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.

Your savings bank interest is taxable! Ever wondered how savings bank interest is taxed and if you could save the income tax on it? We all have a savings bank account but most of us are not aware that the interest received is taxable under the head ‘Income from other sources'. However, you can save taxes on interest received up to Rs 10,000. Section 80TTA of the Income Tax Act, 1961 provides a deduction of Rs 10,000 on such interest income. This article delves deeper into the details of Section 80TTA.What is Section 80TTA?Section 80TTA of the Income Tax Act, 1961 provides a deduction of up to Rs 10,000 on the income earned from interest on savings made in a bank, co-operative society or post office. There is no deduction for interest earned from fixed deposits an recurring deposits.Who can Claim 80TTA Deduction? Can NRIs Avail of a Deduction under 80TTA?Section 80TTA deduction is available to an Individual and HUF. Yes, NRIs can also avail a deduction under Section 80TTA.

If you are sending money abroad, you may have to pay foreign remittance tax in India, also known as TCS on foreign remittance. Under Section 206C(1G) of the Income Tax Act, banks and authorised dealers collect Tax Collected at Source (TCS) when you transfer funds overseas.Budget 2026 UpdateTCS on LRS for health and education is proposed to be reduced to 2% from the existing 5%.TCS on LRS of overseas tour packages is proposed to reduce to 2% without any limit from existing 5% and 20%.  What is TCS on Foreign Remittance?Tax on foreign remittance applies when an Indian resident transfers money abroad under the RBI’s Liberalised Remittance Scheme (LRS). The remitter pays a percentage of the amount as TCS, which is deposited with the government.The deducted TCS reflects in your Form 26AS.You can adjust it against your final tax liability while filing ITR.If you have no tax liability, you can claim a refund of the deducted TCS.However, this is to be noted that this TCS is applicable only for foreign outward remittance, the situation wherein you send money outside India. Inward remittances (receiving remittances from abroad) are not governed under this provision.Latest TCS Rates on Foreign RemittanceType of RemittanceNew TCS rate (with effect from 1st April 2026)Education (loan from financial institution u/s 80E)NILEducation / Medical (self-funded or (other than financed by loan)Nil up to Rs. 10 lakhs2% in excess of Rs.

The Income Tax Department has a Unified Grievance Management system called e-Nivaran to address taxpayers’ issues. It is an online mode available for making complaints related to filing of taxes. So, if you have any income tax grievance, find out how to submit a complaint and even apply for an escalation, if required.How Do I Submit a Grievance to Income Tax?To submit a grievance to the income tax department, there are two ways. Your choice will depend on whether or not you have registration on the e-filing portal. If you are Registered on the E-filing PortalThese are the steps to follow if you have registration on the e-filing portal:Visit the e-filing portal of the Income Tax Department and log in to your account.Navigate to the grievances tab and select the ‘Submit Grievance’ option.Select the type of grievance and enter the detailsOnce your grievance is updated, you will see a success message and a transaction ID. Moreover, you will also receive an email on your registered e-mail ID. If you are not Registered on the E-filing PortalGo to the e-filing website  Locate the Grievance option in the footer of the webpage, it will be under the ‘Contact Us’ section Select the ‘I do not have a PAN/TAN’ option and ‘Continue’. Enter all  your personal detailsEnter the OTP sent to your phone number and email id Select the type of grievance and enter grievance details. Enter the Assessment year, Financial year, and PAN/TAN Application number.Write a grievance description (You can also add attachments as proof).Click on Submit GrievanceIn addition, you can also address your issues via the income tax grievance email id which is: webmanager@incometax.gov.in. What Kind of Grievances are Addressed on e-Nivaran?In the income tax grievance portal, you can file a complaint against the following:Department CategorySub categoryAOMisc. Application PendingMisc.

