It is widely perceived that the new tax regime offers minimal tax-saving options except the relaxed slab rates and a higher rebate. However, many tax-saving options can be utilized in the new regime, and some of the benefits are exclusively available for the new regime. The beneficial regime for a taxpayer depends on one’s income level and the extent of tax-saving investments made.New Regime Exclusive BenefitsStandard DeductionUnder the new tax regime, salaried employees are allowed a standard deduction of Rs.75,000, compared to Rs.50,000 under the old regime.Exemption on Family Pension Pension received by the family of deceased employees other than ex-servicemen: One-third is exempt up to a maximum of Rs.25,000. The maximum limit is Rs.15,000 under the old regime.Benefits Under Both RegimesHome Loan Interest on Let-Out PropertyAs per section 24(b), interest paid for a home loan can be claimed as a deduction without limits for a let-out property. This deduction can be claimed irrespective of the regime chosen.The deduction for self-occupied property is capped at a maximum of Rs.2 lakhs and is available only under the old regime.Employer’s Contribution to Pension SchemeUnder section 80CCD(2), the employer’s contribution to the National Pension System is exempt up to 14% of basic pay under the new regime. This limit is 12% of basic pay under the old regime.Contribution to the Agniveer SchemeFor participants of the Agnipath Scheme, both the employer’s and employee’s contributions to the Agniveer Corpus Fund can be claimed as a deduction under section 80CCH.Deduction for Additional Employee Cost Running your own business? You can claim deduction on salaries paid to new employees.Under section 80JJAA, 30% of the cost incurred by newly hired employees could be deducted upon satisfaction of certain conditions.If the business is newly started, 30% of the total employee cost can be claimed as a deduction, as all employees are newly hired.Exemption on GiftsGifts received in cash or kind from relatives are always tax-exempt.Gifts received at special occasions like weddings and inheritances are also always tax-exempt.Gifts received in any other situation than specified above are totally exempt when they are up to Rs.50,000. Gifts received above the limit are fully taxable.Gifts can be received in cash or in kind.

When an asset is used continuously for a long time, its value deteriorates due to wear and tear and obsolescence. This can be broadly called depreciation. The Income Tax Act prescribes rates and methods of computation for depreciation for different classes of assets. In this article, we will learn about depreciation and its tax implications in the case of a leased asset through interesting case law.I.C.D.S. Ltd.

The Income Tax Act contains sections addressing particular deductions under the head income from business or profession. Broadly, specific deductions are discussed under sections 30-36 of the act. Section 37, however, is a residual provision that covers deductions not specified under any other sections of the Act. This article will explain the general rules for claiming deductions under section 37 with an interesting case law.Section 37 - General DeductionsSection 37 deals with general deductions. The assessee can claim a deduction under this section only when the particular deduction is not covered under other sections.

Carrying forward loss is one of the significant benefits of the Income Tax Act to assessees. The taxpayer can carry forward the current financial year's losses and subtract them from the profits of succeeding financial years. The act prescribes whether a particular loss is eligible to be carried forward, the period until which it can be carried forward, and the heads of income against which a specific loss can be set off. In this article, we will understand whether a successor can carry forward loss in particular situations through an interesting case law.Pramod Mittal v. CITThe High Court of Delhi passed the judgment on 11-10-2012.Facts of the CaseThe assessee and his brother were partners in a firm.

Employers are liable to deduct TDS from the salary paid to their employees on payment. More often than not, the question of what constitutes salaries arises. One such example is tips collected from customers by a hotel and distributed to employees. Through interesting case law, we will understand whether tips distributed by hotels to employees constitute salary or not and whether TDS is to be deducted from such transactions.M/S. CJ International Hotels Ltd v/s DCITThe Income Tax Appellate Tribunal, Delhi bench passed the judgement on 3rd May 2018.TDS on Salary - Provisions under the Income Tax ActTDS for salary is to be deducted as per slab ratesIt is to be deducted on payment of salary to employees.If TDS under any section is not deducted as per the provisions of the act, the assessee is deemed to be the assessee in default.When an assessee is deemed as assessee in default, the assessee is liable to pay a penalty as the assessing officer deems fitIn addition to the penalty, the assessee is liable to pay interest at the rate of 1% per month from the date on which the assessee is supposed to deduct TDS to the date of deduction of TDS.Therefore, on failure to deduct TDS under relavant sections of the act, the assessee is liable to pay the TDS amount, interest amount and penalty amount as per the provisions of the act.Facts of the CaseThe assessee is in the business of running a hotel.

In the past decade, financial awareness, retirement planning and additional sources of income has gained more popularity among general masses. Here is where the concept of unearned income becomes important to appreciate for attaining financial goals. Income that is earned without significant efforts could be termed as unearend income. Let us understand the meaning, importance, example, accounting treatment and tax implications of unearned income through this article. What is Unearned Income?A person's income can be classified in numerous ways, starting with its sources, the nation in which it arises, its legality (yes! Even illegal income is subject to Income Tax in India), its status (received or pending receipt), and so on. Another means of classification could be whether significant efforts have been made to earn income or not.Income earned without exerting significant efforts could be classified as unearned income.Unearned income, as far as income tax is concerned, does not have special treatment in income tax just because of its nature - earned without significant effort.Why Unearned Income?As the importance of financial health, stability, and planning continues to grow, and excessive spending and show-off become less fashionable, the concept of generating passive income using savings is a highly sought-after form of wealth-building.More people recognize the value of securing long-term financial independence and freedom without relying on active work.Types of Unearned IncomeJust like there are many ways to classify income, there are quite possible classifications that could be made for unearned income. Read more to understand significant types of unearned income and tax saving options for each type of income.Interest IncomeThis is the most favorite form of unearned income is interest income. As we all know, interest is a periodic payment, usually a certain percentage of the amount deposited for a certain period of time.Though it is of passive nature, interest income is also subject to Income Tax in India.

