National Pension Scheme (NPS) India is a long-term investment plan for retirement under the purview of the Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government. Investments can be made in NPS Tier-I account  (deduction up to Rs. 2 lakhs available  under section 80CCD) or both NPS Tier-I and Tier-II account. Latest UpdateAccount can be held by individuals up to 85 years of age.On retirement, 100% withdrawal can be made if the corpus balance is up to Rs 8 lakhs.Up to 80% of corpus can be withdrawn for non-government employees (60% for government employee).NPS Withdrawal AmendmentThe NPS withdrawal rules has been amended recently through an official notification by Pension Fund Regulatory Authority of India. NPS account can now be maintained by a person of age up to 85 years. Key changes in withdrawal limits are as follows:For Government EmployeesExit ScenarioBalance at ExitLump Sum AllowedAnnuity RequirementRetirement / DischargeUp to Rs.

Section 54 of the Income Tax Act, allows taxpayers to claim an exemption from Long-term Capital Gains arising from sale of residential house property, when such gains are reinvested in another residential property. The taxpayer must purchase a new residential house within 2 years or construct a new house within 3 years from date of sale. However, the maximum allowed exemption limit is capped at Rs. 10 Crore. Overview of Section 54 ExemptionAspectDetailsWho can claimIndividuals and HUFs onlyCapital gains typeLong-term capital gains from sale of residential house propertyExemption limitRs. 10 CroreTax regimeAvailable under both old and new tax regimesWhat is Section 54?Section 54 provides an exemption from long-term capital gains tax when an individual sells a house and purchases another house using the capital gains.

The taxation of debt mutual funds depends primarily on the date of purchase and holding period. For investments made on or after 1 April 2023, all gains are treated as short-term capital gains and taxed at the investor’s slab rate, regardless of how long they are held.Though the Income Tax Act 2025 takes effect from 01st April 2026,  the provisions of the 1961 act applies for AY-26-27, as it pertains to income earned up to 31st March, 2026. However, for investments made before 1 April 2023, gains are taxed as long-term capital gains at 12.5% if held for more than 2 years, and as short-term capital gains at slab rates if held for 2 years or less.Debt Mutual Funds Taxation - OverviewPurchase date is crucial: Tax rules differ before and after 1 April 2023Post 1 April 2023: All gains taxed as STCG at slab rates, regardless of holding periodPre 1 April 2023 (> 2 years): Taxed as LTCG at 12.5% (no indexation)Pre 1 April 2023 (≤ 2 years): Taxed as STCG at slab ratesNo indexation benefit: Not available for debt mutual fundsWhat are Debt Mutual Funds?Debt mutual funds are investment funds that invest mainly in fixed-income instruments like bonds, treasury bills, commercial papers, and debentures. In simple terms, the debt mutual fund meaning refers to funds that generate returns through interest income, offering relatively stable and lower risk returns compared to equity funds, making them suitable for conservative investors.Taxation Of Debt Mutual Funds After 1 April 2023The Budget 2023 made substantial changes as to taxation treatment for debt mutual funds effective 1st April 2023. Any gains on the transfer, redemption or maturity of units, purchased on or after 1st April 2023, are deemed short-term capital gains, regardless of the hold period, and are taxed at the applicable slab rates to the investor, with indexation benefits no longer applicable as such funds won't be seen as long-term capital assets.However, in the case of investment made prior 1st April 2023, the previous norms will continue to apply; in this case, the units must be held for more than 24 months in which it would be taxed as long-term capital gains at 12.5% without indexation benefits, or 24 months or less in which it would be taxed as short-term capital gains at the applicable slab rate.This can be summarized as follows:Purchase DateTax ImplicationBefore 1st April 2023LTCG at 12.5% after holding for more than 2 years. Else STCG at slab rates.On or After 1st April 2023Gains are taxed at applicable slab rates.Taxation Of Debt Mutual Funds Before 1 April 2023Before 1st April 2023, the taxation of debt mutual funds was based on their holding period.

Under the old regime, there are variety of deductions and exemptions available, especially against salary income. Choosing the most beneficial regime and appropriate tax planning can help you minimum tax outflow, thereby increasing savings.How to save tax under old regime for FY 2025-26?Here are the most popular deductions available under the old regime:House Rent Allowance (HRA)Children Education AllowanceHome loan interest deduction on self occupied propertyInvestment deductions under Section 80CMedical insurance premium under section 80DIncome Tax Slabs under the Old RegimeUnlike the new tax regime, more deductions and exemptions are allowed under the old tax regime, which gives taxpayers the benefit of paying lower tax liability. Tax slabs under the old tax regime are as follows:Income Tax SlabsAge < 60 years & NRIAge 60 years to 80 years (Resident Individuals)Age above 80 years (Resident Individuals)Upto Rs. 2,50,000NilNilNilRs. 2,50,001 - Rs.

