Gifts are treated as income under the Income Tax Act. If the value of the gift exceeds certain limits, it may be taxed as “Income from Other Sources”. However, there are certain exemptions available if gifts are received from certain persons or on certain occasions. Gifts received within a value of Rs. 50,000 is always exempt. In this article, we’ll help you understand how gift taxation works—what types of gifts are taxable, what the thresholds are, and what exemptions might apply.Gift Taxation in IndiaAs per Section 56 of the Income-tax Act,1961 gifts received by any person or persons are taxed in the hands of the recipient under the head ‘Income from other sources’ at normal tax rates.

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.

Long Term Capital Gains (LTCG) arise from sale of capital assets like stocks, properties etc., held for a period of more than 24 months. The tax rate on Long Term Capital Gains is 12.5% for all capital assets. However, for listed equity shares, equity-oriented funds, and units of business trusts, the LTCG exceeding Rs. 1.25 lakh will be taxed flat at 12.5%.What is Long-term Capital Gain (LTCG)?Capital gains/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)Classification of LTCG TaxThe Long-Term Capital Gains taxation is divided into two sections: Section 112 and Section 112A. Section 112A applies in the case of the following assets:Equity share in a listed companyUnit of equity-oriented fundUnit of business trustSection 112 applies to all other cases of Long-Term Capital Gains not covered under Section 112A.Long-term Capital Gain (LTCG) Tax Rate The following tax rates are applicable to long-term capital gains:Assets SoldLong Term Capital Gain (LTCG) Tax Rate Sold before 23rd July, 2024Sold on or After 23rd July, 2024Listed Equity SharesEquity-Oriented Mutual FundsUnits of Business Trust10% Without Indexation12.5% Without IndexationLand and Building20% With Indexation12.5% Without Indexation(Option to Individuals and HUF  - 20% with indexation or 12.5% without indexation) Other Capital Assets20% With Indexation12.5% Without IndexationCalculation of LTCG TaxTo calculate the long-term capital gains accurately, follow the steps mentioned below:Step 1: Determine the Full value of considerationThe total amount received from the transfer of capital assets.

For the FY 2025-26, taxpayers for an income up to Rs. 12 lakhs can be practically tax-free. The rebate limit has been increased to Rs. 60,000 for an income up to Rs 12 lakhs under the new regime.Tax Slabs Under The New Tax Regime For FY 2025-26The revised tax slabs under the new regime for FY 2025-26 (AY 2026-27) are as follows:Income Tax SlabsTax RateUp to Rs. 4 lakhsNILRs.

Section 139(4) of the income tax act deals with belated return, which can be filed if a taxpayer misses the due date for filing the original return under Section 139(1). Such a return can still be filed up to 31st December 2025, but it attracts a late fee under Section 234F and may also lead to loss of certain benefits, such as carrying forward losses.Key HighlightsPenalty: Late fee of Rs. 1,000 / 5,000 (u/s 234F) and interest (u/s 234A/B/C).Limitations: Business and capital losses cannot be carried forward; certain deductions are disallowed.Revision: A belated return can be revised only up to 31st December 2025.What is a Belated Return?If you have missed filing your return with the original return due date, you can still file belated return under section 139(4).The due date for filing original returns for FY 2024-25 is 16th September, 2025. Usually, the original return due date is 31st July of the next financial year.The due date for filing belated return 31st December of the relevant assessment year. For financial year 2024-25, the due date for filing belated return is 31st December, 2025.It is recommended to file belated return even if you have missed your original return due date, to avoid consequences of not filing ITR.Limitations of a Belated ReturnIf you miss the due date for ITR and file belated returns, you may face the following consequencesInterest: Interest may be applicable under sections 234A, 234B and 234C.Late fee: A late fee will be levied under Section 234F while filing a belated return: Gross Total IncomeLate Feeup to Rs.

Investment in gold can be in the form of digital gold, physical gold, Gold Exchange Traded Funds, Gold Mutual Funds, and gold derivatives. The taxation on gold depends on the holding period of the assets. Long term capital gains on gold are taxed at 12.5% without indexation benefit and short term capital gains are taxed at the applicable slab rates.What is Digital Gold?The concept of digital gold is not different from that of physical gold.The only difference is that you can buy them online and the issuer will store them in vaults on your behalf. Moreover, government bodies like RBI or SEBI have no authority to regulate this investment type.Income Tax on Digital Gold in IndiaSale of digital gold attracts taxes as per the income tax rules for gold purchases. Returns from gold held for 24 months or more are termed long-term capital gains; returns from gold that are held for less than this period are termed short-term capital gains (STCG).The tax on the sale of digital gold will attract the same as physical gold and paper gold. LTCG on gold attracts 12.5% of tax with applicable cess. In the case of STCG, the tax is charged as per your income slab.Taxes on Physical Gold PurchaseThe physical form of gold includes jewellery, gold biscuits, gold ornaments, gold coins, etc. For ages, the physical form of gold has been a popular investment option in India. However, according to the Income Tax Act of India, you need to pay a 12.5% tax on long-term capital gains (LTCG) while selling gold. However, this rate is not applicable for short-term capital gains.

