The Income Tax Act 1961 provides a valuable mechanism called Set-off and carried forward of Losses, which allows taxpayers to adjust losses incurred from various sources, such as business or profession, capital loss from shares and properties, interest paid on borrowed funds for house property, etc., against profit from the same or other eligible sources and also allow unutilised losses to be carried forward for future years, subject to certain conditions. These provisions are essential tools for reducing the overall tax liability and play a crucial role in effective and strategic tax planning. Note: Under the New Tax Regime, the loss from House Property cannot be set-off against income from any other heads. Only intra-head set-off is allowed for losses from house property.  What Is Set Off of Losses?Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Simply speaking, it means utilising losses to reduce taxable income and save taxes. 1. Intra-Head Set OffThe losses from one source of income can be set off against income under the same head of income, though sources might be different.For eg: Loss from Business A can be set off against profit from Business B, where Business A is one source and Business B is another source under the common head of income is “Business”. 2.

The Income Tax Act classifies F&O income as business Income and should be reported in the Income Tax Returns (ITR). Further, any F&O loss is allowed to be set off against other income, and the excess loss can be carried forward to the subsequent year.Key HighlightsIncome or loss from Futures & Options (F&O) is treated as Business IncomeExpenses Allowed: Brokerage, internet, telephone, advisory fees,rent, etc.ITR Form: Report F&O income in ITR-3 (business income) or ITR-4 (if opting for presumptive taxation).Why Gains or Losses from F&O Trades Must be Reported in ITRFailure to report F&O gains or losses in the ITR might result in an Income Tax Notice from the authorities. On the other hand, reporting F&O trading losses has some useful tax advantages as they can be set off against other incomes or carried forward to the subsequent years. Maintaining proper and complete reporting not only keeps you in compliance but also allows you to optimize your tax position.Income Head: Reporting of F&O Trading as Business IncomeAs per Section 43(5) of the Income Tax Act 1961 (Section 66 of the Income Tax Act, 2025), income or loss from F&O is classified as non-speculative business income. Therefore, F&O gains and losses have to be reported as normal business income under the head PGBP (Profits & Gains from Business and Profession).Which ITR to File for Reporting F&O Income?Given that F&O Income falls under the category of business income, people having F&O trades must report the profit loss in ITR-3 (ITR form designated for people having PGBP Income) and if you are filing under the presumptive scheme then you can use ITR-4.  How to Calculate F&O Turnover?Turnover for F&O Trading = Absolute ProfitAbsolute Turnover refers to the sum of positive and negative differences. Note: Please note that the calculation for options trading turnover has been updated as per the eighth edition of the guidance note dated 14/08/2022 (applicable from Assessment Year 2022-23). Previously, options trading turnover included "Absolute Profit + Premium on Sale of Options."Example: Aditya buys 100 units of Futures @ Rs 200 and sells at Rs 210. Also buys 200 units of options @ Rs 300 and sells at Rs 290.This is how his turnover would be determined:ParticularsCalculationAmountFutures(210-200) * 1001000Options(290-300) * 2002000 (negative ignored)Total Turnover (Absolute Profit)3000 Should F&O Traders Maintain Accounting Records?Yes, F&O traders are mandatorily required to maintain books of accounts if:Income exceeds Rs 2.5 lakhs or Turnover exceeds Rs 25 lakhs in any of the 3 preceding years or in the first year in case of a new business. Keeping your trading statements, expense receipts, profit & loss statements, and bank account statements will mostly suffice. Audit and Return Filing for F&OEvery person carrying any business will have to get his accounts audited if his turnover exceeds Rs.1 Crore in the previous year or Rs.

There is a growing popularity of trading in derivatives and futures. So, it is imperative to understand the taxation regulations regarding such transactions. Those taxpayers who are salaried but are trading in F&O may miss out on declaring F&O losses in their tax returns. If all the sources of income are not stated, the tax department may send a notice mentioning non-compliance. To avoid such hassles, staying informed about the process to claim F&O losses in your ITR is essential.What is Futures and Options or F&O?Futures and Options (F&O) serve as financial instruments, allowing investors to purchase or sell assets at a fixed price and time in the future.

