In Advance tax system, tax is paid during the financial year, on estimated total income. Advance tax payment is compulsory for taxpayers with a tax due exceeding Rs. 10,000 after TDS/TCS for the year, as per the provisions of the Income Tax Act.Advance Tax Payment - FY 2026-27The due date to pay the 2nd installment of advance tax payent for FY 2026-27 is 15th September 2026. Taxpayers are required to pay at least 45% of their total tax liability in the 1st installment. Non-payment or short-payment of advance tax will attract interest at the rate of 1% per month under sections 424 and 425 of the Income-tax Act, 2025.What is Advance Tax?Advance tax is a ‘pay-as-you-earn’ scheme of income tax, where taxpayers pay off their tax liability for the year in four installments rather than a one time lump sum payment during ITR filing. The provisions related to advance tax are covered under section 403 to section 410 of the Income Tax Act, 2025.Who Should Pay Advance Tax?Any taxpayer (including salaried individuals, freelancers, and businesses) whose estimated tax liability for the financial year after TDS /TCS exceeds Rs. 10,000 is required to pay advance tax as per the provisions of the Income Tax Act. Salaried TaxpayersEmployees should review their overall tax liability after considering TDS and include income from all other sources, such as capital gains, interest on deposits, and any additional income earned during the year, to determine whether they are liable to pay advance tax.Senior CitizensSenior citizen taxpayers (aged 60 years and above) are exempt from advance tax payment if they do not have business or professional income.

E-verification of ITR is the final step in the income tax return filing process, completed after you successfully submit your return. It can be done online through the Income Tax Department of India portal, making the process quick and paperless.Every ITR must be e-verified within 30 days of filing, failing which the return will be treated as invalid. Timely e-verification ensures that your return is processed and any eligible refund is issued without delays.Methods to E-verify ITRThere are several methods available to e-verify ITR:Aadhaar OTPExisting EVCDigital Signature Certificate (DSC)Generate EVC through a bank accountGenerate EVC through the Net BankingGenerate EVC through DEMAT accountGenerate EVC through the bank ATM option (offline)What is Income Tax Return (ITR) e-Verification?Income Tax E-verification is the process by which the taxpayers agrees or authenticates that the return filed under his PAN was done by himself, or with his knowledge. This process ensures that the ITR filed is authentic and not tampered.1. E-Verify ITR through Aadhaar OTPLog in to your Income Tax e-filing account.

The National Pension System (NPS) is a government-backed retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is designed to help individuals build a retirement corpus through systematic, long-term investments.Contributions can be made to the Tier I account, which offers tax benefits of up to Rs. 2 lakh under Section 80C of the Income Tax Act, or to both Tier I and Tier II accounts. NPS combines market-linked returns with tax-saving benefits, making it a popular choice for retirement planning.NPS Scheme DetailsEligibility: Indian citizens aged 18 to 70 years can open an NPS account.Account Types: Tier I (retirement account) and Tier II (voluntary savings account).Minimum Contribution: Rs. 500 to open Tier I and Rs.

The Public Provident Fund (PPF) is a government-backed savings that provides assures, tax-free returns. For the first quarter of FY 2026-27, the interest rate continues at 7.1% per annum. Backed by sovereign guarantee, offering compounding benefits, and enjoying EEE tax status, PPF continues to be a highly secure and reliable option for retirement  planning and tax savings in India. Key Highlights Interest Rate: 7.1% p.a. (FY 2026–27).Investment Limits: Min Rs. 500, Max Rs.

ITR-2 is an Income Tax Return form for individuals and HUF who do not have income from business or profession. It is applicable to taxpayers earning income from capital gains, more than two house property, and holding foreign assets or foreign income. ITR-1 is also applicable for NRIs. In simple terms, taxpayers who are not eligible for ITR-1 and do not have business or professional income should file ITR-2. The last date to file ITR-2 for FY 2025-26 (AY 2026-27) is 31st July 2026. ITR-2 Filing for FY 2025-26 (AY 2026-27)The Income Tax Department has enabled the online and excel utility based filing of ITR-2 form for FY 2025-26.

ITR-1 (Sahaj) is the income tax return form for resident individuals with total income up to Rs. 50 lakh from salary or pension, two house property, and other sources like interest. It can also be used when you have long-term capital gains under Section 112A up to Rs. 1.25 lakh, provided there are no brought forward or carry forward capital losses.However, ITR-1 cannot be used if you have business or professional income, more than two house property, capital gains above the specified limit, foreign assets, or total income exceeding Rs. 50 lakh.