Intimation under section 143(1) is sent by the income tax department after your income tax returns are processed. If there is a difference between calculation between ITR filed and as processed by the department, the intimation needs to be responded accordingly. The time limit for processing the return within 31st March 2024, and erroneously invalidated due to technical glitches will be processed within 31st March 2026.What is Letter of Intimation u/s 143(1)?The process of examining the return filed by the taxpayer by the income tax department is termed assessment. The IT department carries out a preliminary assessment of all the returns filed. If there are arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment discrepancies, the department sends an intimation under section 143(1). The preliminary evaluation process is fully computerised (automated), and is delegated to the Central Processing Centre (CPC).What is the  Password for Intimation u/s 143(1)?The intimation received under Section 143(1) is password protected.

Long Term Capital Gains (LTCG) arise from sale of stocks, properties etc., held longer than 24 months. 12.5% tax is applicable on long-term capital gains. However, for listed equity shares and equity-oriented funds ₹1.25 lakhs exemption is available.Budget 2026 UpdateIt has been proposed to tax buyback of shares as Capital Gains Income. What is Long-term Capital Gain (LTCG)?Capital gains or profits arising from the transfer of Long-Term Capital Assets is referred to as Long-Term Capital Gains or LTCG. An asset held for more than 24 months is termed as a long term capital asset.For listed equity shares, equity oriented funds, and units of business trust, the holding period is 12 months. (if held for more than 12 months, they are considered long term capital assets)Long-term Capital Gain (LTCG) Tax Rate The following tax rates are applicable to long-term capital gains:Asset TypeHolding period (LTCA if held for more than the specified period)Tax RateListed Equity Shares12 months12.50%**Equity Mutual Funds12 months12.50%**Property (land/building)*24 months12.50%Gold / Gold ETF24 months12.50%Debt Mutual Funds (post Apr 2023)Any holding periodAs per slab* - 20% tax rate with indexation benefits available for resident individuals and HUFs whose assets were purchased before 23rd July 2024.**- Exemption up to Rs. 1.25 lakhs available for listed equity shares, equity oriented funds and units of business trust.Calculation of LTCG TaxTo calculate the long-term capital gains accurately, follow the steps mentioned below:1.

Section 54EC of the Income Tax Act allows taxpayers to save long-term capital gains tax by investing the gains from the sale of land or building in specified bonds issued by NHAI or REC within six months. The exemption is capped at ₹50 lakh, subject to a five-year lock-in period.What is Section 54EC?When a taxpayer sells long-term immovable property (land or building or both), they have the option to avail capital gain exemption under Section 54EC by investing in certain bonds.Section 54EC bonds, also known as Capital gain bonds are fixed income instruments which provide capital gains tax exemption under section 54EC to the investors. Eligibility Conditions u/s 54ECTo be eligible for exemption under Section 54EC, the taxpayer must meet the following conditions:The exemption under Section 54EC can be claimed by any taxpayer, including individuals, Hindu Undivided Families (HUFs), companies, LLPs, firms, and others.The asset being sold should be a Long Term Capital Asset, which includes land or building or both. The asset is considered long-term if the taxpayer has held it for a minimum of 24 months prior to the sale.The taxpayer must invest the Capital Gains within 6 months from the date of transfer.The total investment amount cannot exceed INR 50 lakhs during the current financial year and the subsequent financial year.The taxpayer cannot transfer, convert, or use the bonds as collateral for loans or advances for a period of 5 years from the date of acquisition.Bonds Eligible for Exemption Under Section 54EC of the Income Tax ActRural Electrification Corporation Limited or REC bondsNational Highway Authority of India or NHAI bondsPower Finance Corporation Limited or PFC bondsIndian Railway Finance Corporation Limited or IRFC bondsKey Facts to Avail the LTCG Exemption by Investment in Capital Gain BondsTo avail the tax exemption the investment must be made within 6 months of the date of sale of immovable property.Such investment can be redeemed only after 5 years. Before April 2018 the bonds could be redeemed within 3 years.The exemption on investment is allowed only against long term capital gains on sale of immovable property (i.e. sale of land or building or both).The exemption is available up to a maximum amount of Rs.50 lakhHow to Calculate the Tax Exemption by Investment in Tax-Saving Bonds?Example 1: Assuming that an immovable property is sold at Rs.70 lakh after a long term period of 42 months from the date of acquisition.

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.