Form 26AS is an annual tax statement issued by the Income Tax Department, that acts as a single consolidated record for the entire financial year. It captures every Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax and self-assessment tax payments, high-value transactions, refunds issued, and more, all linked to your PAN.The scope of Form 26AS has expanded significantly over the years, which now includes details of foreign remittances, mutual fund purchases, dividend income, and even your turnover as reported in GST records. This makes it one of the most comprehensive financial documents available to an Indian taxpayer.Ignoring Form 26AS while filing ITR can be costly. Even a single transaction reflected in the form that goes unreported in your return can lead to an Income Tax notice. Having Form 26AS handy while filing ensures your return is accurate, complete, and far less likely to attract scrutiny.Information Available on Form 26ASForm 26AS is a statement that shows the below information:Details of tax deducted at sourceDetails of tax collected sourceAdvance tax paid by the taxpayerSelf-assessment tax paymentsRegular assessment tax deposited by the taxpayers (PAN holders)Details of income tax refund received by you during the financial year Details of the high-value transactions regarding shares, mutual funds, etc.Details of tax deducted on sale of immovable propertyDetails of TDS defaults (after processing TDS return) made during the yearTurnover details reported in GSTR-3BDetails of specified financial transactionsPending and completed income-tax proceedingsStructure and Parts of Form 26AS PART-I Details of Tax Deducted at SourceTDS on salary, business, profession, interest income etc., shall be reported herePART-II Details of Tax Deducted at Source for 15G/15HTDS on which no TDS is made because of Form 15G/15H due to income being less than the basic exemption limit.

The Budget 2025 introduced some major changes to the Income Tax Act 1961 to simplify the tax structure in India. These changes will come into effect on 1st April 2025 and will be relevant from FY 2025-26 onwards. This article will cover all major changes that one must be familiar with to plan one's finances for FY 2025-26 accordingly.What Are The Income Tax Changes For FY 2025-26?1. Income Tax Slabs for FY 2025-26 (AY 2026-27)The Budget 2025 proposed new tax slab rates under section 115BAC i.e., the New Tax Regime or the Default Tax Regime. This was to ensure that individuals save more and increase their spending capacity. These revised tax slab rates will be applicable for income earned in FY 2025-26 onwards.

If you are sending money abroad, you may have to pay foreign remittance tax in India, also known as TCS on foreign remittance. Under Section 206C(1G) of the Income Tax Act, banks and authorised dealers collect Tax Collected at Source (TCS) when you transfer funds overseas.Budget 2026 UpdateTCS on LRS for health and education is proposed to be reduced to 2% from the existing 5%.TCS on LRS of overseas tour packages is proposed to reduce to 2% without any limit from existing 5% and 20%.  What is TCS on Foreign Remittance?Tax on foreign remittance applies when an Indian resident transfers money abroad under the RBI’s Liberalised Remittance Scheme (LRS). The remitter pays a percentage of the amount as TCS, which is deposited with the government.The deducted TCS reflects in your Form 26AS.You can adjust it against your final tax liability while filing ITR.If you have no tax liability, you can claim a refund of the deducted TCS.However, this is to be noted that this TCS is applicable only for foreign outward remittance, the situation wherein you send money outside India. Inward remittances (receiving remittances from abroad) are not governed under this provision.Latest TCS Rates on Foreign RemittanceType of RemittanceNew TCS rate (with effect from 1st April 2026)Education (loan from financial institution u/s 80E)NILEducation / Medical (self-funded or (other than financed by loan)Nil up to Rs. 10 lakhs2% in excess of Rs.

Buying a house property is one of the biggest financial commitments in one's life and the Income Tax Act provides taxpayers with a meaningful way to reduce that burden every year. Between Section 80C and Section 24(b), a homeowner under the old tax regime can reduce their taxable income by up to Rs. 3.5 lakh every year. But the actual deduction that can be claimed depends on whether the property is self-occupied or let-out, the tax regime opted for, and if the loan is an individual or a joint loan. Most of the benefits are not available under the new tax regime but with one important exception. Home Loan Tax Benefits - Key HighlightsThe maximum limits for deductions available against interest and principal paid during the financial year are presented in a table below: DeductionComponentMaximum LimitTax RegimeSection 80CPrincipalRs. 1.5 lakhOld Tax RegimeSection 24(b)InterestSelf-occupied property: Rs.

