In India, there are various types of provident fund (PF) accounts that individuals can use to save. The income tax rules for PF contribution, withdrawal, and taxability of income on PF vary depending on the type of PF account. Let us understand the various type of provident funds and their tax implications in this blog. In this article, we will discuss the various types of provident fund, benefits, features, and tax implications on the same.Types of Provident FundsThere are different types of provident funds utilised by a person for investment or regular savings for retirement. They are as follows:Statutory Provident Fund – This scheme is set up under the Provident Funds Act, 1925. It is meant for government employees, universities, recognised educational Institutions, railways, etc. Recognised Provident Fund – The Provident Fund Act, 1952 (PF Act) applies to all establishments employing 20 or more employees.

Are you planning a car purchase? If yes, you should know about TCS and how to claim a TCS refund on a car purchase. Tax Collected at Source (TCS) on Car Purchase comes under Section 206C(1F) of the Income Tax Act, 1961. Before we dig deeper into Section 206C(1F), we will try to understand TCS on car purchase. What is Tax Collected at Source (TCS)Tax Collected At Source (TCS) under section 206C is a tax the seller collects from the buyer at the time of sale. It is a certain percentage of the purchase amount that a seller collects from the buyer based on the sale consideration. TCS is collected when the buyer’s account is debited by the amount liable to be paid or when the seller receives such amount from the buyer in cash, draft, cheque, or any other mode of payment, whichever is earlier.The buyer is required to submit the TCS to the government within the stipulated time.

Bonds allow investors to lend money to companies or governments in exchange for regular interest payments and the return on their primary investment at maturity. They work as fixed-income instruments and provide financial stability. Usually, they are less risky than other investment options. However, you must know how taxes impact your earnings from bonds. Let’s get into more detail on what bonds are, the types of bonds that are prevalent, taxation on bond transactions, and more.What are BondsThe issuer can be a company or government that pays a fixed or varied interest rate to investors who purchase bonds.

If you have a salary income and your total income is more than Rs. 50 lakh then you must file your income tax return using ITR-2 form. You will have to fill out the different salary components as required by the department.Let’s understand the breakup of the salary components required in filing the ITR-2 form for FY 2025-26 (AY 2026-27):Break-Up Of Salary Components To Be Reported In ITR-2 For FY 2025-26For the AY 2026-27, the ITR-2 form requires a taxpayer to provide the break-up or the components of the salary. The various components of the salary for which information is required are mentioned below:1. Salary under Section 17(1)The salary structure comprises several components such as Basic Salary, House Rent Allowance (HRA), Leave Travel Allowance (LTA), Gratuity, and other allowances like medical, conveyance, and special allowances.

Form 15G and Form 15H are self-declaration forms used by taxpayers to prevent TDS deduction on certain incomes such as bank interest, dividends, rent, or pension when their total tax liability for the financial year is nil. These forms are submitted to banks or financial institutions under the Income Tax Act, 1961, allowing eligible taxpayers to receive income without TDS deduction, provided they satisfy the prescribed conditions. Under the Income Tax Rules, 2026, Form 15G & 15H have been merged into a single new Form 121.Quick Highlights: Form 15G vs Form 15HParticularsForm 15GForm 15HEligible AgeBelow 60 years60 years and aboveKey ConditionTotal estimated tax liability for the financial year must be NilTotal estimated tax liability for the financial year must be NilWho Can SubmitResident individuals, HUFs, and certain eligible assesseesResident senior citizensValidityValid for one financial yearValid for one financial yearSubmission RequirementMust be submitted separately to each bank, post office, or deductor where income is earnedMust be submitted separately to each bank, post office, or deductor where income is earnedWhat is Form 15G?Form 15G is a self-declaration form for individuals to submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income, when the total income is below the basic exemption limit.Form 15G is generally used by individuals below 60 years of age and Hindu Undivided Families (HUFs) to ensure that TDS is not deducted on interest earned from sources such as fixed deposits or recurring deposits. Form 15G is valid for FY 2025-26 and previosu years. What is Form 15H?Form 15H is a self-declaration for senior citizens (aged 60 years or above) that can be submitted to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income, when the total income is below the basic exemption limit.By submitting this form, the taxpayer declares that their total tax liability for the financial year is nil, so that the payer do not deduct TDS on the interest earned. Form 15H is valid for FY 2025-26 and earlier years. What is Form 121?Form 121 is the new self-declaration form which taxpayers can submit to avoid TDS on income earned from banks or other financial institutions when their total income is below the basic exemption limit.

Leave Travel Allowance (LTA) lets salaried employees claim tax-free reimbursement for travel within India. Here’s how to calculate, claim, and save taxes under Section 10(5).Key HighlightsLeave Travel Concession is an employee reimbursement for vacation expenses within India.Exemption can be claimed for 2 out of 4 block years. The current block year is 2022-25.Leave Travel Allowance is available only under the old regime.Though the  Income Tax Act takes effect from 01st April 2026, the provisions of the 1961 act applies for AY 2026-27, as it pertains to income earned up to 31st March 2026. Though the Income Tax Act 2025 takes effect from 01st April 2026, the provisions of the 1961 act applies for AY 2026-27, as it pertains to income earned up to 31st March, 2026. What is Leave Travel Allowance (LTA)?Leave Travel Allowance / Leave Travel Concession is a type of allowance given to employees for travelling to any place in India. It forms part of your salary structure, and it can be used as a tax reduction tool, since deductions are provided under section 10(5) of the Income Tax Act. (Section 11 Schedule III of the Income Tax 2026.)Eligibility for LTAOnly individuals (residents and non-residents) can claim LTA for travel costs incurred on tour within India.

