Tax evasion is the wilful act of not paying the taxes a person is liable to pay to the government. There are many illegal ways of deliberately avoiding tax payment, such as underreporting income, overreporting expenses through false deductions, and misrepresenting assets. Under section 276C of the Income Tax Act, 1961, any person (individual, HUF, AOP, firm, company, etc) will be penalised for not paying taxes, penalties, interest deliberately.  Tax Evasion MeaningTax Evasion means an unlawful act of not paying taxes owed by underreporting income, inflating deductions, or hiding money and is considered a serious offence subject to legal penalties. Tax evasion, however, is illegal and Chapter XXII of the Income Tax Act, 1961, is clear about penalties. A few examples of tax evasion are, an individual, a firm, or a company intentionally avoiding payments of tax liability, misreporting of income, and willful attempts to evade tax are cases of tax evasion.For instance, a company claims depreciation on a motor car that a director is using for personal purposes.

Form 10C is an application form that must be filled out for the premature withdrawal of your pension or obtaining a scheme certificate. Of the 12% contribution to your EPF account, 8.33% is directed to pension, i.e. EPS account. Though this amount is secured for your retirement, it can be withdrawn during necessary circumstances like unemployment for 2 or more months, medical emergency and others. Therefore, to avail of the benefits while continuing to retain the membership with the Employee Pension Fund (EPF), the employee files Form 10C.Eligibility to Apply for Form 10CEligibility Criteria - 1A member who left the job before completing 10 years of service.A member who attained 58 years of age before completing 10 years of service.Eligibility Criteria - 2A member who completed 10 years of service at the time of leaving, but has not attained 50 years at the time of filing the application.A member who is between 50 to 58 years of age and does not agree to a reduced pension.Eligibility Criteria - 3Family members/ nominee/ legal heir of a deceased member who died after attaining 58 years of age but did not complete 10 years of service.Types of Benefits AvailableLet us know the benefits available to the members mentioned above:A member falling in categories 1 and 3 above, shall apply for withdrawal benefits.A member falling in category 2 above is eligible for a Scheme Certificate only.

Form 60 is a declaration form submitted by a person (other than a company or firm) or a foreign company that doesn’t have a PAN and enters into any transaction specified in Rule 114B under section 139A of the Income Tax Act, 1961. There are certain transactions under which quoting of PAN number is mandatory so that the government can keep track of high-value transactions to curb black money in the country. However, there are individuals who have applied for PAN or do not have PAN. The absence of PAN may not have allowed many individuals to enter into transactions specified under Rule 114B of the Income Tax Act, 1961. For such individuals, Form 60 comes to the rescue. By filling out Form 60, individuals or a foreign company who do not have a PAN can enter into any transaction specified under Rule 114B of the Income Tax Act, 1961. What is Form 60?Form 60 is a document to be filed by a person (not a company or firm) to carry out transactions specified in Rule 114B when they do not have a PAN either because:they have not applied for PAN orthey have applied for PAN, but allotment is pendingForm 60 without applying for PAN is not acceptable if your total income (other than agriculture) is more than the basic exemption limit.

Yes, the tax regime can be changed while filing ITR. For salaried individuals, switching between the old and new tax regimes is allowed every assessment year while filing returns. However, for individuals with business or professional income, switching is allowed only once in a lifetime. To switch back to the old tax regime, they must file Form 10-IEA as per the Income Tax rules.Old Tax Regime V/s New Tax RegimeUnder the old tax regime, taxpayers can claim various exemptions and deductions for expenses incurred and investments made, such as deductions under Section 80C, 80D, housing loan interest, HRA, and more. This regime is more beneficial for taxpayers with higher eligible investments and expenses, as it significantly reduces taxable income.On the other hand, the New Tax Regime offers lower tax rates and a higher basic exemption limit.