Taxpayers can pay income tax dues, like self-assessment tax or advance tax online using the e-Pay Tax facility on the income tax portal. All taxpayers can pay directly through net banking, debit card, UPI, or by generating a challan. Once paid, ensure it reflects in Form 26AS and your ITR.Key HighlightsSelf-assessment tax is paid under the minor head ‘Self-Assessment’ (code 300).Payments can be made via net banking, debit/credit card, UPI, RTGS/NEFT, or at a bank counter.Always download the challan (with BSR code & challan number) for ITR filing.Tax payment for Tax Year 2026-27 onwards must be must as per the Income Tax Act 2025 by using new challan forms (ITNS 280N, 281N, 288N). How to e-Pay Tax Online?Here's a step-by-step guide on how to pay tax online through the Income Tax Portal:Step 1: Navigating to 'e-Pay Tax' SectionVisit the Income Tax PortalOn the homepage, locate the 'Quick Links' section on the left side. Click on the 'e-Pay Tax' option or use the search bar to find 'e-Pay Tax'.Step 2: Enter PAN/TAN and Mobile NumberEnter your PAN and re-enter to confirm it. Provide your mobile number and click 'Continue'.Enter the 6-digit OTP received on your mobile number and click 'Continue'.Step 3: Select the correct Assessment Year and Payment TypeSelect the first box labelled as ‘Income Tax’ and click ‘Proceed’ From the ‘Assessment Year’ dropdown, select ‘2026-27’Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.Step 4: Enter Tax Payment DetailsEnter the payment amounts accurately under the relevant categories.Step 5: Select the Payment MethodSelect the payment method and bank to make the tax payment and press 'Continue'.Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.Step 6: Verify Payment InformationAfter clicking 'Continue', you can preview the challan details.Double-check the payment information for accuracy.Click 'Pay Now' to make the payment or 'Edit' to modify the details.Step 7: Submit the PaymentTick the checkbox to agree to the Terms and Conditions.Click 'Submit To Bank' to proceed with the payment.Step 8: Receive Payment ConfirmationYou will receive a confirmation once your tax payment has been successfully submitted.  Note: Remember to download the challan as you will need the BSR code and Challan number to complete the return filing process.Step 9: Declaring Tax Paid DetailsDownload the payment challan from the Income Tax portal.After making the tax payment, update the payment information on ClearTax.Go to the 'Tax Summary' page and click 'Add Paid Tax Details'.Upload the challan or enter the details manually.Once done, your tax payment status will change to 'taxes paid'. Proceed to e-file and e-verify your return on ClearTaxYou may refer to this guide for further steps. How to Calculate Advance Tax?Here is a step by step guide to ascertain your advance tax liability and instalment amount.Consider your income earned for preceding financial years. Ascertain how much more or less you will earn as compared to preceding years.Consider all your eligible deductions and exemptions.Make an estimate of your total taxable income. Using ClearTax tax calculator, calculate the tax liability under the most beneficial tax regime for you. If your net tax liability exceeds Rs.10,000 for the financial year, you are required to pay advance tax. The below table will help you understand better.ParticularsAmountGross Total IncomeXXX(-) Deductions Under Chapter VIXXXNet Total IncomeXXXTax LiabilityXXX(+) SurchargeXXX(+) Health & Education CessXXXGross Tax LiabilityXXX(-) TDS/TCSXXXNet Tax LiabilityXXXAuthorised Banks for e-Tax PaymentThe list of banks that can be found on the e-filing portal for e-payment of taxes is as follows:Download Official DocumentList Of Authorized BanksAxis Bank Federal Bank New Bank Kotak Bandhan Bank New Bank HDFC Bank Karnataka Bank New Bank Bank of Baroda ICICI Bank Punjab National Bank Bank of India IDBI Bank Punjab & Sind Bank Bank of MaharashtraIndian Bank RBL Bank New BankCanara Bank Indian Overseas Bank State Bank of India Central Bank of India IndusInd Bank New Bank South Indian bank New BankCity Union Bank New Bank Jammu & Kashmir Bank UCO Bank DCB Bank New Bank Karur Vysya Bank New Bank Union Bank Eligibility for e-Tax PaymentThe following assessees have to mandatorily pay taxes online:All the corporate assessees.All assessees (other than company) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable.Self-Assessment TaxYou cannot submit your income tax return to the income tax department unless you have paid tax dues in full.

Taxpayers should file their Income Tax Returns (ITR) in a timely and accurate manner in order to avoid adverse consequences like income tax notices, refund delay, potential additional tax liability and penalties. Common mistakes include ignoring mismatches between data as per income tax records and the return filed, claiming ineligible deductions, or eligible deductions under the wrong category, eliminating meager income like interest and dividend, and so on. 1. Income Tax Notice DiscrepancyTaxpayers have been receiving income tax notices lately, especially related to deductions and exemptions claimed. The Income Tax Department increasingly uses artificial intelligence and advanced data analytics to match every deduction with the source information. Deduction claimed under the wrong section, ineligible deduction is claimed by entering it in other eligible fields, claiming of deduction or exemption without adequate sources, can lead to income tax notices.

Sukanya Samriddhi Yojana (SSY) is a government backed savings scheme designed to focus on wealth generation for girl child's future education and marriage expenses. SSY scheme is available for girls aged below 10 years, and the scheme offers an attractive interest rate of 8.2% per annum. Parents or legal guardians can start investing from a minimum of Rs. 250 upto a maximum of Rs. 1.5 lakh per year..Sukanya Samriddhi Yojana Key Highlights TableParticularsDetailsInterest Rate8.2% p.a.

