2+ day, 8+ hour ago (252+ words) With the rising real estate cost, especially in metropolitan areas, the trend of purchasing a property jointly is increasing. Under co-owning a property, two or more persons are equal owners, though it brings an intriguing aspect to the tax planning concerning capital gains. One of the confusions that remains among joint property owners is the exemption from capital gains. Experts clarified News18 that Sections 54 and 54F under the Income Tax Act, remain available for co-owners but in proportion to their ownership share. Rai said that under Section 54F, the exemption depends on each co-owner's net consideration invested, and any violation of conditions'like purchasing additional property'affects only that individual's claim, not the others. Anurag Goel, Director, Goel Ganga Development explained that if two partners sell a property held in common and later on buy new residential property exclusively with their respective shares of the…...

3+ day, 8+ hour ago (494+ words) Income Tax Refund Delay 2025: Many taxpayers are still waiting for their income tax refunds, even as the payouts this year have been delayed longer than usual for some people. Though a large number of taxpayers have already received it, some refunds are pending due to claims that were identified as "red flags" by the income tax department"s system. A total of 6.97 crore ITRs were filed by taxpayers in the assessment year 2025-26. Why the Delay In Some Refunds This Year? CBDT Chairman Ravi Agrawal has said the income tax department is reviewing cases involving questionable deduction claims, which has slowed down the release of some refunds. He noted that legitimate refunds are expected to be cleared by December. According to Agrawal, certain refund applications were flagged as "high-value" or "red-flagged" by the system because of the nature of deductions claimed....

4+ day, 8+ hour ago (318+ words) Refunds Likely By December" Despite the tighter checks, the CBDT chief has assured taxpayers that the pending refunds are expected to be cleared by this month or by December. The department is trying to complete the verification cycle as quickly as possible so that genuine refund claims are not held up unnecessarily. "Low-value refunds are being released. We have analysed and found that some wrong refunds or deductions were being claimed. So, this is a continuous process. We hope to release the remaining refunds by this month or by December," Agrawal told reporters recently after he inaugurated a taxpayers" lounge at the ongoing India International Trade Fair (IITF). Will You Receive Interest On Delayed Income Tax Refund? As per section 437 (1), an interest of 0.5% for every month is allowed. The law says, "Where a refund is due to the assessee under…...

1+ week, 2+ day ago (408+ words) A growing number of Indians continue to lose money simply because they fail to claim the tax collected at source (TCS) on overseas tour packages, despite the credit appearing clearly in Form 26AS. Tax experts say confusion around recent TCS rate changes and poor understanding of how the system works are the biggest reasons behind this. TCS is collected by the seller at the time of certain transactions, such as foreign remittances, overseas tour packages, or the purchase of specific goods and services. TCS is a prepaid tax component meant to improve reporting and compliance, not an additional cost to the taxpayer. CA Shefali Mundra, Tax Expert at ClearTax, said many travellers mistakenly treat TCS as an extra "fee" instead of a tax paid in advance that can be adjusted later. She explained that the shift from 5% to 20% TCS for certain…...

1+ week, 5+ day ago (357+ words) CBDT Chairman Ravi Agrawal also said the tax department is undertaking an analysis of wrongful deductions claimed in certain cases, leading to a delay in issuance of refunds, and legitimate payouts are expected by December. Why Are Some Refunds Getting Delayed This Year? The CBDT chief said the income tax department was analysing some of the refund claims which were identified as "high-value" or were "red-flagged" by the system due to claims of certain deductions. "We have also written to the taxpayers to file a revised return in case they have forgotten something," he said, while speaking to reporters on the sidelines of an event held at the Bharat Mandapam here, as reported by PTI. When Will Remaining Refunds Be Released? Agrawal said that though low-value refunds are being released, the remaining refunds are expected to be released by this…...

3+ week, 4+ hour ago (184+ words) Mumbai ITAT rules compensation for flat delivery delays is not taxable under Section 50C. Experts say this offers relief to taxpayers facing project delays. In a significant ruling, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that compensation received for delay in construction or delivery of a flat cannot be taxed under Section 50C of the Income Tax Act. The tribunal clarified that such compensation is distinct from sale consideration and does not attract stamp valuation provisions. The tribunal also emphasised that the delay compensation is essentially a form of interest paid by the builder for the inconvenience caused to the homebuyer due to delayed possession. As such, it is taxable under "Income from Other Sources, in line with provisions applicable to interest income, and is subject to tax at the individuals slab rate. She added that the…...

3+ week, 7+ hour ago (354+ words) New Delhi: The deadline to file Income Tax Returns (ITR) has already passed, yet many taxpayers are still waiting for their refunds. This raises an important question: if there is a delay in receiving the refund, does the government pay interest on it? The answer is yes, but it depends on when you filed your return and why the delay occurred. In simple terms, if the Income Tax Department delays the processing of your return, you are entitled to receive interest on the refund. However, the rule changes slightly if you filed your return after the deadline. In such cases, interest is calculated from the date you filed your return, not from April 1. That means those who filed their ITR late may lose out on a portion of the interest. Under Section 244A of the Income Tax Act, there is a…...

3+ week, 3+ day ago (304+ words) In a ruling that could bring significant relief to thousands of homebuyers and property investors across the country, the Income Tax Appellate Tribunal (ITAT) in Mumbai held that compensation received from a builder for delay in handing over a flat cannot be taxed as capital gains under Section 50C of the Income Tax Act. In her income tax return, the woman declared this amount as long-term capital gains. However, the Income Tax Department disputed the claim, arguing that Section 50C, which mandates taxation based on the stamp duty value in cases of property transfers, should apply. The department assessed the property's stamp value at Rs 3.51 crore and recalculated her capital gains accordingly. The tribunal observed that Section 50C applies strictly to transactions where there is a transfer of land or building. In this case, no such transfer occurred; instead, the builder paid compensation…...