Archive | Income Tax Notice

How to claim HRA exemption for rent to parents without inviting department’s wrath

It is common for taxpayers to claim HRA exemption by paying rent to parents. But a lot of us do not know the right way to do this. Let’s understand in detail. You may have heard about a recent case law of how the income tax department refused to allow HRA exemption for rent paid by a […]

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Revise your income tax return if you must but exercise caution

One by one, the tax department has been plugging loopholes to prevent tax evasion.  The latest is the diktat on revision of tax returns. A recent release from the tax department has warned people to not revise their returns to accommodate excess cash as current year’s income. Let’s understand in detail.   Who can revise […]

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Sign on bonus refunded to employer cannot be reduced from taxable salary: case law

While salary returns are one of the easiest to prepare and file; the topic of sign on bonus and its refund to previous employer, has been a grey area for most taxpayers. Some common questions that get asked are- Should sign on bonus form part of my taxable salary if I have already returned it […]

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income tax notice

Received a notice under Section 143(2)? Here’s what you should do

Many individual taxpayers would have received a notice from the Income Tax Department regarding Limited Scrutiny under Section 143(2). The notice reads: What the notice means is that the taxpayer’s income tax return for AY2015-16 has come under scrutiny for derivative (futures) transaction. The income tax department wants the taxpayer who has received this notice […]

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Claiming tax relief on salary arrears? Don’t forget to file Form 10E

Receiving salary or pension in arrears might change your tax situation. You may fear it’s going to move you up a tax slab. Or tax rates may be higher in the year arrears are received as compared to the year to which they belong. To protect you from any additional tax burden, due to delay […]

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