Section 270A is one of the most crucial section of the Income Tax Act. It offers with penalties for under-reporting or misreporting income. The aim of the introduction of this section is to avoid tax evasion. In this article, we will take a look at what Section 270A covers, who it applies to, and why it's crucial, as well as provide some examples.Budget 2026 UpdateFrom the upcoming tax year, penalty for under-reporting and misreporting of income can be levied through the assessment order itself. A separate penalty order is not required.What is Section 270A of the Income Tax Act?Section 270A of the Income Tax Act is delivered through the Finance Act of 2017.

In order to claim deduction for rent paid on a rented property as per Section 80GG, an individual needs to submit Form 10BA. This provision was introduced to help people who don't receive House Rent Allowances (HRA). Self employed individuals and HUFs can also claim this deduction by filing Form 10BA, provided they must pay rent for their residential accommodation. Form 10BA DownloadWhat is Form 10BA?Form 10BA is a declaration submitted by the taxpayer for claiming deduction under section 80GG To claim the deduction, the taxpayer must declare that they are not claiming the deduction for a self-occupied property in another location or the exact location where they are employed. What is the applicability of Form 10BA ?The following points justify the Form 10BA applicability:The taxpayer can be salaried or self-employed; however, they should not receive a house rent allowance from an employer.If the taxpayer, their minor child, spouse, or the assessee is a member of a HUF (Hindu Undivided Family), then the HUF must not possess any self-occupied residential property.Is Form 10BA Mandatory?Yes. It is compulsory to claim a deduction for rent remunerated under Section 80GG of the Income Tax Act. The Form 10BA is mandatory for the following reasons:Non-filing of this form can incur interest, penalties, or legal consequences.This form works as documentary evidence to approve your claim for deductions under Section 80GG. It offers a certifiable record of your rental payments.It presents legitimate tax compliance records that help those individuals who apply for visas, loans, or background checks.What are the limits as per Form 10BA ?The Form 10BA limit for claiming a deduction for the rent paid under Section 80GG is as follows:The deduction amount is the lowest of the following:Rs.5,000 per month or Rs.60,000 per year.25% of the total income (excluding short-term capital gains under Section 111A, long-term capital gains, Income under Section 115A or 115D, and deductions under Sections 80C to 80U.Actual rent (-) 10% of income.Form 10BA Due DateForm 10BA of the Income Tax Act should be filed before the income tax return.

Dearness Allowance (DA) is a salary component paid to employees of public sector undertakings to offset the impact of inflation and rising living costs. Calculated as a percentage of the basic salary, DA is revised twice a year based on the Consumer Price Index (CPI). It is fully taxable and varies depending on factors like basic pay and inflation rates.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. The purpose of DA hike is to offset the impact of inflation and rising living costs. The state governments of Tamil Nadu, Bihar, and Odisha have also raised the Dearness Allowance (DA) for their respective government employees and pensioners.What is Dearness Allowance?The government pays Dearness Allowance to its employees and pensioners as a cost of living adjustment to offset the impact of inflation.

Profit on sale of land often falls under the ambit of capital gains taxation. However, rural agricultural lands have a different tax treatment from normal sale transactions. Let us understand the tax saving strategies for sale of agricultural land in detail.  Key HighlightsRural agricultural land is not considered as a capital asset, leading to nil capital gains tax.Sale of urban agricultural land is taxable, but eligible for exemption under section 54B.TDS is applicable under section 194-IA for sale of urban agricultural land.What is Rural Agricultural Land?The Income Tax Act classifies agricultural land as rural or urban based on its location and proximity to a municipality.Rural Agriculture LandIt means an agricultural land in India – (a) If situated in any area that is comprised within the jurisdiction of a municipality and its population is less than 10,000, or (b) If situated outside the limits of the municipality, then situated at a distance measured- Shortest aerial distance from the local limits of a municipality or cantonment board Population according to the last census< 2 kms> 10,000> 2 kms but < 6 kms> 1,00,000> 6 kms but < 8 kms> 10,00,000If the land is situated anywhere within those specified limits, it would be categorized as urban agricultural land and taxed accordingly. Land that qualifies as rural land is not treated as a capital asset, so no capital gains tax applies.Urban Agricultural Land:If the agricultural land does not satisfy the conditions of rural agricultural land, then it will be considered urban agricultural land.