The Budget 2025 introduced major changes to the existing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) provisions of the Income Tax Act, 1961. These amendments were introduced with the objective of simplifying tax compliance for businesses and individuals. These changes focus mainly on a higher threshold limit, removal of TCS on certain transactions and introduction of new provisions to streamline compliance and smoothen taxation processes. This article will cover all the major changes in TDS and TCS that one must know and help understand in an easy way.Enhanced Threshold Limits For TDSThe applicability of TDS or TCS is only attracted when the transaction is above the threshold limit. With effect from April 1, 2025, the threshold limits for a few sections have been increased from their previous limits. The previous and enhanced limits for TDS are given in the following table: SectionBefore 1st April 2025From 1st April 2025193 - Interest on SecuritiesNIL10,000194A - Interest other thanInterest on securities(i) 50,000/- for senior citizens;(ii) 40,000/- in case of others when the  payer is the bank, cooperative society and post office(iii) 5,000/- in other cases(i) 1,00,000/- for senior citizen(ii) 50,000/- in case of others when the payer is a bank, cooperative society and post office(iii) 10,000/- in other cases194 – Dividend, for an individual shareholder5,00010,000194K - Income in respect of units of a mutual fund5,00010,000194B - Winnings from lottery, crossword puzzle Etc.194BB - Winnings from horse raceAggregate of amounts exceeding 10,000/- during the financial year10,000/- in respect of a single transaction194D - Insurance commission15,00020,000194G - Income by way of commission, prize etc. on lottery tickets15,00020,000194H - Commission or brokerage15,00020,000194-I - Rent2,40,000 (in a financial year)50,000 per month or 6,00,000 lacs in the financial year.194J - Fee for professional or technical services30,00050,000194LA - Income by way of enhanced compensation2,50,0005,00,000Enhanced Threshold Limit For TCSThe threshold limit for TCS for remittance under Liberalised Remittance Scheme (LRS) and foreign tour packages has been increased to Rs. 10 Lakhs from the previous limit of Rs.

ESOP (Employee stock option plan) offers employees equity shares of the company, on satisfaction of vesting conditions. They are treated as a part of salary for the purposes of taxation.Though the Income Tax Act 2025 takes effect from 01st April 2026, the provisions of the 1961 Act applies for Ay 2026-27, as it pertains to income earned up tp 31st March, 2026. Terms on ESOPs Before you understand the taxation of ESOPs and RSUs, here are some key terms you must know:ESOP – Employee Stock Option Plan, allows an employee to own equity shares of the employer company over a certain period. The terms are agreed upon between the employer and employee.ESPP - Employee Stock Purchase Plan allows an employee to own equity shares of the employer based on the agreed purchase price. Employees pay for such stock at a discounted price which is paid directly from their bank account or deducted on a monthly basis from the payroll or payslip.RSU - Restricted Stock Units are usually issued by those companies listed outside India. In the case of RSU, it is issued to employees as a reward when the employee achieves a milestone or target.

Surcharge is tax calculated as a percentage of income tax already payable by the taxpayer. Usually, high income taxpayers are subjected to surcharge provisions under the Income Tax Act. Those taxpayers who have just crossed the threshold limits, thereby liable to pay surcharge can claim marginal relief. Key HighlightsFor individuals, surcharge rates are as follows: 5% for income between 50 lakhs and 1 crore, 15% for income between 1 crore to 2 crore, 25% for income between 2 crore to 5 crore, and 37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)Surcharge on Income TaxIncome tax surcharge is an additional charge payable on income tax. It is an added tax on the taxpayers having a higher income inflow during a particular financial year.Surcharge Rates for Individuals Under the Old Regime and New RegimeNet Taxable Income limitSurcharge Rate on the amount of income tax (under old tax regime)Surcharge Rate on the amount of income tax (under new tax regime)Less than Rs 50 lakhsNilNilMore than Rs 50 lakhs ≤  Rs 1 Crore10%10%More than Rs 1 Crore ≤  Rs 2 Crore15%15%More than Rs 2 Crore ≤  Rs 5 Crore25%25%More than Rs 5 Crore37%25%Note:Surcharge for AOPs having only companies as its members to 15%. It is applicable to AOPs whose total income during the financial year exceeds Rs 1 crores. Surcharge on Capital GainsSurcharge has been capped at 15% on dividend income and Capital gains covered under section 111A, 112 and 112A.IllustrationLets understand this concept through an example:Mr.

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.Key HighlightsThe following options are available to E-Verify ITR:Aadhaar OTPNet BankingDemat AccountBank AccountDSC (Digital Signature Certificate)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.Ways 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)How to E-Verify ITR through the Income Tax e-filing Portal?1. E-Verify ITR through Aadhaar OTPLog in to your Income Tax e-filing account.

Public Provident Fund (PPF) is a government backed savings scheme, offering guaranteed returns that are tax exempt. The interest rate remains unchanged at 7.1% per annum for Q1 FY 2026-27. With sovereign security, compound interest, and an EEE tax benefit, PPF remains one of the safest investment options for retirement and tax planning in India. Key Highlights Interest Rate: 7.1% p.a. (FY 2026–27).Investment Limits: Min Rs. 500, Max Rs.

Form 15G and Form 15H are self-declaration forms used by taxpayers to prevent TDS deduction on certain incomes such as bank interest, dividends, rent, or pension when their total tax liability for the financial year is nil. These forms are submitted to banks or financial institutions under the Income Tax Act, 1961, allowing eligible taxpayers to receive income without TDS deduction, provided they satisfy the prescribed conditions. Under the Income Tax Rules, 2026, Form 15G & 15H have been merged into a single new Form 121.Unified Form 121 From April 1, 2026With effect from 1st April 2026, Form 15G and 15H were replaced and merged into a single Form 121 that will be applicable for Tax Year 2026-27 and onwards. The purpose remains the same to avoid TDS on interest income. What is Form 15G?Form 15G is a self-declaration form that individuals can submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income. By submitting this form, the taxpayer declares that their total income for the financial year is below the basic exemption limit, and therefore no tax is payable on their income.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.What is Form 15H?Form 15H is a self-declaration form that senior citizens (aged 60 years or above) can submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income. By submitting this form, the taxpayer declares that their total tax liability for the financial year is nil, so the payer should not deduct TDS on the interest earned.Form 15H is commonly used by senior citizens who earn interest from fixed deposits, recurring deposits, or other investments, but whose overall income falls within the non-taxable limit after considering deductions.Who is Eligible for Form 15G and 15H1.