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 4rd installment of advance tax for Q4 FY 2025-26 (Jan-Mar) is March 15, 2026 Taxpayers should make sure to pay 100% of the total tax liability for the year by March 15, 2026. What 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 207 to section 219 of the Income tax act.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 208 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.

Form 15G and 15H are tax exemption declaration forms filed by individuals to save TDS on incomes like bank interest, dividends, rent, and pension if the total tax liability for year is nil. While senior citizens should file Form 15H to claim nil TDS, other assessees can file Form 15G to avoid TDS deductions.Budget 2026 UpdateDepositories may be allowed to accept Forms 15G and 15H from investors with multiple securities and share them with the concerned companies.What is Form 15G?Resident individuals aged below 60 years can file Form 15G to prevent the deduction of TDS. It can also be filed by HUFs, trusts, or any other person (except a firm or company). It can be filed only if the estimated income of resident individuals for the relevant financial year is less than the basic exemption limit.Form 15G has to be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical paper form.What is Form 15H?Form 15H can be filed by resident senior citizens aged 60 years or above.  It can be filed only if the senior citizen’s total income for the relevant financial year results in nil tax liability.Form 15H must be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical form. TDS Sections Where Form 15G/15H Can Be UsedSectionNature of PaymentThreshold Limit (In Financial Year)Eligible for 15GEligible for 15H192APremature withdrawal of EPFRs.50,000YesYes193Interest on securities such debenture, govt.bonds, etc.Rs.5,000 or Rs.10,000YesYes194DividedRs.5,000YesYes194AInterest from Bank, FD, RD, etc.Rs.40,000(Rs.50,00 for senior citizen) YesYes194EENational Saving Scheme Withdrawal (NSS)Rs.2,500YesYes194DInsurance CommissionRs.20,000YesYes194DAMaturity proceeds of life insuranceRs.1,00,000YesYes194-IRent from land, building plant and machineryRs. 50,000 per month or Rs.6 lakhs per annum.YesYes194KIncome from mutual funds unitsRs.10,000YesYesKey Differences: Form 15G vs Form 15HThe key differences between form 15G and 15H are explained below.Type of FormFORM 15GFORM 15HEligible TaxpayerResident Individual with age less than 60 years or HUF or trust or any other assesseeResident individual aged 60 years or more i.e. Senior citizens.Ineligible Taxpayers Company or a firm Non residents, individuals less than 60 years of age.ConditionTax calculated on your total income is Nil and total Income is less than Basic Exemption LimitTax calculated on your Total Income is NilOnly for ResidentsPlease note that benefits of Form 15G and 15H cannot be claimed by Non-residents. Form 15G and Form 15H PDF Download1.

Section 10(14) of the Income Tax Act provides exemption on children education allowance. Tution fees are considered for exemption, and this exemption is available only under the old regime.Key HighlightsTax Regime: Exemption available only under the old tax regime.Ceiling Limit: Rs. 1,200 per child for maximum two children. (Rs. 2,400 per year)Fee Exemption: This exemption is provided for fees paid to nursery, creches and playschools as well. What is Children Educational Allowance?The Children's Education Allowance (CEA) is a type of allowance provided by employers to support the educational expenses of their employees' children. Under the old tax regime, this allowance is eligible for a small exemption, providing limited relief to salaried individuals.

Tax Deducted at Source (TDS) is a form of advance tax collection where the payer deducts a specified percentage of tax before making certain payments such as salary, interest, rent, or professional fees. Sometimes, the total TDS deducted during the financial year may exceed the taxpayer’s actual tax liability. In such cases, the excess tax paid can be claimed as a TDS refund by filing an Income Tax Return (ITR).Key TakeawaysTDS Refund arises when total TDS deducted is more than actual tax liability.Claim refund only by filing your ITR within the due date.Provide correct bank details in ITR for smooth processing.Refund status can be tracked on the Income Tax portal.What is TDS Refund?A TDS refund occurs when the Tax Deducted at Source (TDS) during a financial year is higher than your actual income tax liability. In such cases, the excess tax paid can be claimed back from the Income Tax Department of India by filing your Income Tax Return (ITR). This commonly happens when incorrect tax calculations, additional deductions, or lower taxable income reduce the final tax payable. Once your ITR is processed, the tax department refunds the excess amount directly to your pre-validated bank account.When Are You Eligible for TDS Refund?It is important to file an Income Tax Return (ITR) within the due date to claim a refund for the excess TDS deducted.

Income Tax in India is a direct tax levied on income earned by individuals and entities, as per prescribed tax rates, depending on age, residential status, regime chosen, and nature of income. Deductions and exemptions help reduce liability. Filing ITR on time ensures benefits and avoids penalties.  What every Indian individual should know about income tax in 2025-26?For FY 2025-26, the new regime is the default tax regime.While most of the income is taxed under the slab rates, few income like capital gains are taxed at special rates.Excess tax deducted as TDS can be claimed as refund.What is Income Tax?Income tax is levied on the income earned by the taxpayer in the relevant financial year. Income tax is classified as a direct tax because it is borne by the taxpayer directly, and the tax burden cannot be passed on further, unlike indirect taxes. India follows a progressive tax rate for individuals, meaning the tax rate increases with the assessee's income.

