Section 44BBD of the Income Tax Act, 1961 deals with computation of the profits or gains of non-residents engaged in providing services or technology related to electronics manufacturing in India. It has been introduced to enhance the electronics manufacturing sector and position India as a global hub for Electronics System Design and Manufacturing. Budget 2026 UpdateAll the non-residents paying taxes on a presumptive basis are exempted from Minimum Alternative Tax (MAT) requirements.What is Presumptive Taxation?Presumptive taxation is a system where the government assumes a fixed percentage of your turnover or gross receipts as your taxable income, regardless of the actual expenses incurred. What is Section 44BBD of the Income Tax Act?Section 44BBD of the Income Tax Act provides a presumptive taxation scheme for non-residents engaged in providing services or technology for setting up an electronics manufacturing facility or in connection with manufacturing or producing electronic goods, articles or things in India.  Who is Eligible to Opt for the Presumptive Scheme Under Section 44BBD of the Act?Non-residents engaged in providing services or technology to a resident company setting up or operating an electronics manufacturing facility in India. The resident company must be operating under the scheme notified by the Ministry of Electronics and Information Technology (MeitY) and fulfilling the prescribed conditions. How is Presumptive Income Calculated under section 44BBD?The presumptive income is calculated at 25% of the aggregate gross receipts which means that 25% of the aggregate gross receipts will be deemed as taxable profits.The aggregate gross receipts shall consist of the following:The amount paid or payable to the non-resident or to any person on his behalf.The amount received or deemed to be received by the non-resident or on behalf of the non-resident. for providing services or technology in India.What are the Restrictions if you Opt for the Presumptive Scheme?If a non-resident opts for the presumptive taxation scheme under Section 44BBD, they will not be able to set off unabsorbed depreciation under Section 32 or brought forward losses under Section 72.When will the Presumptive Taxation under Section 44BBD be Applicable?The presumptive taxation scheme will be applicable with effect from 1 April 2026. This means that eligible taxpayers will be able to avail of this simplified method of taxation from 1 April 2026, i.e., from FY 2026-27.Related Articles:1. Section 44ADA – Presumptive Tax Scheme for Professionals2.

MAT stands for Minimum Alternate Tax, it was introduced to ensure that large, profitable companies pay at least a minimum tax, regardless of their deductions. This provision is applicable to both domestic and foreign companies with book profits. It helps in bridging the gap between taxable income and book profits. In this article, let us explore how tax planning under MAT works.Budget 2026 UpdateAll the non-residents who pay tax on presumptive basis are exempted from MAT requirements.What is MAT?Minimum Alternative Tax is payable under section 115JB of the Income Tax Act. The concept of MAT was introduced to target those companies that make huge profits and pay the dividend to their shareholders but pay no/minimal tax under the normal provisions of the Income Tax Act, by taking advantage of the various deductions, and exemptions allowed under the Act. But with the introduction of MAT, the companies have to pay a fixed percentage of their profits as Minimum Alternate Tax. MAT is applicable to all companies, including foreign companies.

Under the new tax regime, the income tax slabs for women for FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs.

HRA full form stands for House Rent Allowance. HRA is often a part of the employee's CTC which can be used to avail tax benefits under Section 10(13A) of the Income Tax Act. Proper rent receipts and documentation are essential to claim this benefit. However, this deduction is available only under the old regime.HRA CalculationLeast of the following is exempt: Actual HRA received Rent paid minus 10% of basic pay50%  / 40% of basic pay (depending on whether metro or non-metro city)What is HRA?House Rent Allowance is a salary component paid by the company to help employees meet rental expenses. While HRA is taxable, a portion of it can be exempt under the old tax regime as per Section 10(13A) of the Income Tax Act.

The Income Tax Act not only provides provisions for imposing taxes on the income of citizens but also offers number of ways through which one can claim deductions and rebates. The deductions are allowed based on the way the taxpayers spend their income.One such deduction offered to salaried individuals is the standard deduction. You must know that salaried individuals and pensioners can claim a certain amount under standard deduction by default without any investment or spending of money by the taxpayers. The provision was taken down for a number of years and was re-introduced during the Budget announcement in 2018.Budget 2026 ExpectationsIt is expected that the standard deduction under the new tax regime might be increased to Rs. 1 lakh from Rs.

TDS stands for Tax Deducted at Source. It is a system under the Income Tax Act where tax is deducted by the payer and remitted to government, for certain payments like salary, rent, interest, and professional fees. TDS ensures timely tax collection and helps the government track taxable income throughout the financial year.What is TDS?TDS stands for Tax Deducted at Source. It is a system under the Income Tax Act where tax is deducted by the person making specified payments such as salary, rent, interest, commission, or professional fees. The person deducting tax is known as the deductor, and the person receiving the payment is the deductee.The deducted amount is deposited with the Income Tax Department against the deductee’s PAN. While the deductee receives the net payment (after TDS), the gross income is used to calculate total tax liability. The TDS deducted is credited against the final tax payable. If the total TDS is more than the actual tax liability, the excess is refunded after filing the income tax return.Applicability of TDSAny person making specified payments mentioned under the Income Tax Act is required to deduct TDS at the time of making such payments. Different types of payments are governed by different TDS provisions, and there is threshold limit is fixed for different types of payments.