The Annual Information Statement (AIS) is a summary of 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. It includes new information – interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. 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 and download information in PDF, JSON, and CSV file formatsWhile 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.How to Download Annual Information Statement (AIS)?To download your Annual Information Statement (AIS), log in to the income tax e-filing portal.

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.The CBDT has enabled online e-filing and excel utility for ITR-1 and ITR-4 for FY 2025-26 (AY 2026-27).Simple Steps to file ITR OnlineYou can file your ITR following these simple steps:Login to the Income Tax PortalGo to ‘File Income Tax Return’Select the Assessment yearSelect 'Filing Status"Select ‘ITR Type’Select reason for filing the returnValidate the detailsE-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 assessment 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?Before you start, download both your Form 26AS (Tax Credit Statement) and your AIS (Annual Information Statement) from the e-filing portal. Cross-check every entry against your bank statements, Form 16, broker capital gain statements and rent receipts. If any AIS entry is wrong, submit feedback within AIS itself - this preserves your audit trail and prevents notices later.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 Assessment Year and mode of filing ITRSelect ‘Assessment Year’ as ‘AY 2026-27’ if you file for FY 2025-26 and click on Online, then "Continue".For FY 2025-26, the Income Tax Act 1961 still applies, therefore, we still need to choose the relevant assessment year.

Section 10 of the Income Tax Act deals with exempt income. It lists incomes that are fully or partially exempt from tax, meaning they may not form part of your taxable income subject to conditions.Popular Section 10 Exemptions ListHouse Rent Allowance (HRA) Leave Travel AllowanceAgricultural IncomeChildren Education AllowanceInterest 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 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. They are presented as follows:CategorySectionParticularsExemption on AllowancesSection 10(13A)House Rent Allowance (HRA)Section 10(14)(ii)Children’s Education AllowanceSection 10(5)Leave Travel Allowance (LTA)Section 10(14)Exemption of Special AllowanceOther Exemptions on Salaried IncomeSection 10(11)Provident Fund and Sukanya Samriddhi Account InterestSection 10(10)GratuitySection 10(10AA)Leave EncashmentSection 10(10A)Commuted PensionSection 10(10B)Retrenchment CompensationSection 10(10C)Voluntary Retirement CompensationSection 10(10D)Life Insurance PolicyExemptions on Other IncomeSection 10(1)Agricultural IncomeSection 10(2A)Partner’s Share in ProfitsSection 10(15)Interest on Savings CertificatesSection 10(23C)Tax Exemption for Educational and Medical InstitutionsSection 10(26)Tax Exemptions for Scheduled Tribe Members in Specific Northeastern StatesSection 10(26AAA)Tax Exemption for Sikkimese IndividualsSection 10(34)Exemption on DividendsSection 10(34A)Exemption on Buy-Back of SharesSection 10(35)Exemption on Income from Specified Mutual FundsSection 10(37)Exemption on Capital Gains from Compulsory Acquisition of Urban Agricultural LandSection 10(38)Exemption on Long-Term Capital Gains from Sale of Equity Shares and Equity-Oriented Mutual FundsSection 10AAUnits in Special Economic Zones (SEZs)What are the Income Tax Exemptions Under Section 10?1.

Form 10BA declaration is used for claiming rent deduction under section 80GG by individuals who do not receive HRA. Self employed individuals and HUFs can also claim this deduction by filing Form 10BA, if they pay rent for their residential accommodation. Key HighlightsIf you have not filed the return on income within the due date, you can still file Form 10BA before filing belated return.Form 10BA requirement arises only under the old regime, as section 80GG deduction is not available under the new regime.Up to ₹60,000 deduction can be claimed under section 80GG, subject to conditions prescribed.What is Form 10BA?Form 10BA is a declaration submitted by the taxpayer for claiming deduction under section 80GG To claim the deduction, the taxpayer must declare that they are not claiming the deduction for a self-occupied property in another location or the exact location where they are employed. Form 10BA DownloadYou can download Form 10BA using the following link:Form 10BA DownloadWhat is the applicability of Form 10BA ?The following points justify the Form 10BA applicability:The taxpayer can be salaried or self-employed; however, they should not receive a house rent allowance from an employer.If the taxpayer, their minor child, spouse, or the assessee is a member of a HUF (Hindu Undivided Family), then the HUF must not possess any self-occupied residential property.Is Form 10BA Mandatory?Yes. It is compulsory to claim a deduction for rent remunerated under Section 80GG of the Income Tax Act. The Form 10BA is mandatory for the following reasons:Non-filing of this form can incur interest, penalties, or legal consequences.This form works as documentary evidence to approve your claim for deductions under Section 80GG. It offers a certifiable record of your rental payments.It presents legitimate tax compliance records that help those individuals who apply for visas, loans, or background checks.What are the limits as per Form 10BA ?The Form 10BA limit for claiming a deduction for the rent paid under Section 80GG is as follows:The deduction amount is the lowest of the following:Rs.5,000 per month or Rs.60,000 per year.25% of the total income (excluding short-term capital gains under Section 111A, long-term capital gains, Income under Section 115A or 115D, and deductions under Sections 80C to 80U.Actual rent (-) 10% of income.Form 10BA Due DateForm 10BA of the Income Tax Act should be filed before the income tax return. Therefore, the due date for Form 10BA is identical to that for income tax returns. For example, for the financial year 2025-26, the due date to file Form 10BA is 31st July, 2026. If you are required to audit your books of account, the due date for filing this form will be 30 September 2026.How to file Form 10BA on the Income Tax Portal?Follow these steps to file Form 10BA income tax online:Login on the e-filing portal On the dashboard, click ‘e-File’ > ‘Income tax forms’ > ‘File Income Tax Forms’Scroll down to select Form 10BA.