Under the Budget 2025, individuals with income up to Rs. 12 lakhs will have zero tax liability for FY 2025-26 (AY 2026-27) under the new tax regime. The revised tax slabs are as follows:Income Tax SlabsIncome Tax RatesUp to Rs.4 lakhNILRs. 4 lakh - Rs.8 lakh5%Rs.8 lakh - Rs.12 lakh10%Rs.12 lakh - Rs.16 lakh 15%Rs.16 lakh - Rs.20 lakh20%Rs.20 lakh - Rs.24 lakh25%Above Rs.24 lakh30%With the revised tax structure, individuals earning up to Rs.12 lakhs will have no tax liability due to the increased rebate of Rs.60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs.12.75 lakhs due to the Rs.75,000 standard deduction.Note:The marginal relief on the rebate is still applicable. The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).The new tax regime under section 115BAC, is dealt under section 202 of the New Income Tax Bill, 2025.

The Ministry of Finance in gazette notification no. 30/2025 dated April 7, 2025, notified the introduction of Form ITR-B for FY 2025-26 onwards. The taxpayer must file Form ITR-B when a search under section 132 has been initiated or a requisition has been made under section 132A of the Income Tax Act,1961. The form aims to address undisclosed income during a search or requisition made.What is Form ITR-B?ITR-B is a form that should be furnished by taxpayers who are required to disclose previously undisclosed income discovered during a search or requisition made on or after September 1, 2024, under sections 132 or 132A of the Income Tax Act. Form ITR-B can be filed for a block of assessment years. For example, after a search or requisition is conducted, ITR-B can be filed even for multiple assessment years preceding the present year in bulk. At any given time ITR-B in bulk can only be filed for only 6 years.   Eligibility & Applicability: Who Needs to File ITR-B?Any taxpayer such as those subject to audit as per section 44AB, companies, political parties or any others against whom a search or requisition was initiated on or after September 1, 2024, is required to file Form ITR-B electronically.The persons eligible for ITR-B are:Companies both domestic and foreignPolitical PartiesPersons subject to tax audit under section 44ABAny other persons.Key Sections & Components of ITR-B FormThe below table gives the important components of ITR-B:Part NumberPart NameDetails CoveredPart AGeneral InformationPAN, Name, Contact Details, Nature of Employment, Search Dates, Block Period, Earlier ReturnsPart BComputation of IncomeIncome from Salary, House Property, Business/Profession, Capital Gains, Other SourcesPart CComputation of Undisclosed IncomeYear-wise, Source-wise, Head-wise Breakup of Undisclosed IncomePart DTax PayableTax, Surcharge, Cess, Interest Payable on Undisclosed IncomePart ETax Payments and Credit ClaimsTDS, Advance Tax, Self-Assessment Tax, Other Eligible CreditsPart FVerification and DeclarationDeclaration by Taxpayer Confirming Correctness of Information ProvidedHow to File ITR-B?Form ITR-B has to be filed electronically in the manner specified. The following table gives an overview of how to file ITR-B:AssesseeMethod of Filing Return(a) persons subject to audit (b) Company (c) Political PartyElectronically under digital signature.Any Other Persons(a) Electronically under digital signature. (b) Transmitting the data electronically in thereturn under an electronic verification code.ITR-B Filing DeadlineITR-B should be filed within 60 days from the date of tax notice given after the search or requisition.Notes for Filing ITR-B FormNote 01: Assessment Year Y6 to Y1ITR-B can be filed for six assessment years preceding the relevant assessment year of the financial year in which the search or requisition was conducted. If the search or requisition is completed within the same year as it was initiated:"Y0" is the period between April 1st of the year in which the search or requisition was ordered and the last date of authorization of the search or requisition of the same year.If the requisition or search is conducted within a year:"Y0" refers to the entire year of evaluation from April 1 of the year when the search or requisition began through and including March 31 of the subsequent year.In short, "Y0" is the period from the start of the search/requisition to its completion, either within the same year or the following year.Note 02: Section 158BB(1A)(c)(i)For the purpose of filing a return for Year 1 where the relevant financial year has ended but the due date to furnished tax return under section 139(1) has not ended, the provisional return furnished by persons subject to tax audit shall not be considered an official return under Section 139(1).Note 03: Section 158BB(1A)(c)(i)For the purpose of filing a return for Year 0 where the relevant financial year has ended but the due date to furnished tax return under section 139(1) has not ended, the provisional return furnished by persons subject to tax audit shall not be considered an official return under Section 139(1).Note 04: Section 158BB(3)Any undisclosed income related to international or specified domestic transactions for the part of the previous year within the block period should be assessed separately, and not under the block assessment rules.

