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 3rd installment of advance tax for Q3 FY 2025-26 (Oct-Dec) is December 15, 2025 Taxpayers should make sure to pay 75% of the total tax liability for the year by December 15, 2025. 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.

An income tax refund arises when the tax you have paid to the government is more than your actual tax liability. This excess tax can occur due to higher TDS deductions or advance tax payments during the year.  You can claim the refund while filing your income tax return.Income Tax Refund Status Check AY 2025-26Income tax refund status for FY 2024-25 can be checked by logging into your income tax portal, or by just entering your PAN and assessment year in NSDL protean website. You can track your refund here.What is Income Tax Refund?When the taxes paid by you in the form of TDS, advance tax and self assessment tax is more than your TDS deducted, the excess tax paid is given to you in the form of Income Tax Refund.Income Tax Refund Delay FY 2024-25If the refund credit is getting delayed, in other words, the refund is awaited beyond this time, the following could be the reasons for the same.Enhanced Verification and Delayed ITR ProcessingThe income tax returns are processed in a more stringent manner for the current assessment year, compared to preceding assessment years.This year, a lot of additional disclosures were mandated for claiming various deductions. Therefore, the department has more database to verify the authenticity of deductions claimed.Returns may be processed late if the department suspects an incorrect refund claim. If you have made error in the returns, you can revise it within December 2025 (for FY 2024-25).High Refund ClaimsTaxpayers claiming higher refunds (for example, above Rs. 50,000), or higher refunds than in previous years, are facing delays in refund processing this year. This is because the department is verifying each claim using the expanded database available.Mismatch between returns and Form 26AS/ AISEnsure the particulars as mentioned in the returns match with data as per Form 26As or AIS.It might be that sometimes details on AIS or Form 26AS is incorrect.

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 income is below the basic exemption limit or persons total tax liability for year is nil. Form 15G is filled by any person who is below 60 years, and Form 15H is filled by resident senior citizens aged 60 years or more. Filing these forms at the beginning of the financial year helps avoid unnecessary TDS deductions.Key HighlightsEvery resident can claim nil tax deduction by filing Form 15G.Senior citizens can avail the same benefits by filing Form 15H.These form needs to be filed quarterly.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.IllustrationsForm 15GMeena is 35 years old and lives in Delhi. In FY 2025–26, she does not have any salary or business income. She has only a fixed deposit in the bank, which gives her interest income of Rs.

Section 10 contains many exemptions like House Rent Allowance (HRA), Leave Travel Allowance (LTA), interest on provident fund, gratuity, agricultural income, etc. Disclosure of exempt income is mandatory in ITR. It is to be noted that certain exemptions are exclusively available only under the old regime, from the introduction of new tax regime in the year 2020.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 of the Income-tax Act 1961 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.

DTAA or Double Tax Avoidance Agreement, is a tax treaty between two or more countries. The main objective behind signing this treaty is to avoid taxing the same income twice. If a non-resident Indian is residing in another country and earning there, the tax applicable comes under the consideration of DTAA. While signing the agreement, both contracting states decide on the tax rates and jurisdictions for income arising from both nations. India has signed DTAAs with almost 100 countries. DTAAs are beneficial for NRIs and help resolve inconsistencies in tax collection from non-residents.

Assets like stocks, bonds, property, mutual fund units, property etc., are great investment options that generate capital gains when sold/redeemed. Thus, they are called capital assets, and the profits generated from their sale are liable for taxation under the head capital gains.So, if you are thinking of investing in such assets, it is important to know about capital gains tax, its types, and available exemptions. Keep reading for a deeper insights around the following:Recent Budget Updates on Capital GainsWhat is capital gains taxCapital gains Tax Rules for different asset classesTax exemptions on capital gainsConclusion  What is Capital Gains Tax?As mentioned above, when you gain profits from the sale of capital assets, there are tax implications. This is called capital gains tax. Now, based on the holding period of the assets, there can be two types of applicable capital gains tax:Short-term capital gains tax orLong-term capital gains taxShort-Term Capital Gains TaxWhen you sell your capital assets after holding them for a period of less than or equal to 24 months, it would be considered a short-term asset.

HRA full form stands for House Rent Allowance. HRA is often a part of the employee's CTC which can be used to avail tax benefits under Section 10(13A) of the Income Tax Act. Proper rent receipts and documentation are essential to claim this benefit. However, this deduction is available only under the old regime.HRA CalculationLeast of the following is exempt: Actual HRA received Rent paid minus 10% of basic pay50%  / 40% of basic pay (depending on whether metro or non-metro city)What is HRA?House Rent Allowance is a salary component paid by the company to help employees meet rental expenses. While HRA is taxable, a portion of it can be exempt under the old tax regime as per Section 10(13A) of the Income Tax Act.

