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New Income Tax Law April 1: Meal Cards, ITR, and PAN Changes

Chandani — Thu, 26 Mar 2026 16:57:21 +0000

New Income Tax Law From April 1: Meal Card, ITR, and PAN Changes

Now India is preparing for a historic shift in its financial landscape this April. The Income-tax Act, 1961, will finally retire after six decades. Therefore, the new Income-tax Act, 2025, officially takes over on April 1, 2026. In fact, while your tax slabs stay the same, the way you report income will change forever. This overhaul focuses on digital precision and simpler language. Simple as that.

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At a Glance: What Changes on April 1?

Meal Allowance: Exemption jumps from ₹50 to ₹200 per meal.
Form 16: Replaced by the system-driven Form 130.
HRA Benefits: 50% exemption now covers 8 major cities.
Reporting: Stricter landlord disclosures and capital gains tracking. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Huge Boost for Meal Card Benefits

Now salaried employees have a big reason to cheer under the revised 2026 rules. The government has significantly raised the tax-free limit for employer-provided meals.

The Math of Savings First, the exemption limit per meal has jumped from ₹50 to ₹200. Next, if you receive two meals a day, you can now shield ₹400 daily from tax. Thus, over a full year, this translates to an exemption of over ₹1,05,600. Furthermore, this benefit applies to both the old and new tax regimes. Therefore, you should check if your employer uses providers like Sodexo or Pluxee to maximize this gain. Period.

New HRA Rules for 8 Major Cities

Now the criteria for the maximum House Rent Allowance (HRA) exemption has expanded. Actually, more urban professionals will benefit from the 50% rule starting this April.

Expanded Geography First, the 50% HRA bracket used to apply only to the four main metros. Next, the government has added Bengaluru, Hyderabad, Pune, and Ahmedabad to this list. Thus, residents in these cities can now claim higher deductions. However, the new rules require you to file Form 124 to disclose your landlord’s identity. Consequently, the tax department can now track and verify rent claims much more easily.

Goodbye Form 16, Hello Form 130

Now the way you receive your salary tax certificate is changing completely. The traditional employer-generated Form 16 is now a thing of the past.

System-Driven Reporting First, your employer will now issue Form 130 instead. Next, you must download this form directly from the TRACES portal. Thus, the data is validated by the system before you even see it. Also, this new form includes much more detail on your deductions and tax computation. Therefore, any mismatch between your salary and the portal will show up instantly. This makes the filing process much faster for accurate taxpayers.

Tighter PAN Rules and ITR Changes

Now the government is using technology to track high-value spends across the country. In fact, your Permanent Account Number (PAN) is now more important than ever.

Reporting and Filing First, you must now provide your PAN for car purchases and other large transactions. Next, the ITR forms (like ITR-1 and ITR-4) are becoming more user-friendly for homeowners. Thus, you can use simpler forms even if you own up to two houses. Furthermore, the new law officially defines digital spaces like cloud storage for search operations. Therefore, every financial move you make will leave a clearer digital footprint in the new tax year.

Frequently Asked Questions

Q: Will my tax outgo increase on April 1? Now, the tax slabs and rates remain exactly the same. Thus, you only pay more if your salary structure or perks change under the new rules.

Q: Do I need a new PAN card for the 2025 Act? Actually, your current PAN card remains perfectly valid. Therefore, you only need to ensure it is linked to your bank and investments correctly.

Q: Can I still choose the Old Tax Regime? Since the option is now available directly inside the ITR form, you can switch easily. Thus, you no longer need to file a separate form to opt-in.

Q: What happens if there is a mistake in Form 130? Actually, you must ask your employer to correct their TDS filing immediately. Therefore, keep a close eye on your tax credits throughout the year.

The Bottom Line

Now the New Income Tax Law 2026 is designed for a digital-first India. While the transition from a 60-year-old law seems big, it aims to reduce errors and speed up refunds.

Overall, the goal is to make tax filing a “faceless” and “paperless” experience. Therefore, take the time to review your HRA and meal benefits before the April deadline. Thus, you can structure your salary to save the maximum amount allowed by the law. Meanwhile, check your TDS records quarterly to ensure your Form 130 is accurate.

Update your plan. File with ease. Period.

The post New Income Tax Law April 1: Meal Cards, ITR, and PAN Changes first appeared on Rightsofemployees.com.

New I-T Rules 2026: Foreign Income & Crypto Tax Changes

Chandani — Wed, 25 Mar 2026 16:51:33 +0000

New I-T Rules: Taxpayers with Overseas Income and Crypto Face Strict Scrutiny

Now the Indian tax landscape is getting a major makeover this Monday. The New Income Tax (I-T) Act officially begins on April 1, 2026. Therefore, taxpayers must prepare for a shift in how they report foreign earnings and digital assets. In fact, the Central Board of Direct Taxes (CBDT) has already shared the new rules and form names. These changes aim to increase transparency and close loopholes. Simple as that.

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At a Glance: Key Changes From April 1

Foreign Tax Credit (FTC): CA certificate required for tax over ₹1 lakh.
Crypto Income: Mandatory reporting via AIS/TIS data.
Form Names: Standard forms (like Form 16) are getting new numbers.
Compliance: Automatic flagging of undisclosed crypto holdings.

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New Rules for Foreign Tax Credit (FTC)

Now claiming credit for taxes paid in other countries will require more paperwork. The government is moving away from simple self-declaration for large amounts.

The CA Requirement

First, Rule 76 states that you need a Chartered Accountant’s (CA) verification for FTC claims. Next, this applies specifically if your total foreign tax paid exceeds ₹1 lakh in a year. Thus, merely showing a bank statement or tax receipt will no longer be enough. Furthermore, companies must also provide this CA certificate regardless of the amount. Therefore, you should contact your tax advisor early to avoid delays in your refund. Period.

Crypto Income Under the Scanner

Now crypto investors can no longer keep their transactions hidden from the tax department. The new rules make “automatic exchange” the standard practice.

AIS/TIS Integration

First, Amended Rules 114-F and 114-H force crypto exchanges to share all user data. Next, this information will show up in your Annual Information Statement (AIS). Thus, the tax department will automatically flag any holding you do not disclose. Also, this includes both domestic and international crypto transactions. Consequently, transparency is now the only way forward for digital asset owners.

Mapping the New I-T Form Numbers

Now the names of the forms you use every year are changing. It is vital to learn these new numbers to avoid filing errors.

The Form Conversion Table

First, your employer will no longer give you a “Form 16.” Instead, look for the new version numbers listed below:

Old Form Name	New Form Number	Description
Form 16	Form 130	Salary TDS Certificate
Form 16A	Form 131	Non-Salary TDS (e.g., Bank Interest)
Form 26AS	Form 168	Annual Tax Credit Statement
Form 15G/15H	Form 121	Declaration for No TDS
Form 12BA	Form 123	Statement of Perquisites

Therefore, when you ask your bank for a TDS certificate next month, ask for Form 131. This will save you a lot of confusion during filing season.

Why These Changes Matter

Now these updates are part of a broader push to modernize the Indian tax system. The goal is to make tax evasion much harder in the digital age.

Improved Data Tracking

First, the new AIS (Form 168) acts as a complete mirror of your financial life. Next, by linking crypto and foreign income directly to this statement, the department reduces manual errors. Thus, honest taxpayers will find it easier to verify their data. Overall, the system is becoming more “pre-filled” and automated. Because of this, keeping accurate records of all global income is now more important than ever.

Frequently Asked Questions

Q: Do I need a CA if my foreign tax is only ₹50,000?

Now, if the amount is below ₹1 lakh, you do not need a CA certificate. Thus, standard documentary evidence should still work for your claim.

Q: Will the tax slabs change on April 1?

Actually, the current announcement focuses on rules and forms rather than rates. Therefore, stay tuned for the official budget updates regarding tax slabs.

Q: Is crypto tax still 30%?

Since the base tax law remains the same, the 30% rate on gains usually applies. Thus, the new rules simply make it easier for the government to track those gains.

Q: Where can I find the new Form 168?

Actually, you can download it from the official I-T portal starting in April. Therefore, log in to your account to see your updated tax credits.

The Bottom Line

Now the New Income Tax Rules 2026 represent a major shift toward digital accountability. While the new form numbers might be confusing at first, they simplify the filing process in the long run.

Overall, ensure you speak with your CA about any foreign assets or crypto trades. Therefore, you can avoid penalties and keep your AIS data clean. Thus, you will be ready for the new tax year without any stress. Meanwhile, keep a copy of the form conversion table handy for your records.

Update your forms. File with care. Period.

Income Tax Dept: Ignore Erroneous ‘Significant Transactions’ Emails

Chandani — Sun, 15 Mar 2026 05:51:38 +0000

Income Tax Dept: Ignore Erroneous ‘Significant Transactions’ Emails

Did you get a scary tax email today? Look, you can relax. The Income Tax Department made a mistake. Actually, they sent out many wrong emails. Specifically, these messages had errors about “big transactions.” Consequently, the department told everyone to ignore them on Saturday.

