Tax Deducted at Source (TDS) is a tax collection mechanism under the Income Tax Act where tax is deducted at the time of making specified payments such as salary, interest, rent, commission, and professional fees. The deducted amount is deposited with the government on the recipient's behalf, ensuring timely tax collection and improved tax compliance.TDS Key HighlightsTDS is deducted at source on specified payments such as salary, interest, rent, and professional fees.TDS deducted from your income can be claimed as a tax credit or refund while filing your ITR.Eligible taxpayers can submit Form 15G or Form 15H or Form 121 to avoid TDS deduction if their tax liability is nil.Form 26AS helps you track and verify TDS credits deposited against your PAN.Applicability of TDSTDS is applicable for a variety of transactions at different TDS rates when the payments cross specified threshold limit. They include:Salary - Section 192Dividend - Section 194Interest - Section 194AProfessional and consultation fees - Section 194JContract payments - Section 194CCasual income like gaming income, lottery winnings, etc - Section 194BCash withdrawals - Section 194NCommission, brokerage, etc - Section 194HTime of TDS DeductionUsually, TDS needs to be deducted at the time of payment or credit in the books, whichever is earlier. However, for certain payments like salary, TDS needs to be deducted at the time of payment. Example of TDSShine Pvt. Ltd makes a payment for office rent of Rs 80,000 per month to the owner of the property. TDS is required to be deducted at 10% under Section 194I of the Income Tax Act, 1961.

Form 15G is a self-declaration form for resident individuals below 60 years to prevent TDS on interest income when total tax liability is nil. Form 15H is the equivalent for senior citizens aged above 60 years. Both forms are submitted to banks or financial institutions under the provisions of the Income Tax Act, 1961. Important (FY 2026-27): From April 1, 2026, Form 15G and Form 15H have been replaced by the new Form 121 under the Income Tax Act, 2025. If you are filing for FY 2025-26 or earlier, use Form 15G/15H. For FY 2026-27 onwards, use Form 121.Quick Highlights: Form 15G vs Form 15HParticularsForm 15GForm 15HEligible AgeBelow 60 years60 years and aboveKey ConditionTotal estimated tax liability for the financial year must be NilTotal estimated tax liability for the financial year must be NilWho Can SubmitResident individuals, HUFs, and certain eligible assesseesResident senior citizensValidityValid for one financial yearValid for one financial yearSubmission RequirementMust be submitted separately to each bank, post office, or deductor where income is earnedMust be submitted separately to each bank, post office, or deductor where income is earnedWhat is Form 15G?Form 15G is a self-declaration form for individuals to submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income, when the total income is below the basic exemption limit.Form 15G is generally used by individuals below 60 years of age and Hindu Undivided Families (HUFs) to ensure that TDS is not deducted on interest earned from sources such as fixed deposits or recurring deposits.

Home loan can be a highly beneficial tax saving tool for taxpayers, and the scale of benefit depends on choice of regime, status of occupancy, and quantum of loan interest due and principal payment for the financial year, etc. Using Section 80C and Section 24(b), a homeowner under the old tax regime can reduce their taxable income by up to ₹3.5 lakh every year.Home Loan Tax Benefits - Key HighlightsThe maximum limits for deductions available against interest and principal paid during the financial year are presented in a table below: DeductionComponentMaximum LimitTax RegimeSection 80CPrincipalRs. 1.5 lakhOld Tax RegimeSection 24(b)InterestSelf-occupied property: Rs. 2 lakhOld Tax RegimeLet-out property: Entire interest up to rental incomeOld & New Tax RegimeSection 80EEInterestRs. 50,000Old Tax RegimeSection 80EEAInterestRs. 1.5 lakhOld Tax RegimeThe Income Tax Act offers the following key home loan tax benefits:1.

