UNEXPLAINED INVESTMENT
Sold your house property or land? These nine sections in Income Tax law can help save capital gains tax
Indians can save capital gains tax on property sales. The Income Tax Act offers nine sections for tax reduction or zero tax. Sections cover residential, industrial, agricultural land sales. Investment in new properties or bonds provides exemptions. Relocation of industrial units to specific zones also offers tax benefits. Investing in eligible startups can reduce tax burden.
Father sells house worth Rs 67 lakh and shows only Rs 1,690 income in ITR, wins case in ITAT Ahmedabad; Know how
Dilip, an Indian taxpayer, won a case at the ITAT Ahmedabad regarding a Section 54 LTCG tax exemption. Despite initially facing scrutiny for claiming Rs 15.99 lakh as indexed cost of improvement with cash payments and selling his house below stamp duty value, the ITAT directed the tax officer to verify and allow his claim. Read more.
She sold her house for Rs 2.7 crore to buy seven new flats and paid no income tax, wins case in ITAT Delhi; Know how
Saroj sold her Punjabi Bagh house for Rs 2.7 crore. She then bought seven apartments in Greater Noida. She reported Rs 5 lakh income in ITR and claimed Rs 2.2 crore LTCG tax exemption. The tax department partially denied the exemption. Then Saroj appealed to ITAT Delhi. ITAT Delhi ruled in her favor.
If you don’t make these 8 disclosures, your ITR may be treated as defective
Filing income tax returns (ITR) requires careful attention to detail, as certain omissions can lead to a defective ITR. Key disclosures include foreign assets, income, crypto transactions, and unlisted equity shares. Failing to report these details, especially for residents with overseas holdings, can result in penalties and even imprisonment, though some relief exists for movable assets under Rs 20 lakh.
How to file ITR if you have sold house or land in FY 2024-25
For AY 2025-26, individuals and HUFs selling property can save on capital gains by reinvesting in another property under Section 54/54F. Choosing the correct ITR form, like ITR-2 or ITR-3, is crucial. Depositing unutilized gains in the CGAS before filing the ITR is essential to avoid taxation. Taxpayers must report sale details and claim exemptions accurately in Schedule CG.
Divorce: Alimony of wife can be fixed based on these eight factors, says Supreme Court
The Supreme Court has outlined eight key factors for determining alimony in divorce cases, emphasizing that these are guidelines, not strict rules. Lawyers highlight additional considerations like marriage duration, conduct during litigation, and future earning potential. Courts also assess lifestyle post-separation, childcare responsibilities, and any prior settlements to ensure fair and reasonable alimony amounts. Read more.
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How to pay zero or lower income tax on your residential property sale using Sections 54 and 54F
Indian income tax laws offer exemptions on long-term capital gains (LTCG) from selling residential property and land. Sections 54 and 54F of the Income Tax Act allow individuals and HUFs to avoid LTCG tax by reinvesting the gains into a new residential property, subject to specific conditions and timelines for purchase or construction.
Husband has to pay income tax for wife’s Rs 17-crore land sale deal due to this reason; ITAT Bangalore ruling explained
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Bangalore held that a wife is exempt from income tax on the ₹17.26 crore sale of land gifted by her husband. The ITAT cited Section 64(1)(iv) of the Income Tax Act, stating that income from assets gifted between spouses is taxable in the hands of the transferor, not the recipient.
Select black money holders to get relief: Income tax dept. to not not apply penalty and prosecution in these situations
The Income Tax Department offers relief regarding unintentional black money. Individuals failing to disclose foreign assets up to Rs 20 lakh may avoid penalties and prosecution. This applies to assets excluding immovable property. The Central Board of Direct Taxes amended its instructions. The new rule aims to provide relief for unintentional omissions. It focuses enforcement on significant cases of non-disclosure.
Father receives Rs 4 lakh as cash gift in son’s marriage and wins income tax case of unexplained income; ITAT Ahmedabad ruling explained
Manubhai faced tax issues over cash gifts received before his son's wedding. The tax department alleged undisclosed income. Manubhai contested, providing guest lists and wedding details. Initially, his appeals were rejected. However, ITAT Ahmedabad ruled in his favor. They noted the assessing officer (AO) did not adequately investigate his evidence. The tribunal allowed his appeal, providing relief.
Taxpayer to pay only Rs 33,000 income tax after selling a house for Rs 70 lakh; ITAT Mumbai ruling explained
A taxpayer successfully challenged the income tax department's LTCG calculation, winning in ITAT Mumbai. The tribunal ruled that indexation benefits should be calculated from the agreement date, not possession date, due to substantial payment made earlier. This decision significantly impacts LTCG tax for property sellers. Read below to know the details.
My wife bought a flat with money that I transferred to her, how should we show it in our ITR?
I’ve purchased a flat in my wife’s name, and all payments to the developer are being made from her bank account. The money was transferred from my account to hers, and I’ve already paid tax on it. While filing her income tax return, how can I show this transfer as a gift?