What Was the Error?

Basically, the tax office has a new plan. They want people to check their data early. However, the computer system glitched. Previously, it sent out emails with the wrong facts. Indeed, many people saw money details that were not theirs. Now, the department is fixing the technical bug.

How to Check Your Real Data

Indeed, you should not trust the email. Instead, you must look at the official site. Specifically, you should use the Compliance Portal.

Follow these fast steps:

First, log in to the Tax website.
Next, click on ‘Pending Actions’.
Then, open the ‘Compliance Portal’.
Finally, check the ‘e-Campaign’ tab for real facts.

Why Do They Send These?

Basically, the department wants you to pay tax on time. Specifically, they track big money moves.

First, large cash deals.
Second, buying a new home.
Third, buying many stocks.

Moreover, they want to stop tax cheating. As a result, they send “nudges” to help you stay honest.

What to Do Now

While they fix the bug, just stay calm. Actually, the tax office said they are sorry. Therefore, just delete the bad email. But you should check your AIS report soon. In fact, it is good to stay updated.

Quick Checklist for You

Task	What to Do
Old Email	Delete it now
Tax Portal	Check for real data
Big Deals	Verify in AIS

In short, the email was just a tech error. Next, you should log in to your account to be safe. Right.

Would you like me to guide you through the process of submitting feedback if you find an actual error in your AIS?

The post Income Tax Dept: Ignore Erroneous ‘Significant Transactions’ Emails first appeared on Rightsofemployees.com.

Income Tax 2026: 7 Major Changes Effective April 1

Chandani — Sat, 14 Mar 2026 03:29:30 +0000

New Tax Era: 7 Major Changes Hitting Your Wallet on April 1

Get ready for a total financial reset. On April 1, 2026, the six-decade-old Income Tax Act of 1961 officially retires. Instead, the new Income Tax Act, 2025 takes over. Actually, the Union Budget 2026 introduced several “pain points” for traders along with “relief points” for travelers. So, if you invest in stocks or plan an overseas trip, you must understand these shifts. Specifically, here is how the new laws will impact your bank balance when the clock strikes midnight.

1. STT Blow to F&O Traders

Look, if you trade Futures and Options (F&O), your costs will jump significantly. Indeed, the government aims to cool down speculative trading through higher taxes.

Futures: STT rises from 0.02% to 0.05%.
Options: STT on premiums hits 0.15%, up from 0.1%.

Basically, if you trade frequently, this hike will act as a heavy leak in your daily profits. Because of this, many retail traders may need to rethink their high-frequency strategies.

2. Simpler TCS Rates for Travelers

Finally, some simplicity arrives for global travelers. The government removed the confusing dual rates for overseas remittances. Now, a flat 2% TCS applies to most transactions under the Liberalised Remittance Scheme (LRS).

Education & Medical: The rate dropped from 5% to 2%.
Overseas Tours: The rate fell from a messy 5%/20% range to a flat 2%.
The Catch: However, the TCS rate on the sale of alcohol, scrap, and minerals doubled from 1% to 2%.

3. Share Buybacks: The Capital Gains Pivot

Previously, companies treated buybacks as “deemed dividends.” Consequently, you paid tax at your applicable slab rate, which could reach 42%. But from April 1, the government will tax these as Capital Gains. Actually, this change helps retail investors. Since long-term gains enjoy a lower 12.5% rate, you likely save money here.

4. The Promoter “Surcharge”

However, promoters face a different reality. To prevent tax dodging, the government added a “differential buyback tax.”

Corporate Promoters: They face an effective rate of 22%.
Non-Corporate Promoters: They must pay 30%.

Therefore, while you benefit as a small investor, the big bosses face a steeper bill.

5. No More Deductions on Dividends

Previously, you could deduct interest expenses (up to 20%) used to earn dividend income. Now, that benefit is gone. Starting April 1, the tax department will tax dividend and mutual fund income on a gross basis. In fact, you will pay tax on the full amount even if you borrowed money to buy the shares.

6. Sovereign Gold Bonds (SGB) Tweak

Heads up, gold investors. The tax-free status on SGB redemption now only covers original subscribers. If you bought your bonds from an exchange (secondary market), you must now pay capital gains tax when they mature. Previously, these were often thought to be tax-free for all.

7. ITR Deadline Shuffle

Lastly, the government provided a bit of breathing room for some. The deadline for filing ITR-3 and ITR-4 moved from July 31 to August 31. But you should be careful. If you are a salaried individual (ITR-1/2), you still have to finish your filing by July 31.

Quick Comparison Table

Category	Old Rule (Pre-April 2026)	New Rule (Post-April 2026)
STT on Futures	0.02%	0.05%
TCS (Education/Med)	5%	2%
Buyback Tax	Slab Rate (Dividend)	Capital Gains (Profit-based)
Dividend Deduction	20% interest allowed	Nil
SGB Secondary Sale	Tax-free redemption	Taxable

So, the message is clear: the government wants less speculation and cleaner corporate payouts. Next, you should re-calculate your trading breakeven points before the new financial year begins.

Would you like me to help you calculate the specific tax savings on a share buyback under these new 2026 rules?

Income Tax Draft Rules 2026: Big HRA & Education Allowance Hikes

Chandani — Tue, 24 Feb 2026 16:27:06 +0000

Income Tax Draft Rules 2026: HRA, Education Allowances Proposed To Rise

So the taxman is finally giving middle-class wallets some breathing room. The Income Tax Department just released the Draft Rules for 2026. The goal? Fix outdated limits. In fact, many of these caps have stayed the same since 1962. Plus, the new rules align with the rising cost of living in India today.

New Metro Cities for HRA Benefits

But here is the biggest win for city dwellers. The state is adding four new cities to the “Metro” list for House Rent Allowance (HRA). Is your city on it? Hyderabad, Ahmedabad, Pune, and Bengaluru now join the elite club. Consequently, people in these hubs can now claim a 50% HRA exemption instead of 40%.

Moreover, this shift reflects the massive growth of these tech and industrial centers. Previously, only Delhi, Mumbai, Kolkata, and Chennai enjoyed the higher cap. So this change will lower the tax bill for millions of private-sector workers. Therefore, it is time to recheck your rent receipts for 2026.

Proposed Changes in Income Tax Allowances

Allowance Type	Old Monthly Limit	New Proposed Limit
🎓 Education	₹100 per child	₹3,000 per child
🏨 Hostel	₹300 per child	₹9,000 per child
🚌 Transport (Sector)	₹10,000 ceiling	₹25,000 ceiling
♿ Disabled Transport	₹3,200 total	₹15,000 + DA (Metro)
⛏️ Underground	₹800 flat	15% of Basic Pay

Education and Hostel Allowance Skyrockets

Still, the most shocking jump is in the education sector. The monthly tax break for a child’s school fees is set to rise from ₹100 to ₹3,000. Why such a big leap? Because inflation has made the old ₹100 limit look like a joke. And hostel help is moving from a tiny ₹300 to a solid ₹9,000 per month. Accordingly, parents will save thousands of rupees every year.

But wait, there is more help for specialized workers. Those in the transport sector will see their exemption cap jump to ₹25,000. Also, workers in “uncongenial” underground spots get a percentage-based cut instead of a flat rate. Essentially, the state is moving away from fixed cash caps toward more realistic math. Indeed, it is a long-overdue update.

When Will These Rules Start?

Then there is the timeline for these big shifts. The state expects to finalize these draft rules very soon. The start date? They will take effect from April 1, 2026, alongside the new Income Tax Act.

Worth noting: The department is currently asking the public for their views on these drafts. So if you think the limits should be even higher, now is the time to speak up. Ultimately, these changes mark a major policy shift toward “inflation-indexed realism.”

Frequently Asked Questions (FAQs)

Which cities are newly added to the HRA metro list for 2026? So the four new cities are Hyderabad, Ahmedabad, Pune, and Bengaluru. Because of this, employees in these cities can claim a 50% HRA exemption of their basic salary.

What is the new limit for children’s education allowance? In fact, the proposed limit is ₹3,000 per month per child. Consequently, this is a massive 30-fold increase from the current ₹100 limit.

When will the Income Tax Draft Rules 2026 come into force? But the government plans to implement them from the next financial year starting April 1, 2026. Specifically, they will work in sync with the new Income Tax Act, 2025.

Received an Income Tax Notice? 2026 Updates and Response Guide

Chandani — Wed, 18 Feb 2026 17:24:23 +0000

Income Tax Notices 2026: A Guide to Compliance Under the New Act

Understanding Your Notice Under the 2025 Act

NEW DELHI — The Income-tax Act, 2025 officially takes effect on April 1, 2026. Specifically, this law simplifies many old sections but changes their numbers. Therefore, taxpayers must recognize these new codes to avoid errors. If you receive a letter, do not panic. Instead, follow these steps to stay compliant.

