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.

The government provides tax benefits to individuals for investing in pension or annuity plans by the Life Insurance Corporation and other insurers approved by the Insurance Regulatory and Development Authority (IRDA). This is done to help individuals save money (lump sum or annuity) for their retirement. An individual can claim the deduction of Rs. 1.5 lakh for investment in pension and annuity plans. However, the deduction limit of Rs.

Section 80EEA allows an additional deduction of up to Rs. 1.5 lakh per annum on home loan interest, over and above benefits under Sections 24 and 80C. The loan must be sanctioned between 1st April 2019 and 31st March 2022. It is available to individual, first-time homebuyers who do not own any other residential property at the time of loan sanction.What is Section 80EEA?Section 80EEA provides deduction against interest on home loan for first time home buyers. The stamp duty of the property shall not exceed Rs.

Sustainable growth has gained vast attention among the public and has become a key focus in policy formation by governments in recent times. Green Growth was one of the top seven priorities of the Union Budget 2023. Dive into this blog to gain a better understanding What is Section 80EEB?Section 80EEB of the Income Tax Act allows you to claim tax savings of up to Rs.1.5 lakh on interest paid on a loan made specifically to purchase an electric car. However, certain restrictions and conditions concerning the loan issuer and the electric vehicle must be followed in order to claim the 80EEB deduction.You can claim tax deduction benefits only if the loan is approved between 1 January 2019 and 31 March 2023.Features of Section 80EEBEligibility CriteriaThe deduction under this section is available only to individuals opting to pay taxes under the old tax regime. It is not available to any other taxpayer.

An Income Tax Return (ITR) is a complete report of the income earned during the financial year, deductions and exemptions claimed, and the final tax liability. 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 due date for filing ITR for ITR-1 and ITR-2 is 31st July 2026, and for ITR-3 and ITR-4 (non-tax audit) is 31st August, 2026.7 Simple Steps on how 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 details and e-verifyWhat 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.

Professional tax is a tax imposed by state governments in India on individuals engaged in various professions, trades, and employment. While the tax amount varies by state, it is capped at Rs. 2,500 per year. Here’s a comprehensive guide to understanding professional tax, its rates, exemptions, and how to pay it.   What is a Professional Tax, and Who Levies it?Professional tax is a tax on all kinds of professions, trades, and employment and is levied based on the income of such profession, trade, and employment. It is levied on employees, a person carrying on the business, including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.Professional tax is levied by the state government (not all states in the country choose to levy professional tax).

Long Term capital Gains are those gains that arise from sale of capital assets such as stocks, mutual funds, gold, properties, etc. While listed equity shares and equity oriented funds qualify for long term after 12 months, other capital assets are classified as long term on holding it for more than 24 months. As per section 112 and 112A of the Income Tax Act, 1961, Long term capital gains are taxed at 12.5%, with ₹1.25 lakh exemption available only to section 112A securities. The following blog explains the holding period criteria, tax rates, grandfathering provisions, exemptions available on long term capital gains such as section 54, 54B, 54EC, 54F, etc.Key HighlightsParticularsDetailsLTCG Tax Rate12.50%Equity Exemption₹1.25 lakhProperty Holding Period24 monthsListed Shares Holding Period12 monthsIndexation Available?Only in specified property casesPopular ExemptionsSection 54, 54EC, 54FWhat is Long-term Capital Gain (LTCG)?Capital gains or profits arising from the transfer of Long-Term Capital Assets is referred to as Long-Term Capital Gains or LTCG. An asset held for more than 24 months is termed as a long term capital asset.For listed equity shares, equity oriented funds, and units of business trust, the holding period is 12 months. (if held for more than 12 months, they are considered long term capital assets)Long-term Capital Gain (LTCG) Tax Rate The following tax rates are applicable to long-term capital gains:Asset TypeHolding period (LTCA if held for more than the specified period)Tax RateListed Equity Shares12 months12.50%**Equity Mutual Funds12 months12.50%**Property (land/building)*24 months12.50%Gold / Gold ETF24 months12.50%Debt Mutual Funds (post Apr 2023)Any holding periodAs per slab* - 20% tax rate with indexation benefits available for resident individuals and HUFs whose assets were purchased before 23rd July 2024.**- Exemption up to Rs. 1.25 lakhs available for listed equity shares, equity oriented funds and units of business trust.Calculation of LTCG TaxTo calculate the long-term capital gains accurately, follow the steps mentioned below:1.

There are various exemptions available on long term capital gains on sale of land such as section 54F, 54EC and 54B. On satisfaction of conditions prescribed, exemptions can be claimed under the respective sections. However, short term capital gains are not eligible for the aforesaid exemption.Key HighlightsSome of the tax saving options for land sale are:Capital gain exemption under section 54F - investment in a residential property.Capital gain exemption under section 54EC - investment in specified bonds (NHAI, RECH, PFCL, IRFCL).Capital gain exemption under section 54B - investment in urban agricultural land.How to Save Tax on the Sale of Land?Profits arising from the sale of immovable property, such as a plot of land, building, or both, are taxable in the hands of taxpayers under the head "Capital Gain" of the Income Tax Act. It is classified as short term or long term capital gain, depending on the holding period.However, taxpayers can save tax on long term capital gain by claiming exemption under sections 54F, 54EC and section 54B of the Income Tax Act. These sections provide capital gain exemptions on reinvesting gains in specified assets and bonds, that help taxpayers legally save on tax arising from such transactions. The following are the tax saving strategies to avoid high capital gains taxation on property sales.1. Claim Transfer Expenses Expenses incurred solely for the purpose of transfer can be claimed as a deduction in calculation of capital gains tax.For example, you can claim deductions on stamp duty charges, brokerage, legal fees etc.

Section 54F exemption of the Income Tax Act helps taxpayers save long term capital gains tax on sale of any capital asset except residential house property, on satisfaction of certain conditions. Investing the sale proceeds in a residential property, you can claim an exemption up to Rs 10 crores.Key HighlightsOnly the proportion of sales proceeds invested in the new residential property can be claimed as an exemption.The new residential house should be situated in India.The exemption is available only to individuals and HUF, including non-residents.What is Section 54F Exemption?Section 54F provides capital gain exemption on sale of any property, other than a residential house property. Be it stocks, gold, commercial buildings, they are eligible for exemption under section 54F. Only the long term capital gains are eligible for this exemption. This means that you should have held the assets for more than 24 months, (12 months in some cases).

Saving capital gains tax in India is possible through smart tax planning using legal exemptions and deductions under the Income Tax Act. By investing in options like capital gain bonds, residential property, or eligible mutual funds within prescribed timelines, taxpayers can reduce or even eliminate capital gains tax on the sale of assets.What is Capital Gains Tax?Capital gains are the profits investors make when they sell their assets for a higher price than the price at which they were acquired. They include land, vehicles, jewellery,  shares, and stocks.Capital gains are taxable, and there are two types: short-term and long-term. Short-term capital gains result from the sale of an asset held for up to 24 months (2 years). The criteria is 12 months for listed equity shares, equity-oriented funds and units of UTI.Long-term capital gains result from the sale of assets held for more than the holding period as discussed above.Long-Term Capital Gains TaxThere are certain exemptions available for long-term capital gains. If you carry out specific investments/activities outlined in the Income Tax Act, you can legitimately save on long-term capital gains tax.