A sign-on bonus received from an employer is generally taxable as salary in the year of receipt. However, tax issues arise when the employee is required to refund the bonus due to early resignation or breach of employment conditions. This case law examines whether such refunded amounts can be claimed as a deduction or otherwise adjusted for income-tax purposes.Details of Case LawCase Law: Income Tax Appellate Tribunal – Chennai, S.S.N.Ravi, Chennai vs ACIT on 6 May 2016 I.T.A. No.933/Mds/2015. Assessment year: 2008-2009.Facts of the caseThe taxpayer filed the income tax return for FY 2007-08 and disclosed a salary income of Rs.43,54,815.

The Annual Information Statement (AIS) is a summary of key financial transactions and income for the year. For FY 2025-26, 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. It includes new information – interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. for FY 2025-26.Summary of AIS information is 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.

Fixed Deposits (FDs) interest income are taxed at regular slab rates. Section 80TTB allows a maximum deduction of Rs.50,000 under the old regime for senior citizens who earn interest income from savings account or deposits. Where can I Check my FD Interest Income?More often than not, bank interests are not considered for income tax calculation and tax planning strategies because of their quantum as compared to other major sources of income.But, it is necessary to consider FD interest for tax implications to avoid under-reporting of income and consequent penalties.FD interest can be checked on any of the following.Bank statementsForm 26ASAnnual Information Statement (AIS)Taxpayer Information Statement (TIS)How to Calculate Income Tax on FD Interest?After considering all these sources, the FD interest is added to the income earned.The interest income earned is shown under the head ‘Income From Other Sources’ in your Income Tax Return.Deduction under section 80TTB of the Income Tax Act, 1961 can be claimed if the taxpayer is a resident senior citizen under the old regime.Amount of principal deposited under section 80C of the Income Tax Act, 1961, can be claimed as a deduction under the old regime. Tax is calculated on the respective slab rates of the taxpayer. The tax implications might differ based on the regime he chooses, the age of taxpayer and residential status. TDS, if any deducted from the interest income, is reduced from the overall tax liability. Adjustment of TDS with tax payable might result in reduction of tax payable or refund.FD Interest Deduction under Section 80TTB Resident senior citizens opting for old tax regime can claim this benefit.Interest received from savings account, fixed deposits or recurring deposit can be claimed as a deduction under this section.Maximum limit of Rs. 50,000 deduction is allowed under this section.

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.This blog explains in detail about Form 16, which is applicable for FY 2025-26 and preceding years. Form 16 Renamed as Form 130Under the Income Tax Act 2025, Form 16 has been renumbered as Form 130 effective from Tax Year 2026-27 (April 1, 2026) and onwards. For FY 2025-26, your employer will still issue Form 16 as usual.  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 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, 1961.Form 16 is divided into 2 parts: Part A and Part B.

ITR filing last date for FY 2025-26 (AY 2026-27) is on 31st July for ITR-1 and ITR-2 filers, and 31st August, 2026 for ITR-3 or ITR-4 filers (not subject to tax audit). Missing the due date can lead to consequences like late fees, restriction on choice of regime and carry forward of certain losses to future assessment years.Income Tax Filing FY 2025-26 (AY 2026-27)The Income Tax Department has released offline utility and enabled online filing of ITR-1, ITR-2, ITR-3 and ITR-4 for AY 2026-27.Taxpayers missing the initial deadline can file a belated return before 31st December 2026 by paying additional late fees and interest.ITR Filing Last Dates for FY 2025-26The due date to file ITR for different types of taxpayers for FY 2025-26 (AY 2026-27) is as follows:ITR-1 and ITR-2 (Salary and capital gains income): 31st July 2026ITR-3 and ITR-4 (Business income - Non-audit cases): 31st August 2026ITR-3 and ITR-4 (Business income - Cases requiring audit): 31st October 2026Businesses requiring transfer pricing reports (international transactions or specified domestic transactions): 30th November 2026Belated (Late) Return: 31st December 2026Revised Return: 31st March 2027Updated Return (ITR-U): 31st March 2031 (within 4 years from the end of the relevant Assessment Year)*Due dates are applicable unless extended by the Income Tax Department.Can I File ITR After Due Date?Yes, if you failed to file ITR within the due date, you can still file a belated return before 31st December of the relevant assessment year. In case you fail to file a belated return, you can still file an updated return within 48 months (4 years) from the end of the relevant assessment year.The following table explains the purpose and due dates for belated and updated returns.Basis of DifferentiationBelated ReturnUpdated ReturnUsed byTaxpayers who have missed the original return filing due dateTaxpayers who have missed both original and belated return due datesDue Date31st December of the assessment year31st March of 4 years from the end of assessment yearDue Date for return FY 2025-2631st December , 202631st March 2031What if ITR Filing has Errors?Worried that you have already filed ITR and made some mistakes in it? You can easily revise the return that is already filed.1. Revised ReturnRevised returns allows the assessee to rectify the errors made in the original return filed by the him.The due date for filing revised returns is 31st March of the next year.Lets understand this with an example. Mr.

