The new Income Tax Act will be applicable from 1st April, 2026, replacing the six-decade-old Income Tax Act, 1961. The new law aims to remove redundant provisions, simplification of language and keep pace with the evolving economic environment and technology.Key TakeawaysIntroduces the concept of ‘tax year’, removing confusion between previous year and assessment year.Consolidates and restructures provisions (e.g., all TDS sections in one table) and its sequence.What is the Income Tax Act 2025?The Income Tax Act 2025 is a comprehensive legislation governing the levy, administration, collection, and recovery of direct taxes in India. Spanning over 600 pages with 536 sections, 23 chapters, and 16 schedules, it covers all aspects of taxation.New Income Tax Act 2025 PDF DownloadYou can download the updated version of the Income Tax Act as implemented on August 21, 2025 here.Chapters of the new Income Tax Act 2025The Income Tax Act has 23 chapters in total, some of which have subparts. Find them mentioned in the table below:ChapterOverviewChapter IPreliminaryChapter IIBasis of Charge Chapter IIIIncomes which do not form part of Total IncomeChapter IVComputation of Total IncomeChapter VIncome of other persons, Included in the Total Income of the Assessee. Chapter VIAggregation of IncomeChapter VIISet off, or Carry Forward And Set Off of LossesChapter VIIIDeductions to be made in Computing Total IncomeChapter IXRebate And ReliefsChapter XSpecial Provisions Relating to Avoidance of TaxChapter XIGeneral Anti-Avoidance RuleChapter XIIMode of Payment in Certain CasesChapter XIIIDetermination of tax in Special CasesChapter XIVTax AdministrationChapter XVReturn of Income Chapter XVIProcedure for AssessmentChapter XVIISpecial tax provisions for certain persons. Chapter XVIIIAppeals, Revision and Alternate Dispute Resolution.Chapter XIXCollection and Recovery of Tax Chapter XXRefundsChapter XXIPenaltiesChapter XXIIOffences and ProsecutionChapter XXIIIMiscellaneousMain Objectives of Income Tax Act 2025The main objectives of the Income Tax Act 2025 are as follows:Simplified tax provisions with clearer languageThe Income Tax Act 2025 aims to provide a more simpler tax code which is less complex, easily understandable  and much easier to interpret.Reduced Tax rates and increased RebateThis Act reduces the income tax rates in order to promote higher demand for goods and services. This, in turn, leads to increased money in the hands of the taxpayer which leads to more savings. Reduced legal disputes by removing ambiguitiesWith a streamlined tax administration and use of modern mechanisms for tax compliance, the Act aims to reduce legal disputes and provide for a more easier redressal system.  Much easier compliance With a reduction in the content, the Act aim to make compliance more easier and efficient.

Employees’ Provident Fund (EPF) is a crucial retirement savings scheme, but withdrawals are subject to specific rules. Depending on retirement, unemployment, or emergencies like medical needs, marriage, or housing, employees can withdraw fully or partially. Tax implications vary based on service period, withdrawal reason, and fund type. Understanding EPF withdrawal rules helps avoid unnecessary TDS and plan finances effectively.Tax Exempt WithdrawalsWithdrawal after 5 years.For medical and other specified grounds (or).Transfer of PF amount to NPS account. No TDS if the amount withdrawn is less than Rs.50,000Eligibility for EPF WithdrawalAn employee must fulfil the following conditions to withdraw the entire EPF funds:The entire EPF amount can be withdrawn upon retirement. The retirement age fixed by the EPFO is 55 years.An employee can withdraw 90% of the EPF funds one year before retirement after attaining 54 years.An employee can withdraw 75% of the EPF amount after one month of unemployment.

