The Public Provident Fund (PPF) is a government-backed savings that provides assures, tax-free returns. For the first quarter of FY 2026-27, the intrest rate continues at 7.1% per annum. backed by sorveign gurantee, offering componding benefits, and enjoying EEE tax status, PPF continues to be a highly secure and reliable option for retirement  planning and tax savings in India. Key Highlights Interest Rate: 7.1% p.a. (FY 2026–27).Investment Limits: Min Rs. 500, Max Rs.

Under the advance tax system, taxpayers pay their tax liability during the financial year itself rather than at the time of filing returns. If the tax on total income after TDS exceeds 10,000 INR in a financial year, advance tax must be paid. Advance Tax Due DateThe due date to pay the 1st installment of advance tax for Q1 FY 2026-27 (Apr-Jun) is June, 2026 Taxpayers should make sure to pay 15% of the total tax liability for the year by June 15, 2026. Taxpayers shall refer to section 403 to 410 of the Income Tax Act, 2025 with effect from 1st April 2026What 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 403 to section 410 of the Income tax act, 2025.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 404 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. However, senior citizens (60 years or more) having business or professional income must pay advance tax.Advance Tax Rates and Due Dates For FY 2026-27The due date for advance tax payments for FY 2026-27 is given below:Regular Taxpayers InstalmentDue DateAdvance Tax Payment PercentageFirst InstalmentOn or before 15th June 202615% of tax liabilitySecond InstalmentOn or before 15th September 202645% of tax liability (-) advance tax already paidThird InstalmentOn or before 15th December 202675% of tax liability (-) advance tax already paidFourth InstalmentOn or before 15th March 2027100% of tax liability (-) advance tax already paidNote: No interest u/s 425 shall be levied if you have paid advance tax up to 12% in first instalment and up to 36% in second instalment.Taxpayers Opting Presumptive Taxation For freelancers, small business owners who have opted for Presumptive Taxation Scheme under sections 44AD & 44ADA – the advance tax due dates are as follows.Due DateAdvance Tax Payment PercentageOn or before 15th March 2027100% of advance tax**Taxpayers opting for presumptive taxation also have the option to pay all of their tax dues by 31st March. However, any person engaged in business and opted for the presumptive scheme under for plying hiring and leasing of vehicles, is required to pay advance tax in four instalments on or before the due date as prescribed by the income tax department.Want a CA to calculate and help pay your advance tax dues? Get in touch with ClearTax! Consequences of short-payment or non-payment of Advance TaxInterest on Advance Tax u/s 424As per Section 424, you must pay at least 90% of the total taxes as advance tax or TDS/TCS by 31st March.

Capital gains on property arise when you sell a house, land, or real estate at a profit, and the capital gains tax you pay depends mainly on the holding period of the asset. If the property is held for more than 24 months, the gain is treated as long-term capital gains (LTCG) and taxed at 12.5% without indexation (or 20% with indexation, where applicable). If sold within 24 months, it is classified as short-term capital gains (STCG) and taxed as per your income tax slab rates.You can also reduce your tax liability by claiming exemptions under Sections 54, 54EC, and 54F on long term capital gains, or by setting off capital losses against gains.Classification of Capital Assets The capital gains tax rate depends on whether the asset transferred is a long-term or short-term capital asset which is determined based on the holding period of the asset. For assets such as gold, silver, house property and land, the holding period for classification is 24 months. Capital assets held for more than 24 months are classified long-term capital assets and the gains are taxed as long-term capital gains. Capital assts held for up to 24 months are classified as short-term capital assets and the gains are taxed as short-term capital gains. Type of Capital AssetHolding PeriodTax TreatmentShort-Term Capital AssetUp to 24 monthsGains taxed as Short-Term Capital Gains (STCG)Long-Term Capital AssetMore than 24 monthsGains taxed as Long-Term Capital Gains (LTCG)Long Term Capital Gain Tax Rate on PropertiesAny profit on transfer of capital assets such as house, land, or real estate held for more than 24 months are classified as long-term capital gains. The long-term capital gains tax rate on transfer of properties is 12.5% without indexation.

