The Income Tax Act 2025 was introduced in the previous budget to replace the age-old Income Tax Act 1961 in India. It consists of 536 sections, with over 23 chapters which intend to modernise the direct tax system of the country, simplify compliance and reduce litigation. It comes in effect from 1st April 2026 as announced in Budget 2026.Key HighlightsThe concept of 'Assessment Year' and 'Financial Year' has been replaced by 'Tax Year'.The act has been made technologically more consistent, including digital transactions, records and assets the relevant provisions. 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. The new tax provision aims to bring an income tax reform by simplifying income tax laws.The new act aims at simplification of tax laws, making it easier to understand, interpret and comply with. Easy, more automated and user friendly compliance is expected to reduce the instances of non-compliance and tax avoidance techniques.When Does the Income Tax Act 2025 Come Into Effect?The Income Tax Act, 2025 will come into effect from 1st April 2026 completely replacing the existing Income Tax Act 1961.

The National Savings Certificate (NSC) is a secure investment option provided through post offices. Interest rate fixed for Q1 of FY 2026-27 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. 1.5 lakh is available under section Section 80C of the Income Tax Act.

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child. Parents or legal guardians can invest under this scheme to secure their daughter’s future. Minimum and maximum investment of SSY scheme is Rs. 250 and Rs. 1.5 Lakh respectively, per financial year. Such contributions qualify for section 80C deduction up to Rs 1.5 Lakh.

The new Income Tax Act 2025 simplifies 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.Key Updates - Income Tax act 2025 v/s existing ActThe new Income Tax Act 2025 spanning over 600 pages, 536 sections, 23 chapters and 16 schedules has provisions which are extensive yet easier to understand and aims at improving the compliance procedure. Being easier to read and understand for taxpayers and tax authorities alike, it is set to give more certainty to taxation and reduce litigation between taxpayers and the revenue authority. The following are the changes in the new income tax act:1. Ease of ComplianceThe new Income Tax Act will make compliance easier for the taxpayers and the income tax authorities. It has a more structured and streamlined tax administration process and includes the use of modern compliance mechanisms.2.

The Income Tax Act 1961, offers a higher basic exemption limit to senior citizens under the Old Tax Regime. While Senior Citizens between 60 to 80 years enjoy a basic exemption limit of Rs. 3 lakhs, super senior citizens above 80 years of aNge enjoy Rs. 5 lakhs basic exemption limit. However, the New Tax Regime does not offer any such kind of higher basic exemption limit for Senior and Super Senior Citizens. Who is a Senior Citizen for Income Tax Purposes?The Income Tax Act categorises resident individuals into the following three categories:Individuals aged below 60 yearsIndividuals aged between 60 to 80 years i.e., senior citizensIndividuals aged above 80 year i.e., super senior citizensAs per the Income Tax Act, a senior citizen is a resident individual aged between 60 to 80 years. Whereas, a super senior citizen is a resident individual aged above 80 year.

In advance tax mechanism, tax is paid during the financial year by the taxpayer instead of paying while filing the returns. If the tax on such income exceeds Rs. 10,000 for the financial year, he should pay advance tax.Advance Tax Due DateThe due date to pay the 1st installment of advance tax for Q1 FY 2026-27 (Apr-Jun) is June, 2026 Taxpayers should make sure to pay 15% of the total tax liability for the year by June 15, 2026. Taxpayers shall refer to section 403 to 410 of the Income Tax Act, 2025 with effect from 1st April 2026What is Advance Tax?Advance tax is income tax paid through multiple installments before the end of financial year, instead of a lump sum payment after the end of the financial year. The provisions related to advance tax are covered under section 403 to section 410 of the Income tax act, 2025.The taxpayer calculates the estimated total income at the beginning of the financial year, thereby estimating his tax liability. The advance tax payments have to be made in fixed percentage through four installments as per the due dates provided by the income tax department.Who Should pay Advance Tax?As per section 404 of the Income tax act, any assessee whose estimated tax liability for the financial year exceeds Rs 10,000, he or she is required to pay advance tax. If TDS is already deducted against a person, and still Rs 10,000 tax is payable as per estimation, he /she also needs to pay advance tax.This provision applies to all taxpayers, salaried individuals, freelancers, and businesses.Note: Senior citizens - People aged 60 years or more who do not have income from any business or profession during the financial year are exempt from paying advance tax. However, senior citizens (60 years or more) having business or professional income must pay advance tax.Advance Tax Rates and Due Dates For FY 2026-27The due date for advance tax payments for FY 2026-27 is given below:Regular Taxpayers InstalmentDue DateAdvance Tax Payment PercentageFirst InstalmentOn or before 15th June 202615% of tax liabilitySecond InstalmentOn or before 15th September 202645% of tax liability (-) advance tax already paidThird InstalmentOn or before 15th December 202675% of tax liability (-) advance tax already paidFourth InstalmentOn or before 15th March 2027100% of tax liability (-) advance tax already paidNote: No interest u/s 425 shall be levied if you have paid advance tax up to 12% in first instalment and up to 36% in second instalment.Taxpayers Opting Presumptive Taxation For freelancers, small business owners who have opted for Presumptive Taxation Scheme under sections 44AD & 44ADA – the advance tax due dates are as follows.Due DateAdvance Tax Payment PercentageOn or before 15th March 2027100% of advance tax**Taxpayers opting for presumptive taxation also have the option to pay all of their tax dues by 31st March.

