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.

The Cost Inflation Index (CII) is used to estimate the increase in the prices of goods and assets year-by-year due to inflation. For the Financial Year 2025-26, the Cost Inflation Index (CII) is 376 and for Financial Year 2026-27 the CII is 384.Cost Inflation Index FY 2026-27The Central Board of Direct Taxed (CBDT) has notified the Cost Inflation Index (CII) for Financial Year 2026-27 as 384. This will be applicable for Tax Year 2026-27 from 1st April 2026 onwards. What is Cost Inflation Index?A Cost Inflation Index table is used to calculate the long-term capital gains from a capital asset transfer or sale. The profit earned through the sale or transfer of any capital asset, such as land, property, stocks, shares, trademarks, patents, and so on, is referred to as capital gain.Long-term capital assets are typically documented in books at their cost price. As a result, despite growing asset prices, these capital assets cannot be revalued.When these assets are sold, the profit or gain obtained from them remains high due to their high sale price in relation to their acquisition price.

Section 10(14) of the Income Tax Act provides tax exemption on Children Education Allowance and Hostel allowance received from an employer. The exemption covers tuition fees paid for a child’s education and is available only when opting for the old tax regime, subject to prescribed limits and conditions. Tuition fees can also be claimed as a deduction under Section 80C. However, these exemptions and dedctions are not allowed under the new tax regime. As per the Income Tax Rules 2026, the eligible limits for children education allowance and hostel allowance has been significantly increased from the previous limits. Key HighlightsTax Regime: Only under the old tax regime.Threshold Limit: Rs. 1,200 per child for maximum two children.

Taxpayers who are regarded as residents for income tax purposes should make appropriate disclosure of their foreign income and assets while filing ITR. Schedule FA, and schedule FSI deal with foreign asset disclosure and foreign income disclosure respectively.Failure to make necessary disclosure can attract penalty up to Rs. 10 lakh.Budget 2026 UpdateThe department has noticed that a section of small taxpayers like former students graduated from abroad, ESOP holders of foreign companies, etc, did not completely comply with the foreign asset disclosure requirements. As a nudging initiative, the CBDT has provided a one-time scheme through which the non-compliant taxpayers can disclose their foreign income and assets, with additional taxes and fees as applicable.Also, non-disclosire of foreign movable assets up to Rs 20 lakh do not attract any penalty. From 1.10.2026, they are also provided immunity from prosecution.What are Foreign Assets?If you’re an Indian resident, foreign assets will comprise of bank accounts in other countries, investments in real estate, stocks, mutual funds and other capital assets outside India, financial interest in any foreign entity, or signing authority over any account located abroad, insurance or annuity contract etc.What is the Importance of Disclosing Foreign Assets in ITR? Disclosure of foreign assets and income in income tax returns is important and ensures compliance with Indian tax laws. Here’s a list of reasons which makes it super important:Legal ComplianceAs per the Black Money Act, 2015, it is mandatory to disclose all foreign assets and income within the Income Tax return in the specified schedules, such as Schedule FA for disclosing foreign assets like a bank account, real estate etc.

The ITR filing process can become complex depending on your residential status, the ITR form selected and the nature of your income. You can file your ITR online through the Income Tax Portal, or using the offline utility and then by uploading it on the portal.The CBDT has enabled online e-filing and excel utility for ITR-1, ITR-2, ITR-3 and ITR-4 for FY 2025-26 (AY 2026-27).7 Simple Steps on how to file ITR OnlineYou can file your ITR following these simple steps:Login to the Income Tax PortalGo to ‘File Income Tax Return’Select the Assessment yearSelect 'Filing Status"Select ‘ITR Type’Select reason for filing the returnValidate the details and e-verifyWhat is ITR?ITR stands for Income Tax Return, in which the taxpayer discloses all the details related to his income, assets, taxes, losses, refunds, etc. for the relevant assessment year.Documents Required for Filing ITRBefore filing ITR, there are a few documents and details that you need to gather in order to file ITR.PAN and AadhaarBank StatementsForm 16Donation receiptsStock trading statements from the broker platformInsurance policy paid receipts related to life and healthBank account information linked to PANAadhaar registered mobile number for e-verifying the returnInterest certificates from banksHow to File ITR Online?Before you start, download both your Form 26AS (Tax Credit Statement) and your AIS (Annual Information Statement) from the e-filing portal. Cross-check every entry against your bank statements, Form 16, broker capital gain statements and rent receipts. If any AIS entry is wrong, submit feedback within AIS itself - this preserves your audit trail and prevents notices later.The step-by-step guide on how to file ITR online for FY 2025-26 through the Income Tax Portal:Step 1: Log in to the Income Tax PortalVisit the Income Tax e-Filing portal and click on Login.