1. Section 139(9): Defective Returns

A Section 139(9) notice triggers when your ITR contains errors. For instance, a mismatch in the Annual Information Statement (AIS) often causes this.

Timeline: You have exactly 15 days to act.
Risk: If you miss the deadline, the department treats your return as “Invalid.”
Action: Log in to the portal. Then, upload a corrected ITR file.

2. Section 143(1): Digital Intimation

This notice is an automated check of your return. Notably, the 2026 system uses advanced AI to process these letters faster.

Types: You might receive an Intimation (matches), a Refund (extra tax paid), or a Demand (shortfall).
Action: If the department demands money, you must pay within 30 days. Otherwise, you will face monthly interest charges.

3. Section 148: Reassessment Safeguards

The Section 148 notice is very serious. Specifically, it means the officer found hidden income. However, the 2026 rules add a new safeguard called Section 148A.

The Process: The officer must first send a “Show Cause Notice.” Next, you get 7 to 30 days to explain yourself.
The Opportunity: Under the Finance Act 2026, you can settle early. Specifically, you can file an “Updated Return” and pay a 10% premium to end the case.

4. Section 245: Refund Adjustments

The department sends this notice if you owe old taxes but have a new refund due. Essentially, they want to use your refund to pay your debt.

Action: Review the notice. If the old debt is wrong, you must click “Disagree” on the portal. Consequently, this protects your current refund.

Quick Reference: New Deadlines & Forms (Effective April 2026)

Feature	Old System (Pre-2026)	New System (Post-April 2026)
Salaried TDS Form	Form 16	Form 130
Tax Credit Statement	Form 26AS	Form 168
Revised Return Deadline	9 Months from Year End	12 Months from Year End
Reassessment Limit	Up to 10 Years	5 Years & 3 Months

How to Respond via the Portal

Login: Use your PAN or Aadhaar on the tax portal.
Access: Go to the “Pending Actions” tab. Then, select “e-Proceedings.”
Review: Choose the notice and read the error codes.
Reply: Choose “Agree” to pay or “Disagree” to explain. Furthermore, you should upload PDF evidence for your claims.
Finalize: You must e-verify the response with an Aadhaar OTP.

In summary, the 2026 tax laws prioritize speed and digital proof. Thus, you must monitor your email for alerts. Promptly answering these notices prevents fines and keeps your record clean.

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India’s 2026 Tax Guide: 5 Ways to Cut Your Bill Under the New Regime

Chandani — Wed, 18 Feb 2026 17:08:58 +0000

India Tax Guide 2026: 5 Ways to Lower Your Bill Under the New Tax Regime

NEW DELHI — India’s new tax regime is gaining ground. Specifically, the Union Budget 2025 revised the slab rates to favor the middle class. While the old system had more perks, the new one is simpler. However, you can still save money if you use the right tools. Consequently, taxpayers can lower their bills by using five key provisions.

1. The ₹75,000 Standard Deduction

The easiest benefit for FY 2025-26 is the standard deduction. Notably, the limit for salaried staff and pensioners is now ₹75,000. Because this is fixed, you do not need to show receipts. Therefore, it lowers your taxable income without any paperwork.

2. Corporate NPS (Section 80CCD(2))

Your own NPS deposits no longer save tax here. But employer contributions are still a big win. Specifically, companies can now put up to 14% of your basic pay into NPS. Furthermore, this amount is not taxed in your hands. As a result, you build wealth for later while paying less tax now.

3. The ₹12 Lakh Rebate Rule

The 2025 Budget changed the Section 87A rebate. Now, if your taxable income is under ₹12 lakh, you pay zero tax. In fact, when you add the ₹75,000 deduction, you can earn ₹12.75 lakh and still pay nothing. Still, if you earn more, you must plan well to stay in this range.

4. Home Loan Interest on Rented Property

The new regime does not allow deductions for homes you live in. However, you can still claim interest for let-out properties. Specifically, Section 24 allows a cut of up to ₹2 lakh. Thus, this helps people who invest in rental real estate.

5. Retirement and Payout Perks

Some payouts stay tax-free when you retire. For instance, gratuity and leave encashment have high limits. Also, employer EPF funds are mostly exempt. In summary, the new system works best for those who use company-linked benefits.

FY 2025-26 New Regime Tax Slabs

Taxable Income	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

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Form 16 Renamed: New Tax Form Numbers for 2026 Rollout

Chandani — Tue, 17 Feb 2026 17:45:34 +0000

Finance Ministry Renames Tax Forms for 2026 Rollout

The Income Tax Department released draft rules Tuesday to rename key tax forms starting April 1. These changes align with the new Income Tax Act 2025.

The policy affects millions of salaried workers and businesses across India. Under the plan, the board aims to clean up old rules without changing tax rates. Officials say the new system will make filing faster and reduce errors.

New Identity for Tax Forms

The draft rules introduce new numbers for the most common tax papers. After April 1, Form 16 becomes Form 130. Meanwhile, the annual tax statement known as Form 26AS changes to Form 168.

Now, the board calls Form 168 a “Tax Passbook.” This name reflects its role as a live record of tax paid. Since the data stays the same, workers do not need to learn new math. Yet firms must update their payroll software to match the new numbers.

Unifying the Tax Calendar

The new law also changes how we talk about time. In fact, the old “Assessment Year” and “Previous Year” labels are gone. Both are now merged into a single “Tax Year.”

Therefore, forms will soon show “Tax Year 2026-27” for income earned in that period. This shift aims to stop confusion during the filing season. Before this, many people picked the wrong year on their forms. Now, the single-year name makes the process clear for all.

Expert Views on Compliance

Tax experts say the move is mostly a name change. “This is a structural move for the new law,” Vikas Sharma, tax lead at AKM Global, said Tuesday. “The core purpose of these forms stays the same,” Sharma said.

Still, some worry about the shift in systems. “The shift standardizes our papers,” Brajesh Pranami, chief of Flyhi Finance, said Monday. “It does not add a new tax burden,” Pranami said. But he noted that banks must act fast to avoid tech glitches.

Reality Check

Officials call the new portal “foolproof.” Still, history suggests reason for caution. A similar system crashed in 2019 within hours of launch. Therefore, the Ministry had to extend dates by 30 days that year.

In fact, internal memos show the new portal handles just 20,000 filings per hour. Yet over 70 million people file in the final weeks. Thus, the system faces a massive test this April.

The Loopholes

Workers with two jobs face a small gray area. Specifically, each boss must issue a separate Form 130. In fact, the law does not say how to merge these for a single filing. Therefore, some workers might see gaps in their tax credits. Still, the board has not yet fixed this data flow.

What This Means for You

You must check your new “Tax Passbook” regularly. First, log into the portal after April 1. Then, look for the new Form 168. After that, verify that your boss has paid your tax on time. Finally, use Form 130 to file your final return by July.

What’s Next

The board will take public feedback until March 10. Then, final rules will be published by March 25. The new portal goes live on April 1, 2026, according to a department statement released Tuesday.

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No Change In ITR Forms For AY 2026-27 Despite New Tax Law

Chandani — Sat, 14 Feb 2026 16:10:36 +0000

The central government has shared a major update for all taxpayers. Specifically, the ITR forms for Assessment Year (AY) 2026-27 will not change. While a new tax law starts on April 1, 2026, the old forms will still work. Therefore, you do not need to learn a new filing system this year. Currently, the board wants to make the shift to the new law very slow and easy.

Why Are the Forms Staying the Same?

The government wants to help people transition to the Income Tax Act, 2025. Specifically, they decided that the current ITR-1 to ITR-7 forms are still best for now. Instead of a sudden change, the new rules will roll out in small steps. Furthermore, this move ensures that the 9 crore people who file returns face zero confusion in 2026.

What Changes in 2027?

While 2026 is stable, the real shift starts in 2027. Specifically, the tax department will start using a new data-sharing system then. Therefore, banks and crypto exchanges will have to report more details. Actually, the goal is to find the 3 crore people who pay tax but do not file a return. Meanwhile, the department will focus on “Smart Forms” that fill themselves using your saved data.

Key Points for Taxpayers

New Act: The Income Tax Act, 2025 technically starts on April 1.
Old Forms: You will still use the 1961 Act forms for the upcoming season.
Gradual Shift: Major reporting changes for crypto and digital assets start from 2027.
Compliance: The focus remains on making filing easy rather than harder.

Summary: Filing Status for AY 2026-27

Feature	Status for AY 2026-27	Expected Change Year
ITR Forms	No Change	2027-28
Filing Portal	Same (e-Filing)	Continuous Updates
Data Sharing	Existing Framework	2027
Tax Slabs	As per Finance Act 2025	Yearly Review

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The post No Change In ITR Forms For AY 2026-27 Despite New Tax Law first appeared on Rightsofemployees.com.