A Unique Document Identification Number (UDIN) is a unique number generated by practising Chartered Accountants for certificates, audit reports, and other attested documents issued by them. Introduced by the Institute of Chartered Accountants of India (ICAI), UDIN helps verify the authenticity of documents, prevents the misuse or forgery of a CA's signature, and enables regulators, banks, and other stakeholders to confirm that a document has been genuinely issued by a Chartered Accountant.What is UDIN?UDIN (Unique Document Identification Number) is an 18-digit unique number generated by a practising Chartered Accountant on the ICAI UDIN portal for certificates, audit reports, and other documents certified or attested by them. Introduced by the Institute of Chartered Accountants of India (ICAI), UDIN helps verify the authenticity of such documents and prevents the misuse or forgery of a Chartered Accountant's signature.How to Register on the UDIN portal?Full-time practising Chartered Accountants (CAs) holding a valid Certificate of Practice (COP) must complete a one-time registration on the UDIN portal before generating UDINs for certificates, audit reports, and other attested documents.Step 1: Visit the ICAI UDIN portal and click “Login”.Step 2: Enter your Username in the format ⟨MRN⟩@icai.org and your SSP password - the same credentials used for the ICAI Self Service Portal.Step 3: Enter the CAPTCHA code displayed.Step 4: Click "Send OTP" - an OTP will be sent to your registered mobile number and email. Enter the OTP to complete verification.Step 5: After successful authentication, you will be redirected to the UDIN dashboard.How to generate UDIN for a document?Once you have logged in to the UDIN portal, follow these steps to generate a UDIN:Step 1: Log in to the UDIN portal using your ICAI SSP credentials (MRN@icai.org), enter the CAPTCHA, and complete the OTP verification.Step 2: From the dashboard, click "Generate UDIN" to start a new request.Step 3: Your member details will be auto-filled. Select the Firm Registration Number (FRN) if the document is being issued on behalf of a firm, or choose "NA/Individual Capacity" if applicable.

Paying your income tax for the first time is a milestone in any citizen’s life. Income tax is the most popular form of direct tax levied and collected in India. For individuals, the taxes are levied progressively, i.e., the tax rate increases as the income increases. Slab rates are fixed for individuals, under old regime and new regime. There are various tax benefits available, using which the person can minimize the final tax liability. Taxes for a particular financial year is usually paid in next year - which is called assessment year.

When your jobs change, having separate EPF accounts under a single UAN is common. However, they dont merge automatically. You need to request EPFO for online transfer of balance to the active PF account. In this article, we will explain how to merge PF accounts seamlessly.Why should you merge your PF Accounts?Here are some advantages of merging multiple EPF accounts: It save money in the long run by consolidating your pension and salary payments into a single account.It also gets simpler to track your expenses and income tax returns.Withdrawal procedures are significantly simplified, any potential delays avoided.Managing multiple EPFO accounts can be a hassle, requiring you to track multiple details.Requisites for Merging PF AccountsIf you are considering merging your accounts, you need to consider certain things. This includes:First, it is imperative to finish the Know Your Customer (KYC) procedure, which entails confirming the bank account, PAN and other related information.Then, you should have a UAN that is linked to your existing EPF account.Before merging your EPF accounts, you should wait for 3 days for your UAN to get activated.However, it is important to note that there is no need to merge right away if you are not required to; if you still want to, you can put it off until later. How to merge PF Accounts Online?Here is a step-by-step guide on how to merge EPF accounts onlineThrough EPFO PortalVisit the official website of EPFO, sign in using your UAN and password.

The Annual Information Statement (AIS) is a summary of key financial transactions and income for the year. For FY 2025-26, it includes details such as TDS deducted, interest earned on savings and fixed deposits, purchase and sale of shares or mutual funds, high-value transactions like property or vehicle purchases, and more.Key Highlights of Annual Information Statement (AIS)Provides a comprehensive view of your financial transactions, including income, TDS/TCS, taxes paid, and high-value transactions.Covers more information than Form 26AS, such as interest income, dividend income, securities transactions, and foreign remittances.Allows taxpayers to review and provide feedback on any incorrect or mismatched information.Helps ensure accurate ITR filing by enabling easy verification of income and tax details reported against your PAN.What is AIS Income Tax?The Annual Information Statement or AIS is a summary of a taxpayer's information as reported by various organizations from which taxpayers have received any benefit, whether in cash, kind or otherwise. It includes new information – interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. for FY 2025-26.Summary of AIS information is in the form of Taxpayer Information Summary (TIS) for ease of filing return (All the information will be pre-filled in your return). Taxpayers will be able to submit online feedback on AIS’s information.