Section 80C is one of the most popular tax-saving deductions in India. Under the old regime, there is a variety of deductions available against certain investments and expenditures. Popular options are insurance premiums, PPF, home loan principal repayment, ELSS mutual funds and Sukanya Samriddhi Yojana.Key HighlightsUp to Rs. 1.5 lakhs of deduction can be claimed under section 80C.   Section 80C deduction is are not available under the new regime.It is important to make the tax saving investments early in the financial year for lesser TDS and more disposable income.What is Section 80C?Section 80C of the Income Tax Act 1961 is a key provision that offers tax deduction benefits to taxpayers by reducing their gross total income, effectively lowering their taxable income and their overall tax liability for the financial year.

HRA or House Rent Allowance is the most common allowance received by salaried individuals. Those who live on rent can maximise on saving tax by claiming a deduction for the HRA component from the salary. However many salaried or self-employed individuals stay with their parents. But can those living in their parent's house claim HRA exemption? Well, yes they can. Those who live with their parents can pay rent to their parents and save tax on HRA. This article will discuss in detail how to claim HRA while living in your parent's house.It is important to note that HRA exemption can be claimed only by those taxpayers opting for the old tax regime.

If you are a salaried individual, you have likely come across the term HRA in your salary slip. HRA full form is House Rent Allowance, a salary component provided by the employer to help employees cover their residential rental expenses. It forms a significant part of the employee's cost to company (CTC) and plays a significant role in tax planning. House Rent Allowance is a taxable income, the Income Tax Act offers considerable relief to taxpayers. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as an exemption, effectively reducing the taxable income. However, the HRA exemption is only available under the Old Tax Regime.

Section 80EE of the Income Tax Act allows first-time homebuyers to claim an additional deduction of up to Rs. 50,000 per year on interest paid on home loans sanctioned during FY 2016-17. To qualify, the property value must not exceed Rs. 50 lakh, and the loan amount must not exceed Rs. 35 lakh.

Rebate is a tax reduction available to resident individuals when they earn income within 10% tax slab. Under the new tax regime, a rebate of Rs.60,000 is allowed for an income up to Rs. 12 lakhs. Under the old regime, a rebate of Rs. 12,500 is allowed for an income up to Rs.

The most important part of tax strategy for a salary range of Rs. 20 lakhs, is to determine the most beneficial regime. The new tax regime would be beneficial when the taxpayer has limited tax saving deductions due to relaxed slab rates. On the other hand, old regime is more beneficial when you have more deductions.In a salary level of Rs 20 lakhs, old regime is the most beneficial when you have deductions more than Rs. 7,08,330 under the old regime. Key Deductions and Exemptions in the New Tax RegimeThe following deductions and exemptions are available to a taxpayer opting for the new tax regime:Standard deduction of Rs 75,000 under the new tax regime applicable.Section 80CCD(2): Up to 14% of the basic pay can be claimed as a deduction on employer’s contribution to NPS account .Section 24: Entire interest on Home Loan on the let-out property, can be claimed as a deduction, without any threshold limt.Retirement deductions: Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)Key Deductions and Exemptions in the Old Tax RegimeUnder the old tax regime there are many components in your salary that are exempted from taxes and deductions Let’s break down some key components of salary that are exempt from taxes:Salary (-) Exemptions = Taxable Salary IncomeTaxable Salary Income (-) Deductions = Net taxable incomeTake a look at them below:Salary ComponentsTaxabilityBasic PayFully-taxableDearness Allowance (DA)Fully-taxableHouse Rent Allowance (HRA)Exemption up to a certain limit. Calculate nowLeave Travel Allowance (LTA)Actual travel ticket expenses exempt for two  trips in 4 years under 10(5). Mobile/ Internet reimbursement Exempt if:– used predominantly for office purposes – proofs/bills submittedChildren’s Education and Hostel allowanceRs 4800 per child (max 2 children)Food ExpensesRs 50 per meal (max 2 meals a day)Annual= Rs 26,400 (50*2*22 days*12 months)Moreover, when you are tax planning for a salary above 20 lakhs, you can get deductions on the following:ParticularsLimitStandard DeductionFlat Rs.