Getting a notice from the income tax department can leave you in panic mode. You may not be sure if you have to accept the notice in the first place. Even if you do, you may be unsure how to respond to it. You must know that different notices would mean different things. Read through to know what a notice u/s 143(2) means, how to respond to it, and other details.What Does a Notice Sent u/s 143(2) Mean?When the income tax department finds discrepancies, minor or major, in your income tax returns, a notice will be issued under Section 143(2).

Every individual dreams of owning a house someday, whether for residence or investment purposes. But with recent developments, property prices have skyrocketed, and owning a house is near impossible without external finance like bank loans. Also, with time individuals have developed an awareness about various investment avenues and have started investing in various assets such as shares, properties and so on. This has resulted in capital gains in the hands of such investors when the asset is sold and this gain is taxed. However, certain exemptions are available to reduce the capital gains subject to tax. This article will help you understand if a capital gains exemption can be availed if the taxpayer uses it to pay off a mortgage. What Is Capital Gains?Capital gains are the profits earned when an asset such as shares, land, property etc.

Having a TAN is compulsory for every person who is liable to deduct/collect tax at source. An application for TAN can be done online. Once the application is submitted, the status of the TAN application can be checked by using the Acknowledgement Number, Customer Care Number or SMS.This article will explain the steps on how to check TAN application status.How to Check TAN Application Status by Acknowledgement NumberFollow the below steps to check your TAN Application Status using Acknowledgement Number:Step 1: Visit the Protean eGov Portal.Step 2: You will find a drop-down menu against Application Type. Select “TAN - New/Change Request”Step 3: Select the option “Acknowledgement Number” and enter your Acknowledgement Number in the space providedStep 4:  Enter the displayed captcha code in the space provided and click “Submit”Step 5: Once you click on submit, your TAN Application Status will be displayed on the screen.How To Check TAN Application Status via Customer Care NumberTAN Application Status can also be checked by calling the customer care number. The applicant can call 020-27218080 and provide the details asked by the call centre executive.

The government introduced various incentives in the recent times to encourage the adoption of the new regime. These changes show that the government intends to have taxpayers transition to the new regime and eventually phase out the old one. Though the new regime is now the default tax regime, the old tax regime will continue to exist.New Income Tax Bill - UpdatesThe new Income Tax Bill has been tabled by the Honorable Finance Minister in the Lok Sabha.It is to be noted that the old regime and new regime for FY 2024-25, both falls under the existing Income Tax Act.The new tax regime under section 115BAC, is dealt under section 202 of the new Income Tax Bill, 2025. The bill, when passed, will become the new Income Tax Act, which is applicable from 01st April 2026.Changes from FY 2025-26 (AY 2026-27)The income earned up-to Rs.12 Lakhs under new regime will ultimately have Nil tax liability. Here's how!The modified slab rates for new tax regime applicable for FY 2025-2026 are as follows:Income Tax SlabsTax RatesUp-to Rs.

Always heard terms like income tax, filing returns, TDS, exemptions, and deductions but still unsure how the entire system works? Let’s break down the core basics of income tax and its framework. This article will discuss in detail all the important provisions that one should be aware to have a basic knowledge about taxation in India. What is Income Tax?Income tax is levied on the income earned by the taxpayer in the relevant financial year.Income tax is classified as a direct tax as it is borne by the taxpayer himself and the tax burden cannot to passed on further like indirect taxes. Every taxpayer (assessee as referred to in the Income Tax Act) who satisfies specified conditions is required to mandatorily file a tax return by law.  Failure to file tax returns can attract penalties, interest and scrutiny from the tax department.India follows a progressive tax rate for individuals i.e., the rate of tax increases with an increase in the assessee’s income.Income tax implications differs on the basis of the legal entity of the taxpayer, age of the tax payer, residential status and the nature of the income earned. Browse By Topics .hover-scale:hover { transition: 0.5s; transform: scale(1.03); } House Property Business, Professional & Freelance Efiling Income Tax Return Income Tax Refunds Paying Tax Due Salary Income Capital Gains Income Other income sources Advance Tax NRI HUF Income Tax Notices Income Tax Law in IndiaThe Constitution of India clearly states that tax can be imposed only under the provisions of any law. Any tax that is levied by the government which is not covered under any law is unconstitutional.All the rules regarding levy and collection of income tax in India are governed by the Income Tax Act of 1961. Income tax is covered under union list, the area which is directly under the control of the central government. Only the Parliament has the power to make laws for collection of Income Tax.Every year the Finance Bill presented during the Budget session introduces changes to the Act to improve tax compliance by introducing and deleting various sections.

