A tax rebate is a tax relief provided to individuals, particularly those in the lower-income bracket to ensure that they are not burdened with income tax if their income is below a certain threshold. Budget 2025 updateFor financial year 2025-2026, the rebate allowed for individuals under new tax regime has been raised to Rs. 60,000Rebate is allowed for income up-to Rs. 12 Lakhs in new tax regimeRebate of Rs.60,000 is not applicable for income taxed at special ratesMarginal relief on rebate is still applicable. Please read further to understand the concept.The benefit of marginal relief on rebate for different income groups for FY 2025-2026 is explained below:A tax rebate is available on income up to Rs. 7 lakh under the new tax regime and up to Rs.

Filing your Income Tax Return (ITR) is an essential part of managing your tax obligations, and it’s important to stay updated with the latest deadlines and requirements. This guide highlights the ITR filing due dates for different categories of taxpayers, helping you navigate the tax filing process with ease.Budget 2025 UpdateIn Budget 2025, the deadline for taxpayers to file updated income tax returns has been extended from 2 years to 4 years from the end of the relevant assessment year.When is the Last Date to File ITR?ITR filing last date for non audit tax payers for Financial Year 2024-25 (AY 2025-26) is July 31, 2025. However, if you miss filing within the due date, you can still file a belated return before December 31, 2025. Income Tax Filing Due Dates for FY 2024-25 (AY 2025-26) Category of TaxpayerDue Date for Tax Filing - FY 2024-25*(unless extended)Individual / HUF/ AOP/ BOI     (books of accounts not required to be audited)31st July 2025Businesses (Requiring Audit)15th October 2025Businesses requiring transfer pricing reports   (in case of international/specified domestic transactions)30th November 2025Revised return31st December 2025 Belated/late return31st December 2025 Updated return31 March 2030 (4 years from the end of the relevant Assessment Year)Here's an image for your easy understanding:Consequences of Missing the ITR Filing DeadlineInterestIf you submit your return after the deadline, you will be liable to pay interest at a rate of 1% per month or part month on the unpaid tax amount as per Section 234A.Late feeIn case of late filing, Section 234F imposes a late fee of Rs.5,000, which shall be reduced to Rs.1,000 if your total income is below Rs.5 lakh.Loss AdjustmentIn case you have incurred losses from sources like the stock market, mutual funds, properties, or any of your businesses, you have the option to carry them forward and offset them against your income in the subsequent year. This provision substantially reduces your tax liability in future years. However, you will not be allowed to carry forward these losses if you miss filing your ITR before the deadline.What if ITR Filing is Missed?Belated ReturnIf you miss the ITR filing due date, you can file a return after the due date, called a belated return. However, you will still have to pay the late fee and interest charges, and you will not be allowed to carry forward any losses for future adjustments.

The recent changes made in the income tax law brought about several positive changes which can guide the country during its Amrit Kaal. However, the increased foreign remittance tax rates can make these transactions a little expensive for people who send or receive money from outside the nation. Keep reading to find out!   Budget 2025 UpdateHere are the key updates related to TCS in Budget 2025:The threshold limit for TCS on remittances under the Liberalised Remittance Scheme (LRS) has been increased from Rs. 7 lakh to Rs. 10 lakh.No TCS will be levied on remittances for education purposes if the funds are sourced from a loan provided by specified financial institution.Foreign Remittance Tax IndiaIn the 2023 Budget address, Finance Minister Nirmala Sitharaman announced that the Tax Collection at Source (TCS) for foreign remittances would increase from 5% to 20% of the transaction amount. The tax increase on foreign remittance falls under the Liberalised Remittance Scheme (LRS) and will be effective from October 01, 2023. A primary reason behind this increase was to target wealthy individuals who tend to avoid taxes.     Tax implications on Foreign RemittancesHere are the instances in which the new rate of tax on sending money abroad from India will be applicable:Foreign tour packagesOnline shopping from a foreign websiteInvesting in a foreign asset or instrumentProviding loans or sending gifts to relatives living abroadBuying stocks of foreign companiesPurchasing property abroadImmigrants remitting funds to their foreign bank account ExemptionsIn case you are sending money abroad to cover educational expenses, there is an exemption from TCS up to a maximum of Rs.7 lakh.

The much-awaited Union Budget 2025 by Finance Minister Nirmala Sitharaman, was presented on February 1, 2025, which focused on a new landmark for India's economic trajectory to make growth all-inclusive, which is aimed at empowering the poor, the youth, the farmer, and women. In a bid to strengthen long-term sustainable growth through taxation, infrastructure, agriculture, and digitalisation, this budget comes with a strong reform measure in these key sectors. Read on to find out the major highlights and key takeaways from Budget 2025.Budget 2025: Download Budget 2025Click on the link to download Finance Bill 2025: Download here Click on the link to download the Budget 2025 speech: Download here1. Direct Tax ProposalsIntroduction of a New Tax BillA new Income Tax Bill will be introduced next week, which aims to replace the existing Income Tax Act of 1961. This bill is designed to simplify tax compliance and reduce the complexity of current tax laws by up to 60%.Changes in Tax Structure Under the New RegimeUnder the New tax regime, the tax structure is revised as follows:Income Tax SlabsTax RateUpto Rs.

