V
Vinod
I am a freelancer and currently file my taxes using ITR-4 under the presumptive taxation scheme (Section 44ADA). I maintain basic records such as income, expenses, and invoices, and my income has so far remained below the ₹50 lakh threshold.
I have a query regarding tax audit under Section 44AB:
If my income exceeds ₹50 lakh in the next financial year(25-26), making a tax audit mandatory under Section 44AB, will the audit be limited to this particular financial year only, or will the auditor also review records from previous financial years?
I would appreciate your guidance on this matter.
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If your gross receipts surpass this threshold in FY 2025-26, the tax audit will pertain solely to that specific financial year. Auditors typically do not examine records from previous years unless necessary to verify opening balances or address specific discrepancies. Therefore, the audit will focus on the financial records of FY 2025-26 and not extend to prior years.
It's advisable to maintain accurate and comprehensive records annually to ensure compliance and facilitate any necessary audits.
I hope this clarifies your query
M
Meena Subba
IS A GIRL MARRIED TO SIKKIMESE MAN EXEMPTED FROM IT?
No, a girl married to a Sikkimese man is not automatically exempted from Income Tax under the Income Tax Act, 1961.
Only those whose names appear in the 1961 register or their legitimate descendants (Sikkimese by birth) are exempt.
Women who marry Sikkimese men do not become Sikkimese subjects merely by marriage and hence do not get automatic tax exemption.
If the woman herself or her parents were Sikkimese subjects in 1961, she may be considered eligible.
S
Sheikh
Hi,
I need to withdraw cash of around 50L for a property purchase and would like to know how to do it without getting into any trouble. I am considering splitting it into 25L per FY and withdrawing it from 3 different banks that I have an account in. Will this help avoid the reporting by banks since the amount withdrawn at each bank will be less than 10L in each FY?
Thanks
Splitting the transaction across multiple banks and financial years may reduce the chances of automatic reporting, but it is not a foolproof method to avoid scrutiny.
The Income Tax Department tracks transactions using your PAN, which is linked across all your bank accounts. So even if no single bank reports a withdrawal exceeding ₹10 lakh in a year, the overall pattern can still be visible and may raise flags — particularly if you're already under scrutiny or involved in a high-value property deal.
Additionally, property transactions above ₹30 lakh are reported by sub-registrars to the tax authorities. You should also check the circle rate of the property, as it may push the reportable value higher — even if your declared sale/purchase price is lower.
Please note, under Section 269ST and 269SS, any cash transaction of ₹2 lakh or more (whether in one go or in aggregate for a single transaction/event) is prohibited. Violations can result in penalties for both the payer and the recipient — which in this case could affect both you and the seller.
If cash is absolutely unavoidable, ensure you maintain a clear paper trail:
Withdrawal slips
Bank statements
ITR copies
Any communication with the seller
Lastly, ensure that the seller is also compliant with Section 269ST, as penalties apply even if only one party is found violating the provision.
Contact us for more clarity,
Vanshika Bhardwaj & Company
vanshikabhardwajandcompany@gmail.com
+91 7838 440098
R
Rahul Gaikwad
I had a net negative income for the FY 2023-24 and, therefore, did not file an income tax return for that year. My trading activity during FY 2023-24 included a short-term profit of ₹38,773.9, a long-term loss of ₹5,609.4 in equities, and a realized loss of ₹47,036.75 in options trading, with an options turnover of ₹6,34,243.25. I did not have any other source of income during the year. Since I traded in options but did not file an income tax return, could this lead to any issues or trouble for me?
R
Rahul Gaikwad
I had a net negative income for the FY 2023-24 and, therefore, did not file an income tax return for that year. My trading activity during FY 2023-24 included a short-term profit of ₹38,773.9, a long-term loss of ₹5,609.4 in equities, and a realized loss of ₹47,036.75 in options trading, with an options turnover of ₹6,34,243.25. I did not have any other source of income during the year. Since I traded in options but did not file an income tax return, could this lead to any issues or trouble for me?