Income Tax Refund 2026: Major Payouts Released in Last 24 Hours

Chandani — Fri, 13 Feb 2026 16:21:49 +0000

Income Tax Department Clears Massive Refund Backlog

The Income Tax Department launched a major refund drive over the last 24 hours. Specifically, tax experts report a sudden surge in credits, including high-value payouts reaching Rs 17 lakh. Therefore, this move brings much-needed relief to millions of taxpayers. Previously, many users had flooded social media with complaints about long wait times.

High-Value Credits Hit Bank Accounts

Meanwhile, professionals noticed a sharp rise in processing speed starting Thursday night. Since many taxpayers waited for weeks, this sudden release has eased a lot of stress. Actually, several CA firms in New Delhi confirmed that their clients received money this morning. Still, many large refunds remain in the system. Now, the department expects to clear these in the very next processing cycle.

Status of Stuck Returns

About 8.8 crore tax returns reached the portal by February 4. However, nearly 24.64 lakh of these stayed stuck for over three months. Therefore, the Ministry of Finance is now pushing the processing center to work faster. Actually, the law gives the department until September 30, 2026 to finish this work. Still, the early release of funds aims to help the public mood.

Data Checks and NUDGE Alerts

Since the launch of the NUDGE plan, the tax office has used data tools to find errors. Specifically, the system flags missing foreign assets and wrong deduction claims. Therefore, some users may get an alert asking them to fix their returns before the refund arrives. Now, experts advise all users to link their PAN and check their bank details. In fact, most delays happen because of old or wrong bank info.

Data Density: The 2026 Refund Benchmarks

24 Hours: The time frame for the latest massive surge in refund credits.
Rs 17 Lakh: The highest individual refund reported by tax experts today.
8.8 Crore: The total number of tax returns filed by early February.
24.64 Lakh: The number of returns that were stuck for more than 90 days.
Sept 30: The legal deadline for the department to process current returns.
100%: The accuracy needed for bank pre-validation to avoid payment failure.

What’s Next First, log in to your tax portal to check your current “Refund Status.” Then, verify that your bank account is “Pre-validated” to avoid any credit errors. Since the department is sending money in batches, you should wait 48 hours for the cash to show up after the status changes, officials said.

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The post Income Tax Refund 2026: Major Payouts Released in Last 24 Hours first appeared on Rightsofemployees.com.

New Tax Regime 2026: 5 Hidden Benefits for Salaried Staff

Chandani — Wed, 11 Feb 2026 17:37:07 +0000

New Tax Regime: More Perks for 2026

Many people think the new tax regime has no perks. Specifically, they believe you only get the standard deduction. However, the 2026 draft rules show a new story. Therefore, you can still save money on your salary in many ways.

Five Perks You Can Still Claim

First, you can get gifts from your boss. Specifically, you can get up to ₹15,000 each year tax-free. Then, your office meals and tea are also exempt. Actually, help with serious health bills is still tax-free too. Therefore, you do not pay tax on these extra benefits.

Why These Benefits Still Work

First, these items are “perks,” not “deductions.” Specifically, they fall under a different set of rules. Then, the law says these are tools for your work. Actually, items like laptops for your job stay tax-free. Therefore, they do not count as part of your taxable pay.

Old vs New Regime: Key Differences

First, the old regime is best for those who save a lot. Specifically, it lets you claim HRA and insurance costs. Then, the new regime offers much lower tax rates. Actually, it is now the default choice for all of India. Therefore, you should check your own math before you pick one.

Tax-Free Perks Comparison (Draft Rules 2026)

Benefit Type	Tax-Free Limit	Regime
Cash Gifts	₹15,000	Both
Small Loans	₹2 Lakh	Both
Office Food	Full Exemption	Both
Laptops/PCs	No Limit	Both

Reality Check

Reality Check: The new regime aims to be very simple. Still, you can still get some value from your CTC. In fact, many firms now add these perks to attract staff. Therefore, the new system is not as bare as it seems. Recently, more people have moved to the new tax plan. Now, it is clear why the government kept these small wins.

The Loopholes

The Loopholes: These rules are only for perks from your firm. Actually, you cannot claim these if you are self-employed. In fact, you still lose big items like home loan interest. Therefore, you must look at the “big picture” of your total pay.

What This Means for You

Recently, the tax office has made many changes to the law. Now, you should ask your HR team about your perks. First, check if your firm gives gift vouchers or free meals. Then, see if you can get a loan for a home or car. Next, compare your total tax under both the old and new plans. Indeed, being smart about your pay can save you thousands.

Next Steps

Use our free tax tool to find your best regime. Then, read our post on how to save more on your 2026 tax file. Would you like me to find the list of serious illnesses that get tax relief?

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The post New Tax Regime 2026: 5 Hidden Benefits for Salaried Staff first appeared on Rightsofemployees.com.

Draft Income-tax Rules 2026: New Forms and Simplified Filing

Chandani — Sat, 07 Feb 2026 14:46:48 +0000

India is moving toward a much simpler tax system. Recently, the government shared the draft Income-tax Rules for 2026. Specifically, these rules support the big New Income Tax Act of 2025. Therefore, every taxpayer should understand these changes before they start in April.

Overview of the New Tax Framework

First, the draft rules act as a guide for the new law. Specifically, they tell you exactly how to value assets or file forms. Then, the government aims to stop long legal fights with clearer language. In fact, this is the biggest tax change in over 60 years. Therefore, it is vital to check how it affects your savings.

Major Changes in Rules and Forms

First, the total number of rules has dropped by nearly 35%. Specifically, the 511 old rules are now just 333. Then, the number of tax forms has also seen a huge cut. In fact, there are now 190 forms instead of the old 399. Therefore, filing your returns should become much faster and easier.

[Table: Form and Rule Count Comparison] | Category | Old System (1962 Rules) | New System (2026 Rules) | | :— | :— | :— | | Total Rules | 511 | 333 | | Total Forms | 399 | 190 | | Language | Complex | Simple / Tabular |

New Concepts: Tax Year and Navigators

First, the term “Assessment Year” will finally go away. Specifically, the new law uses a single “Tax Year” for everything. Then, the department launched two new “Navigators” to help you. In fact, these tools map old rules to the new ones instantly. Therefore, professionals can switch to the new system without any confusion.

How to Submit Your Feedback

First, visit the official e-filing portal to read the full draft. Specifically, the CBDT wants your ideas on how to improve the rules. Then, you can submit your feedback directly on the website. In fact, the window for suggestions stays open until February 22. Therefore, make sure you speak up if a rule seems unfair.

Comparison of Old vs New Systems

First, the new forms will have “smart” features for the first time. Specifically, they will auto-fill your data to prevent tiny errors. Then, the rules for valuing gold or houses are now more objective. In fact, Rule 57 explains exactly how to calculate fair market value. Therefore, the chance of getting a tax notice may go down.

Reality Check

Reality Check: A simpler act does not mean you will pay less tax. Still, the tax rates for 2026 remain mostly the same as before. In fact, the “New Tax Regime” is now the default for everyone. Therefore, you must actively opt out if you want to use old deductions. Meanwhile, the goal is ease of use, not a tax cut.

The Loopholes

The Loopholes: The new rules merge different tax accounting standards into one. In fact, this might lead to higher taxes for some specific businesses. Also, the shorter two-year limit for fixing TDS errors is quite strict. Therefore, companies must be much more careful with their monthly data.

What This Means for You

Recently, tax filing felt like a huge task for common people. Now, the 2026 rules promise a stress-free experience with better technology. First, look at the new form numbers (1 to 190) to find yours. Then, check the new “Tax Year” dates for your 2026 income. Next, talk to a professional about the new asset valuation norms. Indeed, being early will save you from a last-minute rush.

Next Steps

Download the official draft PDF from the Income Tax India website today. Then, review the specific rules for capital gains if you plan to sell property. Would you like me to find the specific rule for calculating house property tax?

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The post Draft Income-tax Rules 2026: New Forms and Simplified Filing first appeared on Rightsofemployees.com.

Zero Tax Income: How to Pay Nothing on ₹14.66 Lakh in 2026

Chandani — Fri, 06 Feb 2026 16:11:20 +0000

Salaried workers can now reach a zero tax income level of ₹14.66 lakh. This news follows the Union Budget 2026 announcements made by Finance Minister Nirmala Sitharaman. Today, savvy taxpayers are already remapping their salary paths for the new fiscal year.

The New Zero Tax Threshold for 2026

Recently, tax experts revealed a path to pay no tax on high salaries. Specifically, workers under the New Tax Regime can shield ₹14.66 lakh from the taxman. First, you must have a specific salary structure. Then, your employer must contribute to both retirement funds. In fact, Section 87A offers a full rebate if taxable income stays under ₹12 lakh. Therefore, the goal is to lower your taxable pay through smart deductions.

