Section 10(14) of the Income Tax Act provides exemption on children education allowance. Tution fees are considered for exemption under this sectionKey HighlightsTax Regime: Exemption available only under the old tax regime.Ceiling Limit: Rs. 1,200 per child for maximum two children. (Rs. 2,400 per year)Fee Exemption: This exemption is provided for fees paid to nursery, creches and playschools as well. What is Children Educational Allowance?The Children's Education Allowance (CEA) is a type of allowance provided by employers to support the educational expenses of their employees' children. Under the old tax regime, this allowance is eligible for a small exemption, providing limited relief to salaried individuals.

Section 194A of the Income Tax Act deals with TDS on interest income. It applies to payments made by banks, financial institutions, companies, and individuals.Key Highlights Threshold Limit: Rs.50,000 for bank and post office interest. (Rs.1 lakh for senior citizens)TDS Rate: 10% TDS is deducted on interest crossing threshold limit.Form 15G/15H: File form 15G or 15H to avoid TDS deduction on your interest income (applicable in specific cases).What is Section 194A?Section 194A of the Income Tax Act, 1961 mandates the deduction of TDS on interest income other than interest on securities. It applies to payments made by banks, financial institutions, companies, and individuals where interest is credited or paid on deposits, loans, or advances. TDS is generally deducted at a rate of 10%, but if the recipient fails to provide a PAN, the rate increases to 20%.Threshold Limits:Banks / Post Offices / Cooperative Societies: TDS is deducted only if the total interest exceeds Rs.

The Income Tax Act offers deductions and exemption for specified investments and expenditures such as Section 80C, 80D, HRA and home loan interest repayment. While we often invest in products that improve our quality of life but strain our finances, the government provides income tax exemptions and deductions to ease this burden.How to save maximum taxes for FY 2025-26?Choose the most beneficial tax regime for you in the beginning of the year.If the new regime is the most beneficial, you can enjoy relaxed slab rates, higher rebate and a few deductions.If the new regime is the most beneficial, you can avail a lot of deductions by making smart investments  (80C, 80D, 24B, 80E, 80G, etc.). Tax Saving Under the New Tax RegimeUnder the new tax regime, only limited deductions are available, making it suitable for taxpayers with fewer tax-saving investments. The tax slabs are lower and more relaxed compared to the old regime, so if you do not have significant deductions to claim, opting for the new tax regime can reduce your overall tax liability. The tax slabs under the new tax regime are as follows:Tax Slabs under the new tax regime for FY 2025-26 are as followsTax Slab for FY 2025-26 Tax RatesUpto Rs. 4 lakhsNILRs.

Conveyance allowance is provided to cover the cost of commute and travel related to work. Apart from easing travel expenses, it also offers tax benefits under both old and new tax regimes, subject to specified conditions, helping employees reduce their overall taxable income.Key HighlightsOffered to employees who don't have employer-arranged transport; varies based on the employee's position.Exemptions are available under both the old and new regimes.Form 16 vs Proof: Even if not reflected in Form 16, an exemption can still be claimed if you have sufficient proof of expenses.What is Conveyance Allowance?Conveyance allowance is a special allowance to cover their expenses while travelling to perform office or employment duties.They are usually offered on top of their basic pay and are eligible for tax deductions up to the actual allowances received. Generally, conveyance allowance eligibility is only applicable to employees who do not have a transportation system arranged by their employers. Furthermore, it depends on the employee’s position in the organisation. Conveyance Allowance exemption can be claimed by employees under both the old and new tax regimes.Conveyance Allowance Exemption Limit for AY 2025-26According to Section 10(14)(ii) of the Income Tax Act and Rule 2BB of the Income Tax Rules, salaried individuals can claim conveyance allowance exemption up to the actual expenditure incurred for official purposes or the actual allowance given by the employer, whichever is lower. For example, if an employee spends Rs.1,200 per month on commuting, only Rs.1,200 will be exempted.How to Calculate Conveyance Allowance in Salary?For calculating exemption limit for conveyance allowance, the lowest can be claimed as deduction:Actual allowance given by the employer.Actual amount paid by the employeeA sufficient document, such as a bill or expense receipt, is required as proof to claim a deduction for conveyance allowances. The deduction of conveyance allowances is available under both the old and new tax regimes of the Income Tax Act.If you receive other special allowances, you can group them with your conveyance benefit to avail of tax deductions.Points to Remember when filling ITRForm 16: The details of the conveyance allowance and the taxable portion after exemption are reflected in Form 16, provided by the employer.

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.