings, even if the demand is disputed.
A same-sex couple has filed a petition in the Bombay High Court challenging Section 56(2)(x) of the Income Tax Act, which exempts gifts between spouses from tax. They argue that denying this benefit to same-sex couples is discriminatory as Indian law does not recognize their relationships as marriages. The Income Tax Department opposes the plea, calling it "misconceived" and an attempt to use tax law for marriage recognition.
Filing income tax returns (ITR) accurately is crucial to avoid queries from the Income Tax Department. Common mistakes include mismatches between ITR and AIS/Form 26AS, incorrect capital gains reporting, non-disclosure of income streams like interest and dividends, and misalignments between high-value transactions and reported income. Experts advise taxpayers to reconcile all income sources and documents before filing to prevent notices.
Even if long-term capital gains (LTCG) from stocks are under Rs 1.25 lakh and tax-exempt, filing an Income Tax Return (ITR) for AY 2026-27 is mandatory. The Income Tax Department requires reporting these gains to avoid potential issues. Learn how to correctly disclose them.
The Income Tax Department clarifies confusion regarding the new Income Tax Act, 2025, and its transition from Assessment Year (AY) to Tax Year (TY). Taxpayers will not need to file two returns for income earned between April 1, 2025, and March 31, 2026.
The Income Tax Department has introduced Form 168, an upgraded Annual Information Statement that replaces Form 26AS. This automatically generated form consolidates all tax-related and financial transaction data linked to a taxpayer's PAN, offering a comprehensive view of tax compliance.
The Income Tax Department has launched online filing and Excel utility for Income Tax Return-3 (ITR-3) for Assessment Year 2026-27. This form is for individuals and HUFs with business or professional income, with a July 31, 2026, deadline for salaried individuals.
The Income Tax Department has set July 31, 2026, as the deadline for most individual taxpayers, including the salaried class, to file their Income Tax Returns (ITR) for AY 2026-27. Non-audit businesses and professionals have until August 31, 2026.
Congress has accused the Income Tax department of unlawfully confining its Tamil Nadu president K Selvaperunthagai at his residence in Sriperumbudur, preventing him from carrying out political duties ahead of Rahul Gandhi's campaign visit to the poll-bound state. The party called the search operation a "blatant misuse" of central agencies by the BJP to intimidate and obstruct opposition leaders, describing it as an attack on democracy. The IT department is conducting the raid following complaints alleging cash intended for voter distribution was stashed at the location.