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 FilingEvery person carrying any business will have to get his accounts audited if his turnover exceeds Rs.1 Crore in the previous year or Rs.

An income tax refund is the amount returned by the Income Tax Department when a taxpayer pays more tax than their actual tax liability during a financial year. This excess payment may occur due to higher TDS deductions, advance tax payments, or self-assessment tax paid while filing the income tax return (ITR). Taxpayers can claim the refund while filing their ITR and track the income tax refund status online through the income tax e-filing portal.Income Tax Refund Key HighlightsIncome tax refund occurs when tax paid exceeds actual tax liability.Refunds can arise due to excess TDS, advance tax, or self-assessment tax.Refunds are credited after the income tax return is processed and verified.Taxpayers can check refund status online through the e-filing portal.What is Income Tax RefundAn income tax refund is the amount returned by the Income Tax Department when a taxpayer pays more tax than their actual tax liability during a financial year. For example, If the TDS and advance tax paid by Mr. A is Rs.

The Employees’ Provident Fund (EPF) is a retirement savings scheme, where monthly contributions are made both by the employers and employee. Regular EPF balance checks are crucial for tracking contributions and major financial planning. Most users prefer a PF balance check online using UAN, but there are several ways to check PF balance even without UAN.Latest UpdateEPFO may launch a mobile app from 1st April 2026, allowing the users to withdraw PF money using UPI and Aadhar authentication.This feature can credit of PF balance directly to the bank account of the user, enabling withdrawal process within 24 hours.EPF Balance Check Without Using UAN (Offline)Checking EPF balance check without UAN offers faster methods. Members can check PF balance through the following methods:  1. PF Balance Check through Missed Call NumberYou can easily do EPF balance check by giving a missed call from your registered mobile by following the steps below:Step 1: Give a missed call to 9966044425 from your registered mobile number.Step 2: The call will disconnect automatically after two rings.Step 3: You will receive an SMS containing your PF details (Member ID, Last Contribution, and Total Balance)Note: Your UAN must be activated and seeded with your Bank Account, Aadhaar, or PAN for this to work.2.

The income tax laws in India is governed by the Income Tax Act, 1961. The act contains provisions related to income calculations, exemptions, deductions, and tax rates. With effect from 1st April 2026, the Income Tax Act of 1961 will be replaced by the Income Tax Act 2025. However for the current tax season (April to August 2026), Income Tax Act 1961 needs to be referred as the act is applicable to income earned up to 31st March 2026.Key HighlightsThe new Income Tax Act, 2025, will come into effect from 1st April 2026, eliminating redundant provisions and aligning the law with current technological and economic developments.It contains 931 sections, higher as compared to the new Income Tax Act, 2025.The Act provides various deductions and exemptions, applicable separately under the old and new tax regimes.What is the Income Tax Act 1961?The Income Tax Act 1961 governs the levy, collection, and administration of direct taxes in India. It applies to all persons earning income in India, regardless of whether they are citizens or not. It contains provisions related to types of income, how to tax different kinds of income, tax benefits, exemptions, tax rates, due dates, penal provisions, etc.This act is applicable to the whole of IndiaPresent day, it contains more than 931 sections, 23 chapters, and 14 schedulesEvery year, the parliament passes Annual Finance Act, thereby amending the act to cater the requirements of changing economic situation.Latest Update - Income Tax Act, 1961Tax laws in India has been governed by the Income Tax Act, 1961 since the year of implementation.