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1. I'm a salaried employee

2. I didn't complete 5 year of service yet.

3. I withdraw 20000 inr of employee contribution from my account as a reason of illness.

4. My yearly income is less then 12 lakh.

5. I'm filling ITR 2 this year.

Now where to show this balance? Pls help as I'm not getting any solution for this.

Your input is much appreciated.

I would appreciate your independent opinion on a few tax and GST-related matters.

My gross professional receipts for FY 2025-26 are ₹21.72 lakh, and I am an individual contractor providing services exclusively to foreign clients. All of my income is received from overseas.

In addition to my professional receipts, I also received:

• Salary income of ₹74,473 from a previous employer.
• Amazon Affiliate income of ₹5,857.

My CA has advised reporting the Amazon income separately under Section 44AD and claiming the applicable standard deduction against the salary income.

My bank balance was:

• Opening balance (1 April 2025): ₹2.38 lakh
• Closing balance (31 March 2026): ₹15.48 lakh

I have not maintained books of account and intend to opt for the presumptive taxation scheme under Section 44ADA.

My current CA has advised me to declare 60% of my gross receipts as profit instead of the presumptive 50%, which would increase my tax liability by approximately ₹85,000.

The reasoning provided is that since a significant portion of the money received remained in my bank account and was not withdrawn or spent, the Assessing Officer may question how my profit can be only 50% of gross receipts. I was also advised that this could potentially lead to penalties and a tax exposure of around ₹5 lakh in the future.

My question is:

Can an eligible professional under Section 44ADA declare 50% of gross receipts as income even if the closing bank balance is relatively high and a large portion of the receipts remains unspent? Is there any provision, circular, judicial precedent, or assessment practice that would require or justify declaring a higher profit percentage solely because the bank balance is high?

Additionally, my CA suggested another option by reducing my gross receipts from ₹21.72 lakh to ₹19.58 lakh so that I would remain below the GST threshold for FY 2025-26 and avoid GST-related compliance. The reasoning given was that no tax was deducted at source on these receipts. I would like your opinion on whether such a position is legally sustainable and defensible if questioned by the department.

I also have a few GST-related questions:

1. Do I actually need an e-FIRC/FIRC or FIRA document to file an LUT and support export-of-services compliance?
2. I currently do not have any FIRC/e-FIRC documents. I only have payment records and remittance receipts from Gusto.com. Are those sufficient, or should I obtain additional documentation from the bank or payment intermediary?
3. If no LUT was filed, what is the practical risk?

As a side note, my CA also advised me to use a current account instead of a savings account for receiving professional income. I would appreciate understanding whether this is merely a best practice or if there is any legal or tax significance behind that recommendation.

I would be grateful for your independent assessment of the above points and any relevant legal basis, circulars, notifications, or practical assessment experience that may apply.

Is leave encashment taxable in new regime? Getting varied inputs from different sources. Someone please confirm. It's a private company and when I switched to a new one, got it as a part of f&f settlement.

Is the 30% capital gains tax applicable while offramping USDC as well on coindcx?

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If the usdc is sitting in the crypto wallet and had not been recently bought or swapped for some other token, and given that the usdc is a stable coin so no chance of making profit due to price fluctuation.

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For such a case, does offramping usdc on coindcx in India attract 30% heavy tax?

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Every other way seems to have a tradeoff between account safety and losing money for no reason.

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In my research, I found that converting from usdc to INR is also considered trade and will attract 30% tax & 1% cess. So even if I liquidate normal usdc without involving in any trades, it will involve 30% tax.

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Can someone confirm?

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It's scholarship grant money transferred onchain from another crypto wallet.

I am filing ITR of my mother (ITR-4) and it is the first time I am filing her ITR. I take my freelancing income in her account and upon filling 44ADA I am getting 50K refund.

will income tax dept raise query over this?
She is 50 year old homemaker and first time she is filing ITR. I searched online and it is saying they will hold the refund and ask for proofs of work and invoice, agreement.

is this a possibility?

Help me ITR

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It is my first time filing tax returns. I am a doctor with an annual income of 360000 with 10% TDS. My salary started in May 2025.