Professional tax liability arises in Maharashtra when the individual earns income through employment or profession.  It is a deduction that you will notice on your pay slip. All self-employed, salaried individuals and organizations are liable to pay professional tax in Maharashtra, depending on their income.Professional Tax in MaharashtraThe Maharashtra state government imposes a professional tax as per the applicable income slab and tax rate on salary employees working in the private and government sectors and self-employed people engaged in any business or profession, such as doctors, lawyers, chartered accountants, engineers, etc., who are working in Maharashtra.Employers of such employees and self-employed individuals must obtain a certificate of registration or certificate of enrolment from the prescribed authority. Furthermore, you should apply for enrolment or registration within 30 days from the commencement date of your profession/business. The employer deducts professional tax from salaried employees' monthly salary, and self-employed people deposit professional tax amounts annually. Additionally, income slabs for male and female individuals differ regarding professional tax in Maharashtra.Professional Tax Rate in MaharashtraThe professional tax rate in Maharashtra differ for male and female individuals. For more understanding, look at the given table below:Monthly Gross SalaryProfessional Tax PayableRemarksUp to ₹7,500NilFor Male Employees₹7,501 to ₹10,000₹175 per monthFor Male Employees₹10,001 and above₹200 per month except for February, ₹300 for the month of FebruaryFor Male EmployeesUpto ₹25,000NilFor Female EmployeesAbove ₹25,000₹200 per month except for February, ₹300 for the month of FebruaryFor Female EmployeesProfessional Tax Applicability in MaharashtraProfessional tax in Mumbai applies to the following categories of individuals:Hindu Undivided Families (HUFs)IndividualsCompany/Association of person/Co-operative Society.Furthermore, only employers of salaried individuals are liable to pay such taxes on behalf of their employees.

The National Pension Scheme (NPS) was launched with the aim of helping people during their retirement years. This scheme lets people create a pension fund that provides a steady income after retirement. Another noticeable feature is its tax benefits. Not only can you avail up to Rs. 1.5 lakh in tax deductions under Section 80C, but you can also get additional deductions of up to Rs. 50,000 for your investment.

A salary is a form of compensation given to a person for performing work during a specified period. However, in income tax, the definition of salary also includes various other forms of payments offered by the employer to the employee. In this article, we will learn the meaning of salary as per the Income-tax Act.What is a Salary under Section 17(1)?Under Section 17(1), the term “salary” includes any payment received by an employee from an employer in cash, kind or as a facility.  It encompasses various components such as basic salary, allowances, bonuses, commissions, perquisites, and profits in lieu of salary. The definition of salary is comprehensive and covers a wide range of remuneration received by employees in the course of their employment Parallel provisions containing the definition of salary are included under section 15, 16 and 17 of the Income Tax Act, 2025. However, section 17 should be referred for the current tax filing season as it relates to income earned up to 31st March, 2026. Definition of Salary as per Income Tax ActSub-section(1) of Section 17 of the Income Tax Act provides an inclusive definition of “Salary”.

ITR validation rules are set-up to ensure the quality and accuracy of the data being submitted in the income tax return.A validation error in ITR filing usually arises whenever the data being entered doesn’t meet the ITR validation rules. What is “Validation Completed 1 Error Found”?The error “validation completed 1 error found” suggests that in the validation procedure of your ITR filing, the system identified an error that must be addressed. The error could happen due to different reasons, like entering wrong data, using special characters that are unacceptable by the system, or failing to fill mandatory field(s).To solve this error, you must identify, correct, re-validate, and re-upload the ITR form on the e-filing portal.Reasons for Validation Errors in ITR FilingIf you encounter that ITR is validated with errors, it could be because of the following reasons:Wrong data entry of details like Aadhar number, PAN, mobile number, or bank details leads to a bank validation error in ITR.Not filling in the mandatory information in the ITR form.Entering special characters that are unacceptable by the system like _, -,  !, &,^, >,<,  ~, #, %, or *.The generation of errors when uploading or generating the XML file. This can be because of network congestion or sluggish internet connection.Improper software settings, either in your browser or the Java control panel. Claiming exemptions exceeding the allowed limits, selecting incorrect sections while claiming exemptions, or providing inconsistent data in the ITR.  Some other reasons leading to validation error are:The name doesn’t match with the PAN databaseMismatch of date of birth for senior citizen benefitsFiling a revised return as per section 142(1) when it is not valid Carefully reviewing the filled details and ensuring that all the mandatory fields are filled can help avoid this error. Moreover, you can also avoid this error by not using special characters and checking your software settings and internet connection. What is Validation Error in ITR?Usually, the validation error in ITR arises because of wrong or missing data in the form.

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.

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.