In order to support the activities of religious and charitable institutions, the Indian Government provides several tax rebates under Section 11 of the Income-tax Act. However, they are only available for specific types of income, and the entities must fulfil certain conditions in order to claim them. Keep reading to learn more. Budget 2025 updateIt was proposed to amend the Explanation to sub-section (4) of section 12AB to provide that the situations where the application for registration of trust or institution is not complete, shall not be treated as specified violation for the purpose of the said sub-section.What Is Section 11 Of Income Tax Act?Section 11 of the Income-tax Act provides an exemption from tax for income derived from property under charitable trusts and institutions. In order to claim them, this income must come from properties that are operating solely for religious or charitable purposes, and the entities must obtain a registration certificate under Section 12A or Section 12AA of the IT Act. The books of accounts must be audited by a Chartered Accountant.

TDS and TCS are the most essential taxes levied by the Indian Government. Such taxes must be deducted/collected and deposited with the respective authorities of the government. However, individuals often mix up these terms and use them interchangeably. If you want a thorough understanding of the difference between TDS and TCS and their implications, check out the details below.Budget 2025 updateThe Union Budget 2025 proposed the rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to ease compliance challenges for taxpayers especially for middle-income earners. The government has raised the threshold limits across various TDS sections, aiming to simplify the tax process. The proposed changes are as followsSectionPresentProposed 193 - Interest onsecuritiesNIL10,000194A - Interest other thanInterest on securities(i) 50,000/- for seniorcitizen;(ii) 40,000/- in case ofotherswhen payer is bank,cooperative society andpost office(iii) 5,000/- in othercases(i) 1,00,000/- for seniorcitizen(ii) 50,000/- in case ofotherswhen payer is bank, cooperativesociety and postoffice(iii) 10,000/- in other cases194 – Dividend, for an individual shareholder5,00010,000194K - Income in respect of units of a mutual fund5,00010,000194B - Winningsfrom lottery, crossword puzzle Etc. &194BB - Winnings from horse raceAggregate of amountsexceeding 10,000/-during the financial year10,000/- in respect of asingle transaction 194D - Insurance commission15,00020,000194G - Income by way ofcommission, prize etc.

People in the high-income bracket of salary above Rs 15 lakh often look for tax saving measures so they can pay the least in taxes. The Income Tax Act offers various opportunities for taxpayers to avail of deductions and decrease their tax obligations. With efficient tax planning, you can save significant amounts of taxes.Here’s how you can save tax on Rs 15 lakh annual salary. Budget 2025 updateThe income earned up-to Rs.12 Lakhs will ultimately have Nil tax liability. The grounds are explained as follows. The modified slab rates for new tax regime applicable for FY 2025-2026 is as follows:Income Tax SlabsTax RateUp-to Rs.

Heads of IncomeThe Income Tax Department breaks down income into five heads of income for the purpose of income tax reporting:Income from SalaryIncome from House PropertyIncome from Capital Gains/LossProfits and Gains from Business and ProfessionIncome from Other SourcesIncome from Other Sources covers income that does not fall under any of the other heads of income. Savings Bank Account – Interest IncomeInterest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources. Note that the bank does not deduct TDS from savings bank interest. Interest from fixed deposits and recurring deposits is taxable, while interest from savings bank accounts and post office deposits is tax-deductible to a certain extent. However, they are shown as under income from other sources. Interest income from a savings bank account or a fixed deposit or from a post office savings account are all shown under this head.Budget 2025 updateIt has been proposed to increase the limit for TDS deduction u/s 194A on the Interest Income of the taxpayer as follows: TDS will be deducted on interest income from bank to a senior citizen only if such income is more that Rs.

Have you made any mistakes in filing your ITR? If so, you can correct them by filing a Revised Return under Section 139(5) of the Income Tax Act, 1961. This allows you to address errors such as misreported income, missed deductions, or incorrect tax calculations. This article provides a comprehensive guide on understanding and filing revised returns.Budget 2025 UpdateUnder section 139, it was proposed to increase the time limit for filing of Updated Return from the existing 24 months to 48 months from the end of the relevant assessment year.The rate of additional tax payable on updated return filed after expiry of 24 months and upto 36 months from the end of relevant assessment year will be 60% of aggregate tax and interest payable.The rate of additional tax payable on updated return filed after expiry of 36 months and upto 48 months from the end of relevant assessment year will be 70% of aggregate tax and interest payable. Further, it was proposed that no updated return can be filed by a person for whom a notice to show-cause under section 148A was issued after the expiry of 36 months from the end of the relevant assessment year.What is a Revised Return?Revised return is a return filed under Section 139(5) to correct mistakes or omissions made in the original return. Section 139(5) of the Income Tax Act, 1961, allows you to file a revised return if you discover mistakes in your initial filing. You can even revise a belated return. You can file a revised return by 31st December of the relevant assessment year or before the completion of assessment, whichever is earlier. December 31, 2024, is the deadline to file the belated and revised income tax returns (ITRs) for FY 2023-24 (AY 2024-25).

