2 weeks ago

Tax Guidance Covers Revised Returns, Home Loans, Advance Tax

The article answers three questions about income tax.

If bond dividends were missed in a return, they should generally be included in a revised return for the correct financial year.

Any extra tax and required interest should be paid before submitting it.

Home-loan principal payments made before getting possession cannot be claimed later as a tax deduction.

However, eligible interest paid before possession can be claimed in five equal yearly parts after possession.

Interest deductions depend on whether the old or new tax regime is used.

People with taxable interest income may need to pay advance tax.

They generally need to do this when their remaining yearly tax is more than Rs 10,000.

At least 45% of the estimated advance tax should be paid by September 15 to avoid interest, unless a qualifying resident senior citizen is exempt.

Key facts

Dividend tax timing: Tax applies in the financial year when dividend or interest is declared, distributed, or paid, whichever is earlier.
Revised return: An omitted bond dividend may be reported through a revised return for FY 2025-26.
Additional liability: Any differential tax and applicable statutory interest should be paid before filing the revised return.
Principal repayment: Principal repayments made before property possession cannot be claimed retrospectively.
Pre-construction interest: Eligible accumulated interest can be claimed in five equal annual instalments beginning in the financial year possession is received.
Advance-tax threshold: Advance tax is generally required when tax liability after tax deducted at source exceeds Rs 10,000.
September instalment: At least 45% of estimated advance tax should be paid by September 15 to avoid interest.

financialexpress.com · 2 weeks ago