Securities Transaction Tax (STT) is applicable on the value of the security traded on a recognized stock exchange in India. The current STT differs based on the nature of security, whether equity (0.1% on sale and purchase), future (0.02%) or an option(0.1%). Budget 2026 UpdateThe following are the key highlights of Budget 2026.It was proposed to increase the STT on futures and options in Budget 2026. The STT on futures is proposed to be increased from 0.02% to 0.05% of the traded price.It proposed to increase the STT on sale of an option in securities from 0.1% to 0.15% of the option premium, on sale of an option where the option is exercised from 0.125% to 0.15% of the intrinsic price.These changes will be effective from 1st April 2026.What is Securities Transaction Tax (STT)?STT is a kind of financial transaction tax which is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognised stock exchanges in India. STT is governed by the Securities Transaction Tax Act (STT Act), and the STT Act has specifically listed down various taxable securities transactions i.e., transactions on which STT is leviable.Taxable securities include equity, derivatives, and unit of equity-oriented mutual fund. It also includes unlisted shares sold under an offer for sale to the public included in IPO and where such shares are subsequently listed in stock exchanges. STT is an amount to be paid over and above transaction value and hence, increases transaction value.STT ApplicablilityWhile the term ‘securities’ is not defined under the STT Act, the STT Act specifically allows borrowing of the definition of such terms not defined in the STT Act but defined in the Securities Contracts (Regulation) Act, 1956 or Income-tax Act, 1961. The term ‘Securities’ is defined in the Securities Contracts (Regulation) Act and includes the following:Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporates.Derivatives.Units or any other instrument issued by any collective investment scheme to the investors in such schemes.Government securities of equity nature.Equity-oriented units of mutual funds.Rights or interest in securities.Securitised debt instruments.Hence, securities include all of the above and are traded on the recognized stock exchange for the purpose of STT levy. Off-market transactions are out of the purview of STT.Features of Securities Transaction TaxSTT is a straightforward direct tax that is simple to compute and impose. Some of STT's most distinguishing characteristics are given below.An STT charge is applied on all sell transactions for options and futures.For the purposes of STT computation, each ‘futures’ trade is valued at the actual traded price, whereas each option trade is valued at the premium.The amount of STT that a clearing member must pay is the aggregate of all STT taxes owed by trading members under him.When Is Securities Transaction Tax Levied?Each purchase and sale of shares listed on a domestic and recognised stock market is subject to a securities transaction tax.

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 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 (5% - 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.

ITR filing last date for individuals not subject to tax audit is 31st July 2026 for FY 2025-26 (AY 2026-27).  Missing this deadline can lead to interest charges under Section 234A and a late filing fee up to Rs. 5,000 under Section 234F. 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)Last Date to File ITRFor FY 2025-26 (AY 2026-27), the income tax filing last date for non-audit taxpayers is 31st July 2026. Many deductions and benefits are not available if you miss this due date.

The National Savings Certificate (NSC) is a secure investment option provided through post offices. Interest rate fixed for Q4 of FY 2025-26 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.

The direct tax code (DTC)  will be aimed at simplifying and modernising the existing direct tax law i.e. the Income-tax Act, 1961. The DTC will also be in-line with the global standards making the taxation simpler for both residents and non-resident taxpayers. In this article, we will explain in detail the expectations and differences between the DTC and the Income-tax Act.Budget 2026 UpdateThe Income Tax Act 2025 will come into effect from 1st April 2026 and will be applicable for FY 2026-27 and onwards. The Income Tax Act 1961 will still be applicable for FY 2025-26 (AY 2026-27)What is the Direct Tax Code 2025?The Direct Tax Code aims to simplify, streamline, and standardise the existing complex income tax laws for everyone. The government intends to increase the number of taxpayers contributing to the income tax and hence wants to simplify the tax laws for the enhancing their participation.

The new Income Tax Act will be replacing the decade old Income Tax Act, 1961. The new income tax law, 2025 aims to remove redundant provisions, simplify the language and keep pace with the evolving economic environment and technology.Budget 2026 UpdateThe Income Tax Act 2025 will come in effect from 1st April 2026 as announced in Budget 2026.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. The act came into force on 21st August, 2025 after the income tax bill 2025 was approved in the parliament.New Income Tax Act 2025 PDF DownloadYou can download the updated version of the Income Tax Act as implemented on August 21, 2025 here.Main 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.  Easier Compliance With a reduction in the content, the Act aim to make compliance more easier and efficient.