TDS under section 194J needs to be deducted on payments for professional fee, technical fee, royalty, non compete fee and director's remuneration. No TDS needs to be deducted of the payment during the financial year is within Rs. 50,000.Key HighlightsSection 194J deals with royalty, non-compete fees, professional and technical services.No TDS needs to be deducted up to a limit of Rs. 50,000 during the financial year.2% TDS is deducted for technical fees. For other transactions, 10% TDS is deducted.What is Section 194J?Section 194J covers payment for professional, technical fees, royalty and non compete fees, including directors remuneration.

Section 194C of the Income Tax Act governs the provisions of tax deduction on payments made to contractors or subcontractors. Any person making payments to resident contractors for rendering services under a contractual agreement is required to deduct tax at source at the prescribed rate under this section.This article comprehensively covers the provisions and implications of Section 194C.Budget 2026 UpdateSince the definition of ‘work’ has been proposed to include manpower supply services, it is now classified under TDS on works contract, attracting TDS rate of 1% for individual and HUF payees, and 2% for others. This will take effect from the upcoming tax year. What is Section 194C?As per section 194C, any person making payments to a resident contractor or a sub-contractor has to deduct tax at source at the time of payment of credit of such amount, whichever is earlier. The tax has to be by any person paying any amount for services obtained under a contract. The parties of the contract can be any of the following: The Central Government or any State GovernmentAny Local AuthorityAny Statutory CorporationAny corporation established by or under a Central, State or Provisional ActAny CompanyAny Co-operative SocietyAny authority constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the needs for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for bothAny society registered under the Society Registration Act, 1980 or under any such corresponding law to the Act in any Part of IndiaAny trustAny university or deemed universityAny firmAny Government of a foreign state or foreign enterprise or any association or body established outside IndiaAny person who is an individual, HUF, AOP or BOI, who has total sales from the business or profession exceeds 1 crore or 50 lakhs during the previous Financial year respectively.What is the Meaning of ‘Work’ Under Section 194C?The expression, “work” in this section would include-AdvertisingBroadcasting and telecastingTransportation of goods and passengers, other than railwaysCateringCreating a product as per the specifications of the customer, using materials provided by customer (Similar to Job work).Note : If the products are produced according to customer's specifications, but the customer does not provide the materials for that product, then it cannot be categorized as a contract.Supply of pure-labor contracts for any of the purpose above are also covered under the ambit of this section.Are Sub-Contractors also Covered Under Section 194C?Yes, sub-contractors are also covered under section 194C. A contractor can allocate the work to be carried out by him by entering into a sub contract with another person.Under this section, sub contracts are also covered.

TDS stands for Tax Deducted at Source. Through TDS mechanism, tax is paid to the government as and when your income is earned, for certain types of transactions like like salary, rent, interest, and professional fees.Key HighlightsTDS deducted against your income can be claimed as a refund through ITR filing, when your total tax payable is less than TDS deducted.You can submit Form 15G and 15H and avoid TDS deduction, when your total income is below the taxable limit.You can use Form 26AS to check the details of TDS deducted against your income.Applicability of TDSTDS is applicable for a variety of transactions at different rates when the payments cross specified threshold limit. They include:Salary - Section 192Dividend - Section 194Interest - Section 194AProfessional and consultation fees - Section 194JContract payments - Section 194CCasual income like gaming income, lottery winnings, etc - Section 194BCash withdrawals - Section 194NCommission, brokerage, etc - Section 194HTime of TDS DeductionUsually, TDS needs to be deducted at the time of payment or credit in the books, whichever is earlier. However, for certain payments like salary, TDS needs to be deducted at the time of payment. Example of TDSShine Pvt. Ltd makes a payment for office rent of Rs 80,000 per month to the owner of the property. TDS is required to be deducted at 10% under Section 194I of the Income Tax Act, 1961.

Section 10 of the Income Tax Act lists incomes that are fully or partially exempt from tax in India such as HRA, LTA and more. These Section 10 exemptions include specific incomes that are not included in your total taxable income, subject to prescribed conditions. The section contains multiple sub-sections covering exemptions such as allowances, agricultural income, gratuity, and other specified incomes.Popular Section 10 ExemptionsHouse Rent Allowance (HRA) Leave Travel AllowanceAgricultural IncomeInterest on provident fund (on satisfaction of conditions)Retirement settlement amount such as gratuity, leave encashment, pension, etc. (on satisfaction of conditions)What are Section 10 Exemptions of the Income Tax Act?While calculating the tax liability of an individual, there are certain incomes which is exempt and do not form a part of the total income. Section 10 includes all those exemptions that a taxpayer can claim while paying income tax. From an employee's perspective, the exemptions available under the act can be classified as exempt allowances, and other exempt income.

The direct tax code (DTC)  will be aimed at simplifying and modernising the existing direct tax law i.e. the Income Tax Act, 1961. The DTC will also be in-line with the global standards making the taxation simpler for both residents and non-resident taxpayers. In this article, we will explain in detail the expectations and differences between the DTC and the Income Tax Act. What is the Direct Tax Code 2025?The Direct Tax Code aims to simplify, streamline, and standardise the existing complex income tax laws for everyone. The government intends to increase the number of taxpayers contributing to the income tax and hence wants to simplify the tax laws for the enhancing their participation.