Sections 269SS and 269T of the Income Tax Act 1961, prohibit cash transactions of Rs. 20,000 or more mainly for loans and deposits. If these rules are violated, a penalty equal to 100% of the loan or deposit amount can be imposed.What is Section 269SS?Section 269SS prohibits any person from accepting loans or deposits or any other specified sum of Rs. 20,000 or more in cash. It is to be noted that the threshold limit applies for amount paid to one person, in a day, with respect to a single transaction.Such loans or deposits have to be accepted only through specified payment channels as per Section 269SS of the Income Tax Act 1961.Specified sum here refers to an advance or otherwise, in relation to the transfer of any immovable property.Therefore, in a nutshell, a person cannot accept a cash loan or deposit of Rs 20,000 or more from another person.Specified Modes of TransactionAs per the income tax rules, the specified modes of accepting loans or deposits or specified sums are:Account payee cheque/bank draft,Electronic Clearing System (ECS) through a bank account; orNet Banking;Credit Card;Debit Card;RTGS;NEFT;BHIM,IMPS; andUPI.Exceptions to 269SSAny loan or deposit or specified sum “taken or accepted from” or “taken or accepted by” the following entities –The governmentAny banking company, post office savings bank or cooperative bankAny corporation established by a Central, State or Provincial ActAny government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013)Any institution, association or body or class of institutions, associations or bodies notified in Official Gazette.A person earning only agricultural income accepts a loan or deposit from another person also earning only agricultural income and neither of them has any Income chargeable to tax under the Act.Other exceptional cases:Receiving cash from relatives during emergencies. Here intention should not be to evade the taxes.Partners contributing cash capital into a partnership firm.Where there is mere book entry and no receipt of money in cash or any other form.Section 269SS Examples1.

In advance tax mechanism, tax is paid during the financial year by the taxpayer instead of paying while filing the returns. If the tax on such income exceeds Rs. 10,000 for the financial year, he should pay advance tax.Advance Tax Due DateThe due date to pay the 3rd installment of advance tax for Q3 FY 2025-26 (Oct-Dec) is December 15, 2025 Taxpayers should make sure to pay 75% of the total tax liability for the year by December 15, 2025. What 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 207 to section 219 of the Income tax act.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 208 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.

An income tax refund arises when the tax you have paid to the government is more than your actual tax liability. This excess tax can occur due to higher TDS deductions or advance tax payments during the year.  You can claim the refund while filing your income tax return.Income Tax Refund Status Check AY 2025-26Income tax refund status for FY 2024-25 can be checked by logging into your income tax portal, or by just entering your PAN and assessment year in NSDL protean website. You can track your refund here.What is Income Tax Refund?When the taxes paid by you in the form of TDS, advance tax and self assessment tax is more than your TDS deducted, the excess tax paid is given to you in the form of Income Tax Refund.Income Tax Refund Delay FY 2024-25If the refund credit is getting delayed, in other words, the refund is awaited beyond this time, the following could be the reasons for the same.Enhanced Verification and Delayed ITR ProcessingThe income tax returns are processed in a more stringent manner for the current assessment year, compared to preceding assessment years.This year, a lot of additional disclosures were mandated for claiming various deductions. Therefore, the department has more database to verify the authenticity of deductions claimed.Returns may be processed late if the department suspects an incorrect refund claim. If you have made error in the returns, you can revise it within December 2025 (for FY 2024-25).High Refund ClaimsTaxpayers claiming higher refunds (for example, above Rs. 50,000), or higher refunds than in previous years, are facing delays in refund processing this year. This is because the department is verifying each claim using the expanded database available.Mismatch between returns and Form 26AS/ AISEnsure the particulars as mentioned in the returns match with data as per Form 26As or AIS.It might be that sometimes details on AIS or Form 26AS is incorrect.

Form 15G and 15H are tax exemption declaration forms filed by individuals to save TDS on incomes like bank interest, dividends, rent, and pension if the total income is below the basic exemption limit or persons total tax liability for year is nil. Form 15G is filled by any person who is below 60 years, and Form 15H is filled by resident senior citizens aged 60 years or more. Filing these forms at the beginning of the financial year helps avoid unnecessary TDS deductions.Key HighlightsEvery resident can claim nil tax deduction by filing Form 15G.Senior citizens can avail the same benefits by filing Form 15H.These form needs to be filed quarterly.What is Form 15G?Resident individuals aged below 60 years can file Form 15G to prevent the deduction of TDS. It can also be filed by HUFs, trusts, or any other person (except a firm or company). It can be filed only if the estimated income of resident individuals for the relevant financial year is less than the basic exemption limit.Form 15G has to be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical paper form.What is Form 15H?Form 15H can be filed by resident senior citizens aged 60 years or above.  It can be filed only if the senior citizen’s total income for the relevant financial year results in nil tax liability.Form 15H must be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical form.IllustrationsForm 15GMeena is 35 years old and lives in Delhi. In FY 2025–26, she does not have any salary or business income. She has only a fixed deposit in the bank, which gives her interest income of Rs.