There is a controversy over the taxability of leave encashment. The CBDT Notification No. 31/2023 (dated 24 May 2023) which increased the exemption limit for leave encashment on retirement for non-government employees (including PSU bank employees like SBI) from ₹3 lakh to ₹25 lakh, is effective from 1 April 2023 (AY 2024-25 onwards). Though, it… (read more)

The partition can be by mutual consent in which case a Deed of partition or Deed of Family Settlement can be executed. This will have to be registered with the sub-registrar's office after payment of stamp duty. If parties are not agreeable, a partition suit will have to be filed in the City Civil Court.… (read more)

Under Section 270A(6), no penalty can be levied if you provide a "bona fide explanation" as to why the ₹1.5 Cr was not offered even though TDS was deducted and it was shown in GST. In other words, you will have to explain on what basis you regarded the amount as a refundable advance. Also,… (read more)

Yes, it is legally possible to split your 4BHK flat into two 3BHK flats (one in your individual name and one in your father's HUF name) during the redevelopment process. This will require approval of the Society and the Builder and also the BMC. The split will not attract any tax implications as it will… (read more)

The partners will have to give notice of their retirement. A deed of reconstitution will have to be prepared. The assets of the firm will have to be revalued and the retiring partners will have to be given their share. U/s 45(4) of the Income-tax Act, if revaluation leads to crediting gains to partners' accounts… (read more)

You will have to Contact the NFAC/PCIT by using the Income Tax Helpline: 1800-180-1961 (for queries) or 1800-103-4455 (grievances). Email: webmanager@incometax.gov.in (attach appeal details, PAN, AY). You can also file a grievance on the portal: Dashboard > Grievance > New Grievance (select "Appeal Delay"). You can also raise a grievance petition with CPGRAMS. That usually… (read more)

Various ITAT Benches have taken the view that the CBDT Notification No. 31/2023 dated May 24, 2023 by which the limit was enhanced to ₹25 lakhs, effective from April 1, 2023, has retrospective application as it is beneficial. To benefit from this, you should file a rectification application. If this is denied, you should file… (read more)

The query is not clear. Generally, gifting the new residential houses (purchased/constructed for claiming exemption) to the wife would generally not disqualify the deduction under Section 54F if the investment was made from the sale proceeds and other conditions are met. Judicial precedents (e.g., ITAT rulings and Delhi High Court in CIT vs. Ravinder Kumar… (read more)

It appears the entire LTCG loss of Rs. 3,09,91,067 has been treated as "under-reported income". This appears to be a miscomputation because under-reporting u/s 270A(2) is defined as the difference between assessed income and returned income and not the gross loss amount. Moreover, LTCG computation involves factual verification of costs. A disallowances based on gaps… (read more)

There is no specific threshold in Section 139(1) that makes ITR compulsory solely based on purchasing assets like immovable property (land/building). However, if the purchase involves TDS deduction (e.g., u/s 194-IA for non-agricultural immovable property more than ₹50 lakhs), there could arise an obligation to file a return. In the present case, as agricultural land… (read more)