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. Simple Steps to file ITR OnlineYou can file your ITR following these simple steps:Step-1: Login to the Income Tax PortalStep-2: Go to ‘File Income Tax Return’Step-3: Select Tax yearStep-4: Select 'Filing Status"Step-5: Select ‘ITR Type’Step-6: Select reason for filing the returnStep-7: Validate the detailsStep-8: E- verify the returnWhat 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 tax 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?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 PortalLog in to the income tax portal by entering your PAN and password. Step 2: Select the relevant Tax Year and mode of filing ITRSelect ‘Tax Year’ as ‘AY 2026-27’ if you file for FY 2025-26 and click on Online, then "Continue". (The income tax portal has not been yet enabled to file ITR for FY 2025-26, as the financial year is not over)Step 3: Select your filing statusSelect your applicable filing status i.e., Individual, HUF, or others and click "Continue".Step 4: Select the applicable ITR FormBefore filing your income tax return, it's important to choose the correct ITR form based on your income sources. ITR 1 to ITR 4 are meant for individuals and HUFs.

Plan your daughter’s future with the Sukanya Samriddhi Yojana (SSY), a high-interest, government-backed savings scheme. Use our SSY Calculator to estimate maturity amount, total interest, and tax-free returns instantly.What is Sukanya Samriddhi Yojana?Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for girls below 10 years, allowing deposits up to ₹1.5 lakh per year. Contributions for 15 years grow tax-free and the account matures at 21, securing your daughter’s financial future with guaranteed returns.What is Sukanya Samriddhi Yojana Calculator?The SSY Calculator helps compute the maturity amount and earned interest for a Sukanya Samriddhi Yojana account. Enter the deposit amount, the girl child’s age (up to 10 years), and the investment start year to see the invested amount, total interest, and maturity value.How Does SSY Calculator Work and Calculation Formula?The SSY calculator use formula below:  A = P(1+r/n)^nt where,P = Initial Depositr = Rate of interestn = Number of years the interest compounds t = Number of years A = Amount at maturity Example For Sukanya Samriddhi Yojana CalculationThe SSY account offers an interest rate of 8.2% p.a. Let us calculate the maturity amount after 21 years.

House Rent Allowance (HRA) exemption allows salaried employees to reduce their taxable income on rent paid for accommodation. HRA is a key component of salary and plays an important role in tax planning, as a portion of it can be claimed as tax exempt under specific conditions. By meeting the eligibility criteria, employees can effectively lower their tax liability using HRA exemption.Key HighlightsHRA exemption is only available under the Old Tax Regime.HRA cannot be claimed if the taxpayer lives in a property owned by them.The new Income Tax Rules 2026 have made beneficial changes in HRA rules. What is HRA?House Rent Allowance is an integral part of your salary structure, provided to cover the cost of accomodation. This is especially provided in big cities, where the rental expense is usually high. As per the provisions of the Income Tax Act, you can claim tax benefits using your HRA, on satisfaction of various criteria, prescribed under the act and the rules. Though HRA cannot be claimed if you do not live in rental premises, you can claim HRA and home loan together, on satisfaction of certain conditions.HRA Exemption FormulaHRA exemption amount is the lowest of the following:Actual HRA received from employer, or50% of basic salary (For specified cities) or 40% of basic salary (other cities), orRent paid minus 10% of basic salary In simple terms, the amount that can be claimed u/s 10(13A) as HRA exemption is least of the following: Specified CitiesOther Cities1.

National Pension Scheme (NPS) India is a long-term investment plan for retirement under the purview of the Pension Fund Regulatory and Development Authority (PFRDA) and the Central Government. Investments can be made in NPS Tier-I account  (deduction up to Rs. 2 lakhs available under section 80CCD) or both NPS Tier-I and Tier-II account. Latest UpdateAccount can be held by individuals up to 85 years of age.On retirement, 100% withdrawal can be made if the corpus balance is up to Rs 8 lakhs.Up to 80% of corpus can be withdrawn for non-government employees (60% for government employee).NPS Withdrawal AmendmentThe NPS withdrawal rules has been amended recently through an official notification by Pension Fund Regulatory Authority of India. NPS account can now be maintained by a person of age up to 85 years. Key changes in withdrawal limits are as follows:For Government EmployeesExit ScenarioBalance at ExitLump Sum AllowedAnnuity RequirementRetirement / DischargeUp to Rs.