ITR-1 is the simplest of all the forms, designed for a simple income structure without business income or capital gains. Exempt capital gains under section 112A can still be filed under ITR-1. Therefore, if you have only rental income, you can file your taxes under ITR-1. Key Highlights ITR would work for rental income unless it is not from a rental business and capital gainsE-verification is mandatory within 30 days of filing, or the ITR would b invalid. Documents required- Form 16 (if salaried), Form 26AS, PAN, other income proof, tenant’s name and PAN, rent receipts/agreement, property, home loan interest certificate. For AY 2026-27, a resident individual having income form up to two house properties can file ITR-1, provided their total income from all sources does not exceed Rs. 50,000,00What is Rental IncomeAs per the provisions of the Income Tax Act, all the rental income derived from buildings are classified as ‘Income from House Property’. Unless the primary business of the assessee is renting out premises or movable assets, the rental income should be disclosed under the following heads:IncomeAppropriate HeadRental income from BuildingIncome from House PropertyRental income from landIncome from Other SourcesRental income from other movable propertyIncome from Other SourcesAny of the three above is the business of the assesseeBusiness IncomeDocuments Required Document  PurposesForm-16                                                                If you have salary income other than rental income Form 26ASSummary document all TDS deductions  against your income Details of other income Bank statement for interest income Rent receipts and rental agreement               To determine the rental incomeProperty tax receiptsFor claiming municipal tax deductionInterest certificate on home loan  paidClaiming interest deduction against house property. Step-by-Step Guide on ITR-1 filing with Rental IncomeLogin to the Income Tax Portal, with your PAN as the login ID and set password.Select the relevant assessment year.

Inheritance tax is a tax imposed on the estate of the deceased individual, which will be inherited by the beneficiaries named in the will or those determined by intestate succession laws. While many countries impose an inheritance tax on such transfers. At present, India doesn’t levy any tax on inherited assets. However, this does not indicate that inheritance is completely tax-free. When we sell the inherited property from deceased then the property becomes taxable.

Before you board your flight while planning to leave India, you would need an Income Tax Clearance Certificate which is an official proof from the tax authorities, mentioning tax clearance of all your dues with no pending liabilities. When Indian residents are largely exempt from this requirement non-residents earning income from an Indian sources must secure it before departure. This article cover who needs an ITCC and how to obtain the forms.What is an Income Tax Clearance Certificate (ITCC)?An income tax clearance certificate, as the name suggests, is a statement from the Indian tax authorities that you have cleared all your tax dues and hold no responsibility for paying any taxes. However there may be future tax liabilities depending on future transactions. The revenue department of a state government is responsible for issuing it.

The full form of ESOP is "Employee Stock Ownership Plan". Employee compensation has progressed beyond the basic wage package provided by businesses. Employees are now given much more than just pay stubs; one such benefit is the Employee Stock Ownership Plan (ESOP).What is ESOP?An ESOP (Employee stock ownership plan) refers to an employee benefit plan which offers employees an ownership interest in the organisation. Employee stock ownership plans are issued as direct stock, profit-sharing plans or bonuses, and the employer has the sole discretion in deciding who could avail of these options. However, employee stock ownership plans are just options that could be purchased at a specified price before the exercise date.

Employers often grant different benefits to their employees throughout employment to keep them motivated and attract new talent. These benefits can sometimes come in the form of company shares as well. Such shares are granted either in the form of RSU or ESOP. As a salaried employee, it is crucial to understand these employment perks to make the most out of them.In this article, we have covered what each means and a detailed comparison to help you choose between them. What is ESOP?Employee Stock Option Plan or Employee Stock Ownership Plan (ESOP) is a company's way of rewarding its employees. It gives an employee the right to buy company shares on a future date at a predetermined price. Once an employer grants ESOP, they do not immediately transfer it to that employee.