Taxman may get more power to demolish benami realty deals
To combat benami property deals, a CBDT panel suggests stricter measures, including access to Aadhaar data and property registries. The recommendations aim to identify 'dummy directors' in shell companies and confiscate other assets if benami properties are untraceable. These steps seek to address loopholes and ambiguities in the existing law, enhancing the I-T department's ability to tackle benami transactions.
I-T dept yet to rectify 59,352 cases with Rs 6,000 cr tax effect: CAG
The CAG reported that the income tax department recovered ₹3,588.79 crore after audit corrections. However, ₹6,252.06 crore remains unsettled across 59,352 cases due to pending departmental replies. The report highlighted errors in interest levies, depreciation, and business expenditure, urging the CBDT to improve IT systems and internal controls to prevent recurrence.
Paying Rs 55,000 rent on time could not save salaried taxpayer from Rs 1 lakh penalty for missing TDS, know why
An individual faced a Rs 1 lakh penalty for not deducting TDS on monthly house rent of Rs 55,000. According to Section 194-IB, TDS at 2% must be deducted if monthly rent exceeds Rs 50,000. Tenants must file Form 26QC and provide Form 16C to the landlord. Penalties for non-deduction include interest and discretionary fines. Read below to know more.
Sunjay's mom challenges wife's posting as Sona Comstar director
Alleging that the death of her son in the UK was "highly suspicious and (under) unexplained circumstances", Sunjay's mother Rani sought deferment of the company's AGM scheduled for Thursday.
Taxpayer wins Rs 69-lakh unexplained investment income tax case in ITAT Mumbai on these technical grounds
In 2025, an Indian engineer working in Dubai, won a tax case against the Income Tax Department regarding a Rs 69-lakh 'unexplained investment'. The department questioned his Kerala property purchase and fixed deposit investments. While he gave explanations for these assets and investments, the tax dept rejected it. The Income Tax Appellate Tribunal (ITAT) Mumbai ruled in his favor on two technical grounds. Read to know how he won.
Capital gain on property: How to pay lower LTCG tax using indexation benefit
Indian property owners selling real estate acquired before July 23, 2024, now have a choice regarding capital gains tax. They can opt for a 20% tax with indexation, adjusting for inflation, or a 12.5% tax without it. Indexation isn't always beneficial; it depends on the property's acquisition year, sale year, and prevailing tax rates. Read below to know the calculations.
Jane Street leaves multiple fingerprints for I-T; artful dodger may now run into a GAAR net
Jane Street may face scrutiny from Indian income tax authorities for allegedly using its entities across jurisdictions to avoid taxes. The company's trading mechanism, deemed an "impermissible avoidance arrangement," involves Indian entities influencing prices while Singapore and Hong Kong arms book profits, exploiting tax treaties.
How the I-T is hunting India’s hidden crypto wealth
The Income Tax department is training its officials to identify crypto assets during raids. Officers are learning to spot digital clues and physical items like pen drives. They will also look for wallet files and passphrases. Tax evaders who withhold crypto passwords may face imprisonment. The department is also seeking expert help due to developing digital asset technologies.
Japan's 'death-tainted' homes gain appeal as property prices soar
In Japan, properties stigmatized by deaths are becoming investment opportunities due to rising real estate prices and an aging population. "Misfortunate properties," once difficult to rent, now attract investors seeking high yields, with some even offering ghost investigation services. While some remain wary, others are drawn by discounts and potential returns in Japan's evolving real estate landscape.
IT Dept detects bogus expenditure worth crores, shell firms after raids linked to Samajwadi Party
A Kolkata-based entry operator (a person who undertakes fake transactions) was also covered in the search operation in which 30 premises in Lucknow, Mainpuri and Mau in Uttar Pradesh, national capital region, Kolkata and Bengaluru were raided.
I-T department carries out search and seizure operations on real estate firm in Srinagar and Delhi
Total undisclosed investments and cash transactions of Rs 105 crore of the group, have been unearthed during the search, the Central Board of Direct Taxes (CBDT) said in a statement.
I-T dept unearths tax evasion and unexplained investments amounting to Rs 50 cr in J-K
The operation conducted on a prominent hotelier led to seizure of incriminating documents showing unexplained investments in immovable properties, construction of hotels and residences aggregating to Rs 25 crore in the last six financial years. Unpaid taxes since assessment year 2014-15 and investments in cash outside known sources of income have also come to fore.
Taxman may invoke Benami Act for unexplained credits, investments
Tax experts, however, said even now a distinction between unexplained tax credits, where higher tax is applicable, and a benami transaction has to be made.
Amended I-T law harsh, prone to misuse by taxmen: Experts
I-T dept may question your income and expenditure details and tax you at a higher rate if you fail to offer a “satisfactory explanation” to the taxmen.
How to avail benefits after new tax amendments in property transactions
All tax payers are advised to carefully enter into property transactions in particular and not to make any unexplained investment in the Real Estate Sector.
I-T investigation into teams opens can of crickets
Initial findings reveal large unexplained expenses & investments routed through complex corporate structures located overseas.
Hot money flowing into China may adversely affect its economy
China drew in a staggering USD 324 billion during the first four months of this year.
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