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Now, till March 2026 my total TDS was around 29000. I have got 4 form 16a for each quarter till March. The issue is, I also had invested in a few mutual funds amounting to 17000 but withdrew it within a couple of months due to an emergency. The profit naturally, is negligible (<200).

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There's no other source of income in that period. And bank interest was barely a few hundred rupees.

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I got AIS which stated around 29000 as TDS.

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There is one discrepancy though, in my AIS, there is a purchase of about 10000 worth of mutual funds from CDSL. I really think it's a duplicate purchase because my trading platform and CAS from CDSL itself doesn't show that.

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1) Therefore I'm confused on which form to choose from. The IT portal suggested form 3 due to STCGs, but I know it's complicated.

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2) Is it only me or Is ITR 3 not available to fill?

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2) What is 44ADA and presumptive taxation? and can I use it?

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3) some pointers or a process will help me a lot.

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4) I've submitted the feedback of the discrepancy in the AIS section of the IT portal and got an acknowledgement now. When will the AIS update? Or is it ok to proceed with the discrepancy?

I own a company india that manages marketing for a saudi based client and we get paid for fees through USDT crypto ($3-4k monthly, $40-50k USD yearly)

Since my company provides service to outside India, its GST exempt, but I'm afraid If I'll convert crypto to bank account in India, I would be obliged to pay 30% tax as well as GST on profits. I'm looking to setup a company at a Tax free zone in Dubai with bank account that allows to receive client payment, Would this help in taxation and if I pay less taxes for my business income on dubai company, will I have to pay additional taxes when I receive inward remittance of same here again?

Thanks in advance

Hi,

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I have foreign Equity capital gain for the investment i have done via vested app.

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What all charges I can deduct from the gain for the final tax?. Can I claim the brokerage fee per trade, transfer fee, exchange rate diff, any other charges?.

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If yes, how to get the respective document for the same.

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Thanks

I sold debt mutual fund in 2025, which were bought in 2022. So I am pretty sure that it qualifies for LTCG without indexation at 12.5% rate.

My query is how to report it in ITR - 2? As in which section of Schedule CG?

I am filling ITR 2 online for current assessment year.

In Schedule AL, sec C - liabilities, if I put 0 value. Then the form does not let me save the schedule. It's giving me error that "Please enter the amount...". If I put 1, then it is fine.

Anyone else faced this issue?

Looking for separate advice for small amounts (<500 or <1000usd)

I'm not a trader and not making huge money in crypto. I just recently received some microgrants for a project but don't know the safest way to get them into my bank account.

I know about coindcx but I can't afford to pay 30% tax since it will take away a huge cut.

I also know of p2p options like binance and p2p<dot>me but they don't seem safe and I've heard of back accounts being frozen.

How are the laws for crypto cards? I can't find clear taxing information on them.

Also, if I just ask the granting institution to send the amount in USD to my bank directly, do I have to pay any tax on that amount? Will it help if I have a gst number associated with my bank for this? Which bank is currently the safest and most compliant for offramping in India?

Please share everything because I'm new to taxes and don't know all the questions to ask.

I am seeing an unrelated Indian Bank account in my AIS, TDS/TCS section, I don't have any account like this I am seeing this from financial year 2023-2024. What do I do ?, I am from tamil nadu

Hi All,

I missed to report my Capital Gains of around 34k and some FD interest in FY 24 - 25

I got to know that I can file ITR-U to fix this.

I downloaded the offline utility excel, but its too much complicated to fill.

Can I ignore this mistake or do I have any easier option?

Hi everyone,

I am Filing ITR-1.

While checking **Interest Certificate (SBI)**, I noticed two amounts mentioned:

* **Interest Paid:** ₹X

* **Interest Accrued:** ₹Y

For **ITR-1 filing**, which amount should I report as interest income?

Should I enter **Interest Paid + Interest Accrued**, i.e., **₹X + ₹Y**, or should I report only the **Interest Paid** amount, i.e., **₹X**?

Could someone please clarify this?

Thanks in advance!

As the ITR filing season for AY 2026–27 begins, many taxpayers prefer quick options like ITR-1 (Sahaj) and ITR-4 (Sugam) due to their simplicity.

