TDS deduction against capital gains transactions is an NRI specific requirement. The provisions are governed under section 393 of the Income Tax Act 2025. It is treated as short term or long term capital gains based on period of holding. TDS is deducted at 12.5% on long term and 30% on short term capital gains.Key HighlightsCapital gains tax is attracted when an NRI sells an immovable property.TDS should be deducted on capital gains12.5% - Long term capital gains30% - Short term capital gainsCapital gain exemptions available under section 54 series.How are Gains from the Sale of Property in India Taxed for NRIs?Whenever an NRI sells property in India, the profit is taxed as capital gains. The nature of gain depends on the holding period of the property: LTCG: When a property is sold after holding it for more than two years from date of purchase, the gains will be treated as LTCG. STCG: Where a property is sold within two years from date of purchase - the gains will be treated as STCG.Tax Rates for NRIs on Property SaleThe following table explains the long term and short term capital gain tax rates for NRIs.Type of capital gainHolding periodTax rateSTCG (Short-Term Capital Gains)Property held up to 2 years (24 months)Applicable slab ratesLTCG (Long-Term Capital Gains)Property held for more than 2 years (24 months)12.5% without indexationTDS on Sale of Property by NRIWhen an NRI sells property in India, the buyer is responsible for deducting TDS before making payment.If property sold within 2 years (STCG): TDS at 30% on the sale consideration.If property is sold after 2 years (LTCG): TDS at 20% (plus surcharge and cess).Unlike resident sellers (where TDS is only 1% under Section 194-IA), TDS on sale of property by NRI is much higher because it is deducted on the capital gains tax liability.

Surcharge is an additional tax calculated as a percentage of income tax payable. Usually, high income taxpayers are subjected to surcharge provisions under the Income Tax Act. For individuals, surcharge rates are as follows: 10% for income between 50 lakhs and 1 crore, 15% for income between 1 crore to 2 crore, 25% for income between 2 crore to 5 crore, and 37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)Surcharge on Income TaxIncome tax surcharge is an additional charge payable on income tax. It is an added tax on the taxpayers having a higher income inflow during a particular financial year.Surcharge Rates for Individuals Under the Old Regime and New RegimeNet Taxable Income limitSurcharge Rate on the amount of income tax (under old tax regime)Surcharge Rate on the amount of income tax (under new tax regime)Less than Rs 50 lakhsNilNilMore than Rs 50 lakhs ≤  Rs 1 Crore10%10%More than Rs 1 Crore ≤  Rs 2 Crore15%15%More than Rs 2 Crore ≤  Rs 5 Crore25%25%More than Rs 5 Crore37%25%Note:Surcharge for AOPs having only companies as its members to 15%. It is applicable to AOPs whose total income during the financial year exceeds Rs 1 crores. Surcharge on Capital GainsSurcharge has been capped at 15% on dividend income and Capital gains covered under section 111A, 112 and 112A.IllustrationLets understand this concept through an example:Mr. A has earned the following income during the financial year 2025-26:Business Income : Rs.

Dearness Allowance is a part of an employee’s salary, paid to public sector and government employees. It is introduced to cushion the impact of inflation on their purchasing power. Dearness Allowance is calculated as a percentage of basic pay, with regular revisions (twice a year) in line with the Consumer Price Index. Dearness Allowance is taxable and depends on employees' basic salary and inflation. DA Raised by 2%The Dearness allowance has been increased to 60% from the existing limit of 58% for central government employees as approved by the Union Cabinet. This DA hike will take effect from 1st January, 2026.

Section 194A of the Income Tax Act, 1961 mentions TDS on interest income other than interest on securities by covering payments made by post offices, banks, cooperative societies, individual and companies advances and loans. TDS is deducted at 10% once interest crosses the prescribed threshold, that is Rs.50,000 for most individuals and Rs 1 lakh for senior citizens on bank and post office interest (Rs.10,000 for other payers); the rate increases to 20% if PAN it is not furnished. Eligible taxpayers can avoid this deduction by submitting Form 121, with applicable conditions. Key Highlights Threshold Limit: Rs.50,000 for bank and post office interest. (Rs.1 lakh for senior citizens)TDS Rate: 10% TDS is deducted on interest crossing threshold limit.Form 15G/15H: File form 15G or 15H to avoid TDS deduction on your interest income (applicable in specific cases).What is Section 194A?Section 194A of the Income Tax Act, 1961 mandates the deduction of TDS on interest income other than interest on securities. It applies to payments made by banks, financial institutions, companies, and individuals where interest is credited or paid on deposits, loans, or advances.

Sukanya Samriddhi Yojana (SSY) is a savings scheme curated specially for securing the financial future of a girl child. With a competitive interest rate of 8.2%, investments in this scheme qualifies for deduction under Section 80C of the Income Tax Act, 1961, on satisfaction of certain conditions.Sukanya Samriddhi Yojana at a GlanceParticularsDetailsInterest RateLatest interest rate of 8.2% per annumInvestment LimitRs. 250 minimum and Rs. 1.5 lakh maximum per financial yearTenureDeposit for 15 years; account matures after 21 yearsTax BenefitsEligible for tax deduction and tax-free maturityWhere to OpenPost Office or authorised banksSukanya Samriddhi Yojana CalculatorUse the Sukanya Samriddhi Yojana (SSY) Calculator to accurately calculate the returns under this scheme.Latest SSY Interest RateThe Sukanya Samriddhi Yojana (SSY) currently an interest rate of 8.2% p.a., as notified by the Government for the latest quarter.What is Sukanya Samriddhi Yojana?The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme under the Beti Bachao, Beti Padhao initiative. It is designed to help parents build a corpus for their daughter's higher education and marriage.