New Tax Regime: Check out here all the frequently asked questions about the new income tax regime for FY 2024-25 slabs, calculator, and deductions for salaried employees. Latest Budget brought in many surprising changes to the new tax regime. In this article, we've addressed some key questions about these changes. Budget 2025 UpdateThe Budget 2025 introduces significant changes to the tax slabs under the New Tax Regime, resulting in zero tax liability for income up to Rs. 12,00,000. Here’s a breakdown of the modified tax slabs for FY 2025-2026 (AY 2026-2027):Modified slab rates  for new regime are as follows for FY 2025-2026 (AY 2026-2027)Income Tax SlabsTax RateUpto Rs.

A partnership firm is set up to earn profit. There can be two types of partners: a working partner who invests in the firm and manages its operations and a silent partner who only invests without being actively involved in the firm's operations. Partners are rewarded based on the efforts put in. The payment terms are subjective and are mentioned in the remuneration clause of the partnership deed.What is Partner’s Remuneration?A partner’s remuneration is the salary, bonus, or commission paid to a partner by a partnership firm. Similar to regular employees, partners receive monthly payments for their contribution to the firm.

What is a HUF?HUF means Hindu Undivided Family. You can save taxes by creating a family unit and pooling in assets to form a HUF. HUF is taxed separately from its members. A Hindu family can come together and form a HUF. Buddhists, Jains, and Sikhs can also form an HUF.

As per Section 147 of the Income Tax Act, 1961, the Income Tax Department has the power to reassess an individual’s previously filed income tax returns. The Assessing Officer could pick your income tax return for reassessment subject to some pre-defined criteria by sending a notice under section 148 for Income Escaping Assessment.Budget 2025 UpdateIt was proposed that no updated return can be filed by a person for whom a notice to show-cause under section 148A was issued after the expiry of 36 months from the end of the relevant assessment year.  However, an updated return can be filed upto 48 months from the end of the relevant assessment year if it is found that there is no fit case to issue a notice 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 whose income has not been properly assessed. This implies that if the Assessing Officer suspects that a taxpayer has not disclosed complete income or has provided an inaccurate representation of it, officers can commence proceedings under this section.Section 148 Notice is a notice issued by the income tax officer to reassess the taxpayer's income tax return (ITR) if they disagree with the taxpayer's assessment and believe that some income has not been properly assessed.Finance Act 2022 introduced Section 148A, which requires the assessing officer to conduct an inquiry and give the taxpayer an opportunity to explain their case before issuing a notice under Section 148.The assessing officer must issue a notice to the taxpayer under Section 148A(b), providing information and adverse material suggesting that income has escaped assessment. The taxpayer can respond with their own material and evidence.In the 2021 budget, the government introduced Section 148A in the Income Tax Act.

New sections were introduced in the Finance Bill, 2021 to deduct TDS (tax deducted at source)/ collect TCS (tax collected at source) at higher rates when the amount is paid to specified persons who have not filed their income tax returns. Section 206AB is inserted after section 206AA of the Income Tax Act. The latter provides for the deduction of TDS at higher rates for those who do not provide/furnish their Permanent Account Number (PAN). Similarly, section 206CCA for TCS is inserted after section 206CC of the Income Tax Act. Read on for a detailed explanation covering the recent CBDT circular no. 10/2022, the compliance check functionality and more.Budget 2025 UpdateUnder section 139, it was proposed to increase the time limit for filing of Updated Return from the existing 24 months to 48 months from the end of the relevant assessment year.The rate of additional tax payable on updated return filed after expiry of 24 months and upto 36 months from the end of relevant assessment year will be 60% of aggregate tax and interest payable.The rate of additional tax payable on updated return filed after expiry of 36 months and upto 48 months from the end of relevant assessment year will be 70% of aggregate tax and interest payable. Further, it was proposed that no updated return can be filed by a person for whom a notice to show-cause under section 148A was issued after the expiry of 36 months from the end of the relevant assessment year.What is Section 206AB and 206CCA?Section 206AB– Deduct TDS at higher rates than usual when you make payments to those who have not filed their income tax return in the last year.Section 206CCA– Collect TCS at higher rates than usual from the amounts received from buyers.Rate of TDS Under Section 206AB or Rate of TCS Under Section 206CCA?TDS under section 206ABIf payment is made to a specified person as mentioned above, then tax shall be deducted at source (TDS) at higher of below rates:2 times the rate given in the Income Tax Act or Finance Act or5%If the person provides the PAN but has not filed the return for the last assessment year, the due date for filing has expired, and the aggregate of TDS or TCS in his case is Rs. 50,000 or more, then the above rate shall apply.