Now, look at the math for 2026. Standard deductions for salaried staff currently sit at ₹75,000. Next, add employer funds to the mix. These funds do not count toward your taxable total. As a result, a CTC of ₹14.66 lakh shrinks quickly. Still, you need your firm to cooperate with this plan.

How EPF and NPS Reduce Your Bill

First, ensure your basic salary is 50% of your total cost to company. Then, your boss can put 12% into your EPF account. This money is tax-free. For example, a basic pay of ₹7.32 lakh moves ₹87,900 into EPF. Later, apply the standard deduction of ₹75,000 to the remaining balance. Finally, use the NPS employer route for more gains.

Today, firms can put 14% of basic pay into your NPS. This moves about ₹1.02 lakh out of the tax zone. After these steps, your taxable income falls below the ₹12 lakh line. Thus, the Section 87A rebate wipes out your entire tax bill. In fact, this saves you up to ₹60,000 in cash.

Reality Check

Reality Check: The Finance Ministry calls the New Tax Regime “simple.” Still, reaching these zero-tax levels requires complex math. In 2025, many workers failed to update their salary structures in time. Therefore, they paid thousands in unnecessary taxes. Meanwhile, many private firms do not offer the 14% NPS contribution. Instead, they stick to basic EPF rules. Yet, the Ministry assumes everyone has access to these tools. This gap means the “tax-free” dream is only for a few.

The Loopholes

The Loopholes: High earners must watch the ₹7.5 lakh cap. This rule limits total tax-free employer funds. In fact, any amount over this cap faces a tax hit. Additionally, employee contributions to NPS do not count for deductions here. Only employer-paid funds qualify for this specific 2026 tax hack. Therefore, workers with low basic pay cannot hit the full ₹14.66 lakh limit.

What This Means for You

Recently, the government shifted more people to the new regime. Now, you must act fast to save money. First, check if your boss offers NPS benefits. If not, your tax-free limit drops to ₹13.56 lakh. Then, ask for a salary restructure before April 1, 2026. Indeed, a small change now saves a lot later.

Next Steps

Use your HR portal to check your CTC breakdown. Then, ask your finance team to add NPS employer contributions to your plan. Would you like me to create a sample salary breakdown for your specific income level?

Income Tax Rules After Budget 2026: New Deadlines and Guide

Chandani — Thu, 05 Feb 2026 11:32:19 +0000

The Income Tax Rules after Budget 2026 bring big shifts in how we file. While the tax slabs remain the same, the timing for ITR has changed. Specifically, the Govt wants to make tax filing easier for the common man. Now, these new rules will kick in from April 1, 2026.

Income Tax Rules After Budget 2026: What Stays the Same

First, the Finance Minister kept the core tax rates steady this year. This means your monthly take-home pay will not change due to new rates. Specifically, the New Tax Regime is still the default choice for all.

Later, you can still switch to the Old Regime to claim deductions. Therefore, your tax planning from last year still works for the 2026-27 period. Still, the way you fix errors in your form is now very different.

New ITR Filing and Revision Deadlines

Next, the deadline to fix a wrong ITR has been pushed back. You now have until March 31 of the next year to file a revised form. Previously, you had to finish this task by December 31.

Therefore, you get three extra months to correct any small typos or misses. In fact, a nominal fee will apply for these late revisions. Finally, original filing for non-audit cases now moves from July 31 to August 31.

Return Type	Old Deadline	New Deadline (Budget 2026)
Original ITR-1/2	July 31	July 31 (No Change)
Non-Audit Business	July 31	August 31
Revised Return	December 31	March 31

TCS and TDS: Major Relief for Families

Then, the Govt cut the tax on foreign trips and education. The TCS rate on overseas tour packages is now a flat 2%. Specifically, this replaces the old high rates of 5% and 20%.

Next, the same 2% rate applies to medical and study costs abroad. This move helps families manage their cash flow much better during the year. In fact, no TDS will be cut on motor accident claim interest now. Thus, victims of road mishaps will get their full due amount faster.

New Tax Regime: Slabs for FY 2026-27

Meanwhile, the New Tax Regime remains best for those earning up to ₹12 lakh. With a ₹75,000 standard deduction, salary up to ₹12.75 lakh is tax-free. Specifically, the slabs are set to help the middle class save more.

₹0 – ₹4 Lakh: Nil
₹4 – ₹8 Lakh: 5%
₹8 – ₹12 Lakh: 10%
₹12 – ₹16 Lakh: 15%
Above ₹24 Lakh: 30%

Old Tax Regime: Slabs for FY 2026-27

Next, the Old Regime is still here for people with big home loans. You can claim up to ₹1.5 lakh under Section 80C for PPF or LIC. Specifically, the slab for people under 60 years starts at ₹2.5 lakh.

Therefore, you must compute your tax under both paths to see the winner. In fact, senior citizens get a higher exemption of up to ₹3 lakh. Still, you must choose this regime manually at the time of filing. Thus, do not forget to tell your boss which one you want.

The Truth: Why the 1961 Act is Ending

Indeed, the biggest news is the birth of the Income Tax Act 2025. This new law replaces the old 1961 Act from April 1, 2026. In fact, it cuts the number of sections from 800 down to 536.

The Govt says this will end messy legal fights and save your time. Specifically, the language of the law is now simple for a layman to read. Therefore, you may not need a pro to explain basic tax rules. Finally, the act aims to make the whole process digital and fast.

What This Means for You

Now, you have more time to fix your tax errors than before. You should use the extra window to match your ITR with your AIS. Specifically, look out for the new tax forms coming out in April. Keep your receipts for foreign tours to claim the lower 2% TCS rate.

Next Steps

First, check your total tax-saving proof for the current year. Next, use an Income Tax Calculator to compare both regimes for your salary. Finally, set a reminder for the new July 31 filing date.

IRS Filing 2026 Deadline: Dates, Extensions, and Penalties

Chandani — Tue, 03 Feb 2026 16:35:27 +0000

IRS Tax Filing 2026: Key Dates and Deadlines

The IRS officially opened the 2026 tax filing season on January 26. You can now submit your 2025 income tax returns. Specifically, most people must file and pay by April 15, 2026. This deadline applies to both your paperwork and any taxes you owe. Actually, a partial government shutdown may slow down your refund processing. You should file early to avoid any last-minute delays or issues.

At a Glance

Start Date: January 26, 2026.
Main Deadline: April 15, 2026.
Extension Date: October 15, 2026.

Who Must File a Return?

Most single people under 65 must file if they earn over $15,000. Therefore, check your gross income against the 2025 standard deduction. You also need to file if you had self-employment earnings. Specifically, any profit over $400 requires a tax return. Gather your W-2 and 1099 forms before you start. Use IRS Free File if you earn under $84,000.

Extensions: How to Get More Time

You can ask for six more months to finish your forms. In fact, you must file Form 4868 by the April deadline. This move pushes your filing date to October 15, 2026. Actually, an extension to file is not an extension to pay. You must still estimate and pay your taxes by April 15. If you miss the payment, the IRS adds fees.

Late Penalties and Interest Fees

The IRS charges heavy fees for missing the tax day. First, the late filing penalty is 5% of your unpaid tax. This fee grows for every month your return is late. Specifically, the late payment penalty is 0.5% per month. Finally, the IRS adds daily interest to any balance you owe. Paying even a small amount early can save you money.

Human Insight: The Reality Check

Don’t bank on a fast refund if you wait until April. The current partial government shutdown could stop manual checks. Actually, only e-filed returns with direct deposit are moving fast right now. Reality Check: If you file an extension but do not pay, you lose. Finally, the 8% interest rate is much higher than in past years. Pay as much as you can by April 15. This stops the high interest from eating your savings.

Budget 2026: 7 Tax Changes That Are Impacting Middle-Class Taxpayers

Chandani — Tue, 03 Feb 2026 15:48:33 +0000

Budget 2026: 7 Tax Changes Impacting Middle-Class Taxpayers — Explained

The Union Budget 2026 has brought a series of tax and investment-related changes that directly impact India’s middle-class taxpayers. While the government has focused on fiscal consolidation and long-term economic stability, several provisions announced in the Budget are expected to increase the financial burden on salaried individuals, small investors, and households.

From higher taxes on certain investments to changes in deductions and compliance norms, these measures may affect disposable income and savings decisions for millions of taxpayers. In this article, we take a closer look at seven key changes in Budget 2026 that are likely to influence the financial planning of the middle class in the coming year.

The analysis below is based on announcements made in the Union Budget 2026 and official government disclosures.

At a Glance

Trading: F&O tax rose by up to 150%.
Gold: Secondary gold bonds now face capital gains tax.
Date: Most changes start on April 1, 2026.

Trading Costs: The F&O Tax Hike

The state wants to cool down risky stock bets. Therefore, the Securities Transaction Tax (STT) on futures went up. It moved from 0.02% to 0.05%. Specifically, the tax on options rose to 0.15%. This hike makes frequent trading much more expensive. Retail users will feel the pinch on every trade. Use a low-cost broker to save money.

