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.

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.

Form 15G for EPF withdrawal helps eligible employees avoid TDS deduction on provident fund withdrawals made before completing 5 years of continuous service. If your PF withdrawal exceeds Rs. 50,000 and your taxable income is below the basic exemption limit, submitting EPF Form 15G can help you receive your withdrawal without tax deduction. This guide explains what Form 15G is, when it is required, how to submit Form 15G online for PF withdrawal, TDS rules, eligibility conditions, and when TDS is not applicable.Income Tax Form 121With effect from 1st April 2026, as per the new Income Tax Forms 2026 the new Form 121 will replace the existing Form 15G and Form 15H for Tax Year 2026-27 onwards. What is Form 15G for EPF Withdrawal?Form 15G is a self-declaration income tax forms for resident individuals aged below 60 years and HUFs to avoid TDS deduction on their income. Form 15G can be submitted to avoid TDS deduction when the estimated income of the taxpayer is less than the basic exemption limit.

 Long term capital gains on sale of all the other assets except section listed equity shares, equity oriented mutual funds, and units of business trust are taxed under section 112, at 12.5% without indexation with certain exceptions.What is Section 112 of Income Tax Act?Section 112 of the Income Tax Act applies to all types of taxpayers, such as individuals, HUFs, companies, firms, residents, non-residents (not companies), and foreign companies. Under this section, profit earned on the sale of long-term capital assets other than assets covered under section 112A is taxable at the specified rate. Assets covered under sections 112 and 112A are given below:Long-term capital assets taxable under Section 112 are given below: Listed securities Zero-coupon bonds Unlisted securities Immovable property Other long-term capital assetsLong-term capital Assets taxable under Section 112A are given below.Listed equity shares where STT paid on acquisition and transfer Units of equity-oriented mutual funds where STT paid on transfer Units of business trust where STT paid on transferHow to Classify Various Capital Assets into Long-term and Short-term?See the table below to understand how capital assets are classified:Types of AssetSTCALTCAEquity Mutual Funds  Equity Shares (Listed) Zero- Coupon BondsUp to 1 YearMore than 1 YearEquity Shares (Unlisted), Immovable Property & Any Other AssetUp to 2 YearsMore Than 2 YearsIt is to be noted that with effect from FY 2024-25, There will only be two holding periods for classifying assets into long-term and short-term: 12 months and 24 months. The 36-month holding period has been removed. What is the Tax Rate on Long-term Capital Gain Covered Under Section 112?Scenario / Asset TypeTax RateIndexation BenefitLTCG on listed securities (other than units) where STT is not paid at acquisition and transfer12.5%Not allowedLTCG on zero-coupon bonds12.5%Not allowedLTCG for non-resident (other than company) or foreign company on unlisted securities or shares12.5%Not allowedLTCG on other long-term capital assets (e.g., immovable property) sold by a resident20% with indexation OR 12.5% without indexation (taxpayer can choose beneficial option)OptionalRs. 1.25 lakh exemption is not available under section 112.There taxation rates for various types of long-term capital gains are as follows:Taxation Rates:Long-term AssetResidential StatusTax ratesDebt-oriented mutual fundsR and NRSlab rates (Long-term and short-term taxability as same)Listed equity shares and equity-oriented mutual funds (Sec 112A)R and NR12.5% without indexation on gains in excess of  Rs.

Section 80CCD(1B) allows an additional ₹50,000 tax deduction for NPS contributions, over and above the ₹1.5 lakh limit under Section 80C and 80CCD(1). This benefit is available only under the old tax regime, giving taxpayers a total maximum deduction of ₹2 lakh for NPS and other eligible investments.What is Section 80CCD(1B)?Section 80CCD(1B) provides an additional NPS tax deduction of ₹50,000 for contributions made to NPS. The additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available over and above the benefit of Rs 1.50 lakh deduction under Section 80CCD(1). Thus, the maximum deduction limit is Rs. 2 lakhs under Section 80CCD(1) + Section 80CCD(1B) for NPS tax benefits. Deductions under section 80CCD(1B) would be available only under the old regime.Though the Income Tax Act 2025 takes effect from 01st April 2026, the provision of the 1961 Act applies for AY 2026-27, as it pertains to income earned up to 31st March, 2026. Section 80CCD (1B) of the Income Tax Act is now replaced with Section 124(3) of the Income Tax Act 2025. Maximum deductions under section 80C + 80CCC + 80CCD(1) = Rs. 1.5 lakh  Rs.

