INCOME

IRS raises 2027 capital gains tax limits: Could selling stocks become tax-free for more Americans as the 0% threshold jumps to $51,050?

The IRS has raised the 2027 long-term capital gains tax limits, allowing investors to earn more from stock sales before paying federal tax. The 0% tax threshold will rise to $51,050 for single filers from $49,450, while married couples filing jointly will get a $102,100 limit, up $3,200. The benefit depends on taxable income and holding periods.

Social Security tax by state in 2026: Which 8 states tax retirement benefits, where can retirees keep more of their benefits, and how much could you owe the IRS?

Social Security benefits are not tax-free for every retiree in 2026. Just over half of beneficiaries are expected to pay federal income tax on their benefits, according to the Congressional Budget Office. Eight states also tax Social Security payments, although income-based exemptions offer relief. Federal tax thresholds, retirement withdrawals and state rules will determine how much retirees actually keep.

Economic advancement can’t be judged through a single income figure, other conditions apply

India’s creamy layer debate has renewed focus on whether income alone can measure socioeconomic advancement. The Supreme Court’s March 11 judgment, upheld last Friday, said parental salary cannot be the sole criterion for determining creamy layer status among OBCs; occupational and service status must also be considered.

Cement trader deposits Rs 14.74 lakh during demonetisation, gets tax notice over Rs 5.72 lakh unexplained cash; wins case in ITAT Cuttack

Mr. Patra, a cement trader from Balasore, encountered problems with the Income Tax Department over cash deposits that were deemed unexplained. Following an injury, he challenged the authorities' findings by presenting evidence from his cash books. The Income Tax Appellate Tribunal reviewed the case and confirmed that he had sufficient cash on hand, ultimately deciding to classify the disputed amount as explained, resolving the legal troubles.

Financial planning for DINK couples in India: 10 money moves for two incomes

Taxpayers fret over loose ends in amnesty scheme, seek CBDT clarity on foreign asset disclosure rules as deadline nears

Many taxpayers are unsure if they need to report various accounts due to ambiguous regulations. Clarification is being sought from the Central Board of Direct Taxes regarding ownership versus authority, among other things.

NBFCs eye rate hikes, higher fees to offset insurance income hit

Non-bank lenders and housing finance companies are expected to raise lending rates in response to proposed regulatory changes. This adjustment aims to offset potential income losses from caps on insurance distribution. Companies such as Bajaj Housing Finance and Home First Finance are considering changing their product mix and increasing fees. The Insurance Regulatory and Development Authority of India has proposed stringent commission cuts on credit-linked insurance products.

Chinese companies providing overseas services to Indian subsidiaries may escape tax: ITAT

In a landmark decision, the Delhi Income Tax Appellate Tribunal has determined that Chinese firms offering services from overseas are not liable for Indian taxes. This ruling contrasts with a Mumbai bench decision made in 2010 regarding taxation policies on foreign services. The tribunal's finding is advantageous for Chinese companies supplying centralized services to Indian entities during the digital age.

Rs 48 lakh in cash received from the sale of two properties, paid capital gains tax but received an income tax notice; taxpayer wins the case in ITAT Cuttack for this reason

Mr. Purushottam residing in Kabisurya Nagar, encountered a penalty for accepting cash payments linked to his property sales. He sold two properties totaling Rs 47.54 lakh and declared these earnings accurately. Despite paying the required capital gains tax, an investigation by the Assessing Officer into the cash dealings led to a penalty.

Rs 8.02 lakh leave encashment tax exemption denied: Retired employee wins case in ITAT Surat

Retiree Mr. Patel from Bharuch, Gujarat, sought a complete tax exemption on Rs 8.02 lakh of leave encashment. Initially, his company certified only Rs 3 lakh as exempt. The Income Tax Department later imposed tax on an additional Rs 5.02 lakh. To challenge this ruling, Patel approached the Income Tax Appellate Tribunal in Surat, which sided with him, citing the Department's failure to provide justifiable reasons.

IRS releases 2027 tax brackets: How new income tax rates and standard deductions for single, married and senior filers could affect your tax bill

Tax brackets 2027: The IRS has raised all seven federal income tax bracket thresholds for 2027 and increased the standard deduction for single, married and head-of-household filers. The changes also include higher capital gains limits, a larger Child Tax Credit and additional tax breaks for eligible seniors.

Farmer bought land at less than stamp duty value, got income tax notice; How DVO report helped him win Rs 18.24 lakh tax dispute in ITAT Surat

Mr. Desai, encountered difficulties with the Income Tax Department after purchasing land for a price less than the stamp duty value. The Income Tax Department attempted to levy taxes on an Rs 18.24 lakh discrepancy, but his Chartered Accountant opposed this claim. The case was sent to the Departmental Valuation Officer, who appraised the land at Rs 14.08 lakh.

