❓ Income Tax — Questions & Answers

Do I need to file an ITR — who must file, and who should anyway?

You must file if your total income before deductions exceeds the basic exemption (₹2.5 lakh old regime / ₹3 lakh new), or if you cross certain high-va...

Can I claim HRA if it's not in my Form 16?

If HRA is a component of your salary but your employer didn't give the exemption (Form 16 shows it as taxable), you can still claim the HRA exemption...

Form 15G for PF withdrawal — when is it required (and when it isn't)?

Form 15G matters only when TDS would otherwise be deducted on your EPF withdrawal — that is, a taxable withdrawal (less than 5 years of service) of ₹5...

Setting off & carrying forward losses — capital losses and F&O

A short-term capital loss can be set off against any capital gain (short or long); a long-term capital loss only against long-term gains. F&O (non...

My employer deducted TDS but didn't deposit it — what can I do?

If your employer deducted TDS from your salary but didn't deposit it, the law is on your side — Section 205 bars the department from recovering that t...

Foreign shares & US RSUs — how they're taxed in India

If you're a resident, your foreign shares and RSUs are taxable in India. RSUs are taxed as a salary perquisite at vesting and as capital gains at sale...

Cost of acquisition, cost of improvement, and stock splits/bonus

Cost of acquisition is what you paid to buy the asset (plus buying costs); cost of improvement is later capital spend that enhances it (not repairs)....

NPS Tier-1 withdrawal rules — at 60, early exit, and small corpus

At superannuation (60), you can take up to 60% of your NPS Tier-1 corpus as a tax-free lump sum and must use at least 40% to buy an annuity (the pensi...

Presumptive tax for small business — Section 44AD

A small business (not a profession) with turnover up to ₹2 crore — ₹3 crore if cash receipts are ≤5% — can declare 8% of turnover (6% for digital/bank...

Your tax notice explained — 4% cess, 234B/234C interest, and 143(1) mismatches

Your intimation adds 4% health & education cess on tax, and interest under 234A/234B/234C if tax or advance tax was short. If the 143(1) intimatio...

Deduction on savings & deposit interest — Section 80TTA and 80TTB

Section 80TTA gives a deduction of up to ₹10,000 on savings-bank/post-office interest for those under 60. Section 80TTB gives senior citizens ₹50,000...

Home loan tax benefits — principal, interest and under-construction

A home loan gives you two deductions in the old regime: the principal under Section 80C (within ₹1.5 lakh), and the interest up to ₹2 lakh for a self-...

Short-term vs long-term capital gains — rates and how they're taxed

Capital gain is short-term (STCG) or long-term (LTCG) depending on how long you held the asset. Equity STCG is 20%, equity LTCG 12.5% over ₹1.25 lakh;...

Cash limits & tax — receiving cash (269ST), TDS on cash withdrawal (194N)

Receiving ₹2 lakh or more in cash from one person in a day/transaction attracts a 100% penalty under Section 269ST — on the receiver. Large cash withd...

How is cryptocurrency taxed in India — rate, TDS and which ITR?

Gains on crypto and other Virtual Digital Assets (VDAs) are taxed at a flat 30% (plus surcharge and cess) under Section 115BBH, whatever the holding p...

Does an NRI need to file an ITR in India — and how?

An NRI must file an Indian return if India-source income crosses the basic exemption, to claim a refund of excess TDS, or to report capital gains. NRI...

Can I claim a past year's deduction, or file an old year's return?

You can't backdate a deduction like 80CCD(1B) — it applies only to the year you actually contributed. And an old year's return can still be filed as a...

How to find your UAN (Universal Account Number)

Your UAN is a 12-digit number that links all your PF accounts. Find it on your salary slip, from your employer, or via the EPFO portal's "Know Your UA...

How are ESOPs taxed — at exercise and at sale?

ESOPs are taxed at two points: as a salary perquisite when you exercise (market value on exercise date minus the price you paid), and as capital gains...

Section 143(2) scrutiny notice — what it means and how to respond

A Section 143(2) notice means your return has been selected for scrutiny (detailed examination). It must be issued within 3 months of the end of the f...