The Income Tax Act 1961 provides a valuable mechanism called Set-off and carried forward of Losses, which allows taxpayers to adjust losses incurred from various sources, such as business or profession, capital loss from shares and properties, interest paid on borrowed funds for house property, etc., against profit from the same or other eligible sources and also allow unutilised losses to be carried forward for future years, subject to certain conditions. These provisions are essential tools for reducing the overall tax liability and play a crucial role in effective and strategic tax planning. Note: Under the New Tax Regime, the loss from House Property cannot be set-off against income from any other heads. Only intra-head set-off is allowed for losses from house property.  What Is Set Off of Losses?Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Simply speaking, it means utilising losses to reduce taxable income and save taxes. 1. Intra-Head Set OffThe losses from one source of income can be set off against income under the same head of income, though sources might be different.For eg: Loss from Business A can be set off against profit from Business B, where Business A is one source and Business B is another source under the common head of income is “Business”. 2.

The Income Tax Act classifies F&O income as business Income and should be reported in the Income Tax Returns (ITR). Further, any F&O loss is allowed to be set off against other income, and the excess loss can be carried forward to the subsequent year.Key HighlightsIncome or loss from Futures & Options (F&O) is treated as Business IncomeExpenses Allowed: Brokerage, internet, telephone, advisory fees,rent, etc.ITR Form: Report F&O income in ITR-3 (business income) or ITR-4 (if opting for presumptive taxation).Why Gains or Losses from F&O Trades Must be Reported in ITRFailure to report F&O gains or losses in the ITR might result in an Income Tax Notice from the authorities. On the other hand, reporting F&O trading losses has some useful tax advantages as they can be set off against other incomes or carried forward to the subsequent years. Maintaining proper and complete reporting not only keeps you in compliance but also allows you to optimize your tax position.Income Head: Reporting of F&O Trading as Business IncomeAs per Section 43(5) of the Income Tax Act 1961 (Section 66 of the Income Tax Act, 2025), income or loss from F&O is classified as non-speculative business income. Therefore, F&O gains and losses have to be reported as normal business income under the head PGBP (Profits & Gains from Business and Profession).Which ITR to File for Reporting F&O Income?Given that F&O Income falls under the category of business income, people having F&O trades must report the profit loss in ITR-3 (ITR form designated for people having PGBP Income) and if you are filing under the presumptive scheme then you can use ITR-4.  How to Calculate F&O Turnover?Turnover for F&O Trading = Absolute ProfitAbsolute Turnover refers to the sum of positive and negative differences. Note: Please note that the calculation for options trading turnover has been updated as per the eighth edition of the guidance note dated 14/08/2022 (applicable from Assessment Year 2022-23). Previously, options trading turnover included "Absolute Profit + Premium on Sale of Options."Example: Aditya buys 100 units of Futures @ Rs 200 and sells at Rs 210. Also buys 200 units of options @ Rs 300 and sells at Rs 290.This is how his turnover would be determined:ParticularsCalculationAmountFutures(210-200) * 1001000Options(290-300) * 2002000 (negative ignored)Total Turnover (Absolute Profit)3000 Should F&O Traders Maintain Accounting Records?Yes, F&O traders are mandatorily required to maintain books of accounts if:Income exceeds Rs 2.5 lakhs or Turnover exceeds Rs 25 lakhs in any of the 3 preceding years or in the first year in case of a new business. Keeping your trading statements, expense receipts, profit & loss statements, and bank account statements will mostly suffice. Audit and Return Filing for F&OEvery person carrying any business will have to get his accounts audited if his turnover exceeds Rs.1 Crore in the previous year or Rs.

There is a growing popularity of trading in derivatives and futures. So, it is imperative to understand the taxation regulations regarding such transactions. Those taxpayers who are salaried but are trading in F&O may miss out on declaring F&O losses in their tax returns. If all the sources of income are not stated, the tax department may send a notice mentioning non-compliance. To avoid such hassles, staying informed about the process to claim F&O losses in your ITR is essential.What is Futures and Options or F&O?Futures and Options (F&O) serve as financial instruments, allowing investors to purchase or sell assets at a fixed price and time in the future.

