The ITR itself does not have a specific "check procedure" to confirm sufficient money for a land purchase. Instead, it’s a tool to declare income and assets, which the tax authorities use to cross-verify financial capacity during scrutiny. To avoid issues, the assessee should ensure their declared income, savings, or exempt sources (like loans or… (read more)

There is no fixed timeline in the DTVSV Scheme, 2024, for issuing Form 4 after Form 3 submission, but it should typically take 15-30 days under normal circumstances. Your two-month wait (since early January 2025) indicates a delay, likely due to administrative backlog. To move forward, verify your submission, file a grievance with the CIT… (read more)

The Income Tax Act does not limit the number of times an individual can purchase gold or silver jewellery in a financial year. The assessee can make 1, 2, or even 10 purchases (as in your case, 2 transactions of ₹5 lakhs each), provided: - The source of funds for each transaction is explained (e.g.,… (read more)

There is no specific cap on wedding expenses under the Income Tax Act for personal purposes, but personal expenses are not deductible. The tax implications arise only if the source of funds is questioned. Wedding expenses for a daughter’s marriage cannot be claimed as a business expense under Section 37(1) because they are personal in… (read more)

For the amounts covered by Form 26A, the assessee is safe from disallowance. For the remaining amounts, the AO’s proposed addition under Section 40(a)(ia) is legally sound unless the assessee can secure Form 26A or convince the authorities (with judicial precedents) that the revenue’s interest is not harmed. The submitted evidence strengthens the case for… (read more)

There is no provision in the Income Tax Act that caps or limits the amount an individual can spend on personal household expenses in a financial year. However, the source of funds for these expenses must be explainable and consistent with the taxpayer’s declared income. If the expenses appear disproportionate to the income reported, the… (read more)

An order rejecting or dismissing a revision petition under Section 264 is not an appealable order before the ITAT under Section 253 of the Income-tax Act. Under Article 226 of the Constitution of India, you can file a writ petition before the jurisdictional High Court challenging the dismissal of your revision petition. The High Court… (read more)

It can be argued that tenancy rights acquired free after Assessment Year 2017-18 are not taxable under Section 56(2)(x) because they do not squarely fit the definition of "immovable property" (land or building) as outlined in the section. However, this depends on the specific facts: If the acquisition involves only the tenancy rights and not… (read more)

Thank you for reaching out with your query. I’ll do my best to clarify your situation regarding the Long-Term Capital Gains (LTCG) exemption and the Capital Gains Account Scheme (CGAS) based on the details you’ve provided. To address your question about securing a 100% exemption on the LTCG of approximately INR 30–32 lakhs from selling… (read more)

The right to appeal is a statutory right under the Income Tax Act, 1961 (Section 246A), and filing an appeal is not contingent upon pre-payment of the disputed tax amount. The appeal can be submitted within 30 days of receiving the assessment order or demand notice, using Form 35, along with the applicable filing fee… (read more)