The Annual Information Statement (AIS) is a detailed summary of a taxpayer's information which is given in Form 26AS. In addition to the TDS/TCS details, AIS will also show interest, dividend, stock market transactions, mutual fund transactions etc. AIS shows both reported value (value reported by the reporting entities) and modified value (i.e. the value after considering taxpayer’s feedback) for each type of information, i.e. TDS, Statement of financial transaction (SFT) and various other information. AIS is introduced with the objective of – Displaying complete information to the taxpayer and capture their online feedbackThe said move will facilitate voluntary compliance and eliminate underreporting of income by the taxpayersEnable seamless pre-filling of returnDeter non-complianceSalient Features of AISIt includes new information – interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc.Summary of AIS information 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 formatsAIS Utility will enable taxpayers to view AIS and upload feedback in an offline mannerTaxpayer Information SummaryTaxpayer Information Summary is an aggregated category-wise summary for a taxpayer. It shows the processed value (i.e., value generated after deduplication of information based on predefined value) and derived value (i.e., value derived after considering the taxpayer’s feedback) for each information category.  The derived information in TIS is used for pre-filling IT returns. How to Check your Annual Information Statement (AIS)Step 1: To access your Annual Information Statement (AIS), log in to the income tax e-filing portal at www.incometax.gov.in.

The government, in order to encourage reinvestment of the capital gains made on the sale of capital assets by the seller, has provided with exemptions from capital gains tax if such capital gain is re-invested in certain specified assets within a specified time limit under section 54 to 54GB.There may be instances where the taxpayer is unable to re-invest the capital gains in modes as specified in the Act before the filing of return of income. To address this, in order to enable the taxpayer to park his funds till they are invested for the prescribed purpose, the concept of Capital Gains Account Scheme(CGAS) was introduced.What is Capital Gains Account Scheme?Capital Gains Account Scheme was introduced in 1988 by the Central Government.As mentioned above, the time required by the depositor for re-investment and avail the exemption on Long Term Capital Gains, in many cases is longer than the due date to file the return of income. In such cases, the taxpayer is given an option of depositing such under-utilized capital gains in ‘Capital Gains Account’ introduced under Capital Gains Account Scheme.Any capital gain invested in Capital Gains Account Scheme will be eligible for capital gain exemption as it would in case of re-investment. It is to be noted that since Short Term Capital Gains are not eligible for exemptions under section 54 series, deposit under Capital Gains Account Scheme is irrelevant in case of Short Term Capital Gains.Who Can Deposit in Capital Gains Account Scheme?Category of the taxpayer with capital gains who is eligible to invest in CGAS from Section 54 to 54F of the Income-tax Act, 1961 is provided below:Section NumberCapital Gains made onCategory of person54Sale of residential houseIndividual or HUF54BSale of land used for agricultural purposeIndividual or HUF54DCompulsory acquisition of land and buildingAny taxpayer54ESale of any long term capital assetAny taxpayer54ECSale of long term capital asset being land or building or bothAny taxpayer54FSale of any long term capital asset not being residential propertyIndividual or HUF54GTransfer of asset (machinery, plant or building, land or right in land or building) in case of shifting of industrial undertaking from urban areaAny taxpayer54GATransfer of asset/s (machinery, plant or building, land or right in land or building) in case of shifting of industrial undertaking from urban area to Special Economic ZoneAny taxpayer54GBTransfer of residential propertyAny taxpayerWhen Can One Deposit in Capital Gains Account Scheme?The taxpayer should invest the amount in the CGAS within the earlier dates of the following.The due date of filing the return on income (For individuals and HUF - due date is 31st July of the next financial year).The date of filing of return of the assessee.Lets understand this time limit using an example:Mr. A has opted for exemption under section 54F for FY 2024-25. He wants to purchase the property for Rs.

A "gift" might be money or movable/immovable property that an individual receives from another individual or organisation without making a payment, according to the Income-tax Act definition. In legal terminology, the person or organisation providing the gift is designated the donor, while the gift receiver is known as donee.However, many a time gifts can also be a part of tax planning/tax evasion. While tax planning done within the framework of law is permissible, tax evasion is prohibited and can be penalised. The Government introduced a gift tax in April 1958, regulated by the Gift Tax Act, 1958 (GTA), with an objective to impose taxes on giving and receiving gifts under certain specific circumstances. Gifts in the form of cash, demand drafts, bank cheques, or anything having value were covered. However, the GTA was abolished in October 1998 and made all gifts tax-free. But, GTA was reintroduced in a new form and included in the income tax provisions in 2004.