The income tax department allows certain “professionals” to pay tax only on 50% of their total income on a presumptive basis under section 44ADA of the IT act (t&c apply)*. However, there is plenty of confusion on who is eligible to file returns under ADA and who is not. A discussion. Disclaimer: No part of this…

A few days ago, Suhas made an interesting observation in the Facebook group, Asan Ideas for Wealth: “I noticed that if we carried forward LTCL (long term capital loss) from previous years then that 1L exemption is not applicable”. Why is this so? Is this an error? Let us find out. This article was made…

The income tax department requires that we pay the tax due on our income before specific dates during the financial year. This is known as advance tax. Usually, employers take care of this requirement for the salaried individuals via tax deducted at the source each month. In this article, we discuss how others (professionals, freelancers…

We had recently discussed how to enter STCG and LTCG from equity shares and mutual funds in ITR2  or ITR3. We now follow this up with a guide to enter capital gains from the sale of property in ITR2 or ITR3. Do check out our earlier articles on tax filing: How to enter mutual fund…

A viewer on our YouTube channel asks, “I have a net taxable income of around 4.8L( excluding LTGC, after all the deductions) and LTGC( from Equity MF ) of 37k. So the problem I am facing is that whenever I am putting the LTGC amount in 112A then it is added back to my net…

As a follow-up to our detailed guide on How to enter mutual fund and share capital gains in ITR2 (or ITR3), we now present two examples of how to use mutual fund capital gains statement for LTCG and STCG entries in ITR. Salaried taxpayers should use ITR2 if they have capital gains to report. Businessmen…

In this step-by-step guide, we shall discuss how to enter capital gains from mutual funds or shares in ITR2 or ITR3. Salaried taxpayers must use ITR2 if they have any capital gains to declare. Businessmen and professionals must ITR3 for the same purpose. The capital gains schedule and filing procedures are identical in ITR2 and…

In this article, tax expert Manmohan Sethumadhavan explains a situation where investments in products eligible under section 80C may be beneficial even if the net income is lower than the taxable limit. Investments like EPF, PPF, ELSS etc., are made in a financial year to reduce the tax outgo by claiming a deduction u/s 80C…

Here are some FAQs for NRIs returns from abroad concerning the facilities and status of different bank accounts and their tax implications. About the author: Shri R Vijayaraghavan is a Senior Banker retired from Indian Overseas Bank. Previously he worked in State Treasury and has vast experience in banking, investment wealth management and treasury. He is…

Here is a step by step guide to e-file income tax return (ITR4) for AY 2020-21. Please consider forwarding this to a person who is going to file returns for this first time. You can also consult Guide to e-file Income Tax Return: ITR2, ITR3 and ITR5 About the author: Anjesh Bharatiya is a 30+…