Short-term capital gains or STCG arise when assets are transferred within 24 months (12 months for listed equity shares equity mutual funds). Short term capital gains are taxed at 20%, for listed equity shares and equity mutual funds. For other assets, STCG is calculated under applicable slab rates.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 short-term capital gains.Short-Term Capital Gains Tax RateThe short-term capital gain tax rate varies depending on the type of asset being sold.

Taxpayers having business or professional income can choose the old tax regime through filing Form 10IEA, for AY 2026-27 (FY 2025-26).Key HighlightsMandatory for taxpayers with business or professional income (filing ITR-3 or ITR-4).Must be submitted online before the ITR filing deadline.Option to choose the old regime can be exercised only once in a lifetime.What is Form 10-IEA?Form 10-IEA is useful for individuals or HUFs to continue utilizing the old tax regime in the present financial year. It was presented by the Central Board of Direct Taxes. The new tax regime is considered the default tax regime. By filling Form 10-IEA, taxpayers can choose the old tax regime if they wish. They must complete the form before the due date prescribed for filing an income tax return.Who must submit Form 10-IEA for FY 2025-26?This form is to be filed by taxpayers having income from business or profession i.e. taxpayers filing ITR using ITR-3 or ITR-4.Taxpayers who do not have income from business or profession can simply tick the “Opting out of new regime” in the ITR form without the need to file Form 10-IEA. The following table shows different situations in which Form 10IEA needs to be filedScenarioChoice of Regime was in FY 2024-25Choice of Regime For FY 2025-26Form 10-IEA RequirementSwitching to Old RegimeNew RegimeOld RegimeYes – Must submit Form 10-IEAStaying in Old RegimeOld RegimeOld RegimeNoSwitching to New RegimeOld RegimeNew RegimeYes – Must submit Form 10-IEAFirst-time filing under the Old Regime (For FY 2025-26) Old RegimeYes – Must submit Form 10-IEAFirst-time filing under the New Regime (For FY 2025-26) New RegimeNoForm 10-IEA Due DateIt is mandatory to submit Form 10-IEA online before the deadline prescribed for filing the income tax return. Note that after filing Form 10-IEA, you will get an acknowledgement number.

Section 80C of the Income Tax Act allows individuals and HUFs to claim tax deductions of up to Rs. 1.5 lakh per financial year by investing in specified instruments such as PPF, ELSS, life insurance premiums, NSC, EPF, Sukanya Samriddhi Yojana, home loan principal repayment, and tuition fees. What is Section 80C Deductions?Section 80C deduction is a tax benefit that allow taxpayers to reduce their taxable income by up to Rs. 1.5 lakh by investing in specified instruments or making eligible payments. However, deductions under Section 80C are available only under the old tax regime through investments in eligible instruments such as PPF, ELSS, life insurance premiums, NSC, home loan principal repayment, and children’s tuition fees.Section 80C is one of the most widely used tax-saving provisions in India because it covers both investments and essential expenses. By strategically investing in eligible instruments, taxpayers can significantly lower their taxable income while building long-term savings.Section 80C Deductions ListThe following investments and expenses can be claimed as Section 80C Deductions:Life insurance premium paymentsPublic Provident Fund (PPF)Employee Provident Fund (EPF) contributionsEquity Linked Savings Scheme (ELSS) mutual fundsNational Savings Certificate (NSC)Sukanya Samriddhi Yojana (SSY)5 year tax-saving fixed depositsSenior Citizen Savings Scheme (SCSS)Home loan principal repaymentStamp duty and registration charges on property purchaseTuition fees paid for up to two childrenHowever, a combined deduction of up to Rs.