Section 80GG of the Income Tax Act provides tax relief to individuals who pay rent but do not receive House Rent Allowance (HRA).Key Highlights Available to both salaried (without HRA) and self-employed taxpayers.Form 10BA is required to be filed within due date for claiming this deduction.Deduction under section 80GG is available only under the old regime.What is Section 80GG Deduction?Section 80GG of the Income Tax Act provides a deduction to individuals who pay rent for residential accommodation but do not receive House Rent Allowance (HRA) from their employer. The provision applies to both salaried individuals without HRA and self-employed professionals. To claim this deduction, the individual must actually pay rent for a furnished or unfurnished house that is occupied as their own residence.Eligibility for Claiming Deduction Under Section 80GGA taxpayer must fulfil the following conditions to claim a deduction under Section 80GG:You should file under the old regime.You have not received HRA from an employer at any time during the year or claimed HRA exemption . You will be required to file Form 10BA within the due date.Maximum Deduction Limit under Section 80GG The lowest of these will be considered as the deduction under this section- Rs.5,000 per month or 60,000 per year25% of the total income before allowing deduction for expenditure under this sectionActual rent less 10% of income before allowing deduction for expenditure under this sectionForm 10BA RequirementA declaration in Form 10BA is mandatory to confirm compliance with the conditions for claiming a deduction under Section 80GG. The form must be filed online and submitted on or before the due date of filing your Income Tax Return (ITR) (i,e, 31st July 2026 For FY 2025-26).Following are the details to be filled in 10BA:Name and PAN of assessee Full address of assesseeTenure and rent amount Rent payment modeName and address of the landlordPAN of the landlord if rental is above INR 1 lakhA declaration that no other house property is owned by the assessee himself or in the name of spouse/minor child or by the HUF of which he is a member.Form 10BA Download const userAgent = navigator.userAgent || navigator.vendor || window.opera; const inlineCTAbutton = document.getElementById('inlinebtnLink'); if (/android/i.test(userAgent)) { inlineCTAbutton.href = "https://black-cleartax.app.link/filing-entryscreen" } if (/iPad|iPhone|iPod/.test(userAgent) && !window.MSStream) { inlineCTAbutton.href = "https://cleartax.in/MyAccount/start" } .

Section 80U of the Income Tax Act, 1961, provides tax relief to resident individuals with disabilities by offering a fixed deduction from their taxable income. The deduction is Rs.75,000 for persons with disabilities and Rs.1.25 lakhs for those with severe disabilities, subject to certification by authorized medical authorities. Key HighlightsMaximum Deduction: Rs.1.25 lakhs for severe disability (80%+) and Rs. 75,000 for other disabilities.Tax Regime: This deduction is available only under the old tax regime.Form 10 IA: Taxpayers claiming this disability should file form 10-IA within the due date.What is Deduction Under Section 80U of the Income Tax Act?Section 80U of the Income Tax Act, 1961, allows resident individuals with disabilities to claim a flat deduction of Rs 75,000 or Rs 1.25 lakh for severe disabilities from their total income. The disability must be certified by approved medical authorities at any time during the financial year. Taxpayers who have a disability must submit Form 10-IA when filing their Income Tax Returns.Who can claim a Deduction under Section 80U?A resident individual who has been certified as a person with a disability by the medical authority can claim the tax benefit under Section 80U.For this section, disability has been defined as one of the following:BlindnessLow visionLeprosy-curedHearing impairmentLocomotor disabilityMental retardationMental illnessThe section also defines a severe disability, which refers to a condition where the disability is 80% or more of one or more disabilities.

Section 80E of the Income Tax Act, 1961, provides tax benefits on education loans by allowing individuals to claim a deduction on the interest paid, either for themselves or their relatives.Key HighlightsTax Regime: This deduction is applicable only under the old regime.No Limit: The entire interest amount paid in a financial year can be claimed, with no maximum cap.Duration: Deductions are allowed for maximum 8 years from the year repayment begins.What is Section 80E Education Loan Deduction?Section 80E of the Income Tax Act provides for the deduction of interest paid on loans taken for higher education. Irrespective of whether the loan is taken for himself or for his relative, the assessee can claim this deduction. There is no specified upper limit for this deduction; the entire interest paid on an eligible education loan can be claimed. It can be claimed for a maximum of eight years, beginning from the year interest repayment starts. This deduction is available only under the Old Tax Regime.Eligibility for 80E Deduction on Education LoanOnly individuals can claim a deduction on an education loan.