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.Budget 2025 UpdateThe income earned up-to Rs.12 Lakhs 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. 4,00,000NILRs. 4,00,001 - Rs.

Similar to tax deductions done at various income sources such as salary, interest income, and house rent, tax deductions at source (TDS) are also required to be done on insurance commission and life insurance premium payments. Section 194D and Section 194DA under the Income Tax Act, 1961 are the provisions applicable respectively. Let us look into these provisions in detail.Budget 2025 Update In the budget 2025, the threshold limit for deduction of tax under section 194D has been increased from Rs. 15,000 to Rs. 20,000 which will be effective from 1st April, 2025. What is Section 194D?Section 194D basically covers TDS on insurance commission. Any payments made by way of:Any remuneration/reward in the form of commission or otherwise, For soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) The deduction must be made at the time of crediting the money to the payee’s account or at the time of payment in the form of cash, cheque, draft, or any other mode. Tax is deductible only if the amount paid or payable or the aggregate of the amounts of such income paid or payable during the financial year exceeds Rs 15,000.If you purchase any life insurance plans (other than ULIP) on or after April 1, 2023, and the aggregate premium exceeds INR 5,00,000 in a fiscal year, the money received on maturity will be taxable. Section 10(10D) will not provide an exemption to anyone.Who is Eligible under Section 194D?Any person who makes a payment to a resident person (Individuals, Hindu Undivided Family(HUF), companies or other taxpayers) in the form of remuneration or reward as part of the insurance business should deduct tax.The provisions of TDS deduction under Section 194D are applicable to resident individuals only, in the case of non-residents Section 195 will be applicable. Time Limits of Deduction of TDS for Section 194D?Tax is deducted at the earlier of the following cases:At the time of credit of commission in the payee’s account.When the actual payment is made in cash, cheque, draft, or other modes.Rate of TDS Deduction under Section 194DAccording to Section 194D, the tax is deducted at different rates based on the type of payee:Individuals or HUF: 5%*Domestic companies: 10%Payee does not provide PAN: 20%*It is to be noted that this rate is proposed to be reduced to 2% with effect from 1st April 2025.You must also know that surcharge and health and education cess will not be applicable to these rates.Exceptions under Section 194DTax need not be deducted from the amount the payer credits to the payee’s account in the following cases:The commission paid is within Rs 15,000.A self-declaration is available through Form 15G/15H. Penalty for Late DeductionIf the deductor forgets to deduct TDS when sending a payment, interest is owed.

Do you come under one of the higher income tax brackets i.e. 30%? – If yes, you maybe liable to pay an additional surcharge on your Income Tax liability over some limit. To simplify, a surcharge on income tax is an extra tax to be paid by the taxpayers earning a higher income i.e. beyond a certain limit.Our government ensures that with the surcharge provision, the rich contribute to the income taxes more than the poor. It also provides a marginal relief on the surcharge for a certain class of taxpayers.

The deduction of tax at source (TDS) has been very helpful in collecting taxes in the country by targeting the source of income itself. TDS eases the taxpayer’s burden of paying tax when it is time to file their income tax returns. That is because, at the time of filing income tax return they can take the credit for the taxes deducted at source.   One of the most important and common types of payments that a business entity makes is towards professional fees or fees for technical services. Some examples of professional fees are fees paid to a lawyer, doctor, engineer, architect, chartered accountant, interior decorator, advertisers, etc. Technical services would include the rendering of managerial, technical or consultancy services.

People think of a lottery ticket as only a fortune bag bringing in money. However, not everyone is aware of the tax liability that comes along with the fortune bag. Section 194G provides for the particulars of TDS on the purchase, distribution, and other activities associated with lottery tickets. Let’s discuss the following in detail to have a better grasp of the section 194G:Recent Budget Update Scope of Section 194GRate of DeductionTime of Tax DeductionDue Date to deposit TDSCertificate of No or Lower TDSResponsibilities of the DeductorBudget 2025 UpdateIn the budget 2025, the threshold limit for deduction of tax under section 194G has been increased from Rs. 15,000 to Rs.

The new regime under Section 115BAC gives individuals and HUF taxpayers an option to pay income tax at lower rates with fewer exemptions and deductions to claim. Keep reading to learn more about Section 115BAC of the Income-tax Act, 1961.Budget 2025 UpdateThe income gained up-to Rs.12 Lakhs will ultimately have Nil tax liability. The grounds are explained as follows. The modified slab rates for new tax regime applicable for FY 2025-2026 is as follows:Income Tax SlabsTax RatesUp-to Rs. 4,00,000NILRs.