House Rent Allowance (HRA) is a salary component 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. HRA can be used to claim income tax exemption, on satisfaction of certain criteria.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.

Gold is considered as a capital asset in India, and its sale is considered for capital gains taxation purposes. Though the Income Tax Act does not mention gold holding limits anywhere, it was prescribed in a search guideline issued by the CBDT that there are recommended limits of gold holding by a normal taxpayer. Key HighlightsThe following are the recommended limits for holding gold in India.For unmarried woman - 250 gramsFor married woman - 500 gramsFor children - 100 grams Gold Jewellery and Ornaments - Holding LimitThe first point to remember is that there is no restriction on possessing gold jewellery or ornaments, provided they are obtained from a legitimate income source and the taxpayer can explain the source. This source includes gold acquired from inheritance as well.However, there is a prescribed limit on the quantity of gold jewellery and ornaments that different persons can hold without requiring to explain the source of such gold:ParticularsLimit per personMarried womanUp to 500 gmsUnmarried womanUp to 250 gmsMenUp to 100 gmsHindu Undivided Family (HUF)As per household incomeThe above restrictions apply exclusively to family members of the person against whom search procedures have been commenced. If any jewellery belonging to another person (not a family member) is discovered, tax officers may take it. If the gold holding crosses the prescribed limits, it is recommended to keep an accurate record of source of income using which gold is purchased.CBDT Circular on Holding Gold Jewellery and OrnamentsThe CBDT issued a circular on May 11, 1994, further clarified in a press release, stating that no proof of investment is necessary for gold within the prescribed limits.The above circular also states that gold jewellery and accessories are exempt from seizure if:The taxpayer has declared such gold jewellery and ornaments in his wealth tax return orThe gold jewellery and ornaments are up to the prescribed limits orThe taxpayers offer a valid explanation on the legitimate source of the income from which gold has been obtained orThe tax officer conducting the search also has the discretion to refrain from seizing even higher quantities of gold jewellery based on factors such as family customs and traditions. If found during a search, gold that does not meet any of the above criteria would be liable to confiscation by the tax authorities.Tax Implications on Seizure of GoldWhen such gold jewellery and ornaments are seized, the assessee must explain the legitimacy and source of income for making such investments along with the proof of making such investment, such as:A tax invoice for the purchase of gold orTransaction representing the transfer of money through recognised banking channels;In the case of inheritance, it can be an original invoice in the name of the first recipient, a will or family settlement agreement, orIn the case of a gift, it can be an original invoice in the donor's name or a gift deed.If the assessee fails to offer an explanation or the reason provided is not satisfactory, the amount of such gold is taxable at the stipulated rate of 60% + 25% surcharge plus a 4% cess, making the tax rate 78%. Additionally, a 10% penalty is also payable over and above such tax.What Proof is Valid for Supporting the Possession of Gold?Proof of investment will help you establish the source of the investment against your Income Tax Return. Apart from the tax invoices you would keep, you may wonder what proof is necessary in case of inheritance and gifts. In the case of inheritance or gift, please provide a receipt in the name of the initial owner of the item. Family settlement deed, will, or gift deed stating the transfer of such commodity to you are also reliable supportings for gold possession. On the other hand, if no such document is available, the officer will analyze your family’s social status, customs, and traditions to conclude whether your statement is valid.Gold Limit for Joint Locker The quantity mentioned above is applicable to individual taxpayers. When it comes to a single locker having jewels from multiple families, the limit will be an aggregate of each individual taxpayer.

Section 80C deductions allow taxpayers to reduce their taxable income by investing in specified instruments or making eligible payments. Under Section 80C of the Income Tax Act, individuals and HUFs can claim deductions of up to Rs. 1.5 lakh for investments 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.However, deductions under Section 80C are available only under the old tax regime. Taxpayers opting for the new regime cannot claim these deductions.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.