Did you know that deceased people can also be taxed? As ironic as it sounds, the income tax returns for a deceased person have to be filed if he/she has taxable income. His legal heir/representative needs to file the return on his behalf for the income earned till the date of death. The legal heir has to register himself at the income tax website to file the return on behalf of the deceased. In this article, we will discuss how to file the income tax return for the deceased by a legal heir.Who is a legal heir?From the viewpoint of the law, a legal heir is a person who represents the deceased's assets. Any of the following documents are acceptable as legal heir certificates when registering as a legal heir:The certificate of legal heirship is issued by a court of law.The certificate of legal heirship is issued by the local revenue authority.The certificate is issued by the local revenue officials to the remaining family members.The deceased person's registered Will.The State/Central government's family pension certificate.The certificate of surviving family members issued by the local revenue authorities (Municipality, Nagarpalika) is the most common certificate available.

Transport allowance is a benefit provided by employers to help employees manage their commuting expenses. It plays a crucial role in salary structure and taxation, with specific exemptions and rules that employees should be aware of. Key HighlightsFully taxable for most employees, but specially abled employees can claim an exemption up to Rs. 3,200 per month.Allowance rates depend on pay level and city class; DA is applicable; a double allowance is provided for specially abled individuals.Exemption available under the new regime for only specially abled employees What is Transport Allowance?Transport allowance could mean allowance provided for the purpose of transport from residence to the place of work. However, transport allowance under Section 10(14) of Income-tax Act,1961 read with rule 2BB of Income-tax rules can be either of the following:Allowance granted to an employee to meet his expenditure for the purpose of commuting between his place of residence and office/place of dutyTransport allowance is taxable in the hands of the employee since it is added to their gross salaries. However, employees who are blind, deaf, dumb or orthopedically handicapped it is allowed upto Rs.

Section 80-IAC of the Income Tax Act,1961, was introduced on 1 April 2017 to provide tax incentives to eligible startups in India. Under this section, recognised Indian startups can claim 100% tax exemption on profit for three consecutive years. This act applies to recognised Private Limited Companies and LLPs incorporated on or after 1 April 2016 but before 31 March 2030.What is Section 80-IAC?Section 80-IAC intends to facilitate the growth of startups during their initial phase by providing tax benefits.It came into effect to encourage innovation, use research and development, and foster a dynamic entrepreneurial system in India.It offers a tax incentive to domestic companies for endorsing investments in startups and other eligible businesses.It aims to reduce the evasion of taxes. Consequently, this tax benefit inspires young entrepreneurs to become genuine taxpayers. Benefits of Section 80-IACThe sum of the deduction provided under Section 80-IAC of the Income-tax Act,1961 equals 100% of the profits and gains acquired from the entitled business Deduction can be claimed for three sequential assessment years out of the first 10 years of operation.It eliminates the need to pay advance tax, as the tax liability for that year would be Nil.The deductions provided under this act allow startups to tackle the tax burden they usually encounter during their initial phases of operation. By decreasing the taxable income, the act streamlines the financial pressure on startups, enabling them to allocate resources more competently.Startups can submit an easy online application; no government fees are incurred.

An income tax refund arises when the taxpayer pays more tax than the actual tax liability for the financial year. The Income Tax Department allows the taxpayers to claim a refund of the excess taxes paid in the form of TDS, TCS or advance tax by filing an Income Tax Return (ITR). Similarly, once ITR is filed taxpayers can also track and check their refund status online through the e-filing portal and other various means. ITR Filing Updates FY 2025-26 (AY 2026-27)The CBDT has enabled online and offline utilities for ITR-1, 2 and 4 for FY 2025-26 (AY 2026-27).The due date to file ITR-1 & ITR-2 is 31st July 2026.The due date to file ITR-3 & ITR-4 (Non-audit cases) is 31st August 2026.Tips to Claim Maximum RefundThe following things can be kept in mind to claim the maximum refund on filing ITR.Choose the most beneficial tax regime:Calculate the tax payable under the old and the new regime, considering the applicable deductions and exemptions under both the regimes. File your ITR under the regime which has the least tax outflow, this can increase the TDS refund amount.Verify the TDS amount deducted: Usually the TDS amount deducted is auto-populated in your ITR. However, it is necessary to cross verify the particulars of TDS deducted with documents like Form 16, Form 26AS, etc.E-Verify the return: It is important to e-verify your ITR within 30 days of filing.