Taxpayers can pay income tax dues, like self-assessment tax or advance tax online using the e-Pay Tax facility on the income tax portal. All taxpayers can pay directly through net banking, debit card, UPI, or by generating a challan. Once paid, ensure it reflects in Form 26AS and your ITR.Key HighlightsSelf-assessment tax is paid under the minor head ‘Self-Assessment’ (code 300).Payments can be made via net banking, debit/credit card, UPI, RTGS/NEFT, or at a bank counter.Always download the challan (with BSR code & challan number) for ITR filing.Tax payment for Tax Year 2026-27 onwards must be must as per the Income Tax Act 2025 by using new challan forms (ITNS 280N, 281N, 288N). How to e-Pay Tax Online?Here's a step-by-step guide on how to pay tax online through the Income Tax Portal:Step 1: Navigating to 'e-Pay Tax' SectionVisit the Income Tax PortalOn the homepage, locate the 'Quick Links' section on the left side. Click on the 'e-Pay Tax' option or use the search bar to find 'e-Pay Tax'.Step 2: Enter PAN/TAN and Mobile NumberEnter your PAN and re-enter to confirm it. Provide your mobile number and click 'Continue'.Enter the 6-digit OTP received on your mobile number and click 'Continue'.Step 3: Select the correct Assessment Year and Payment TypeSelect the first box labelled as ‘Income Tax’ and click ‘Proceed’ From the ‘Assessment Year’ dropdown, select ‘2026-27’Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.Step 4: Enter Tax Payment DetailsEnter the payment amounts accurately under the relevant categories.Step 5: Select the Payment MethodSelect the payment method and bank to make the tax payment and press 'Continue'.Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.Step 6: Verify Payment InformationAfter clicking 'Continue', you can preview the challan details.Double-check the payment information for accuracy.Click 'Pay Now' to make the payment or 'Edit' to modify the details.Step 7: Submit the PaymentTick the checkbox to agree to the Terms and Conditions.Click 'Submit To Bank' to proceed with the payment.Step 8: Receive Payment ConfirmationYou will receive a confirmation once your tax payment has been successfully submitted.  Note: Remember to download the challan as you will need the BSR code and Challan number to complete the return filing process.Step 9: Declaring Tax Paid DetailsDownload the payment challan from the Income Tax portal.After making the tax payment, update the payment information on ClearTax.Go to the 'Tax Summary' page and click 'Add Paid Tax Details'.Upload the challan or enter the details manually.Once done, your tax payment status will change to 'taxes paid'. Proceed to e-file and e-verify your return on ClearTaxYou may refer to this guide for further steps. How to Calculate Advance Tax?Here is a step by step guide to ascertain your advance tax liability and instalment amount.Consider your income earned for preceding financial years. Ascertain how much more or less you will earn as compared to preceding years.Consider all your eligible deductions and exemptions.Make an estimate of your total taxable income. Using ClearTax tax calculator, calculate the tax liability under the most beneficial tax regime for you. If your net tax liability exceeds Rs.10,000 for the financial year, you are required to pay advance tax. The below table will help you understand better.ParticularsAmountGross Total IncomeXXX(-) Deductions Under Chapter VIXXXNet Total IncomeXXXTax LiabilityXXX(+) SurchargeXXX(+) Health & Education CessXXXGross Tax LiabilityXXX(-) TDS/TCSXXXNet Tax LiabilityXXXAuthorised Banks for e-Tax PaymentThe list of banks that can be found on the e-filing portal for e-payment of taxes is as follows:Download Official DocumentList Of Authorized BanksAxis Bank Federal Bank New Bank Kotak Bandhan Bank New Bank HDFC Bank Karnataka Bank New Bank Bank of Baroda ICICI Bank Punjab National Bank Bank of India IDBI Bank Punjab & Sind Bank Bank of MaharashtraIndian Bank RBL Bank New BankCanara Bank Indian Overseas Bank State Bank of India Central Bank of India IndusInd Bank New Bank South Indian bank New BankCity Union Bank New Bank Jammu & Kashmir Bank UCO Bank DCB Bank New Bank Karur Vysya Bank New Bank Union Bank Eligibility for e-Tax PaymentThe following assessees have to mandatorily pay taxes online:All the corporate assessees.All assessees (other than company) to whom the provisions of section 44AB of the Income Tax Act, 1961 are applicable.Self-Assessment TaxYou cannot submit your income tax return to the income tax department unless you have paid tax dues in full.