Tax questions on Income Tax

Itr form no

I received a notice regarding income tax form-1 as follows "As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for which form no. ITR-1 is not the appropriate form. Thus, the...

Received Notice for filing ITR-1

Got below Response from CPC Bengaluru, Which ITR form I need to use for the notice Error Description You have filed your income-tax return in form ITR-1. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. These ...

Defective filing

I have received mail regarding defective filing which states - You have filed your income-tax return in form ITR-1. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for wh...

Income tax notice

Error Description You have filed your income-tax return in form ITR-1. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for which form no. ITR-1 is not the appropriate for...

Received Notice for filing ITR-1

Got below Response from CPC Bengaluru, Which ITR form I need to use for the notice Error Description You have filed your income-tax return in form ITR-1. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194M/194S/194C/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94M/94S/94C/94B/4BB/4BA) in Form 26AS. Th...

What is appropriate tax for this case?

I received money along with my bothers sisters and uncles when property inherited by us from my paternal grandfather, was sold ten years before. my 1/12th share. (2 uncles and 2 siblings and mother). Rs.10 Lac was not given by the builder then and held back as security until premises made vacant by tenants. But builder lapsed on the agreement for ten years for lack of money . Now after raising ...

TDS mistakenly paid fully by 1 owner instead of all 3

My parents and i bought an under construction property in Mumbai on 31 Mar 22 (registration date) and the builder paid TDS to the Govt in one owners name only on full value of consideration and not installment amount. It was mistakenly communicated to us one year later that builder had not deducted/paid TDS and 3 of us then paid TDS+interest+penalty on amounts paid till then. Few days lat...

Getting Salary in WISE account, working for US based company from Pune India

Hi there, I need help in understanding about taxation for my current situation. I have been working for a US-based company since Feb 24, I get monthly salary of 5.5k USD per month from their end, although I'm working from Pune at their client location but salary gets credited in US currency to my WISE account, which is an online bank account based of Belgium. So currently, I want to know: am...

Income from US retirement fund (IRA, 401k)

It is with respect to ITR2 filing in case of income from USA specially with respect to retirement fund. In USA – the income from retirement fund is taxed on withdrawal basis and whereas in India – it is on accrual basis. The Govt has inserted a new provision in 2022 – section 89A – by which one can defer the income to future year. I have a specific question – what a right way is to report suc...

Taxability of nominees and executors

1) Assessee expired with a WILL. 2) Two persons are named as EXECUTORS. Question: As per sec. 168 of the Income tax Act, i guess they will have to apply for a separate PAN as AOP, since 2 executors..and they will be assessed as AOP. Kindly confirm. 3) Now, the nominee has received the Mutual funds and they have sold it also and proceeds are lying in the bank. This is the money of the Estate...

Seeking Clarity on Section 44AD and Investment Strategy

I need clear guidance on handling my tax affairs under Section 44AD and its implications for my investment strategy. My gross income is approximately 45 lakhs, with actual expenses and personal expenditures totaling around 15 lakhs. However, I'm encountering conflicting advice from Chartered Accountants regarding the application of Section 44AD: -One CA suggests showing actual profits. Af...

Tds remittance u/s 194ia

Dear All CAs, I booked an under-construction flat in the Navi Mumbai with a Realty Developer firm in Aug. 2023, starting with the initial booking amount of ₹2 Lakhs and then followed by regular payments at certain intervals of the progress of the construction of Plinth @5% of Agreement Value (AV) and then each floor @2% per floor slab. The Agreement for Sale was registered in this month for a ...

Foreign tax credit not considered due to late filing of Form 67

Hi, I had filed original return for AY 19-20 basis which I had received a refund of 51,880. I had filed a revised return declaring foreign income & foreign tax deducted basis which refund of Rs. 4180 was expected. However, the department did not consider the credit of foreign tax deducted as Form 67 was missed to be filed & department raised a demand of 2,31,800 (which included the refund of...

Not declared rental income for the last 10 years, being threatened to report me to income tax

I am stuck in a difficult situation. Please give me your brutal honest opinion on my situation. Here is my brief story of how I got into this situation. I got an inheritance of 10 flats in an upscale society in Noida in 2013. Once the flats were handed over to me, I rented out all 10 flats. I received rent for all those 10 flats in cash. I never declared this income. In total I received rent...

Taxation in the hands of beneficiary of renounced rights issue rights

1. There is one Company A in whom a group of individuals and a group of Corporates is holding Equity Share Capital 2. Company ‘B’ is one of the corporates holding shares, who is holding 44% stake in Equity Share Capital in the Company A 3. Current Market Value of the company’s existing shares is Rs 155 per share 4. The Board of Directors passed a special resolution to bring a Rights ...

Oci taxation

I am British citizen married to Indian citizen and I hold an OCI card as his wife. I have NRE and NRO accounts in India. I have moved money from UK to my Indian NRE accounts wanting to invest in mutual funds and buy property at some point. We are mostly in India so my tax status is resident only but I have so far not filed as I am not working and have no income in India. I have a PANCARD and ...

Impact on cheque payment for residential flat purchase

*Sub: Purchase of a flat in Chennai, Tamil Nadu.* 1. A residential flat is purchased at ₹. 49 Lacs and Sale deed registration is done at Govt guidance value which stands at ₹. 32 Lacs. The difference in sum ₹. 17 Lacs (₹. 49 Lacs - ₹. 32 Lacs) is paid by way of cheque to the seller’s relative. 2. The receiver (seller) is willing to file income tax returns for both payments (Guidance valu...

Payment of Advance Tax for a Software consultant

Hello, I'm a professional software engineer who recently experienced a layoff from a multinational corporation based in Delhi. For the FY2023-24, I worked with this company for the initial 9 months, following which I transitioned into a role as a software consultant with a Turkish company. While taxes were duly paid to the government for the first 9 months of my employment, I understand that...

I work as an independent contract for a company in India that provides services, and I expect to mak

1) Can I choose presumptive taxation? The reason I'm asking is because I work from home and my business expenses are minimal, mainly consisting of essentials like internet, electricity, mobile connection, and office supplies. Here's a breakdown of my expenses: - I spend a maximum of 10 to 15K per month (approximately 1.8 Lac per annum) on office-related expenses. - I spend around 50K for main...

I work as an independent contract for a company in India that provides services, and I expect to mak

1) Can I choose presumptive taxation? The reason I'm asking is because I work from home and my business expenses are minimal, mainly consisting of essentials like internet, electricity, mobile connection, and office supplies. Here's a breakdown of my expenses: - I spend a maximum of 10 to 15K per month (approximately 1.8 Lac per annum) on office-related expenses. - I spend around 50K for main...