Income from house property encompasses rental earnings from residential or commercial buildings, as well as adjoining land, owned by a taxpayer. Governed by Sections 22 to 27 of the Income Tax Act, it allows deductions such as the standard deduction, interest on housing loans, and property taxes. Key HighlightsHome loan interest deduction up to Rs. 2 lakh under the old regime for Self-Occupied & Let-Out type property.Home loan interest deduction of up to Rs. 2 lakh under the new regime applies only to Let-out type properties.What is Income from House Property?Income from House Property refers to rental income earned from letting out a building or land appurtenant thereto (such as parking space, garden, or courtyard). This includes residential houses, offices, shops, factories, or commercial complexes.In short, any rental income from a property owned by a taxpayer whether residential or commercial will be taxed under "Income from House Property," unless it is used for their own business or treated as business activity.As per Section 22 of the Income Tax Act, 1961, such income is taxable under the head "Income from House Property" if the following conditions are satisfied:The property must consist of a building or part of a building, along with land attached to it.The taxpayer must be the legal owner (or deemed owner under Section 27) of the property.The owner should not use the property for their own business or profession.

Surcharge is tax calculated as a percentage of income tax already payable by the taxpayer. Usually, high income taxpayers are subjected to surcharge provisions under the Income Tax Act. Those taxpayers who have just crossed the threshold limits, thereby liable to pay surcharge can claim marginal relief. Key HighlightsFor individuals, surcharge rates are as follows: 5% for income between 50 lakhs and 1 crore, 15% for income between 1 crore to 2 crore, 25% for income between 2 crore to 5 crore, and 37% for income over 5 crore (this rate does not apply to taxpayers opting for new regime)Surcharge on Income TaxIncome tax surcharge is an additional charge payable on income tax. It is an added tax on the taxpayers having a higher income inflow during a particular financial year.Surcharge Rates for Individuals Under the Old Regime and New RegimeNet Taxable Income limitSurcharge Rate on the amount of income tax (under old tax regime)Surcharge Rate on the amount of income tax (under new tax regime)Less than Rs 50 lakhsNilNilMore than Rs 50 lakhs ≤  Rs 1 Crore10%10%More than Rs 1 Crore ≤  Rs 2 Crore15%15%More than Rs 2 Crore ≤  Rs 5 Crore25%25%More than Rs 5 Crore37%25%Note:Surcharge for AOPs having only companies as its members to 15%. It is applicable to AOPs whose total income during the financial year exceeds Rs 1 crores. Surcharge on Capital GainsSurcharge has been capped at 15% on dividend income and Capital gains covered under section 111A, 112 and 112A.IllustrationLets understand this concept through an example:Mr.

ITR filing last date for individuals not subject to tax audit is 31st July 2026 & 31st August 2026 as applicable for FY 2025-26 (AY 2026-27). Missing this deadline can lead to interest charges under Section 234A and a late filing fee up to Rs. 5,000 under Section 234F. However, if you miss the due date, you can still file a belated return until 31st December of the assessment year.Budget 2026 UpdateThe due date to file revised returns has been extended to 31st March from the existing 31st December. Due date to file ITR-3 and ITR-4 extended to 31st August with effect from FY 2025-26 (AY 2026-27)Last Date to File ITRFor FY 2025-26 (AY 2026-27), the income tax filing last date for non-audit taxpayers is 31st July 2026 for ITR-1 & ITR-2. For non-audit taxpayers required to file ITR-3 & ITR-4 the due date is 31st August 2026.

The purpose of this act is to simplify the complex Income Tax Act of 1961. The new laws aims at simplification of tax provisions, removal of redundant sections, and keep pace with the evolving technology and economic environment. The new Income Tax Act 2025 come into force from 1st April 2026.Budget 2026 UpdateIncome Tax Act 2025 will come into effect from 1st April 2026 as proposed in the budget.The due date to file ITR-3 & ITR-4 for non-audit cases has been extended to 31st August.The due date to file revised return has been extended to 31st March from the existing 31st December. Purpose of the New Income Tax actIn the Budget Speech of 2024, Finance Minister Nirmala Sitharaman revealed the government's intention to scrutinise the Income Tax Act, 1961 in totality. Through this scrutiny, the Act was to be made more concise so that the taxpayers could easily read and understand it.The primary objective mentioned by the Minister is to reduce disputes and litigation involving the tax system. The government would thereby enhance tax certainty with the promise of offering clarity and ease of compliance for taxpayers. After the announcement, the Income Tax Department launched a public consultation process where taxpayers could propose changes they would like to see in the new law.