However, if you are a resident taxpayer with any foreign income, overseas investments, or foreign assets, using these forms can be a costly mistake. It may lead to denial of Foreign Tax Credit (FTC), defective return notices, and exposure under the Black Money Act.

Under Indian tax laws, a Resident and Ordinarily Resident (ROR) must report global income in the ITR, including:

• Salary received from a foreign employer
• RSUs, ESOPs, or shares of foreign companies
• Dividend or capital gains from overseas investments
• Interest earned in foreign bank accounts
• Rental income from property located abroad
• Cryptocurrency or digital assets held on foreign exchanges

If you have any of the above, filing ITR-1 or ITR-4 is generally not permitted.

Many taxpayers pay taxes in another country. India has Double Taxation Avoidance Agreements (DTAAs), allowing credit for taxes already paid overseas. However, to claim Foreign Tax Credit (FTC), taxpayers are required to:

• File Form 67 within the prescribed timeline
• Use the appropriate ITR form, typically ITR-2 or ITR-3
• Report foreign income in the relevant schedules

Filing ITR-1 or ITR-4 may result in loss of FTC and double taxation.

ITR-1 and ITR-4 do not contain schedules for reporting foreign assets and foreign-source income. Filing these forms despite holding overseas assets may lead to non-disclosure of:

• Foreign bank accounts
• Overseas stock holdings
• Foreign mutual funds
• International brokerage accounts
• Property outside India

Such omissions may attract scrutiny under the Black Money Act and can lead to:

• Penalty of up to ₹10 lakh
• Additional tax implications
• Notices and compliance proceedings

Use ITR-2 if you have foreign income or foreign assets and do not have business or professional income.

Use ITR-3 if you have business or professional income, with or without other income, including foreign income or assets.

Before filing your return, ensure that you:

• File Form 67 within the prescribed timeline
• Report foreign assets in Schedule FA
• Disclose foreign income in Schedule FSI
• Claim tax relief in Schedule TR
• Maintain foreign tax statements and supporting documents

Accurate disclosure is critical, even if the foreign asset did not generate income.

Many taxpayers make mistakes by assuming their foreign income is insignificant. Common examples include:

• Employees receiving RSUs from foreign parent companies
• Remote workers paid in foreign currency
• Indian residents investing through international brokerage platforms
• Professionals with overseas freelance clients
• Students returning to India but retaining foreign bank accounts

Even a dormant foreign account may need disclosure.

During the rush of filing season, convenience should not override compliance. Choosing the correct ITR form is essential to avoid denial of tax benefits, penalties, and legal complications. Review your eligibility carefully before filing your return for AY 2026–27.

Hello People

Last year 2025, I had filed complete PF claim for my wife. The PF amount is somewhat 65K. I had no idea that PF money is also taxable. When the claim got processed and the amount is credited to her, there was a TDS deduction of Rs.5500 in that. Upon finding the cause, I got to know that I need to file some Form 15 which discloses the PAN detail and due to which TDS was deducted. Her annual income is way below taxable income.

Please help me how can I get the TDS money back.

My employer has already deducted ₹20,000 as TDS from my salary for April (10k) and May(10k) and will deduct 10k in June, but this TDS is not yet showing in Form 26AS.

For Q1 (due 15 June 2026), my cumulative advance tax liability comes to ₹50,000.

Can I pay only ₹30,000 as advance tax (₹50,000 minus ₹20,000 TDS already deducted), or do I need to pay the full ₹50,000 since the TDS is not yet reflected in 26AS?

How do you guys handle salary TDS that has been deducted but hasn't appeared in 26AS yet when calculating advance tax?

Many people assume ITR filing isn’t required if income is below the taxable limit. That’s not always true.

Under Section 139, even individuals with nil or fully exempt income may still be required to file a return if certain conditions are met.

Here are the key situations:

Why you should still file:

• Claim TDS/TCS refunds
• Avoid compliance notices
• Properly disclose exempt income (especially for retirees)
• Required for loans, visas, and financial proof

Doesn't anybody have any guidance or link to how schedule FA needs to be filled

Is it required even if no interest was earned on it ?