EPFO members can check their PF balance through various methods that are through EPFO portal, using UMANG app, through missed call or SMS services, or through their DigiLocker facility. Both online and offline methods are used to check PF balance. However, members have to make sure that they have activated their UAN and have linked their KYC.PF Balance Check Methods: Quick Reference TableMethodUAN RequiredInternet RequiredEstimated TimeEPFO PortalYesYes2 minUMANG AppYesYes2 minMissed CallYesNoInstantSMSYesNoInstantDigiLockerYesYes3 minPrerequisites Before Checking PF BalanceBefore checking PF balance through online or offline methods, members should make sure to activate their Universal Account Number and have linked their KYC details. Without these, PF balance check thorugh most of the services will not be possible. 1. How to Activate UAN?Download the UMANG app, and select "UAN services through face authentication", under EPFO tab.Go to "UAN Activation, and provide your UAN, Aadhar number, and Aadhar registered mobile number.You will receive a mobile OTP, enter and proceed.Once you complete your face scan and verify your identity, your UAN will be activated.A temporary password is sent to your mobile. Ensure changing the password once logged in to the portal.2.

ITR stands for Income Tax Return. Through ITR, Indian taxpayers report their income, expenses, taxes paid, and tax liability for a financial year. Your applicable type of ITR differs based on income sources, level of income and the residential status, ranging from ITR-1 to ITR-7.ITR due date for FY 2025-26, for individual business taxpayers not subject to tax audit is 31st August, 2026. Failure to file the ITR by the specified due date can lead to adverse consequences such as late-filing interest, penalties, and the inability to carry forward losses.What is ITR?The Income Tax Return or ITR is a form in which the taxpayers submit information about their income and tax payments to the income tax department. The ITR form applicable to a taxpayer depends on the type of taxpayer, whether individuals, HUF, company, etc., and you choose the ITR based on the nature and type of income and total income.Who should File ITR?You can e-file your ITR for the FY 2025-26 corresponding to the AY 2026-27.

Section 80C is one of the most popular tax-saving deductions, allowing both individuals and HUFs to claim up to Rs. 1.5 lakh deduction per financial year. It covers a variety of investments and payments such as PPF, ELSS, life insurance premiums, NSC, EPF, Sukanya Samriddhi Yojana, home loan principal repayment, and tuition fees; this section brings a wide range of savings and payments under one umbrella. The Income Tax Act, 2025 now folds these provisions under Section 123. This article covers how Section 80C works and how to make the most of it before your investments are locked in for the year. Key Highlights Section 80C deduction is available only under the old tax regime.Additional Rs.

Form 16 is the TDS certificate that is issued under Section 2023 by your employer, showing salary income, exemptions, deductions and tax deducted for the financial year, which is essential for filing your ITR accurately. Form 16 has two parts: Part A (TDS summary,e mployer/employee PAN-TAN) and Part B (Salary breakup, deductions, tax computations), and must be issued by the 15th of the financial year 2025-26. This article covers whether Form 16 is mandatory and its upcoming renaming to Form 130 as per the Income Tax Act 2025. This blog explains in detail about Form 16, which is applicable for FY 2025-26 and preceding years. Form 16 Renamed as Form 130Under the Income Tax Act 2025, Form 16 has been renumbered as Form 130 effective from Tax Year 2026-27 (April 1, 2026) and onwards. For FY 2025-26, your employer will still issue Form 16 as usual.  What is Form 16?Form 16 is a TDS certificate issued by the employer containing TDS deducted on salary, the salary income during the financial year. It serves as a handy document for ITR filing process as it contains various information related to employer, the taxpayer, TDS deducted, income estimate, deductions claimable etc.

Short-term capital gains (STCG) refer to profits earned from the sale of capital assets held for a short duration. A short term capital gain arises usually when an asset is transferred within 24 months .The short term capital gains tax rate is 20% (for listed equity shares and equity mutual funds). For other assets such as gold, silver, house property, or land, the short term capital gains are taxed at the applicable income tax slab rates. Key HighlightsShort term capital gain arises when capital assets are sold within 12 months (listed equity shares or equity mutual funds) or 24 months (other assets).Short term capital gain on shares is taxed at a flat 20% under Section 111A.Short term capital gains tax on other assets (property, gold, etc.) is charged as per income tax slab rates.No indexation benefit is allowed, and proper reporting is required in ITR under Schedule CG.What is Short-Term Capital Gains (STCG)?Short-term capital gains or STCG is the capital gains which arises due to the transfer of a short-term capital asset such as equity shares, mutual fund units, gold, silver, property or any such capital asset. Short-term capital assets are those which are held for up to 12 months (for listed equity shares, units of equity oriented mutual funds or units of business trusts) or 24 months in case of other assets. Short-Term Capital Gains Tax RateThe short-term capital gain tax rate varies depending on the type of capital asset being sold. STCG on equity shares, units of equity oriented mutual funds, or units of business trusts are taxed at a flat fixed rate of 20% under Section 111A.