ITR 1, also known as Sahaj, is a simplified income tax return form for salaried individuals and pensioners earning up to Rs. 50 lakh. It is applicable if you have income from salary, one house property, and other sources like interest. This form is not meant for individuals with Short-Term Capital Gains, Long-Term Capital Gains exceeding Rs. 1.25 lakh, more than one house property, business income, or foreign assets.What is ITR 1?ITR 1, also known as the Sahaj Form, is an Income Tax Return form used by salaried individuals and pensioners with a total income of up to Rs.

When your jobs change, having separate EPF accounts under a single UAN is common. However, they dont merge automatically. You need to request EPFO for online transfer of balance to the active PF account. In this article, we will explain how to merge PF accounts seamlessly.Why should you merge your PF Accounts?Here are some advantages of merging multiple EPF accounts: It save money in the long run by consolidating your pension and salary payments into a single account.It also gets simpler to track your expenses and income tax returns.Withdrawal procedures are significantly simplified, any potential delays avoided.Managing multiple EPFO accounts can be a hassle, requiring you to track multiple details.Requisites for Merging PF AccountsIf you are considering merging your accounts, you need to consider certain things. This includes:First, it is imperative to finish the Know Your Customer (KYC) procedure, which entails confirming the bank account, PAN and other related information.Then, you should have a UAN that is linked to your existing EPF account.Before merging your EPF accounts, you should wait for 3 days for your UAN to get activated.However, it is important to note that there is no need to merge right away if you are not required to; if you still want to, you can put it off until later. How to merge PF Accounts Online?Here is a step-by-step guide on how to merge EPF accounts onlineThrough EPFO PortalVisit the official website of EPFO, sign in using your UAN and password.

Section 80TTB provides for deduction against interest income from deposits for senior citizens. Up to Rs. 50,000 can be claimed as a deduction under the old regime.Key HighlightsDeductions cannot be claimed under the NewTax Regime.Not available for partners of firms or members of AOP/BOI. Senior citizens cannot avail section 80TTA and 80TTB together in their ITR.What is Section 80TTB?Section 80TTB is a special tax benefit available to senior citizens (aged 60 years or above) that allows them to claim a deduction of up to Rs.50,000 on interest income earned during a financial year. This deduction covers interest from savings accounts, fixed deposits, and recurring deposits with banks, co-operative societies, and post offices. Unlike Section 80TTA, which offers a smaller deduction of Rs.10,000 and excludes fixed deposits, Section 80TTB is more comprehensive and exclusively benefits senior citizens.Applicability of Section 80TTBOnly resident senior citizens can claim the deduction under section 80TTB.Indian residents who have crossed sixty years of age are eligible for this deduction.Interest on deposits from savings bank account, time dposit, post office deposits can be claimed as a deduction.This deduction is available only if the individual exercises the option of shifting out of the default tax regime provided under section 115BAC(1A).Amount of deductions available under 80TTBA deduction of Rs 50,000 or the income amount, whichever is lower, is allowed as deduction from the gross total income. Income here means any of the following income in aggregate:Interest on bank deposits (savings or fixed)Interest on deposits held in a co-operative society engaged in the business of banking, including a co-operative land mortgage bank or a co-operative land development bankInterest on post office depositsExceptions to Section 80TTBSuppose the specified deposits are held by or on behalf of a partnership firm.

Gifts are treated as income under the Income Tax Act. If the value of the gift exceeds certain limits, it may be taxed as “Income from Other Sources”. However, there are certain exemptions available if gifts are received from certain persons or on certain occasions. Gifts received within a value of Rs. 50,000 is always exempt. What is a Gift as per the Income Tax Act?As per Section 56 of the Income-tax Act,1961 gifts received by any person or persons are taxed in the hands of the recipient under the head ‘Income from other sources’ at normal tax rates.

Long Term Capital Gains (LTCG) arise from sale of capital assets like stocks, properties etc., held for a period of more than 24 months. The tax rate on Long Term Capital Gains is 12.5% for all capital assets. However, for listed equity shares, equity-oriented funds, and units of business trusts, Rs. 1.25 lakhs can be claimed as an exemption.Budget 2026 UpdateIt has been proposed to tax buyback of shares as Capital Gains Income. What is Long-term Capital Gain (LTCG)?Capital gains or profits arising from the transfer of Long-Term Capital Assets is referred to as Long-Term Capital Gains or LTCG. An asset held for more than 24 months is termed as a long term capital asset.For listed equity shares, equity oriented funds, and units of business trust, the holding period is 12 months. (if held for more than 12 months, they are considered long term capital assets)Long-term Capital Gain (LTCG) Tax Rate The following tax rates are applicable to long-term capital gains:Asset TypeHolding period (LTCA if held for more than the specified period)Tax RateIndexationExemptionListed Equity Shares12 months12.50%NoRs 1.25 lakhEquity Mutual Funds12 months12.50%NoRs 1.25 lakhProperty (land/building)24 months12.50%No*NilGold / Gold ETF24 months12.50%NoNilDebt Mutual Funds (post Apr 2023)Any holding periodAs per slabNoNil* - Indexation benefits available for resident individuals and HUFs whose assets were purchased before 23rd July 2024.Calculation of LTCG TaxTo calculate the long-term capital gains accurately, follow the steps mentioned below:Step 1: Determine the Full value of considerationThe total amount received from the transfer of capital assets.

