Individuals with a tax liability of more than Rs.10,000 during the financial year are required to pay advance tax. Advance tax is a tax payable by every person on income sources beyond their regular salary, including earnings from rent, capital gains, lottery earnings, fixed deposits, and more as and when they earn. There are specific due dates within which advance tax has to be paid. Advance Tax Due DateThe due date to pay the 1st installment of advance tax for FY 2025-26 is June 15, 2025. Taxpayers should make sure to pay 15% of the total tax liability for the year by June 15, 2025. Advance Tax Calculator – Calculate Advance Tax LiabilityUse this intuitive tool from ClearTax to calculate your advance tax liability:What is Advance Tax?Advance tax is income tax paid in advance instead of a lump sum payment at the end of the financial year. The taxpayer calculates the advance tax amount based on their estimated income for the financial year.

After the demonetisation, the banks are instructed to levy charges on cash transactions above a certain limit. Further, RBI has made it mandatory to investigate unusual cash transactions. This is because a lot of malpractices were noticed when cash deposits of Rs. 500 and Rs. 1,000 notes were made during the demonetisation period.  A significant difference was found between the cash deposits made in the bank after demonetisation and the income reported in the ITR filing.

The Income Tax department imposes penalties on taxpayers to prevent tax evasion and non-compliance with the Income Tax rules. However, under sections 273 and 273AA, the Income Tax Department has empowered the Principal Commissioner or the Commissioner of Income Tax to grant relief from penalties to the taxpayer in genuine cases. These penalties are related to underreporting, misreporting or concealment of income. Let’s talk about the power the Commissioner of the Income Tax Department has to reduce or waive penalties for the taxpayer.Why are Taxpayers Imposed with Penalty?The taxpayers are required by law to make tax payments, pay any applicable interest for delays, and penalties for defaults. The penalties are levied on the taxpayers for various defaults which can be majorly classified as:Default in payment of any taxFailure to disclose appropriate incomeFailure to maintain books of accounts and perform auditsFailure to furnish the requisite informationA penalty in case of search Other transactional defaultsThe penalties in some of the cases can be as high as 300% (in case of section 271(1)(c)) or 200% (in case of section 270A) of tax leviable. In some cases, it can be a per day charge for as many days as the default continues.

The Income Tax Appellate Tribunal (ITAT) is a quasi-judicial authority to file appeals against the orders of income tax authorities. A tax appeal can be filed by a taxpayer who does not agree with the assessment order or any other order, passed by an income-tax authority. An appeal before the ITAT is generally filed by the taxpayer to contest any order passed by the Commissioner of Income-tax(Appeals). Similarly, an income-tax department can also file an appeal against any order passed by the Commissioner of Income-tax(Appeals) before the ITAT.Discover more about ITAT in this blog:Nature and Structure of ITATThe ITAT is a quasi-judicial body set up by the Central Government to deal with appellate matters under the Income Tax Act, 1961. The ITAT functions under the Ministry of Law and Justice.

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.

An HUF allows families to pool their assets and be taxed separately from its members. By forming a Hindu Undivided Family (HUF), you can significantly optimize your tax liability within the legal framework. This structure allows families to access an additional PAN and claim separate deductions, effectively reducing overall tax outgo. In this article, we’ll discuss how creating an HUF can help you reduce your tax liability. What is a HUF?A Hindu Undivided Family (HUF) is a separate legal entity and taxed separately from its members.HUF can be formed by Hindu, Sikh, Jain, or Buddhist families.The head of the HUF is called the Karta, usually the eldest male or a senior female.Members include coparceners (sons and daughters) and other family members (e.g., wife, daughter-in-law). It is eligible for the same tax slabs and deductions as an individual.HUF has its own PAN and files tax returns independent of its members.HUF Tax SlabsHindu Undivided Family (HUF) is taxed at slab rates that is applicable for individuals. Even a HUF can opt for new regime or old tax regime, depending on his level of income and tax-saving options available.