Short-term capital gains (STCG) on shares is the profit earned from selling listed equity shares and equity oriented funds held for less than 12 months. Under Section 111A of the Income Tax Act, STCG on shares such as listed equity shares, equity-oriented mutual funds, and units of business trusts is taxed at 20%, provided Securities Transaction Tax (STT) is paid on the transaction.Applicability of Section 111ASection 111A applies to short-term capital gains (STCG) arising from the sale of the following:Equity shares of a listed company, bought or sold through a recognised stock exchange with STT paidEquity-oriented mutual funds, traded through a recognised stock exchange with STT paidUnits of a business trustEquity shares, units of equity-oriented mutual funds, or units of business trusts traded on a recognised stock exchange in an IFSC, where the consideration is paid in foreign currency, even if STT is not applicableShort Term Capital Gains Tax Rate on SharesThe short-term capital gains (STCG) tax rate on gains arising due to transfer of listed equity shares, equity oriented mutual funds, and units of business trusts is 20% under Section 111A. These gains are taxed separately and no deductions under Chapter VI-A are allowed against STCG taxable under Section 111A. As per the Finance Act 2025, rebate u/s 87A is not available for STCG under section 111A. Adjustment of STCG Against Basic Exemption LimitShort-term capital gains (STCG) under Section 111A can be adjusted against your basic exemption limit if:You are an Indian resident taxpayer, andYour total income after deductions is below the basic exemption limit.In such cases, the shortfall can be adjusted against your STCG. Only the remaining STCG, after this adjustment, will be taxed at the applicable rate under Section 111A.Note: Non-residents, would not be allowed to claim the exemption limit and shall be required to pay a tax of 20% on such STCG under section 111A.Illustration: Ajay has a taxable salary income of only Rs 1 lakh and a Short-Term Capital Gain on the sale of equity shares of Rs 4 lakh. He also has Rs 50,000 as Income from Other Sources.

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. 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.

Short-term capital gains or STCG arise when assets are transferred within 24 months (12 months for listed equity shares equity mutual funds). They are taxed at applicable income tax slab rates (20% for listed equity shares and equity mutual funds). No indexation benefits available on short term capital gains.Budget 2026 UpdateIt is proposed in the Budget 2026 to tax buyback of shares as Capital Gains. 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. All the assets held for less than or equal to the period of holding are short term capital assets.The tax rates applicable for different types of assets are as follows:Asset typeHolding period (STCA if held up to the holding period)STCG tax rateListed equity shares(STT paid)12 months20%Equity MF, Units of business trust12 months20%Real estate Property24 monthsSlab rateDebt MF24 monthsSlab rateGold24 monthsSlab rateCryptoAny30%In simple words, as per Budget 2024, effective from 23 July 2024, short-term capital gains on listed shares in India are taxed at a flat rate of 20%.

The due date for filing tax returns for FY 2024-25 (AY 2025-26) is 15th September 2025 for individual taxpayers. Filing an income tax return is mandatory if you have a refund claim in the return or have a total income of more than Rs. 2,50,000. This limit is increased to Rs. 3,00,000 under the new tax regime. However, delaying ITR filing or filing ITR at the last moment in a hurry may lead to various mistakes that can be avoided. Here are some of the common mistakes that taxpayers make while filing their ITR. Selecting the Incorrect FormSelecting the correct ITR form ensures smooth processing by the Income Tax Department.

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.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 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.

Section 194S of the Income Tax Act provides for TDS on sale of Virtual Digital Assets (VDAs) at 1%. Key HighlightsCrypto Exchange (or broker) should deduct 1% TDS, and must file quarterly Form 26QF.No TDS needs to be deducted if the sale value do not exceed Rs. 10,000 (Rs.50,000 for specified persons) TDS applies even in case of exchange of one crypto asset for another.What is TDS Under Section 194S?Section 194S provides for TDS on sale of cryptocurrencies and other Virtual Digital Assets. 1% TDS needs to be deducted on sale of crypto transactions. This is applicable in cases where the value of the transaction exceeds Rs 10,000 in a particular year (Rs 50,000 in the case of specified persons). The tax deducted is required to be reported to the government in Form 26Q for other persons and in Form 26QE for specified persons.For example, if you buy cryptocurrency worth Rs 1,00,000, you must deduct TDS at 1% of Rs 1,00,000 from your payment and pay the balance of Rs 99,000 to the seller.

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.Though the  Income Tax Act 2025 takes effect from 01st April, the provisions of 1961 act applies for AY 2026-27, as it pertains to income earned up to 31st March, 2026. 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.