The Income Tax Act, 1961 has made provisions that allow taxpayers to save taxes by making investments in specified schemes. One such provision, Section 80CCD allows the taxpayer to claim a deduction against contributions made to the National Pension Scheme (NPS). A total deduction of Rs. 2 lakhs can be claimed for NPS contribution made by the taxpayer. The taxpayer can also claim a deduction u/s 80CCD(2) for NPS contribution made by the employer. What is Section 80CCD?Section 80CCD relates to the deductions available to individuals against contributions made to the National Pension Scheme (NPS) or the Atal Pension Yojana (APY).

We all agree that ITR filing is not a walk-in-the-park process. However, filing your taxes is important for tax compliance. Individuals and businesses file ITRs, which are examined by the Income Tax Department; this process is referred to as tax assessment. In this article, we have discussed the types of assessment that you should know as a taxpayer. 1. Self AssessmentThe assessee himself determines the income tax payable. The tax department has made available various forms for filing income tax returns.

Capital Gains are profits earned from selling capital assets like land, buildings, jewelry, or even Virtual Digital Assets like crypto currencies. After Budget 2024, Long-Term Capital Gains are taxed at a flat 12.5%, without the benefit of indexation. On the other hand, Short-Term Capital Gains are generally taxed as per slab rates. However, in the case of certain specified securities, Short-Term Capital Gains are taxed at flat 20%.Let’s break down the meaning and tax impact of Capital Gains in this article. Recent UpdateIt is proposed to include ULIPs with premiums exceeding 10% of the policy’s sum assured, alongside those with annual premiums above Rs. 2.5 lakh.It is proposed to amend Section 2(14) to clarify that securities held by investment funds under Section 115UB, will be treated as capital assetsWhat is Capital Gains Tax in India?Any profit or gain that arises from the sale of a ‘capital asset’ is known as ‘income from capital gains’. Such capital gains are taxable in the year of transfer of the capital asset takes place. There are two types of Capital Gains: Short-Term Capital Gains(STCG) and Long-Term Capital Gains(LTCG).Meaning of Capital AssetsLand, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery are a few examples of capital assets. This includes having rights in an Indian company.

Section 194K prescribes TDS deduction at the rate 10% on dividend paid on mutual funds to residents. This resulted in the elimination of double taxation, which happened due to previous tax laws. Under the previous laws, tax on mutual fund payout was levied when the company distributed to the AMC(Asset Management Company) and when the AMC distributed the same to the unit holders. Let’s discuss Section 194K in detail. Types of Income from Mutual Fund UnitsIn general, an individual can earn two types of income by investing in mutual fund units. They are:Sl.No.Income TypeChargeability to Tax1.DividendDDT has been abolished as per the Budget 2020. From FY 2020-21, dividend income will be taxable in the hands of the receiver/investor.However, Section 194K requires the mutual fund to deduct TDS while distributing dividends exceeding Rs 10,000 to unitholders. 2.Capital GainsCapital gains are taxable in the hands of the taxpayer. Any long-term capital gains earned from equity-oriented mutual funds will be taxed at the rate of 12.5% if the gains exceed Rs 1.25 lakh in a year from FY 2024-25. Similarly, any short-term capital gains earned from the equity-oriented mutual funds, subject to STT, will be taxed at the rate of 20% for all the sale made on or after 23rd July 2024. However, Section 194K does not require a mutual fund to deduct TDS on capital gains arising on redemption of units by unitholders.Section 194KAs per Section 194K, any person responsible for paying a resident with respect to:Units of a mutual fund as per Section 10(23D)Units from the administratorUnits from a specified companyShall deduct TDS at the time of credit of such income to the payee’s account or at the time of making payment, whichever is earlier.Purpose of Section 194KUnder the previous income tax laws, dividends were taxed twice. Initially, a tax was imposed when a company would pay a dividend to an Asset Management Company (AMC).

Taxes play a significant role in the overall growth and development of the companies. Amongst the set of new tax rules introduced by the Government every year, the introduction of Section 115BAA on September 20, 2019 brought in a reduced tax rate for businesses operating in India. Section 115BAA offered a reduced tax rate of 22% with a surcharge and education cess of 10% and 4% along with a couple of exemptions for qualifying entities. Also, the MAT rate has been reduced from 18.5% to 15%.Beyond figures, Section 115BAA was more about fostering a business-friendly environment, promoting investments and driving economic expansion.Let’s discuss the corporate tax rate cut for domestic companies in detail focusing on the following:What is the meaning of Section 115BAA of the Income Tax Act, 1961?Section 115BAA was introduced by the Government of India through the Taxation (Amendment) Ordinance 2019 on September 20, 2019. Section 115BAA has been inserted in the Income Tax Act,1961 to give the benefit of a reduced corporate tax rate for the domestic companies. The section states that domestic companies have the option to pay tax at the rate of 22% plus surcharge of 10% and cess of 4%.

