Prices of goods increase over time, resulting in a fall in the purchasing power (quantity of goods that one unit of money can buy) of money. If two units of goods could be bought for Rs 100 today, tomorrow only one unit might be available for Rs 100 due to inflation. The Cost Inflation Index (CII) is used to estimate the increase in the prices of goods and assets year-by-year due to inflation.The Cost Inflation Index (CII) for the Financial Year 2025-26 is 376.Discontinuation of Indexation Benefit As of July 23, 2024, the government has discontinued the indexation benefit on long-term capital gains. This means that investors can no longer adjust the purchase price of their investments for inflation when calculating capital gains for tax purposes. Consequently, long-term capital gains will be computed based on the actual purchase price, potentially resulting in higher taxable gains and, therefore, a higher tax liability for investors.

The National Savings Certificate (NSC) is a secure investment option provided through post offices. Interest rate fixed for Q2 of FY 2025-26 is 7.7% per annum. A minimum investment is Rs. 1,000 is required to open an NSC account and lock in period is for 5 years . Tax benefits of up to Rs.

An income tax assessee is a person (individual, HUF, company, firm, etc) who pays tax or any sum of money like interest or penalty under the provisions of the Income Tax Act, 1961. The definition of assessee is not limited to the payment of tax or any sum of money only. If the Income Tax department calculates, investigates or processes the person’s income, losses or refund, he is considered as an assessee.Who is an Assessee?Assessee is a person (defined below) eligible to pay tax or any other payment (like penalty or interest) to the government under the Income Tax Act, 1961. The definition of an assessee is not limited to the payment of taxes. Below are a few situations where an assessee will not pay tax, but is still called an assessee when the Income Tax department has started the process to figure out:the income or fringe benefits of the personthe income of someone else on whose behalf the person is liable to pay tax if the person has incurred a loss during the financial year, he can take the benefit of carrying forward the losses to future yearsthe person is eligible for a tax refundAlso, a person is considered an assessee under any provision of the Income Tax Act, such as the heir of the deceased person. When a person fails to comply with any provision of the Income Tax Act, such as paying TDS to the government, he is considered an assessee in default.Who is a ‘Person’ under the Income Tax Act? Section 2(31) of the Income Tax Act, 1961 defines a ‘person’ into seven categories.

Income Tax Return can be filed only on due payment of pending tax liability. The challan number and BSR code is mandatory for filing ITR. Paying taxes online has become a simpler and more efficient process with the introduction of the Income Tax Portal's “e-Pay Tax feature”. One can easily pay tax using a debit card, credit card, internet banking facility, and UPI. A taxpayer can easily access this facility through the income tax portal. This article explains in detail, the steps to make payment and generate challan in the Income Tax Portal and other relevant topics.

The Public Provident Fund (PPF) is a long-term savings and tax benefit scheme funded by the government of India. It is meant to assist people in establishing a retirement corpus. Every individual, whether self-employed or salaried, can contribute to PPF.One of the primary benefits of the PPF account is its tax-free interest rate compounded yearly, and withdrawal on retirement or termination is fully exempt. Contributions to PPF are also eligible for deduction under section 80C up to Rs. 1.5 lacs per year.While the PPF account gives freedom regarding contributions and duration, it also comes with specific withdrawal criteria and limitations.This article discusses the PPF withdrawal criteria, including partial, premature, and closure after 15 years, to help you make educated choices about your PPF investments.Interest Rate UpdateThe PPF interest rate for FY 2025-26 Q2 (July-September) remains unchanged at 7.1% p.a.What are PPF Account Withdrawal Rules?The PPF account withdrawal rules are the criteria provided by the government of India that control how and when you may retrieve your invested money.

A plot of land, building, or both are categorised as Capital Assets in the Income Tax Act. Profit on the sale of such assets is classified as capital gain and taxable under the “Capital Gain” section of the Income Tax Act.Land, buildings, or both held for more than 2 years shall be taxable at 12.5% without indexation as Long-term Capital Gain. Otherwise, it is treated as a short-term capital gain and taxed at the applicable slab rate of the taxpayers. However, to ensure that the taxpayer benefits from such profits, exemptions under sections 54F and 54EC have been provided by the Income Tax Act, which can be utilised to minimise the taxable capital gain income and save tax.Let us understand how profits from the sale of land, buildings, or both will be taxed and explore tax savings methods.Short-Term or Long-Term Capital GainsThe tax implications will vary depending on whether the gains are categorised as short-term or long-term, and such categorisation shall be based on the holding period of assets. Capital gains from the sale of a plot of land, building, or both will be considered short-term if the land was owned for up to 24 months (or 2 years) before selling, and if it were held for more than 24 months, it would be considered long-term capital gains.Short-term capital gains will be taxed at the applicable slab rate of taxpayers.