Section 80C of the Income Tax Act provides exemptions or deductions on specific expenditures and investments from income tax. By investing in options like PPF, NSC, ELSS, SSY, etc., you can claim deductions of up to Rs. 1.5 lakh each year under Section 80C, helping you save on income tax. Let us understand these deductions in detail: What is Section 80C Deductions?Section 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. Section 80C deduction can be claimed only by Individuals and HUFs.Companies, partnership firms and LLPs cannot avail the benefit of this deduction.Up to Rs.1.5 lakh can be claimed as a deduction every year from the Gross total income.Section 80C Deductions List Investment/PaymentDetailsEmployee Provident Fund (EPF)Contributions by employees to EPF are eligible for deduction.Public Provident Fund (PPF)Deposits to a PPF account (maximum limit ₹1.5 lakh per year).Life Insurance PremiumPremium paid for life insurance policies for self, spouse, or children.Equity-Linked Savings Scheme (ELSS)Investments in specified mutual funds with a 3-year lock-in period.National Savings Certificate (NSC)Investment in NSC qualifies for the deduction. Accrued interest (except for the last year) is also eligible.5-Year Fixed Deposit with BanksFixed deposits of 5 years or more with scheduled banks.Sukanya Samriddhi YojanaDeposits made for the benefit of a girl child.Principal Repayment of Home LoanThe principal portion of the EMI is paid for a home loan.Stamp Duty and Registration ChargesPaid for a residential property (allowed in the year of purchase).Tuition FeesPaid for the full-time education of up to two children in India.Senior Citizens Savings Scheme (SCSS)Investment made by senior citizens in SCSS.Unit Linked Insurance Plan (ULIP)Premium paid towards ULIP for self, spouse, and children.Post Office Time Deposit (5 years)Investment in 5-year time deposits at post offices.Superannuation fundEmployee's contribution to an approved superannuation fund.Pension PlansContribution to specific pension plans like LIC's Jeevan Suraksha, etc.For example, an individual could invest Rs.

Income Tax Return (ITR) is a mandatory filing for taxpayers in India to report income, expenses, taxes paid, and tax liability for a financial year. It covers various income sources like salary, business, and capital gains. Filing ITR ensures compliance, allows refunds, carries forward losses, and aids in loan or visa applications. There are seven types of ITR, namely ITR-1 to ITR-7 depending on the assesee's legal status and income levels and choosing of the right ITR form is crucial.The due date for submission of ITR for non-tax audit cases is 15th September 2025 for FY 2024-25 (AY 2025-26). Failure to file ITR within the specified due date leads to adverse consequences such as late filing interest, penalties, inability to carry forward losses, etc., In this article, we will guide you through the different types of ITR forms, the documents required for filing, and the importance of timely submission to ensure compliance and maximize your financial benefits. What is ITR?The Income Tax Return or ITR is a form in which the taxpayers submit information about their income and tax payments to the income tax department. The ITR form applicable to a taxpayer depends on the type of taxpayer, whether individuals, HUF, company, etc., and you choose the ITR based on the nature and type of income and total income.Due date for filing ITRA taxpayer should file an ITR on or before the due date specified. The following table lists due dates for filing ITR to different types of assessees.Category of TaxpayerDue Date for Tax Filing - FY 2024-25 *(unless extended)Individual / HUF/ AOP/ BOI      (books of accounts not required to be audited)15th September 2025Businesses (Requiring Audit)31st October 2025Businesses requiring transfer pricing reports (in case of international/specified domestic transactions)30th November 2025While filing your ITR, you should check the form 26AS for details of TDS and other income such as FD interest.

Bonds allow investors to lend money to companies/governments in exchange for regular interest payments and the return on their primary investment at maturity. They work as fixed-income instruments and provide financial stability. Usually, they are less risky than other investment options. However, you must know how taxes impact your earnings from bonds. Let’s get into more detail on what bonds are, the types of bonds that are prevalent, taxation on bond transactions, and more.Overview of BondsThe issuer can be a company or government that pays a fixed or varied interest rate to investors who purchase bonds.

The New Income Tax Bill was introduced in the Lok Sabha on 13th February 2025. The purpose of this bill is to simplify the complex Income Tax Act of 1961. The Income Tax Act has undergone many changes since 1961, as certain changes are made to it every year through the Union Budget. The Income Tax Act has evolved significantly over the past six decades, with everything from adjustments to tax rates to the introduction of new provisions, alongside the introduction of fresh exemptions and the removal of outdated ones.Over the years, it has been revised so extensively that it now bears little resemblance to its original form when it was first enacted.For quite some time, tax experts and taxpayers alike have expressed a need for a completely new law—one that is built from the ground up, integrating all existing provisions and expanding beyond them. The Bill if passed will be effective from 1st April 2026.Purpose of the New Income Tax BillIn the Budget Speech of 2024, Finance Minister Nirmala Sitharaman revealed the government's intention to scrutinise the Income Tax Act, 1961 in totality.