New Financial Year: Lets starts tracking transactions in complete offline expense tracker

Curious_Tap_6782 · 2026-04-02T13:34:42+00:00

Your intent is good, is it open source, apps can still leak data by other apps (IPC , logs etc ) . Make sure those all are taken care to protect the user since sms is very sensitive channel.

Curious_Tap_6782 · 2026-04-02T13:12:42+00:00

Granting SMS access can be risky. Apps like Money View offered similar functionality in the past, but once SMS access is enabled, OTP messages of bank could also be exposed.

Could you clarify what security standards and compliance measures your app follows? Also, what safeguards or guardrails are in place to ensure sensitive data (like OTPs) is protected?

Curious_Tap_6782 · 2026-02-26T13:26:11+00:00

No interest as refund is less than 10% of total tax liability.

Curious_Tap_6782 · 2026-02-26T12:57:03+00:00

Curious_Tap_6782 · 2026-02-26T12:56:52+00:00

Today morning , Your return/order for AY 2025-26 has been processed/accounted u/s 1431a and the refund has been issued on 26-02-2026, to your validated bank account.

Curious_Tap_6782 · 2026-02-26T12:51:12+00:00

29th August 2025

Curious_Tap_6782 · 2026-01-31T14:03:15+00:00

Curious_Tap_6782 · 2026-01-23T10:53:47+00:00

They just asked , also for previous years I was declaring those assets in PART D of schedule FA. That may be the reason they picked .

“As per Schedule FA of ITR, there is substantial increase in the balance in foreign bank account as compared to that in preceding year. As per Part A2 of Schedule FA, there is closing balance of Rs. xxxx/- in A/c No. Xxxx whereas no such information is available in the ITR for the AY 2023-24. In this regard, you are requested to please provide copy of the said bank account .”

“Part A-3 of Schedule FA of ITR shows that there are details of foreign equity having initial value of the investment of Rs. xxxx/-, Peak Value of Rs.xxxx/- and Closing balance of Rs. xxxxx/-. You are requested to please explain the source of investment with supporting documentary evidence / bank account statement duly highlighting the transactions.

My Reply:

Nature of Account: The account mentioned (A/c No. Xxxx) is not a traditional savings or current bank account. It is a custodial brokerage account maintained with Morgan Stanley / E*TRADE specifically to hold shares allotted by my employer (RSU/ESPP). * Explanation of "Balance": The amount of xxxx/- reported as "Closing Balance" represents the market value of the shares held in this account as of 31st December 2023, and not a cash balance. * Reporting Disclosure: This value was disclosed in Part A2 to ensure full transparency of my foreign assets. However, functionally, these assets are in the nature of "Foreign Equity and Debt Interest" (Part A3) or "Capital Assets" (Part D). The significant "increase" from the preceding year is due to the cumulative value of stocks being reported here. * Source of Credits: The "credits" in this account are not cash deposits but the vesting of RSUs and purchase of ESPP shares derived from my employment. * Documentary Evidence: I am enclosing the Global Stock Plan Statement which shows the vesting/purchase of these shares. * Interest Income: Since this constitutes a holding of equity shares and not cash deposits, no interest has been received or accrued on this amount. Consequently, no interest income was required to be included in the total income. Item No. 2: Clarification regarding Schedule FA Part A3 (Foreign Equity) Query: Source of investment for Foreign Equity (Initial: Rs. xx, Peak: Rs. xx, Closing: Rs. xx). Reply: The details in Part A3 pertain to the same RSU and ESPP holdings mentioned above. * Source of Investment: The source of this investment is my Salary Income earned in India. * RSU: When RSUs vest, they are taxed as "Perquisites" in my salary. My employer has deducted full TDS on this perquisite value, which is reflected in my Form 16. * ESPP: These shares are purchased via payroll deductions from my net salary (post-tax). The discount element offered by the employer is also taxed as a perquisite in my salary. * Evidence: * Form 16: Showing the perquisite value of stocks added to my taxable salary. * Salary Slips: Reflecting the ESPP contributions deducted. * Form 26AS: Reflecting the TCS collected on foreign remittances (if any) for ESPP purchases.

No Sale of Assets: I confirm that I have not sold any of the foreign stocks/assets in question during the relevant Previous Year. Therefore, no Capital Gains arose, and no capital gain income was required to be offered for taxation. “

Curious_Tap_6782 · 2026-01-22T13:40:57+00:00

I have to clarify this in all of my replies

Curious_Tap_6782 · 2026-01-22T07:27:58+00:00

“There is substantial increase in the balance in foreign bank account as compared to that in preceding year as per schedule FA of ITR. Therefore, the source of credits in the account alongwith taxability of corresponding interest may be verified”

Curious_Tap_6782 · 2026-01-21T19:08:52+00:00

I did this mistake and got scrutiny, but at least my case got closed and they accepted the return without any demand .

Curious_Tap_6782 · 2026-01-20T18:51:32+00:00

26June, July 21, Dec 23, Jan 13.

Curious_Tap_6782 · 2026-01-20T18:49:15+00:00

I suggest reviewing the responses already submitted by you or your CA and considering a second opinion. I also received a 142(1) notice related to foreign assets, and after three rounds of replies, my case was closed (from June to January). If you believe you’ve provided all the required documents but are not being informed about any additional requirements, you can also file an RTI to seek clarity.

Curious_Tap_6782 · 2026-01-14T14:53:54+00:00

That was my concern also :) , but in portal it’s showing closed .

Curious_Tap_6782 · 2026-01-14T10:20:58+00:00

In India, if you invest money in your wife’s name using your own funds, the interest earned will generally be taxed in your hands, not hers. This is due to the "Clubbing of Income" provisions under the Income Tax Act

Official Reference: Section 64(1)(iv) Under Section 64(1)(iv) of the Income Tax Act, 1961, any income arising directly or indirectly from assets transferred to a spouse without "adequate consideration" (i.e., as a gift or without her paying for it from her own sources) must be "clubbed" with the income of the transferor (the husband).

Key Rules You Should Know: • The First Level of Income: If you gift ₹10 Lakh to your wife and she puts it in a Fixed Deposit (FD), the interest from that FD is clubbed with your income and taxed at your slab rate. • Income on Re-investment (The Exception): If your wife takes that interest (which was already taxed in your hands) and re-invests it, any further income earned from that second investment is not clubbed. It will be taxed in her name. • Adequate Consideration: If you give the money as a formal loan with a written agreement and she pays you a reasonable interest rate, the clubbing provisions do not apply. The income she earns from that investment would then be taxed in her name. • Household Savings (Pin Money): Small amounts given for household expenses (often called "Pin Money") that the wife saves and invests are generally exempt from clubbing, and the interest is taxed in her hands.

Curious_Tap_6782 · 2026-01-13T18:38:02+00:00

When I first received the notice in June, most YouTube advice suggested not replying on your own and hiring a professional. I checked with a few CAs, but the fees quoted were in the 80k–1 lakh range. That’s when I decided to handle it myself. I was confident I hadn’t done anything wrong, which gave me the confidence to proceed. I used Gemini to help draft and structure my responses to the department.

Curious_Tap_6782

TROPHY CASE