The Employees’ Provident Fund Organisation (EPFO) oversees the EPF scheme established by the EPF Act of 1952, facilitating retirement savings through joint contributions from both employer and employee. Upon retirement, employees receive a lump sum including contributions and interest, with the current EPF interest rate of 8.25% per annum.EPF Interest Rate for FY 2025-26The EPFO has retained the interest rate for EPF contributions for FY 2025-26 at 8.25% in consistent with the previous year interest rates. What is EPF?EPF (Employees’ Provident Fund) is a government-backed retirement savings scheme where both the employer and employee contribute a fixed percentage of the employee’s basic salary to the EPF account. The contributions earn interest over time, helping employees build a retirement corpus. The accumulated amount, including both contributions and interest can be withdrawn upon retirement or under certain conditions.What is EPFO? EPFO or the Employee Provident Fund Organisation is a statutory body created by the Government of India. The administration is managed by the Central Board of Trustees (CBT), Employees’ Provident Fund.

The Income Tax Act 2025, effective from 1st April 2026, brings one of the most significant simplification to India's tax terminology, the introduction of the “Tax Year”. The new act replaces both the “Financial Year (FY)” and “Assessment Year (AY)” with a single, unified concept called the “Tax Year”, which is a straightforward 12 month period from April to March, during which income will be earned and for which taxes are filed in the following tax year. What is a Tax Year in Income Tax?Tax year as per the Income Tax Act 2025 will replace the existing concept of Financial Year and Assessment Year. A Tax Year is a 12 month period that begins on the 1st of April and ends on 31st March of the following year. However, for newly established business and profession, the tax year starts from the date of establishment. For example, Tax Year 2026-27 is a 12 month period which starts from 1st April 2026 and ends on 31st Match 2027. Current Income Tax Law: Which Years Are Relevant?In the current Income Tax Law, the concept of Previous year and Assessment year is used. Previous Year: Simply speaking, it is the year in which the income is earned. It can be less than 12 months in case the business is newly set up or the source of income is new.

Under the old regime, there are variety of deductions and exemptions available, especially against salary income. Choosing the most beneficial regime and appropriate tax planning can help you minimum tax outflow, thereby increasing savings.How to save tax under old regime for FY 2025-26?Here are the most popular deductions available under the old regime:House Rent Allowance (HRA)Children Education AllowanceHome loan interest deduction on self occupied propertyInvestment deductions under Section 80CMedical insurance premium under section 80DIncome Tax Slabs under the Old RegimeUnlike the new tax regime, more deductions and exemptions are allowed under the old tax regime, which gives taxpayers the benefit of paying lower tax liability. Tax slabs under the old tax regime are as follows:Income Tax SlabsAge < 60 years & NRIAge 60 years to 80 years (Resident Individuals)Age above 80 years (Resident Individuals)Upto Rs. 2,50,000NilNilNilRs. 2,50,001 - Rs.

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.

HRA or House Rent Allowance is one of the most common salary components that helps salaried individuals save tax by claiming an exemption on the rent paid. Even if you live with your parents, you can still claim HRA exemption by paying rent to parents and meeting the required conditions. However, this benefit is available only under the old tax regime and not under the new tax regime. This guide explains how to claim HRA while staying in your parent's house and the rules you must follow to avoid tax issues.Draft Income Tax Rules 2026 UpdateThe draft income tax rules makes it mandatory to declare the relationship between the taxpayer and landlord for taxpayers claiming HRA exemption. This is to ensure no fraudulent deductions are being claimed. What Does The Income Tax Act Say?The Income Tax Act of 1961 permits claiming HRA exemption for rent paid to parents under certain conditions:Genuine Rental Agreement: A formal rental agreement is mandatory, outlining details like rent amount, duration, and payment mode.Proof of Payment: Rent should be demonstrably paid through bank transfers or traceable channels.

Form 16 is a TDS certificate issued by an employer that shows the tax deducted from your salary and a detailed breakup of your income, exemptions, deductions, and taxable amount for the financial year. It is an important document for salaried taxpayers to verify TDS and file their income tax return accurately, and can be downloaded from the employer or payroll portal once issued.Key HighlightsForm 16 contains your salary breakup, deductions, and all other tax related information related to your salary.Form 16 is provided by the employer.Though it is a very important and handy document for ITR filing, you can file ITR even without Form 16.What is Form 16?Form 16 is a TDS certificate issued by the employer containing TDS deducted on salary, the salary income during the financial year. It can be used as a proof of income and TDS deducted during the financial year. It serves as a handy document for ITR filing process as it contains various information related to employer, the taxpayer, TDS deducted, income estimate, deductions claimable etc. It is issued under section 203 of the Income Tax Act.Form 16 is divided into 2 parts: Part A and Part B.

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.