The new Income Tax Act became an act after receiving president assent on 21st August, 2025.  The new act is applicable from 1st April 2025. The Income Tax Act 2025 was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on 13th February 2025 aims to replace the existing Income Tax Act 1961.In this article we will answer some of the frequently asked questions about the Income Tax Act 2025.Budget 2026 UpdateThe provisions of The Income Tax Act 2025 will be effective from 1st April 2026 for incomes earned in FY 2026-27 and onwards. When will the Income Tax Act 2025 be Applicable?The provisions of the Income Tax Act 2025 will be applicable after it is passed by both the houses of the parliament and is assented by the President of India. The Act is likely to come into effect from 1st April 2026.What is “Tax Year”?“Tax Year” means a period of 12 months commencing from 1st April and ending on 31st March of the following year.What is the Slab Rate in Income Tax Act 2025?The Slab Rates are the rates at which the income of the taxpayer will be taxed. India follows a progressive tax rate scheme i.e., the slab rate of tax increases with an increase in the income.

The new Income Tax Act, 2025 received the president's assent on 21st August, 2025. The purpose of this act is to simplify the complex Income Tax Act of 1961. The new laws aims at simplification of tax provisions, removal of redundant sections, and keep pace with the evolving technology and economic environment. The new Income Tax Act 2025 come into force from 1st April 2026.Budget 2026 UpdateIncome Tax Act 2025 will come into effect from 1st April 2026 as proposed in the budget.The due date to file ITR-3 & ITR-4 for non-audit cases has been extended to 31st August.The due date to file revised return has been extended to 31st March from the existing 31st December. Purpose of the New Income Tax actIn the Budget Speech of 2024, Finance Minister Nirmala Sitharaman revealed the government's intention to scrutinise the Income Tax Act, 1961 in totality. Through this scrutiny, the Act was to be made more concise so that the taxpayers could easily read and understand it.The primary objective mentioned by the Minister is to reduce disputes and litigation involving the tax system.

ITR-3 and ITR-4 are filed by resident individuals/ HUF/firms (other than LLP) with income from profits or gains of business or profession. However, ITR-4 is filed by those individuals/ HUF/ Firms who opt for the presumptive taxation scheme under section 44AD, 44ADA and 44AE.Budget 2026 UpdateFor non-audit cases the due date to file ITR-3 & ITR-4 for FY 2025-26 (AY 2026-27) is 31st August 2026.For audit cases the due date to file ITR-3 and ITR-4 is 31st October 2026. Link to download ITR-3 and ITR-4 excel-based utilityITR-3 and ITR-4 DifferenceParticularsITR-3ITR-4EligibilityIndividuals and HUFs whose total income includes income from business or professionResident individuals, HUFs or partnership firms who have opted for presumptive taxation scheme under Section 44AD, 44ADA or 44AE and income is up to Rs. 50 lakhsNature of IncomeAll the income can be included like business income, capital gains, casual income, salary income, etc.,Income from salary, one house property, capital gains under section 112A up to Rs. 1.25 lakh, and other income (excluding casual income)Books of accountsRequired to be maintained if threshold limit crossed u/s 44AA.Not required to be maintained.Audit requirementMandatory if the income or turnober crosses limits specified u/s 44AB.Not required.Number of house propertiesIncome can be from any number of house propertiesIncome should be from one house property onlyComplexitiesComplex form as it contains fields for all heads of income and disclosuresSimpler as it contains fields only for specified income.Due date of filingThe due date for filing ITR-3 for non-audit taxpayers is 16 September 2025. The due date for audit cases is 31 October.The due date for filing ITR-4 is 16 September 2025.

ITR-4 can be filed by taxpayers who are running a business and have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, and 44AE of the act. Irrespective of whether they have salary income or not, they can file their returns using Form ITR-4. Then freelancers such as online content writers, bloggers, vloggers, etc. need to file the ITR-4 form. Also, professionals like chartered accountants, doctors, lawyers, and engineers, etc.