The New Tax Regime offers taxpayers a much relaxed tax slab and rates compared to the Old Tax Regime. However, most of the deductions allowed under the old tax regime are disallowed under the new tax regime. Taxpayers often get confused between the exemptions and deductions that are allowed under the new tax regime. In this article, we will all the major questions regarding the New Tax Regime. 1. What is the Tax Slab Rate for FY 2025-26?The tax slab for FY 2025-26 (AY 2026-27) is as follows:Tax Slab for FY 2025-26Tax RateUpto ₹ 4 lakhNIL₹ 4 lakh - ₹ 8 lakh5%₹ 8 lakh - ₹ 12 lakh 10%₹ 12 lakh - ₹ 16 lakh 15%₹ 16 lakh - ₹ 20 lakh20%₹ 20 lakh - ₹ 24 lakh25%More than 24 lakh30%2. Is there any Change in Standard Deduction for FY 2025-26?The increased standard deduction of Rs.

You can claim deduction against a personal loan interest and principal repayment in cases like home loan, vehicle loan, education loan, etc. However, the eligibility to claim such deduction depends on various factors like the regime chosen, and satisfaction of other criteria mentioned in the act.Tax Benefit On Personal LoanThe key factor in determining whether you can claim these benefits is the intended use of the loan amount. You can claim these benefits as long as you can provide evidence that the funds were used for that specific purpose.Home RenovationIf you take a personal loan to renovate or repair your home, then you will be eligible for a tax deduction under Section 24(b) of the Income Tax Act. You can claim deductions of up to Rs.30,000 per year on the interest paid on a personal loan. Home Purchase or ConstructionIf you take a loan for the purchase or construction of a house, you can claim a deduction of the interest paid on such loan. If the house is used for self-occupation, you can claim an interest deduction of up to Rs.2,00,000. However, this limit is reduced to Rs.30,000 if the purchase or construction is not completed within five years from the end of the financial year in which the capital was borrowed. If you let it out on rent, then the entire interest amount qualifies for a tax deduction. However, if you opt for new regime then deduction is available only on the property which is let out. Under section 80C, deduction of up to Rs.

The new tax regime under section 115BAC of the Income Tax Act, 1961 offers relaxed slab rates and limited deductions to the tax payers. Assessees who have a simple income structure with little to no deductions can find the new regime more beneficial.Key Highlights of the New Tax RegimeNew Tax Regime offers a basic exemption of Rs. 4 lakh and a tax rebate of up to Rs. 60,000.Taxpayers enjoy tax-free income up to Rs. 12 lakh and salaried individuals enjoy tax-free income up to Rs.

Post Office savings schemes in India are popular investment options known for their safety, stable returns, and government backing. Schemes like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Post Office Monthly Income Scheme (POMIS) are widely used by investors looking for low-risk wealth creation and regular income.What are Post Office Saving Schemes? Post Office Saving Schemes are government backed investment options offered through India Post that provide safe and stable returns with minimal risk. These schemes are designed to encourage savings among individuals while offering assured returns, making them ideal for conservative investors.Popular schemes include the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Post Office Monthly Income Scheme (MIS). Many of these schemes also offer tax benefits under Section 80C of the Income Tax Act, making them a reliable choice for both savings and tax planning.List of All Post Office Saving Schemes 2026The various post office savings scheme offered are as follows:Post Office Savings Account5-Year Post Office Recurring DepositPost Office Time DepositPost Office Monthly Income Scheme (POMIS)Senior Citizens Savings Scheme (SCSS)Public Provident Fund (PPF)National Savings Certificate (NSC)Kisan Vikas Patra (KVP)Sukanya Samriddhi Yojana (SSY)Post Office Saving Scheme Interest Rates 2026Post Office Savings SchemeInterest RatePost Office Savings Account​​4%1 Year Time Deposit6.9%2 Year Time Deposit​​7%3 Year Time Deposit​​7%5 Year Time Deposit7.5%5 Year Recurring Deposit Scheme​​7.5%Senior Citizen Savings Scheme​​ (SCSS)8.2%Monthly Savings Scheme Account (POMIS)7.4%National Savings Certificate (NSC)7.7%Public Provident Fund Scheme​​ (PPF)7.1%Kisan Vikas Patra​​ (KVP)7.5%Mahila Samman Savings Certificate​​7.5%Sukanya Samriddhi Yojana Scheme​8.2%1. Post Office Savings AccountPost Office Savings Account Can be opened individually or jointly.This account offers cheque book, ATM, mobile and e-banking services on request.If it has been inactive for three financial years, it becomes dormant; it can be revived with KYC and a passbook.2.

Senior Citizen Savings Scheme is a government backed retirement plan for individuals aged above 60 years. Eligible individuals can invest a minimum of Rs. 1000 up to Rs. 30 lakh for a period of 5 years with SCSS interest rate of 8.2% per annum.Post Office Senior Citizen Savings Scheme (SCSS) DetailsFeature DetailsTenure5 Years (Extendable for additional 3 years)EligibilityIndividuals aged above 60 years Minimum InvestmentRs. 1,000Maximum InvestmentRs.