The income tax department allows taxpayers to file income tax returns using offline mode. It has provided the facility of offline forms (JSON utility) and common utility for ITR-1 to ITR-4 applicable for FY 2024-25 (AY 2025-26). These offline forms can be used for filing ITR for FY 2024-25 (AY 2025-26). JSON is a file format used when downloading or importing your pre-filled return data into the offline utility and is also used when generating your prepared ITR in the offline utility. Let us understand how to file ITR returns through offline utility.ITR-1 & ITR-4 Excel Utility Released for AY 2025-26The Income Tax Department released the Excel Utility for ITR-1 and ITR-4 on 30th May 2025. Thus, kickstarting the tax season for FY 2024-25 (AY 2025-26). Prerequisites for Availing this ServiceTo avail the offline utility services the user should:Be a registered on the e-filing portalHave a valid user ID and password for filing ITR through the offline utilityShould have downloaded the offline utility for ITR-1 to ITR-4, or ITR-5 to ITR-7. To start with, the taxpayer has to first download the offline utility.How to Download ITR-1, ITR-2, ITR-3 and ITR-4 Offline Utilities?You can download the offline utility through the income tax e-filing portal at www.incometax.gov.in. Step 1: Under the ‘Download’ section, select the relevant assessment year and click on the ‘Utility’ link under the ‘Common Offline Utility (ITR 1 to ITR 4)’ section.You can also download the utility after logging into your e-filing account.

Managing finances becomes a hassle as several people do not know how to handle money. Most individuals would not have enough money to lead a comfortable life. The Government of India has considered all these and launched various saving schemes. These schemes help individuals save a part of their income for future use. Some schemes contribute from the government to the individuals to make their lives easier.Latest Update on Interest RatesThe interest rates on small savings schemes such as PPF, Sukanya Samriddhi Yojana, Post Office Savings Account, Kisan Vikas Patra, National Savings Certificate, and Post Office Monthly Income Scheme for Q2 (July-September) of FY 2025-26 remain unchanged. What are saving schemes?Saving schemes are monetary instruments for enabling people to achieve their economic goals within a definite time interval.

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. PPF Interest Rate For Q2 FY 2025-26The PPF interest rate for Q2 (July-September) of FY 2025-26 remains unchanged at 7.1%. 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.  (GPF) is also part of statutory provident fund.

As a part of the campaign, Beti Bachao Beti Padhao, the Prime Minister, Narendra Modi, launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’ for girl children. The objective of SSY is to meet the financial needs of girls in their higher education, marriage, and other purposes. The SSY scheme offers an interest rate of 8.2% with a maturity period of 21 years. The contribution to the SSY account, the interest accrued on the contribution, and the withdrawal amount upon maturity are all also tax-free. In this article, we will discuss the Sukanaya Samriddhi Yojana in detail.Q2 Interest Rate UpdateThe interest rate on Sukanya Samriddhi Yojana for Q2 (July-September) of FY 2025-26 remains unchanged at 8.2% per annum. Sukanya Samriddhi Yojana DetailsThe Sukanya Samriddhi Yojana scheme details are as follows:ParticularsDetailsInvestment valueMinimum value – Rs. 250 and Maximum value – Rs.1.5 lakh per annumCurrent yearly interest rate8.2% per annumWhen can an account be openedWithin 10 years of the birth of a girl childMaturity period21 years from the date of opening of accountWithdrawalAllowed only for educational purposes Premature withdrawal upon marriage (after the girl child attains 18 years)TaxationThe amount deposited is allowed as a deduction under Section 80C.The interest accrued is exempt from taxThe amount withdrawn upon maturity is also exemptWhat is Sukanya Samriddhi Yojana (SSY)?Sukanaya Samriddhi Yojana is a government-backed scheme launched to support the girl child in her higher education and marriage.