The taxpayers are required to file an Income Tax Return (ITR) disclosing their income earned and discharge their tax liabilities for the previous year. The Income Tax Department has notified specific due dates to file ITR and pay taxes. Failure to furnish the tax return within the applicable due date will attract penalty and interest under Section 234F and Section 234A respectively. Budget 2026 UpdateThe due date to file ITR-3 and ITR-4 for non-audit case taxpayers has been extended to 31st August as proposed in the Budget. The due date to file a revised return has been extended to 31st March from the existing 31st December.  The Due Date For Filing ITR For AY 2026-27For the Financial Year 2025-26 (AY 2026-27), the due date for return filing Income Tax Return (ITR) for different cases are as follows:Sr. No.Particulars Due Date1ITR-1 & ITR-231st July 20262ITR-3 & ITR-4 (Non-Audit)31st August 20263ITR-3 & ITR-4 (Tax Audit)31st October 20264ITR filing for taxpayers covered under transfer pricing30th Nov 20265Belated Return 31st Dec 20266Revised Return31st March 2027Section 234F of The Income Tax ActSection 234F of the Income Tax Act imposes penalty for late filing of ITR.

TCS stands for Tax Collected at Source. TCS refers to the tax payable by a seller which he collects from the buyer at the time of sale of goods. The provisions related to TCS are covered under section 206C of the act.TCS is levied on specified goods like alcohol (1% - 5%), on specified leasing activities (2%), on sale of high value motor vehicles (1%) , and specified remittances under Liberalized Remittance Scheme (LRS) of RBI (2% - 20%). In this article, we will discuss the different transactions on which TCS has to be collected, TCS due dates, late payment interest and penalties.Budget 2026 UpdateThe TCS rate on LRS for health and education has been reduced to 2%.TCS rate on LRS for overseas tour package is proposed to be reduced to 2%  without any stipulated amount from the existing 5% and 20%.What is Tax Collected at Source (TCS)?Tax collected at source (TCS) is the tax payable by the seller which he collected from the buyer on sale. It should be deposited with the tax authorities within the applicable due dates. Section 206C of the Income-Tax Act governs provisions related to TCS. Such persons must have the Tax Collection Account Number (TAN) to be able to collect TCS.Seller is responsible only for collecting the tax and depositing it to the government.

If you are sending money abroad, you may have to pay foreign remittance tax in India, also known as TCS on foreign remittance. Under Section 206C(1G) of the Income Tax Act, banks and authorised dealers collect Tax Collected at Source (TCS) when you transfer funds overseas.Budget 2026 UpdateTCS on LRS for health and education is proposed to be reduced to 2% from the existing 5%.TCS on LRS of overseas tour packages is proposed to reduce to 2% without any limit from existing 5% and 20%.  What is TCS on Foreign Remittance?Tax on foreign remittance applies when an Indian resident transfers money abroad under the RBI’s Liberalised Remittance Scheme (LRS). The remitter pays a percentage of the amount as TCS, which is deposited with the government.The deducted TCS reflects in your Form 26AS.You can adjust it against your final tax liability while filing ITR.If you have no tax liability, you can claim a refund of the deducted TCS.However, this is to be noted that this TCS is applicable only for foreign outward remittance, the situation wherein you send money outside India. Inward remittances (receiving remittances from abroad) are not governed under this provision.Latest TCS Rates on Foreign Remittance (Effective April 2025)Type of RemittanceNew TCS rate (with effect from 1st April 2026)Education (loan from financial institution u/s 80E)NILEducation / Medical (self-funded or (other than financed by loan)Nil up to Rs. 10 lakhs2% in excess of Rs.

The direct tax code (DTC)  will be aimed at simplifying and modernising the existing direct tax law i.e. the Income-tax Act, 1961. The DTC will also be in-line with the global standards making the taxation simpler for both residents and non-resident taxpayers. In this article, we will explain in detail the expectations and differences between the DTC and the Income-tax Act.Budget 2026 UpdateThe Income Tax Act 2025 will come into effect from 1st April 2026 and will be applicable for FY 2026-27 and onwards. The Income Tax Act 1961 will still be applicable for FY 2025-26 (AY 2026-27)What is the Direct Tax Code 2025?The Direct Tax Code aims to simplify, streamline, and standardise the existing complex income tax laws for everyone. The government intends to increase the number of taxpayers contributing to the income tax and hence wants to simplify the tax laws for the enhancing their participation.

The new act is effective from 1st April 2025. The Income Tax Act 2025 was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on 13th February 2025 aims to replace the existing Income Tax Act 1961.Budget 2026 UpdateThe provisions of The Income Tax Act 2025 will be effective from 1st April 2026 for incomes earned in FY 2026-27 and onwards. When will the Income Tax Act 2025 be Applicable?The provisions of the Income Tax Act 2025 will be applicable after it is passed by both the houses of the parliament and is assented by the President of India. The Act comes into effect from 1st April 2026.What is “Tax Year”?“Tax Year” means a period of 12 months commencing from 1st April and ending on 31st March of the following year.What is the Slab Rate in Income Tax Act 2025?The Slab Rates are the rates at which the income of the taxpayer will be taxed. India follows a progressive tax rate scheme i.e., the slab rate of tax increases with an increase in the income. This ensures that the individuals earning higher income pay higher taxes.There are two tax regimes in India; The New Tax Regime (Default Tax Scheme)The Old Tax Regime (Optional Tax Scheme)The New Tax Regime (Default Tax Regime)The Income Tax Slab Rates for The New Tax Regime is provided under section 202 of the Income Tax Act 2025 as follows:Income Tax SlabsTax RateUp to Rs.