This is the archive of all our articles related to income tax and filing of tax returns
Three readers sent us similar requests over the past couple of weeks. One wanted to know if it is worth booking Rs. 1 lakh capital gains from equity or equity mutual funds each year to lower LTCG tax. Another wanted us to illustrate how to compute the necessary units for such an exercise. Yet another…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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+…
Continue reading →As part of various relief measures taken by the Government in response to the economic slowdown post-COVID-19, the Finance Minister (FM) has announced a very attractive income tax relief for home buyers (new residential properties of value up to Rs 2 crore). Here is what you need to know. About the author: Anjesh Bharatiya is…
Continue reading →The Government launched an LTC (Leave Travel Concession) Cash Voucher Scheme for Central Government employees on 12th October 2020 to enable employees to purchase goods and services instead of availing LTC & leave encashment. On 29th Oct, they have extended it, non-central govt employees, as well. Now the private sector, public sector and state govt…
Continue reading →Here is how you can set off LTCG from shares against LTCL in ITR2 for the financial year 2019-2020, that is for the assessment year 2020-2021. Some readers have pointed out that the benefit of the Rs 1 lakh exemption is not being applied in the ITR2. This is not an error in the ITR2…
Continue reading →Recently the income tax department announced a new specified financial transaction (SFTs) that will be reported under form 26 AS. These include life insurance premium, health insurance premium, share transactions among others. Here is a full list of such STFs.
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