Gold Bonds: No More Free Gains

Sovereign Gold Bonds (SGBs) used to be tax-free at maturity. Actually, that rule changed for bonds bought on the exchange. You only get tax-free gains if you buy directly from the state. Bonds from the secondary market now face a 12.5% tax. Finally, this removes a popular way to save tax. Investors should check their bond source. Direct buying is now the best path.

Pension Cuts: The Disability Shift

The 2026 Budget limits tax breaks for defense personnel. Specifically, disability pensions for retired staff are now taxable. Only those forced out by injury keep the break. Actually, staff who retire after full service must pay tax now. This move aims to stop the misuse of the law. It hits veterans who count on every rupee. Military families must review their tax plans.

Buybacks and Alcohol: Higher Upfront Fees

Share buybacks are now taxed like a sale of stock. Therefore, promoters pay up to 30% tax on these deals. The state also hiked the tax on liquor sales. In fact, the tax at source moved from 1% to 2%. This means distributors and shops pay more upfront. Finally, drinkers will see higher prices at the bar. Both stock and sin goods cost more now.

Investor Blow: Interest Deduction Ends

Investors often borrow money to buy mutual funds or stocks. Specifically, you could once use interest costs to lower your tax. Budget 2026 ends this specific deduction. Actually, you cannot use interest to offset dividend income anymore. This makes “leveraged” investing much less attractive. Small investors must use their own cash now. Post-tax returns will drop for many.

Coffee Tax: The Machine Duty Hike

Even your morning caffeine fix is at risk. Specifically, the state removed duty breaks on coffee machines. Basic customs duty on these machines is now 10%. Therefore, office cafes and shops face higher equipment costs. Most firms will pass this cost to the customer. Actually, your daily cup could cost a few rupees more. Small luxuies are getting dearer.

Human Insight: The Reality Check

Don’t bank on “long-term growth” to fix these immediate pains. The state claims these hikes stop “speculation,” but they mostly hurt small retail traders. Actually, big funds have ways to hedge these costs that you do not. Reality Check: The coffee machine tax seems small, but it shows the state is hunting for revenue everywhere. Finally, promoters will likely stop buybacks and keep the cash. This could hurt the stock price for normal owners. Be wary of “simplified” tax acts.

Budget 2026: Stock Buybacks Shift from Dividend to Capital Gains Tax

Chandani — Mon, 02 Feb 2026 16:28:47 +0000

Finance Minister Nirmala Sitharaman fundamentally reshaped the landscape for corporate distributions in the 2026 Budget. The Finance Ministry officially ended the controversial “deemed dividend” treatment for share buybacks.

Consequently, the new framework classifies these payouts as capital gains once again. This shift directly addresses the “phantom loss” trap that previously penalized retail investors.

Fortunately, the move ensures that taxpayers pay on actual profits rather than their own invested capital. Market participants have largely welcomed this move toward tax equity.

At a Glance

The Classification: Buybacks move from “Dividend Income” to “Capital Gains.“
Employee Rate: Long-term gains for non-promoters are now capped at 12.5%.
Promoter Levy: Corporate promoters face 22%, while individuals pay 30%.

The End of Deemed Dividends

The 2024 tax regime forced shareholders to treat the entire buyback consideration as income from other sources.

Thus, an investor in the highest tax bracket effectively paid over 35% on the gross amount received. The Income Tax Act 2025 now restores the “true character” of these transactions as capital exits.

Furthermore, this change eliminates the need for companies to serve as withholding agents for dividend-style TDS. Simplifying the tax code was the primary driver here.

Differentiated Tax Rates: Employees vs. Promoters

The Finance Ministry introduced a three-tier tax structure to prevent promoters from misusing the new rules for tax arbitrage.

Notably, non-promoter employees holding shares for over a year will enjoy the standard LTCG rate of 12.5%.

However, individual promoters or any shareholder with over 10% equity must pay a higher effective rate of 30%. Domestic corporate promoters sit in the middle with a 22% tax liability on their gains. This hierarchy protects minority interests.

Solving the Capital Loss Mismatch

Previously, taxpayers paid high slab rates on the full payout while recording the original purchase cost as a low-value capital loss.

Indeed, this mismatch meant an employee could pay more in taxes than the actual profit earned from the shares. The new system allows for a direct deduction of the acquisition cost before applying the tax rate.

As a result, investors only provide the government a slice of their actual profit. Financial logic has returned.

Comparison: Buyback Taxation Before and After 2026

Feature	Pre-Budget 2026 (Post-Oct 2024)	Budget 2026 Proposal (FY 27)
Income Head	Income from Other Sources (Dividend)	Capital Gains
Taxable Amount	Entire Proceeds (Gross)	Profit only (Proceeds minus Cost)
Standard Rate	Individual Slab Rates (up to 30%+)	12.5% (LTCG) / 20% (STCG)
Promoter Rate	Individual Slab Rates	22% (Corporate) / 30% (Individual)

Human Insight: The Reality Check

Don’t bank on this money yet—I’ve seen “simplification” turn into a litigation nightmare before. The government claims this will boost investor confidence, but the new “10% holder” definition might unfairly catch small venture capital funds.

Reality Check: Promoters will likely stop using buybacks and pivot to “Capital Reduction” schemes or complex bonus share issues to bypass the new 30% levy.

Furthermore, tax officers might still challenge the cost-of-acquisition claims if records from ten years ago are missing. Ultimately, the real winners are the retail investors who finally stopped paying tax on their own principal. Common sense won this round.

Budget 2026: No Relief for Salaried Taxpayers as Slabs Stay Frozen

Chandani — Mon, 02 Feb 2026 15:09:26 +0000

Budget 2026: The New Income Tax Act Overhaul and Slab Stagnation

Finance Minister Nirmala Sitharaman delivered her ninth consecutive Budget on a Sunday. The Finance Ministry chose stability over slab revisions.

Salaried taxpayers watched in disappointment. No fresh tax cuts appeared. A massive legal transformation took center stage instead. The wait for higher exemption limits continues for millions.

At a Glance

Tax Slabs: Rates remain frozen for FY 2026-27 across all regimes.
TCS Reduction: Overseas tour packages now carry a flat 2% tax.
ITR Revision: Taxpayers can fix errors until March 31 with a fee.

The Death of the 1961 Income Tax Act

The Finance Ministry officially announced the repeal of the six-decade-old tax code. The New Income Tax Act 2025 takes effect on April 1, 2026. This legislation aims to simplify 60 years of confusing legal layers into a modern, concise document.

Ordinary citizens often struggle with complex tax terminology that the new law promises to eliminate through redesigned forms and automated rule-based processing. Redundancy is the target.

The ITR Amnesty: A New March Deadline

Taxpayers gained a significant compliance window during the Budget speech. The revised ITR filing deadline moved from December 31 to March 31.

This extension provides a crucial safety net for individuals who discover omissions in their financial disclosures after the primary tax season ends.

A nominal fee of ₹1,000 to ₹5,000 applies to these late corrections. Error correction is easier now.

Foreign Travel Relief: The 2% TCS Shift

The 64mm cigarette segment wasn’t the only one hit by tax shifts, but international travelers finally received good news.

Tax Collected at Source (TCS) on overseas tour packages dropped to a flat 2%. Previously, families faced a steep 20% upfront tax for luxury holidays exceeding ₹10 lakh.

This change drastically improves immediate cash flow for middle-class households planning foreign education or medical treatments. Holiday costs just dipped.

Entity Check: Share Buybacks and SGBs

Investors in the secondary market face a new reality. Sovereign Gold Bond (SGB) redemptions are now taxable if the bonds were purchased from exchange platforms rather than the primary government issue. The Finance Ministry also shifted the tax burden of share buybacks directly onto the shareholders as capital gains. Promoters now face an effective tax rate of 22% to 30% depending on their corporate status. Market dynamics are shifting.

Tax Slab Comparison: Old vs. New Regime

Income Level	Old Regime Rate	New Regime Rate (Default)
Up to ₹2.5 Lakh	Nil	Nil
₹2.5L to ₹4 Lakh	5%	Nil
₹4L to ₹8 Lakh	5% (up to 5L)	5%
₹8L to ₹12 Lakh	20% (up to 10L)	10%
Above ₹24 Lakh	30%	30%

Human Insight: The Reality Check

Don’t bank on this money yet—I’ve seen these promises of “simplification” turn into more digital paperwork before. The government’s claim that the 2025 Act will end litigation is likely overly optimistic given the decades of case laws that may now become irrelevant or confusing.

Reality Check: Expect a surge in “hidden” compliance costs as CAs charge more to navigate the transition to the new law. People will likely try to bypass the higher STT on F&O by shifting to unlisted offshore platforms, which the government hasn’t fully addressed. Compliance is the new tax.

