Senior citizens can secure fixed deposit interest rates up to 8.3% for a three-year term, with Jana Small Finance Bank offering the highest. The article details how to avoid Tax Deducted at Source (TDS) on FD interest exceeding Rs 1 lakh by submitting Form 15H, especially if their total tax liability is zero.
Taxpayers are advised to exercise caution during ITR filing for FY 2025-26. Common errors include selecting the wrong ITR form, misjudging tax regimes, over-reliance on pre-filled data, and failing to reconcile crucial forms like AIS and Form 26AS. Accurate reporting of all income sources, capital gains, and foreign assets is essential to avoid notices and delays.
Mumbai-based IT professional Sophia Rick successfully challenged a Rs 3.36 lakh tax demand at ITAT Mumbai after her employer failed to deposit Rs 3.91 lakh in deducted TDS. The tribunal ruled that taxpayers cannot be denied credit if they prove TDS deduction, even if the employer defaults.
This article explains Tax Deducted at Source (TDS) on salaries, detailing calculations for CTCs of Rs 15, 20, and 25 lakh under old and new tax regimes. It covers how employers compute annual tax liability and deduct it monthly, considering various income components and deductions.
Taxpayers must use the old TRACES portal to correct TDS challans mistakenly filed under FY 2025-26 for Tax Year 2026-27. The new portal lacks this functionality. Failure to correct will prevent TDS credit and increase tax liability.
The Mumbai Income Tax Appellate Tribunal (ITAT) ruled that a property buyer is not liable for short TDS deduction if the seller regularizes their PAN. The case involved a Rs 1.9 crore flat purchase where the buyer deducted TDS on her share, but the tax department sought higher TDS due to an inoperative PAN. ITAT deleted the demand, citing CBDT circulars and the seller's tax compliance. Experts advise buyers to be aware of TDS obligations, especially for non-resident sellers or joint property purchases.
Tenants in India paying over Rs 50,000 monthly rent must deduct 2% TDS on gross rent. This applies to individuals/HUFs not requiring tax audits. TDS is deducted in the last month of tenancy/financial year and deposited via Form 26QC (or Form 141 after April 2026), with Form 16C (or Form 132) issued to landlords. Non-compliance incurs interest and penalties.
Buyers of Indian property worth ₹50 lakh or more must deduct 1% TDS under Section 194-IA, depositing it with the government to avoid interest and penalties.