Tax is a charge levied by the government on the people of the country. The taxation system in India is undergoing a massive change in contemporary times. We know that the nation underwent a revamp in its indirect tax system with the introduction of GST. The New Income Tax Act aims to change the direct tax system. As the laws evolve to cater to the needs of the evolving economic environment, simplicity becomes an essential factor for the smooth implementation of the tax laws.Tax Concepts in IndiaThe Indian Constitution specifies that no tax can be levied except under the authority of law.

Trading transactions on the stock and commodity exchanges have always been a topic of discussion regarding their nature and tax treatment, whether they need to be considered a capital gain transaction or business income. This article will help us understand the functional framework of commodity derivatives, its tax treatment, treatment of losses of trading on Commodity Derivatives in Commodity Exchanges. We will also have a wider perspective of the above provisions with an interesting case law.What is a Commodity Exchange?We are familiar with stock exchanges, where we trade shares, stocks, bonds, and other kinds of securities. A commodity exchange, on the other hand, is a place where commodities are traded. Technically speaking, in commodity exchange, commodities can be exchanged for one another - say agricultural raw materials, precious metals, crude oil, etc., or contracts can be entered for exchange trading. But mostly, in commodity exchanges, contracts are entered with the intention of hedging or speculation.The popular commodity exchanges in India are the Multi Commodity Exchange of India (MCX) and the National Commodity and Derivatives Exchange (NCDEX). What are Derivatives?On a simpler note, derivatives could be understood as transactions with similar characteristics to betting transactions.An agreement is entered into between two parties which contains,A specific price is predetermined (say X price)A specific date is fixed for concluding the transactionThe price of the underlying commodity is recognised on the date of entering into the agreement.The price of the commodity on the contract conclusion date is compared with X price, whether it has risen or fallen from the X price.The price differentials are settled between the parties depending on the commodity's price fluctuations on the date of settlement.What is Hedging and Speculation?Contracts are entered into on commodity derivatives by two parties - Hedging Usually, people who undertake hedging transactions have commercial transactions related to underlying commodities (say grains, previous metals, etc). They want to protect themselves from losses caused by fluctuations in commodity prices. Speculation People entering into derivative contracts to make profits out of uncertainties in future price movements.They do not have any interest in the underlying commodities.IllustrationImagine a farmer who is worried about the price of paddy at the time of his harvest. Now he wants to sell the paddy at a predetermined price, say Rs.2,000 per bag for 100, irrespective of price movements.

The changes made in Budget 2025 by the government have been specifically beneficial for middle income earners who earn salary income. In recent times, there has been relaxation of slab rates, extension of deductions available to salary income, and other deductions made available to assessees which would help to save taxes. Check out the below article to know all the tax saving options available for the income range of Rs.13,00,000. Please note that this article applies only to tax implications pertaining to the financial year 2025-26 only. New Tax Regime Slab RatesThe salary income earned up to Rs.12.75 Lakhs will ultimately have Nil tax liability. Here's how!The revised slab rates for new tax regime applicable for FY 2025-2026 is as follows:As per the latest Finance Act 2025, changes have been made in the slab rate for the new tax regime applicable for FY 25-26 as follows - Income Tax SlabsTax RateUp to Rs. 4,00,000NILRs.

There are a few provisions in the Income Tax Act that allow deductions for setting aside a certain amount of money in funds earmarked for specified purposes. In this article, we explore section 33ABA, which allows a deduction in respect of a contribution made to a site restoration fund.What is Site Restoration Fund?Broadly speaking, this fund is generally maintained by entities who are involved in the business of mining, quarrying, waste treatment, oil and gas exploration, etc., These kinds of business necessarily involve contamination of the place in which the business activity is carried out. So, a fund is generally maintained by these business entities. At the end of business activity, the site is restored, and contaminations and damages are made good to the extent that it can be safely used and accessed for other purposes by the public at large. This is the reason behind the maintenance of the site restoration fund.What is Section 33ABA?Broadly speaking, Section 33ABA of the Income Tax Act provides deductions against the amount set aside for site restoration for petroleum and natural gas businesses.What is the Intent Behind Section 33ABA?These provisions in the act encourage setting aside money for restoring site damages so that businesses do not face a shortage of funds when reviving the site at the end of their business cycle. This would ensure seamless restoration of the site, thereby avoiding the potential hazards of leaving the site environmentally unsafe.Who is Eligible for Deduction u/s 33ABA?Deduction under this section is provided only for the following businesses related to petroleum and natural gasExtraction - Extraction from the fields Prospecting - Finding the potential petroleum and gas deposits underground Production - Refining the crude oil into petrol and other useful products In addition, the Central Government should have entered into an agreement with such business.Deduction Allowed u/s 33ABADeduction can be allowed for the amount deposited underSpecial bank account in the State Bank of India under the scheme specifically approved by the Ministry of Petroleum and Natural Gas, orSite Restoration Account specified in a scheme framed by the Ministry of Petroleum and Natural Gas,Quantum of Deduction AllowedThe eligible business can claim a deduction of - Amount deposited*It is to be noted that the maximum deduction allowed is restricted to 20% of its profits as calculated under the Income Tax Act.**Deposit of funds needs to be made before the end of the financial year.Note:*Interest credited to the aforesaid bank accounts can also be considered as deposit amount.