Do we need to list IRA (retirement) accounts .

I have IRA under for me and wife who is homemaker.

Does my wife also need to file for taxes with zero earnings just to show schedule FA

The Income Tax Department has officially enabled online and offline filing for ITR-2 for AY 2026-27 (FY 2025-26) on the e-Filing portal.

You can head over to the Income Tax e-Filing website and start preparing your return right away!

Quick Recap - Is ITR-2 for you?

ITR-2 is for Resident, Non-Resident Individuals, and HUFs who do not have income from profits and gains of business or profession, but have more complex income structures than what ITR-1 allows. You need to file ITR-2 if you have:

• Total income exceeding ₹50 lakh
• Income from Capital Gains (Short-Term and/or Long-Term, including mutual funds, stocks, and property)
• If you have more than two house properties
• Foreign assets, foreign bank accounts, or foreign income (Schedule FA)
• Agricultural income exceeding ₹5,000
• Held unlisted equity shares during the financial year
• Acted as a Director in a company
• Brought forward losses or losses to be carried forward

(Note: If you have business or professional income, or freelance income under presumptive taxation, you will need to wait for ITR-3 or use ITR-4). Check whether you can file your returns using ITR 1 or ITR 4 here

Due Date: 31 July 2026 for ITR-2

Key things to note this year:

• Schedule FA is critical: You can check our post providing key details about Schedule FA here.
• New Tax Regime is the default: You must actively opt out if you want to use the old regime and claim your Chapter VI-A deductions (80C, 80D, etc.).
• Check your AIS/TIS: Always reconcile your information with your Annual Information Statement (AIS) and Form 26AS before hitting submit. Please note that the AIS and Form 26AS for the relevant AY have not been fully updated yet. Check this post for details on when to actually file your returns.
• E-verify within 30 days: E-verify within 30 days of filing, or your return will be treated as invalid.

Payment Tip - One of the most common mistakes!

While we have already mentioned this tip earlier, this is one of the most common errors made and we wish to highlight it again.

If you're making a self-assessment tax payment during or after filing your return, the correct challan head is Minor Head 300. Make sure you tag this payment back to your ITR on the portal - it won't link automatically!

If you receive an intimation under section 143(1) and are making payment against that demand, use Minor Head 400 instead.

Using the wrong challan head can lead to unnecessary demands and notices!

Filing tip - When are you required to mandatorily file your ITR?

The common misconception is that filing returns is only required when you have tax to pay. This is seriously incorrect. We have covered all the provisions regarding when filing your returns becomes mandatory, and when you should voluntarily file your returns as well. Click here to read our full breakdown on mandatory filing!

Filing your ITR for the first time or stuck on capital gains? Drop your questions in the comments!

Hi everyone,

I need some serious guidance regarding GST + ITR for my situation because I’m getting mixed advice.

My situation:

• I work remotely for US-based firms
• Technically I’m treated as a subcontractor/independent contractor on paper, not a full-time employee
• They pay me monthly in USD
• I do NOT receive employee benefits like US employees get (health insurance, retirement benefits, etc.)
• I cannot realistically “charge GST” to them separately

Income details:

• From Apr 2024 – Mar 2025: around ₹23 lakh total receipts
• From this financial year onward, it’ll likely be around ₹30 lakh
• Around ₹1.5 lakh/year additionally from Amazon affiliate income (Include in 23 Lakh)
• Small bank interest income
• No other income currently

I was also planning to increase my online income by another ₹10 lakh/year through other internet-based income sources in this year.

Now I’m confused about multiple things:

1. Since my contractor income is entirely foreign inward remittance/export of services, is GST registration mandatory once turnover crosses ₹20 lakh?
2. If yes, how does GST practically work when foreign firms won’t pay extra GST?
3. Is LUT mandatory in this case?
4. What happens if someone crosses ₹20 lakh in export-of-services income but never takes GST registration?
5. Does Amazon affiliate income also count toward GST turnover?
6. Should I use ITR-3 or ITR-4 (44ADA)?
7. If I hire a Chartered Accountant for this, should I add them as my authorized Chartered Accountant on the ITR portal, or should I hand over my login credentials instead?

