Meaning of Raid and Survey An income tax raid refers to a search and seizure operation conducted under Section 132 of the Income Tax Act. A survey is conducted under Section 133A to verify business premises, records, and transactions. Raids are more intrusive and...
Minimum Retention Period as per Law Taxpayers should retain income tax records for at least 6 years from the end of the relevant assessment year. This period is calculated from the financial year in which the return is filed. The Income Tax Department has the right to...
Legal Compliance and Avoiding Penalties Filing income tax returns (ITR) ensures compliance with Indian tax laws. Non-filing, when required, can result in penalties and interest. Timely filing avoids late fees under Section 234F. It helps in maintaining a clean tax...
Filing Not Compulsory for Zero Income If your total gross income is below the basic exemption limit, filing ITR is generally not mandatory. The exemption limit is ₹2.5 lakh for individuals below 60 years under the old regime. Senior citizens and super senior citizens...
Yes, It Is Allowed Any individual can file their own income tax return (ITR) without a tax consultant. The Income Tax Department provides an official e-filing portal for free self-filing. Taxpayers must calculate income, deductions, and tax liability correctly. Basic...
Classification of Crypto Assets Virtual Digital Assets (VDAs), including cryptocurrencies like Bitcoin and Ethereum, are taxable in India. The Income Tax Act defines VDAs under Section 2(47A) for clarity. This includes cryptocurrencies, NFTs, and similar digital...
Understand the Nature of the Notice First, carefully read the notice type, section, and reason for issuance. Common notices include Section 139(9) (defective return), 143(1) (intimation), 143(2) (scrutiny), and 148 (reassessment). Understand whether it’s a request for...
Understanding Rectification Rectification is a process under Section 154 of the Income Tax Act. It allows correction of mistakes or errors in the income tax return already processed. It is applicable when there is an error in computation, TDS mismatch, or omission. It...
Understanding Self-Assessment Tax Self-assessment tax is the final amount of tax payable by a taxpayer after accounting for advance tax and TDS. It is calculated after preparing the income tax return but before filing it. The taxpayer must pay this tax to avoid late...
Separate Nature of Taxes Income Tax and Goods and Services Tax (GST) are two distinct types of taxes. Income tax is levied on income earned by individuals or businesses. GST is levied on the supply of goods and services, not on income. Paying income tax does not...