Do you know that charitable/religious deeds through donation or by conducting those activities can help you save tax? Section 80G of the Indian Income Tax Act provides provisions for the same. As per 80G, you can deduct your donations to Central and State Relief Funds, NGOs and other charitable institutions to arrive at your taxable income. In this article, we will tell you how and when to claim deductions on donations made to Charitable Trusts and NGOs and how the tax laws are applied on the trusts conducting charitable/religious activities.Budget 2025 updateIt was proposed to amend the Explanation to sub-section (4) of section 12AB to provide that the situations where the application for registration of trust or institution is not complete, shall not be treated as specified violation for the purpose of the said sub-section.Charitable Trusts – A Brief Introduction“The word ‘Charity’ connotes altruism in thought and action. It involves an idea of benefiting others rather than oneself” Supreme Court in the case Andhra Chamber of Commerce [1965] 55 ITR 722 (SC).  Charity is a selfless voluntary help either in money or kind to the needy. Hence, there are various Non-Governmental Organizations (NGOs) and non-profit entities constantly working on charitable activities by raising funds all over the world by forming either an institution or trust.  Trusts can be created for charitable purposes or religious purposes or both.Efforts of such institutions play a significant role in promoting economic development and the social welfare objectives of the Government. Their outreach and more localised approach help to identify the needy and lend a supporting hand.

According to Article 276 of the Indian Constitution, every individual earning an income is liable to pay professional tax. Whether you earn your source of living from a job or self-employment, paying this tax is mandatory. However, the payable tax amount differs from one state to the other. Most Indian states have set their own tax rates for different income slabs. If you are a resident of New Delhi, read this article for a complete overview of professional tax in Kerala.Professional Tax in Kerala The Kerala state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Kerala must pay professional tax according to the applicable income slab and professional tax rate. Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually.

In India, certain income sources are not taxable under the Income Tax Act,1961. Known as tax-free incomes, the IT Department cannot deduct taxes on the incomes that fall under these exemptions. Hence, individuals can determine a way to save on their taxes by taking advantage of these exemptions while filing their ITRs (Income Tax Returns). It is crucial to be aware of tax-free income sources before filing your income tax return. The corresponding exemptions are also valid under the new tax regime, which is introduced as the default from the financial year 2024-25. Let’s explore more details about tax-free income in India 2025-26. Tax Exemptions v/s Tax DeductionsPeople at large are often opinionated that deductions and exemptions have little difference between them.

The Employees’ Provident Fund (EPF) is a government-backed savings scheme where both employees and employers contribute monthly to build a retirement corpus. Upon retirement or after two months of continuous unemployment, individuals can withdraw the accumulated funds. If unemployed for over one month, 75% of the balance can be withdrawn. Typically, the EPF claim is processed and credited to the bank account within 20 days. This blog provides a comprehensive guide on checking your EPF claim status.​What is EPFO Claim Status?EPFO claim status refers to the current status of the application on the EPFO withdrawal. It gives a quick insight on the withdrawal process development, allowing applicants to address potential delays or errors effectively.  What are the Pre-requisites to Check EPFO Withdrawal Status? To know the status of your claim, the following information should be available to you:Universal Account Number (UAN)  EPF regional office of your employer  Employer details Extension code (if relevant)Keep the above information/documents handy, and then follow the below steps to check the status of your claim online. How To Check Your EPFO Withdrawal Status Online?The EPFO has made both an online and offline process accessible to check the status of your requisition.

Toll revenue constitutes a significant part of the development and maintenance of highway infrastructure of the Indian economy. In recent times, a lot of modernization has been made in promoting transparency and efficiency in toll collecting. In this article, we will understand road usage charge collection, calculation, and other details about road charges in India.What is Toll Tax in India?Road charges, often known as “tolls", are the taxes you pay for using interstate expressways, bridges, tunnels, and national or state highways. In India, the entire road network, including toll taxation policies and systems, falls under the purview of the National Highway Authority of India (NHAI).NHAI has laid down various rules and regulations that determine the collection process. These rules include certain exemptions for taxes, tax validity, rules on how the road charges for a particular highway/expressway are determined, and much more. Why is Toll Tax Collected?India has one of the greatest and largest roadway networks in the world.