TDS

Many taxpayers mistakenly assume that TDS-deducted income or tax-exempt LTCG need not be disclosed in their ITR. Such omissions can create mismatches with AIS and Form 26AS, leading to tax notices or adjustments even when no additional tax is payable.

EPF withdrawals are tax-free if an employee completes five years of continuous service. Withdrawals before five years may be taxable, except in certain cases such as ill health or employer closure. TDS rules depend on the withdrawal amount.

An ITAT ruling reinforces that salaried employees cannot be asked to pay tax twice if their employer deducts TDS but fails to deposit it. The decision strengthens taxpayer protection and serves as a timely reminder to verify TDS records before filing income tax returns.

Crypto investors should avoid common ITR filing mistakes such as assuming the 1% TDS is the final tax, skipping transaction reporting, using the wrong ITR schedule, incorrectly calculating gains and failing to reconcile TDS with Form 26AS and AIS.

Individuals paying monthly rent above ₹50,000 are required to deduct TDS at 2% before making the payment to the landlord. Timely deduction, deposit of TDS through Form 26QC and issuance of Form 16C can help avoid unnecessary penalties and tax notices.

A Delhi taxpayer was denied a ₹17 lakh tax refund due to the late e-verification of his ITR while caring for his ill father. ITAT ruled that denying the refund on technical grounds violates Article 265 of the Constitution, leading to a ruling in his favour.

Clarity on TDS on rent paid to joint owners shows the ₹50,000 threshold applies per landlord, not per property. Joint ownership rent splits decide tax deduction, ensuring accurate compliance under Section 194IB and avoiding unnecessary deductions.

A Mumbai IT professional faced a tax demand of ₹3.36 lakh after her employer failed to deposit deducted TDS. The ITAT ruled in her favor, stating tax demands cannot be raised if TDS is deducted but not remitted. Details of the case here.

A recent Mumbai ITAT ruling has brought relief to salaried taxpayers facing tax demands due to their employer's failure to deposit TDS. The tribunal held that an employee cannot be penalised for an employer's default once tax has already been deducted from salary.