Taxpayers claiming exemptions under Sections 54 and 54F often face notices due to overlooking the 3-year rule for CGAS deposits, leading to unintended tax liabilities upon the expiry of the investment period.
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.
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.
Foreign investors in India are receiving unexpected tax reassessment notices, even for transactions where no profit or dividend was earned. The notices, potentially triggered by remittance data and questioning the absence of income tax returns for share purchases, are causing confusion and compliance burdens.