Short-term capital gains or STCG arise when assets are transferred within 24 months (12 months for listed equity shares equity mutual funds). They are taxed at applicable income tax slab rates (20% for listed equity shares and equity mutual funds).Key HighlightsNo indexation benefits are available for STCG.Capital gain exemptions for STCG is limited.Except for NRIs, no TDS implications on short-term capital gains.What is Short-Term Capital Gains(STCG)?Classification of Capital Gains as short-term and long-term depends on the period of holding. Short-Term Capital Gain (STCG) refers to the profit earned from selling capital assets held for a period within 24 months (or 12 months for listed equity shares and equity-oriented mutual funds). Indexation benefits are not available on sort-term capital gains.Short-Term Capital Gains Tax RateThe short-term capital gain tax rate varies depending on the type of asset being sold. The tax rates applicable for different types of assets are as follows:Asset TypeShort-Term Capital Gains TaxationTax RateListed Equity Shares & Equity-Oriented Mutual FundsListed Equity Shares & Equity-Oriented Mutual FundsListed Equity Shares & Equity-Oriented Mutual FundsTaxed under Section 111A (if STT is paid)20%      Other Assets (e.g., Real Estate, Land, Unlisted Shares)Other Assets (e.g., Real Estate, Land, Unlisted Shares)Taxed at normal income tax slab rates applicable to the taxpayerSlab ratesWhat are Short-Term Capital Assets?Capital Assets are classified as short term or long term based on holding period.

The Annual Information Statement (AIS) is a summary your key financial transactions and income for the year. It includes details such as TDS deducted, interest earned on savings and fixed deposits, purchase and sale of shares or mutual funds, high-value transactions like property or vehicle purchases, and more.Key Highlights Covers TDS/TCS, interest, dividends, securities and mutual fund transactions, property/vehicle purchases, foreign remittances, and more.Provides both Reported Value (from reporting entities) and Modified Value (after taxpayer feedback).Taxpayers must report all income, even if it is not shown in the AIS, to avoid mismatches, penalties, and notices.What is the Annual Information Summary (AIS)?The Annual Information Statement (AIS) is a summary of a taxpayer's information as reported by various organizations from which taxpayers have received any benefit, whether in cash, kind or otherwise. While AIS serves as a helpful statement for reference when filing an income tax return (ITR), it is not an absolute or conclusive document. Despite information shown in the AIS, the taxpayers are still required to independently declare all sources of income.It is important to understand that AIS only provides a summary of financial information transactions and may not always reflect the complete or accurate information of a taxpayer's income or financial transactions. Therefore, even if certain income is not reflected in the AIS, the taxpayers are still legally obligated to report it in the ITR.Salient Features of AISIt includes new information – interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc.Summary of AIS information in the form of Taxpayer Information Summary (TIS) for ease of filing return (All the information will be pre-filled in your return)Taxpayers will be able to submit online feedback on AIS’s information and download information in PDF, JSON, and CSV file formatsAIS Utility will enable taxpayers to view AIS and upload feedback in an offline mannerSteps for Annual Information Statement (AIS) DownloadStep 1: To download your Annual Information Statement (AIS), log in to the income tax e-filing portal. Go to ‘AIS’.Step 2: Click on the ‘Proceed’ button.Step 3: It will redirect you to the compliance portal. You can view Taxpayer Information Summary (TIS) and Annual Information Statement (AIS), next to the instructions on the AIS home page. Step 4: Now select the relevant financial year, and you can view the Taxpayer Information Summary (TIS) or the Annual Information Statement (AIS) by clicking the relevant tiles.Step 5: You can download the AIS and TIS by clicking on the AIS download icon in the respective tiles.

Section 54F exemption of the Income Tax Act helps taxpayers save long term capital gains tax on sale of assets like gold or shares. Investing the sale proceeds in a residential property allows you to claim an exemption up to Rs 10 crores.Key HighlightsOnly the proportion of sales proceeds invested in the new residential property can be claimed as an exemption.The new residential house should be situated in India.The exemption can be claimed even by non-residents.Eligibility to claim Exemption under Section 54FCapital Gain exemption under section 54F is subject to certain conditions, which are:Taxpayer should invest the net sales amount of the old asset in purchase of a new residential house.The new residential property must be:Purchased: either 1 year before or 2 years after the sale of asset or Constructed: within 3 years of sale of old assetTaxpayer should not own more than one residential house on the date of sale, other than the one bought for claiming exemption under this section.Taxpayer should not purchase any other house within 2 years or construct one within 3 years from the transfer date.If the above conditions are not satisfied, then exempt Capital Gains taxable in the year in which such other residential house is purchased/ constructed.Net Sale ConsiderationNet sale consideration means the sale value of property after reducing the transfer expenses like legal fees, commission, registration charges, etc.,How to Calculate Exemption u/s 54F?Exemption u/s 54F is available to the amount invested proportionate amount of sales consideration. It can be arrived using the formula below.54F Exemption = Capital Gains * Amount invested in residential property / Net Sale ConsiderationNote:When the amount invested in residential property exceeds Rs. 10 crore, the maximum amount taken for exemption calculation should be restricted to Rs. 10 crore.