Business codes, also known as Business or Profession Codes, are used in India for Income Tax Return (ITR) filing to classify the nature of business or profession. These codes are specified by the Income Tax Department and help in accurately reporting income from different sources. The codes vary depending on the type of business or profession. Taxpayers need to select the appropriate code that best represents their line of work when filing their ITR forms. The codes ensure proper categorisation and facilitate efficient tax assessment and compliance.

When the income of an individual taxpayer is below the basic exemption limit in a financial year, the tax liability is zero; thus, such individuals do not have to file any income tax return as per provision of Section 139(1) under the Income-tax Act, 1961. Such individuals do not have to file an income tax return as they do not fall in the tax bracket and get an exemption from filing the return. But if they file ITRs even when their income is below the basic exemption limit, it is termed ‘Nil Return’. Although it is not mandatory to file nil returns, there are many benefits to filing nil returns.What is a Nil Return?A nil income tax return is filed to show the Income Tax Department that you fall below the taxable income and therefore did not pay taxes during the year. A nil return is an ITR filed specifically to declare to the Income Tax department that no taxes have been paid in the respective financial year.

In India, the income of taxpayers is classified into five heads of income, such as Salary, House Property, Capital Gain, Business and Profession and Income From Other Sources. The income of a person shall be reported in each head of income accordingly. Each head has a different set of rules for deduction and exemption of income & expenses, such as a standard deduction available under the salary head, a deduction for interest paid on a home loan available under the house property head, etc. Classifying income correctly under each head ensures accurate tax filing and avoids penalties, making expert guidance valuable.What are the Five Heads of Income? The Five Heads of Income Tax are:Income from SalaryIncome from House PropertyIncome from Profits and Gains from Business or ProfessionIncome from Capital GainsIncome from Other SourcesNote: Each of these income heads is governed by specific provisions of the Income Tax Act and has its own set of tax rules.Income from SalaryIncome from the salary head covers the  income that you receive in terms of the service you provide on a contract of employment that is applicable for taxation under this head. This includes salary, advance salary, perquisites, gratuity, commission, annual bonus and pension. The following section governs the Income from the SalarySection 15 describes the taxability of income from SalarySection 16 explains about deduction available under salariesSection 17 explains the components of the Salary like Monetary compensation, Perquisites etc.This tax head also includes some exemptions:House Rent Allowance (HRA): As a salaried individual, if you live in a rented house, you can claim House Rent Allowance for partial or complete tax exemptions.  Transport Allowance: In case of blind/deaf and dumb/orthopedically handicapped employees, you can claim allowance of  Rs 1,600 per month.The tax calculation structure of salary income is as follows, and such information needs to be filled in Schedule S of your ITR form.Income from House Property   Income from House Property head of income covers an individual’s income from his or her house property or land appurtenant such property is taxable under the head of income from house property.

Section 115BAC of the Income Tax Act introduces the new tax regime, which offers reduced slab rates in exchange for forgoing most deductions and exemptions. Section 115BAC also has provided the option to the taxpayers to choose their most beneficial regime every financial year (subject to conditions as prescribed). If no regime is chosen, the new regime is chosen as default tax regime. While it simplifies tax compliance and benefits taxpayers who do not claim many deductions, individuals still have the option to opt for the old regime if it is more beneficial for them.What is Section 115BAC – The New Tax Regime Slabs?Section 115BAC provides for relaxed slab rates under a new regime. From FY 2023-24, the new tax regime is the default tax regime as per section 115BAC.

NPS (National Pension Scheme) is a well-known retirement benefit system in India. If you start investing in NPS during your early career, you will need proper investment planning as you have to contribute a minimum amount regularly. If you do not meet the minimum requirements or submit the wrong documents, your NPS account can be frozen indefinitely. Are you not able to log into your NPS account? If yes, the possible reason is your account is frozen. Continue reading this blog to learn how to unfreeze an NPS account, why your account could be frozen, tips to prevent this and more. Reasons for NPS Account FreezingFreezing of an NPS account occurs when the subscriber fails to make the minimum annual contribution of ₹1,000 in a financial year. In such cases, the PRAN (Permanent Retirement Account Number) becomes inactive, and no transactions can be made until the required contribution is paid to reactivate the account.Consequences of NPS Account FreezingThere will be limited or no access to the funds that are accumulated in your NPS account.