Term Insurance is a type of life insurance that offers coverage to the policyholder. However, this coverage is only valid for a particular period. If the policyholder dies during this time frame, then the term insurance-providing company pays the insured money to the beneficiary. However, one must know a few terms and conditions before taking term insurance. Apart from this, term insurance also has several tax benefits under the sections 80C, 80D, and 10D. In this article, we will learn about these benefits and how to claim them.What are the Key Tax Benefits of Term Insurance?According to the Income-tax Act,1961(ITA), several tax benefits are levied on term insurance.

Kisan Vikas Patra (KVP) is a government-backed savings scheme offered by India Post that allows investors to double their investment in 115 months (9 years and 5 months). It is a low-risk investment option designed to encourage long-term savings by offering guaranteed returns with annual compounding.Under the current rules, KVP offers an interest rate of 7.5% per annum, and the minimum investment starts from Rs.1,000 with no maximum limit. The scheme is suitable for conservative investors who want safe and predictable returns without exposure to market risks.Kisan Vikas Patra (KVP) - Key HighlightsGovernment-backed savings scheme that doubles your investment in 115 months (9 years 5 months).Current interest rate is 7.5% p.a., compounded annually (as per latest rates).Minimum investment is Rs.1,000 with no maximum limit on investment.Interest earned is taxable and no deduction is available under Section 80C.Available at post offices and selected banks with nomination and transfer facility.What is Kisan Vikas Patra?India Post introduced the Kisan Vikas Patra (KVP) as a small saving certificate scheme in 1988. The tenure for the scheme is now 115 months (9 years and 5 months).And if you invest a lump sum amount today, you can get double the amount at the end of the 115th month. Initially, it was meant for farmers to enable them to save for the long term, hence the name. Now it is available for all. The minimum investment amount is Rs.1,000, and there is no upper limit. To prevent the possibility of money laundering, the government in 2014 made PAN card proof compulsory for investments above Rs.50,000.

Sukanya Samriddhi Yojana or SSY is a government backed savings scheme for girl child below 10 years of age, offering 8.2% interest rate on deposits. Parents or legal guardians of girl child can start by investing a minimum of Rs. 250 per year up to a maximum investment of Rs. 1.5 lakh per year. The SSY scheme ensure long-term wealth building and offers a lumpsum amount upon maturity while offering various tax deductions and exemptions.Sukanya Samriddhi Yojana Interest Rate FY 2026-27Sukanya Samriddhi Yojana or SSY interest rate is 8.2% for Q1 of FY 2026-27 (April-June) which is compounded annualy.

TCS stands for Tax Collected at Source. TCS refers to the tax payable by a seller which he collects from the buyer at the time of sale of goods. The provisions related to TCS are covered under section 206C of the Income Tax Act. TCS is levied on specified goods like alcohol (1% - 5%), on specified leasing activities (2%), on sale of high value motor vehicles (1%) , and specified remittances under Liberalized Remittance Scheme (LRS) of RBI (2% - 20%). In this article, we will discuss the different transactions on which TCS has to be collected, TCS due dates, late payment interest and penalties.Budget 2026 UpdateThe TCS rate on LRS for health and education has been reduced to 2%.TCS rate on LRS for overseas tour package is proposed to be reduced to 2%  without any stipulated amount from the existing 5% and 20%.What is Tax Collected at Source (TCS)?Tax collected at source (TCS) is the tax payable by the seller which he collected from the buyer on sale. It should be deposited with the tax authorities within the applicable due dates. Section 206C of the Income-Tax Act governs provisions related to TCS. Such persons must have the Tax Collection Account Number (TAN) to be able to collect TCS.Seller is responsible only for collecting the tax and depositing it to the government.

The National Savings Certificate (NSC) is a secure investment option provided through post offices. Interest rate fixed for Q1 of FY 2026-27 is 7.7% per annum. A minimum investment is Rs. 1,000 is required to open an NSC account and lock in period is for 5 years. Tax benefits of up to Rs.

Professional tax is state-imposed tax which is levied on salaries employees, professionals, and self employed individuals engaged in various professions, trades and occupations. In Tamil Nadu this serves as an essential source of revenue for the state government and is applicable to both employees and business owners based on their income. Hence, it is essential to understand professional tax rules, slab rates,payment and due dates for timely compliance and avoid penalties.Professional Tax in Tamil NaduThe Tamil Nadu state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Tamil Nadu must pay professional tax according to the applicable income slab and professional tax rate.Employers deduct professional tax from employees' salaries monthly or half-yearly, and self-employed people deposit professional tax half-yearly (in six months). However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR.Professional tax in Tamil Nadu is levied under the Tamil Nadu Panchayats, Municipalities and Municipal Corporations Rules, 1998.