Section 194S of the Income Tax Act provides for TDS on sale of Virtual Digital Assets (VDAs) at 1%. Key HighlightsCrypto Exchange (or broker) should deduct 1% TDS, and must file quarterly Form 26QF.No TDS needs to be deducted if the sale value do not exceed Rs. 10,000 (Rs.50,000 for specified persons) TDS applies even in case of exchange of one crypto asset for another.What is TDS Under Section 194S?Section 194S provides for TDS on sale of cryptocurrencies and other Virtual Digital Assets. 1% TDS needs to be deducted on sale of crypto transactions. This is applicable in cases where the value of the transaction exceeds Rs 10,000 in a particular year (Rs 50,000 in the case of specified persons). The tax deducted is required to be reported to the government in Form 26Q for other persons and in Form 26QE for specified persons.For example, if you buy cryptocurrency worth Rs 1,00,000, you must deduct TDS at 1% of Rs 1,00,000 from your payment and pay the balance of Rs 99,000 to the seller.

A Belated Income Tax Return (ITR) can be filed if a taxpayer misses the due date for filing the original return under Section 139(1). Such a return can still be filed up to 31st December 2025, but it attracts a late fee under Section 234F and may also lead to loss of certain benefits, such as carrying forward losses.Key HighlightsPenalty: Late fee of Rs. 1,000 / 5,000 (u/s 234F) and interest (u/s 234A/B/C).Limitations: Business and capital losses cannot be carried forward; certain deductions are disallowed.Revision: A belated return can be revised only up to 31st December 2025.What is a Belated Return?If you have missed filing your return with the original return due date (September 16, 2025 for FY 2024-25), you can still file belated return under section 139(4).The due date for filing belated return 31st December of the relevant assessment year. For financial year 2024-25, the due date for filing belated return is 31st December, 2025.It is recommended to file belated return even if you have missed your original return due date, to avoid consequences of not filing ITR.Limitations of a Belated ReturnIf you miss the due date for ITR and file belated returns, you may face the following consequencesInterest: Interest may be applicable under sections 234A, 234B and 234C.Late fee: A late fee will be levied under Section 234F while filing a belated return: Gross Total IncomeLate Feeup to Rs. 5 lakhRs 1,000more than Rs.

Form 3CD is the annexure provided with the tax audit reports Form 3CA and Form 3CB furnished by the Chartered Accountant under section 44AB. It is a statement of particulars providing details of various aspects of business and financial transactions. Form 3CD covers 44 clauses that give a detailed description of the business transactions.The ‘Tax Audit’ limit under Section 44AB is Rs 1 crore (the threshold limit is Rs 10 crore where minimum 95% of business transactions are done in digital mode). If the taxpayer is subject to audit, then this process is even more elaborate as one not only has to submit a return but also a tax audit report to the Income Tax authorities. In this context, we would have heard or come across the ‘Form 3CD’.

The Income Tax Act has specified the books of accounts that are required to be maintained for the purpose of Income Tax. These have been prescribed under section 44AA and Rule 6F.Who is Required To Maintain Books of Account?Books of accounts/accounting records have to be maintained if the income from business or profession exceeds Rs. 1,20,000 or turnover/gross receipts exceeds Rs. 10,00,000 in any of the 3 preceding years for an existing profession. This also applies to a newly set up business/profession whose income from business/profession is expected to exceed Rs.

A tax audit means a Chartered Accountant reviews the business's accounts and checks their compliance with income tax laws. Under Section 44AB, the accountant must furnish the audit report of accounts in Forms 3CA, 3CB, and 3CE.Form 3CA is the audit report of the taxpayers’ accounts that need to be audited under other acts, such as the Companies Act, 2013. Form 3CB is the audit report of the taxpayers’ accounts that must be audited under the Income Tax Act 1961. Form 3CE is the audit report of the taxpayers who are non-residents or foreign entities receiving income in India as royalty or technical fees. Form 3CD is an annexure to the audit reports, Form 3CA, and Form 3CB furnished by the Chartered Accountant. What is a Tax Audit?Tax audit is a cross-examination of the books of accounts of the taxpayer by a Chartered Accountant (holding full-time Certificate of Practice) under the Income Tax Act 1961.