Types of taxes in India are broadly classified into direct taxes, such as income tax, and indirect taxes, such as GST and customs duty. Direct taxes are paid directly by individuals or entities to the government. Indirect taxes are collected through goods and services, with the burden passed on to the end consumer. Understanding the types of taxes helps taxpayers comply with laws and plan their finances effectively.Types Of Taxes In IndiaIndia’s tax structure is divided into direct taxes and indirect taxes. Direct taxes, governed by the Central Board of Direct Taxes (CBDT), are levied on income or profits, and the burden cannot be transferred to others.

ITR stands for Income Tax Return. Every taxpayer should furnish the income earned during the year through the applicable ITR forms. The ITR form applicable depends on the type and amount of income of the taxpayer as follows: ITR-1: Salaried individuals with income up to Rs. 50 lakh; ITR-2: Individuals with capital gains; ITR-3: Income from business or profession; ITR-4: Income From Business and Profession < Rs. 50 lakh ITR-5: Firms, LLPs, AOPs, and BOIs; ITR-6: Companies; and ITR-7: Charitable trusts.What is ITR?Income Tax Return (ITR) is a form used by taxpayers to report their income and taxes to the Income Tax Department.

Your PF number, also known as the Provident Fund account number, is a unique identifier assigned to your EPF (Employees’ Provident Fund) account. It is used by the Employees’ Provident Fund Organisation (EPFO) to manage your retirement savings. Individuals can find their PF account number from the EPFO office, the employer, salary slips, the UAN portal, EPFO customer care number, or the UMANG app. Knowing your PF account number is very important because it helps you keep track of activities like checking balance, withdrawals, claim request status, etc., in your EPF account. The PF Account Number is a 22-digit alphanumeric account number given by the employer during employment.What is PF Account Number?The PF account number is a 22-digit alphanumeric identifier assigned by an employer to their employees, enabling them to track their EPF account status, check the balance, and manage their contributions. Every employee needs to have a PF account number to withdraw funds from their EPF account or make any related claims.

As per Section 147 of the Income Tax Act, 1961, the Income Tax Department has the power to reopen the returns of the assessee and reassess previously filed income tax returns. The department can exercise this power whether or not the returns are previously filed. If the assessing office has reasons to believe that you have not disclosed all your income and thereby escaped taxes, the department has the authority to carry-out income escaping assessment under section 147. The Assessing Officer could pick your income tax return for reassessment subject to some pre-defined criteria. Notice for this assessment is sent under section 148 of the act.What is Section 148?Section 148 of the Income Tax Act 1961 gives authority to the Assessing Officer to send notice to a taxpayer for income escaping assessment.

Earning an income of Rs.10 lakhs is a significant milestone for many Indians, but earning also brings the burden of income tax liability. Fortunately, Budget 2025 offers relief by revising the income tax slab, enhancing the rebate to Rs.60,000 and increasing the basic exemption limit to Rs.4 lakhs. As a result, an individual earning income up to Rs.12 lakhs can enjoy zero tax liability. This means that from FY 2025-26 onwards, even with an income of up to Rs.10 lakhs, you may not have to pay any income tax under the new regime of the Income Tax Act. This article will break down the tax implications of income above Rs.10 lakhs under both the old and new tax regimes and provide various tips on tax planning to save tax on incomes above Rs.10 lakhs.Key Takeaways - Tax Saving Options for a Salary of Rs. 10 LakhsIn most cases, new tax regime is recommended for this salary range.Enhanced standard deduction of Rs.