Income tax is the tax that individuals and businesses must pay to the government on the income they earn in a financial year. In India, income tax is governed by the Income Tax Act and is calculated based on income tax slabs, deductions, and exemptions available to taxpayers.Key Highlights of Income Tax for FY 2025-26 (AY 2026-27)New tax regime is the default for individuals and HUFs.Income up to Rs. 12 lakh is effectively tax-free under the new tax regime. Most income is taxed as per slab rates, while some income like capital gains is taxed at special rates.Excess tax deducted as TDS can be claimed as a refund when filing the ITR.What is Income Tax?Income tax is levied on the income earned by the taxpayer in the relevant financial year. Income tax is classified as a direct tax because it is borne by the taxpayer directly, and the tax burden cannot be passed on further, unlike indirect taxes. India follows a progressive tax rate for individuals, meaning the tax rate increases with the assessee's income.

ITR filing last date for FY 2025-26 (AY 2026-27) is on 31 July, 2026. However, for individuals who have business income and not subject to tax audit, they need to file their ITR-3 / ITR-4 within 31 August, 2026. However, if you miss the due date, you can still file a belated return until 31st December of the assessment year.Budget 2026 UpdateThe due date to file revised returns has been extended to 31st March from the existing 31st December. Due date to file ITR-3 and ITR-4 extended to 31st August with effect from FY 2025-26 (AY 2026-27)ITR Filing Last Dates for FY 2025-26The due date to file ITR for different types of taxpayers for FY 2025-26 (AY 2026-27) is as follows:ITR-1 and ITR-2 (Salary and capital gains income): 31st July 2026ITR-3 and ITR-4 (Business income - Non-audit cases): 31st August 2026ITR-3 and ITR-4 (Business income - Cases requiring audit): 31st October 2026Businesses requiring transfer pricing reports (international transactions or specified domestic transactions): 30th November 2026Belated (Late) Return: 31st December 2026Revised Return: 31st March 2027Updated Return (ITR-U): 31st March 2031 (within 4 years from the end of the relevant Assessment Year)*Due dates are applicable unless extended by the Income Tax Department.Can I File ITR After Due Date?Yes, if you failed to file ITR within the due date, you can still file a belated return before 31st December of the relevant assessment year. In case you fail to file a belated return, you can still file an updated return within 48 months (4 years) from the end of the relevant assessment year.The following table explains the purpose and due dates for belated and updated returns.Basis of DifferentiationBelated ReturnUpdated ReturnUsed byTaxpayers who have missed the original return filing due dateTaxpayers who have missed both original and belated return due datesDue Date31st December of the assessment year31st March of 4 years from the end of assessment yearDue Date for return FY 2025-2631st December , 202631st March 2031What if ITR Filing has Errors?Worried that you have already filed ITR and made some mistakes in it? You can easily revise the return that is already filed.Revised ReturnRevised returns allows the assessee to rectify the errors made in the original return filed by the him.The due date for filing revised returns is 31st March of the next year.Lets understand this with an example. Mr.

Yes, the tax regime can be changed every financial year 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.How Can I Change My Tax Regime While Filing ITR?Changing your tax regime is simple with a single click. ITR 1 & ITR 2 forms ask the taxpayer “Do you wish to exercise the option u/s 115BAC(6) of opting out of the new tax regime (default is ‘No’)?”. This means that if you click on ‘No’ then you will file your tax return and calculate your tax liability as per the new tax regime, and ‘Yes’ means you have switched from the new tax regime to the old tax regime. However, for ITR 3 and ITR 4 to change your tax regime from default regime to old tax regime then you will have to file form 10-IEA on or before the due date 31st August, 2026.Who can Switch between Old and New Tax Regime?Salaried Individuals: Individuals who file ITR1 and ITR2 can switch between the old and new tax regimes annually.