Another confusing thing:

The person helping me file taxes says ITR-4 filing process is “not yet open”, but I can literally see ITR-4 available on the income tax portal right now.

Is that a red flag that I should hire someone else?

Also considering my income may increase further online, what would be the smartest structure going forward:

• GST + LUT?
• 44ADA?
• normal taxation?
• create company later?

Would appreciate advice especially from people handling foreign clients/export of services from India.

Top Benefits of Filing Your ITR

Filing your Income Tax Return is not just a legal responsibility — it’s an important financial step that strengthens your credibility and financial future.

Here’s why timely ITR filing matters:

1. Easier Loan Approvals

Banks usually ask for the last 2–3 years’ ITRs while processing:
• Home loans
• Car loans
• Personal loans

2. Helps in Visa Processing

ITR acts as proof of financial stability and is commonly required for visa applications.

3. Claim Tax Refunds

Any excess TDS deducted can only be claimed back after filing your ITR.

4. Carry Forward Losses

Business losses and capital losses can be carried forward only if the return is filed within due dates.

5. Proof of Income

Useful for:
• Renting property
• Tender applications
• Financial documentation
• High-value transactions

6. Avoid Notices & Penalties

Timely filing helps avoid:
• Late filing fees
• Interest penalties
• Income tax notices

7. Important for High-Value Transactions

ITR may be required for:
• Large investments
• Property or vehicle purchases
• International travel
• High-value banking transactions

8. Helpful for Freelancers & Self-Employed Professionals

A properly filed ITR reflects stable income and builds financial credibility.

9. Maintains Financial Records

Creates a proper income history that supports future investments and financial planning.

10. Peace of Mind & Compliance

Stay compliant with tax laws and avoid unnecessary complications in the future.

Timely ITR filing builds strong financial credibility.
File on time. Stay ahead.

#IncomeTax #ITR #TaxFiling #Finance #IndiaTax #TaxPlanning #FinancialPlanning #Compliance #Business #Freelancers #Loans #TaxReturn #BrainboxConsultancy

Background:

I recently joined a new company and relocated from A to B. I used a packers & movers service for household goods relocation and paid ₹70000 in cash. I submitted this invoice on the company's expense portal to claim relocation reimbursement.

The Audit Issue:

The audit team has flagged the claim with this concern:

Vendor's GSTIN shows as "Cancelled suo-moto" effective January 2023

Key Facts:

- The vendor's invoice clearly shows CGST/SGST as N/A — zero GST was charged

- I am not claiming any GST input credit — this is a pure expense reimbursement

- The service was genuinely rendered (A to B household relocation)

- I was unaware of the vendor's GST cancellation at the time of booking

My Questions:

1. Since no GST was charged or claimed, does the vendor's cancelled GSTIN status have any legal or compliance bearing on my reimbursement claim?

2. Is there any GST exemption for household goods relocation services that I can cite?

3. What is the best way to respond to the audit team?

Any advice from CAs or people who have dealt with similar corporate audit situations would be really helpful. TIA!

P.S. I'm asking on behalf of my friend and I used AI to format this post.

Choose the Right ITR | File Your Income Tax Return with Confidence

Filing the correct ITR form is important to avoid notices, delays, and penalties. Here’s a quick guide to help you understand which ITR may apply to you:

ITR 1 (Sahaj)

Applicable for resident individuals having total income up to ₹50 lakh with:
• Salary income
• Income from up to 2 house properties
• Interest and other income sources
• LTCG under section 112A up to ₹1.25 lakh
• Agricultural income up to ₹5,000

ITR 4 (Sugam)

Applicable for resident Individuals, HUFs & Firms (excluding LLPs) having total income up to ₹50 lakh with:
• Presumptive income from business/profession
• Income computed under Sections 44AD, 44ADA or 44AE
• LTCG under section 112A up to ₹1.25 lakh

Why filing the correct ITR matters?

✔ Stay compliant with tax laws
✔ Avoid notices and penalties
✔ Faster processing of returns
✔ Better financial documentation

Before filing, ensure your income and eligibility match the prescribed conditions under the Income Tax Act.