The National Pension Scheme (NPS) is one of India’s most accepted pension-oriented products. Investing in NPS will give you an edge over fixed-income schemes and allow you to avail tax benefits up to Rs.1.5 lakh under Section 80C and Section 80CCD of the Income Tax Act, 1961. It also allows you to choose the allocation of investments. While the active choice will allow you to determine the plan and investment percentage, the auto choice will allocate your investments based on your age and risk profile.Pension Fund ManagersAt present, there are 11 NPS pension fund managers in the country.SBI Pension Funds Pvt. Ltd.LIC Pension Fund Ltd.UTI Retirement Solutions Ltd.HDFC Pension Management Co. Ltd.ICICI Prudential Pension Fund Management Co.

Income tax is the most popular direct tax levied by the government. The Central Board of Direct Taxes holds the authority to govern the effective implementation of the levy and collection of income tax in India. Individuals are taxed according to their slab rates, which increase as income rises. Taxpayers can claim deductions, exemptions, set off losses, and avail other beneficial provisions to reduce their tax liability.Key Highlights:Individuals can choose the most beneficial regime between the old and new tax regimes to optimise their taxes.While the old regime offers a plethora of deductions, the new regime has relaxed slab rates with limited deductions.Certain income, such as long-term capital gains, income from the sale of crypto assets, betting income, lottery winnings, etc., is taxed at special rates.What is Income Tax?Income tax precisely means tax levied on the income earned by the assessee during the relevant financial year. Who should pay Income Tax?As per section 2 of the Income Tax Act, 1961, every person who is liable to pay tax or any other sum under this Act is termed the assessee. An assessee can be categorised under the following legal status:IndividualHindu Undivided FamilyAssociation of PersonsBody of IndividualsTrustsPartnership firmsCo-operative societiesCompaniesLocal authorityArtificial Juridical PersonWhat is the Income Tax Act?As per Article 265 of the Indian Constitution, no tax can be levied except under the authority of law.

ITR stands for Income Tax Return. It is a form through which taxpayers in India report their income, expenses, taxes paid, and tax liability for a financial year. There are seven types of ITR, namely ITR-1 to ITR-7. The type of ITR a taxpayer needs to file differs based on her income sources, level of income and the residential status. Therefore, choosing of the right ITR form becomes crucial.The ITR due date for non-tax audit cases for FY 2025-26 (AY 2026-27) is 31st July 2026.

Section 43B(h) stipulates that any sum owed to Micro and Small enterprises for goods supplied or services rendered will be allowed as a deduction in the same financial year if it is paid within the deadline stipulated by the MSMED Act, 2006. However, delayed payments will be allowed as a deduction in the financial year in which the payment was made. It addresses the issue of working capital scarcity in the MSME industry and promotes prompt payments to micro and small businesses.MSME Section 43B(h): New MSME 45 Days Payment RuleThe newly added clause (h) states that any sum paid by an assessee to a Micro & Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act shall be allowed as a deduction only in the previous year in which the sum has been actually paid (irrespective of the accounting method employed).In simple words, any payment due to a Micro & Small Enterprise if paid within 45 days will be allowed as a deduction in the same financial year. However, if the payment is made after 45 days it will be allowed as a deduction in the financial year in which the payment is made. Section 43B(h) ApplicabilityThis clause is applicable when an enterprise is buying goods or taking services from Micro and Small Enterprises registered under the MSMED Act, 2006. Notably, the registration of the buyer under the MSMED Act, 2006 is not mandatory.

Section 192 provides for salary TDS, wherein TDS is deducted under the applicable slab rates. While the TDS already deducted on your income is reflected on your Form 26AS and AIS, you can claim TDS refund if your tax liability is less than the total TDS deducted;.What is TDS on Salary?Section 192 of the Income Tax Act deals with TDS on salary income. It requires employers to estimate the total income of an employee for the financial year and deduct tax if the estimated salary exceeds the basic exemption limit. The TDS is computed according to the applicable income tax slab rates under the chosen tax regime, which means the deduction amount will vary from employee to employee depending on their income and eligible deductions. Who Can Deduct TDS Under Section 192?The employers are required to deduct TDS under section 192 every month and deposit it with the government within a specific time-period. The employers can be:Companies (Private or Public)IndividualsHUFTrustsPartnership firmsCo-operative societiesThe employer’s status such as HUF, firm or company is irrelevant for the deduction of tax at source under this section. Only employer-employee relationship matters. According to section 192 of the Income Tax Act, there must be an employer-employee relationship between the deductor and deductee for TDS. Moreover, the number of employees employed by the employer also does not matter for deducting TDS.  Section 192 TDS RatesAs mentioned already, section 192 TDS is deducted under applicable slab rates of the employee.Th employer should estimate the total income for the taxpayer, and deduct TDS if there is a possible tax liability on the estimated total income.The slab rates under the new regime and old regime are as follows:Income Tax Slabs for FY 2025-26 (AY 2026-27)Income Tax Rates for FY 2025-26 (AY 2026-27)Up to Rs.