Incorrect HRA or deduction claims? How Section 270AA may offer relief from 200% penalty

Incorrect tax claims may expose taxpayers to a 200% penalty for misreporting and prosecution in appropriate cases. Section 270AA offers conditional relief upon prescribed payments. For indefensible claims, this route may be preferable to litigation, subject to eligibility.

LIC net profit jumps 20% YoY to Rs 12,076 crore on higher premiums

Life Insurance Corporation of India reported a 20% year-on-year increase in net profit for the September quarter. Net premium income rose by 16.2% to ₹1.47 lakh crore during the same period. Despite investment challenges, the company's profit growth remained strong due to higher premium income. The value of new business also increased significantly, reflecting improved margins across product categories.

Life Insurance Corp of India reports higher premium income in H1, net profit rises around 22%

Life Insurance Corporation of India reported a 21.52% increase in net profit for the first half of FY27. Total premium income rose by 11.64%, reaching Rs 2,74,269 crore during this period. Individual new business premium income increased by 14.86%, while renewal premium income grew by 4.68%. LIC sold approximately 70.97 lakh individual policies, reflecting a minor decrease from last year.

Warren Buffett’s retirement income strategy: How a 90/10 rule could help a 65-year-old turn $600,000 into monthly income

For a 65-year-old with a traditional IRA of $600,000, adopting Warren Buffett’s 90/10 investment strategy is a practical choice. This approach allows for a balanced monthly withdrawal that integrates Social Security and IRA funds. By allocating 90% to S&P 500 index funds and 10% to Treasury bills, one can ensure withdrawal stability.

Aayush Wellness reports 10.6% rise in first-half income

Aayush Wellness experienced an increase in consolidated income and profit for the first half of fiscal 2027. The company reported an impressive rise in both consolidated income and profit after tax. Standalone income also showed significant growth compared to the preceding quarter. Aayush Wellness is launching new products to expand its presence in preventive healthcare and nutraceutical markets.

Rs 21.6 lakh speculative trading loss in stock market triggers Income Tax notice for no tax audit; Trader wins case at ITAT Cuttack

Mr. Kumar, a diligent stock trader, faced considerable financial setbacks but overlooked the necessity of a tax audit. In response to his failure to comply with audit rules, the Income Tax Department slapped him with a penalty. After an unsuccessful appeal to CIT (A), he sought relief from ITAT Cuttack, which determined that Kumar's trading did not equate to business income needing an audit.

CBDT issues new clarification on BSNL-MTNL VRS-2019 compensation: Will it affect retirees' income tax benefits?

The CBDT issued a notification clarifying that ex-gratia compensation for BSNL and MTNL VRS-2019 is not retrenchment compensation. This compensation is governed by Section 10(10C) of the Income-tax Act, allowing tax exemptions under certain conditions. Employees must review their tax claims to ensure compliance with this clarification. Compensation exceeding five lakh rupees will remain taxable as salary income.

Gold jewellery at home: How much can you keep without fear of Income Tax seizure?

People can legally own gold without a prescribed maximum quantity if they explain its source. The Income Tax Department has guidelines regarding the non-seizure of gold jewelry during searches. Married women can own up to 500 grams, while unmarried women are allowed 250 grams and male members 100 grams. These limits do not automatically exempt individuals from income tax liabilities.

Insurance agent deposits Rs 35 lakh cash collected from policyholders in his bank account, gets tax notice; he fights and wins in ITAT Jaipur

Policyholders gave Rs 35 lakh cash as insurance premiums which agent deposited in his bank a/c; Income Tax Dept sent agent notice for unexplained cash; he wins case in ITAT Jaipur.

Son gets income tax notice for Rs 33.23 lakh in property investment and cash; he gets relief in ITAT Jaipur for this reason

Mother sold 642 grams gold jewellery, gifts the amount to son via notarised gift deed, son buys property and deposits cash in bank but gets income tax notice for unexplained property investments and cash deposits; he wins case in ITAT Jaipur for this reason.

Delhi techie couple donates Rs 50 to political party, claims Rs 40 lakh ITR deduction, evades Rs 5.3 crore income tax, faces IT probe

A Delhi-NCR techie couple allegedly claimed Rs 40 lakh in tax deductions after donating just Rs 50 to a political party. An Income Tax Department probe uncovered fabricated donation receipts, a ChatGPT-generated Yale education loan certificate, bogus housing loan claims and undisclosed rental income, estimating tax evasion of Rs 5.3 crore over five years.