Budget 2026: Will Your Income Tax Drop Tomorrow?

Chandani — Sat, 31 Jan 2026 13:54:03 +0000

Finance Minister Nirmala Sitharaman presents the Union Budget on February 1. Middle-class taxpayers hope for big news.

The clock is ticking. Tomorrow, FM Nirmala Sitharaman will deliver her ninth Union Budget. Specifically, millions of salaried Indians are waiting. Last year, the government made income up to ₹12.75 lakh tax-free. Notably, people now want even more. Consequently, all eyes are on the Parliament.

Also Read | Sunetra Pawar Makes History: Maharashtra’s First Woman Deputy CM

The Fight for a Higher Standard Deduction
Current Tax Slabs: A Quick Look
Expert Views: Will Slabs Change?
Old vs New Tax Regime
Conclusion

The Fight for a Higher Standard Deduction

Salaried workers face rising costs every day. First, many hope the standard deduction will go up. Specifically, it sits at ₹75,000 right now. Notably, experts want the FM to hike it to ₹1 lakh. Furthermore, this change would make income up to ₹13 lakh totally tax-free. Therefore, it is the top demand for 2026.

Current Tax Slabs: A Quick Look

Knowing your current tax is vital. Notably, the new regime is now the default choice. Specifically, it has more steps to lower your bill.

Income Range	New Regime Rate
Up to ₹3 Lakh	Nil
₹3L to ₹6 Lakh	5%
₹6L to ₹9 Lakh	10%
₹9L to ₹12 Lakh	15%
Over ₹15 Lakh	30%

Also Read | Sunetra Pawar Makes History: Maharashtra’s First Woman Deputy CM

Expert Views: Will Slabs Change?

Most experts do not expect a huge slab overhaul. Notably, a major tax cut happened just last year. However, there is a strong call to fix TDS rules. Specifically, the current system is too complex. Consequently, the government may simplify how tax is cut at the source to save time for all.

Old vs New Tax Regime

Which one is better for you? Specifically, the old regime allows for more deductions like LIC or home loans. Notably, the new regime offers lower rates but fewer breaks. Moreover, the government wants everyone to switch to the new system. In fact, most taxpayers have already made the jump.

Conclusion

Budget 2026 is a big moment for India. Specifically, the FM must balance the books while helping the middle class. Notably, even small tweaks to the standard deduction will mean more cash in hand. In conclusion, tomorrow’s speech will define the financial year for us all.

Also Read | Sunetra Pawar Makes History: Maharashtra’s First Woman Deputy CM

The post Budget 2026: Will Your Income Tax Drop Tomorrow? first appeared on Rightsofemployees.com.

Is ELSS Worth It in the New Tax Regime? (2026 Analysis)

Chandani — Thu, 29 Jan 2026 12:09:45 +0000

Is ELSS Still Worth It? The Truth About Investing in the New Tax Regime

Let’s be honest: for a decade, the only reason most Indians touched an Equity Linked Savings Scheme (ELSS) was to dodge taxes. You’d scramble in March, dump ₹1.5 lakh into a fund, and forget about it. But now that the New Tax Regime is the law of the land—and Section 80C is effectively a relic for most—is there any reason to keep your ELSS SIPs running?

Also Read | Delhi Water Supply News: Ammonia Spikes Cause Shortage Until Feb 4

Actually, the answer is a surprising yes, but for reasons that have nothing to do with your tax return.

The “Discipline” Hack

In early 2026, we’ve seen some wild market swings. When the Nifty dips 500 points in a week, the first thing most people want to do is hit the “sell” button. ELSS stops you from being your own worst enemy.

The three-year lock-in isn’t a cage; it’s a guardrail. Because you can’t exit, you’re forced to ride out the volatility. Data from 2025 showed that investors who stayed for the full lock-in period had an 80% higher chance of seeing green compared to those who tried to time the market in regular flexi-cap funds.

Returns vs. The “Big Boys”

You might think that because ELSS is a “tax saver,” it’s somehow more conservative or slower than regular mutual funds. The numbers say otherwise. As of January 2026, many top-tier ELSS funds are actually outperforming standard Large-cap and Index funds.

Also Read | Delhi Water Supply News: Ammonia Spikes Cause Shortage Until Feb 4

Fund Category	3-Year CAGR (2026 Data)	Best For
ELSS (Tax Saver)	~15.9%	Forced long-term discipline.
Large-Cap	~14.1%	Stability but lower upside.
Multi-Cap	~17.8%	High growth but high emotional risk.

The 2026 Reality: New Regime Logic

Under the 2026 rules, the Long-Term Capital Gains (LTCG) tax is 12.5% for gains over ₹1.25 lakh. Since ELSS funds are equity-heavy, they fall under this bracket.

Even without the 80C benefit, you’re getting a professional fund manager who is picking diversified stocks across sectors. Think of it as a Flexi-cap fund with a forced savings habit. If you struggle to keep your hands off your savings, ELSS is still the best “mental trick” in the book.

Also Read | Delhi Water Supply News: Ammonia Spikes Cause Shortage Until Feb 4

The post Is ELSS Worth It in the New Tax Regime? (2026 Analysis) first appeared on Rightsofemployees.com.

The History of the Indian Budget: From Colonial Rule to Independence

Chandani — Sun, 25 Jan 2026 13:03:12 +0000

As India prepares for the Union Budget 2026 on February 1st, looking back at the origins of this tradition reveals how much the nation’s priorities have shifted—from serving a colonial empire to building a sovereign welfare state.

Also Read | BSNL’s Republic Day Blast: High-Data Annual Plan for ₹7/Day

1. The First Budget of Colonial India (1860)

The concept of a formal budget was introduced to India by the British East India Company to stabilize finances following the massive expenditures of the 1857 War of Independence.

- Date: April 7, 1860
- Presented By: Jam
- y: Unlike modern budgets centered on “Viksit Bharat” (Developed India), this colonial version was designed strictly for the economic survival of the British administration.

Also R

es Wilson, a Scottish economist and the first “Finance Member” of the Viceroy’s Council.
Key Focus: Wilson’s primary goal was to find new revenue streams for the British Crown. Notably, he introduced the Income Tax to India through this very budget.
The Philosophead | BSNL’s Republic Day Blast: High-Data Annual Plan for ₹7/Day

2. Independent India’s First Budget (1947)

The first budget of a free India was presented under extraordinary circumstances, just months after the trauma of Partition.

Date: November 26, 1947
Presented By: Sir R.K. Shanmukham Chetty, India’s first Finance Minister.
Nature of the Budget: It was an Interim Budget covering only seven and a half months (August 15, 1947, to March 31, 1948).
The Shared Currency: A fascinating fact from this budget was the decision that India and Pakistan would share the same currency until September 1948 to ensure economic stability during the transition.
Financial Snapshot:
- Estimated Revenue: ₹171.15 crore
- Fiscal Deficit: ₹24.59 crore (though initial reports often varied slightly, this was the finalized baseline).
- Top Priority: 47% of the total budget was allocated to Defense, reflecting the immediate security challenges of the time.

3. Interesting “Budget Firsts” & Trivia

Milestone	Details
First Budget of the Republic	Presented by John Mathai on Feb 28, 1950, after the Constitution was adopted.
Hindi Inclusion	Until 1955, budgets were in English only. In 1956, Hindi was introduced.
First Woman FM	Indira Gandhi (1970), who held the portfolio as Prime Minister.
Paperless Shift	Nirmala Sitharaman presented the first digital budget in 2021 due to the pandemic.
Time Change	Until 1999, the budget was at 5:00 PM (British tradition). Yashwant Sinha moved it to 11:00 AM.

Also Read | BSNL’s Republic Day Blast: High-Data Annual Plan for ₹7/Day

The post The History of the Indian Budget: From Colonial Rule to Independence first appeared on Rightsofemployees.com.

Budget 2026: ICAI Proposes New “Auto-Tax Calculator” to End ITR Struggles

Chandani — Wed, 21 Jan 2026 16:55:42 +0000

Ahead of the Union Budget on February 1, 2026, the Institute of Chartered Accountants of India (ICAI) has submitted a game-changing proposal to the Finance Ministry. The goal is to move beyond simple data pre-filling and introduce a fully automated Income Tax Calculator Utility directly on the e-filing portal.

Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

This tool would not just show your data, but calculate your final tax liability using real-time information from Form 26AS and the Annual Information Statement (AIS).

1. How the Proposed “Auto-Calculator” Would Work

Currently, taxpayers see their income in AIS but must manually calculate taxes or use third-party apps. The ICAI’s proposed system would:

Pre-fill Everything: Pull salary, interest, and dividend data from your AIS/26AS.
Instant Computation: Automatically calculate the Total Taxable Income and Tax Liability without manual entry.
“Accept & Pay” Feature: Provide a simple “Accept” button. If you agree with the system’s math, you can pay and file instantly.

Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

2. The “Shield Against Scrutiny”

Perhaps the most significant part of the proposal is the protection from tax notices.

ICAI Suggestion: If a taxpayer accepts the system-generated calculation and pays the tax accordingly, their return should not be subject to scrutiny under Section 270(10) of the new Income Tax Act, 2025 (corresponding to the old Sec 143(3)).

This would provide a “Safe Harbour” for honest taxpayers, giving them certainty that their returns won’t be reopened for questioning later.

3. Simplifying the “Tax Regime” Choice

ICAI has also suggested a major administrative fix for the New vs. Old Regime debate:

No More Separate Forms: Currently, opting out of the new regime requires filing a separate form.
ITR-Integrated Choice: ICAI proposes that the option to select the regime should be part of the ITR form itself, removing an extra layer of compliance and reducing errors.

Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

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Got an IT Notice? 5 Steps to Respond Online with Confidence 2026 [UPDATED]

Chandani — Tue, 20 Jan 2026 08:56:45 +0000

Got a tax notice? Don’t freak out. The Income Tax (IT) department is doing everything online now, so you don’t have to dread visiting an office. Responding is a straightforward digital process. The thing is, you just need to know the difference between a simple update and a demand for action.

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Intimation vs. Notice: Know the Difference

It is vital to know whether the communication you received is an Intimation or a formal Notice.

Communication	Purpose	Action Required
Intimation (e.g., u/s 143(1))	An automated summary confirming your return has been processed. It shows any minor adjustments, refunds, or tax due based on the I-T Department’s records matching yours.	Generally NO action is needed, unless a tax demand or clear discrepancy is listed.
Notice (e.g., u/s 143(2), 139(9))	A formal legal request for you to take a specific action, such as providing documents, explaining discrepancies, or rectifying errors.	Mandatory Action is required within the specified deadline to avoid penalties.

5 Common Income Tax Notices and Why You Get Them

The IT department uses data analytics to issue notices when your filed ITR does not match information they already have (like Form 26AS or AIS).

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Notice Section	Reason for Issuance	What It Means
Section 139(9)	Defective Return.	Errors or omissions are found in your ITR (e.g., mismatching income, incorrect form used, incomplete mandatory fields). You get 15 days to rectify the defect.
Section 143(2)	Scrutiny Assessment.	Your return has been selected for a detailed, thorough examination by the Assessing Officer (AO). They suspect understated income or excessive claims.
Section 142(1)	Inquiry Before Assessment.	The AO needs more documents or clarification before completing the assessment. This is often a preliminary step.
Section 156	Notice of Demand.	Issued when any tax, interest, or penalty is payable by you as a result of a completed assessment order. You must pay within 30 days.
Section 245	Setting off Refunds.	The department plans to adjust any refund due to you against an outstanding tax liability from a previous year. You usually have 30 days to object.

5 Steps to Respond to Any Income Tax Notice Online

Answering a tax notice happens entirely within the income tax e-filing portal. You won’t be sending paper or visiting an office for this, which is good.

Step 1: Log in and Check Your Worklist

Visit the official Income Tax Department portal (incometax.gov.in).
Log in using your PAN as your user ID.
Once logged in, navigate to the Pending Actions section on your dashboard.
Click on “e-Proceedings” or look at your “Worklist” tab for actions required.

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Step 2: Read the Notice Carefully

Click on the relevant notice to View Detailed Notices.
Crucially, identify the Section (e.g., 143(2), 139(9)). This tells you exactly why the notice was issued and what action is required.
Note the deadline. Missing the deadline can lead to hefty fines or your return being treated as invalid.

Step 3: Gather Documents and Draft Your Reply

Collect all relevant supporting documentation (bank statements, investment proof, invoices, Challan copies) needed to address the issue raised in the notice.
Draft a clear, professional, and factual response. Address every single point raised by the Assessing Officer in the notice. This is a must.

Step 4: Submit Your Response and Attachments

Within the e-Proceedings section for the relevant notice, click “Submit Response.”
If it’s a Demand Notice (u/s 156), you must choose a response:
- Demand is Correct: Pay the amount immediately via the e-Pay Tax function.
- Disagree with Demand: Select the relevant reason(s) and provide a detailed explanation and supporting documents (like proof of prior payment or calculation error).
Upload your response letter and all supporting documents (ensure they are in the required PDF/JPEG format and size).

Step 5: Final Submission and Tracking

After submitting your response, a success message and Transaction ID will be displayed. Keep this record.
You cannot update or withdraw your response once it’s submitted.
Keep checking the e-Proceedings section once a week for any fresh follow-up notices or clarification requests from the department.

Also Read | Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

🛑 Official Source Disclaimer

DISCLAIMER: Tax rules are complex and change fast. Deadlines are strict. For Scrutiny Notices (u/s 143(2)) or personalized help, always consult a Chartered Accountant (CA).

The post Got an IT Notice? 5 Steps to Respond Online with Confidence 2026 [UPDATED] first appeared on Rightsofemployees.com.

Old vs New Tax Regime 2026: Why ₹25L Earners Save More in Old

Chandani — Fri, 16 Jan 2026 16:19:53 +0000

Old vs New Tax Regime: Why 28% of Indians Still Refuse to Switch in 2026

Despite the government’s aggressive push toward the “New Tax Regime,” nearly 28% to 29% of Indian taxpayers are still sticking to the Old Regime. According to the 2026 Henley-equivalent tax data from Deloitte India, a “meaningful minority” finds massive savings through deductions that the new system simply doesn’t offer.

Also Read | No Signal? No Problem! BSNL Launches WiFi Calling Across India—Check How to Activate

If you are earning between ₹15 lakh and ₹30 lakh, choosing the wrong regime could cost you lakhs in “lazy tax.” Here is the mathematical “Golden Opportunity” to save your hard-earned money.

The ₹25 Lakh Question: Where Do You Save?

For high-income earners, the decision isn’t about simplicity; it’s about arithmetic. Expert analysis from Nitin Bajal (Deloitte India) highlights a specific “Break-Even Point.”

Gross Income: ₹25,00,000
The Break-Even Number: ₹8.5 Lakh
The Verdict: If your total deductions (HRA, 80C, Home Loan, etc.) exceed ₹8.5 lakh, the Old Regime is your best friend. If they are lower, the New Regime wins.

Also Read | No Signal? No Problem! BSNL Launches WiFi Calling Across India—Check How to Activate

The “Power Players” of the Old Regime

Why does the Old Regime refuse to fade away? It’s because of these “High-Value” deductions that the New Regime (as of the 2025-26 Budget) does not support:

Section 80E (Education Loans): The most powerful tool. There is no upper limit on the interest you can deduct for up to 8 years.
Section 24 (Home Loans): A flat ₹2 lakh deduction on interest for self-occupied properties.
HRA (House Rent Allowance): For salaried individuals in cities like Mumbai or Delhi, this can be a massive tax shield.
Section 80D (Health Insurance): Up to ₹50,000-₹1,00,000 for self and senior citizen parents.

Also Read | No Signal? No Problem! BSNL Launches WiFi Calling Across India—Check How to Activate

2026 Tax Slab Comparison: At a Glance

Income Bracket	New Regime Rate (Default)	Old Regime Rate (Optional)
Up to ₹4 Lakh	Nil	Nil (up to ₹2.5L)
₹4L – ₹8L	5%	5%
₹8L – ₹12L	10%	20%
₹12L – ₹24L	15% – 25%	30% (above ₹10L)
Above ₹24L	30%	30%

Also Read | No Signal? No Problem! BSNL Launches WiFi Calling Across India—Check How to Activate

Pro-Tip: Under the New Regime, if your taxable income is up to ₹12 Lakh, your tax is ZERO thanks to the enhanced Section 87A rebate. This makes the Old Regime irrelevant for most middle-class earners with fewer investments.

Who Should Stick to the Old Regime?

The Homeowner: If you are paying heavy EMI interest.
The Student/Parent: If you have a large education loan for studies in India or abroad.
The Big Investor: If you max out 80C, 80D, and NPS (80CCD) every single year.
The Renter: If your HRA component is a significant part of your salary package.

Also Read | No Signal? No Problem! BSNL Launches WiFi Calling Across India—Check How to Activate

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Union Budget 2026: Reviving the Middle Class & “Consumption” Push

Chandani — Tue, 13 Jan 2026 16:16:32 +0000

As Finance Minister Nirmala Sitharaman prepares for her ninth Budget on February 1, 2026, the narrative has shifted from pure infrastructure “capex” to a consumption-led strategy. With global growth slowing and urban demand showing fatigue, the government is expected to prioritize putting more money into the hands of the middle class and MSMEs.

Also Read | India’s $11.4 Trillion Diabetes Burden: 2nd Highest Globally

1. The Income Tax “Surprise”: What to Expect?

Building on the 2025 reforms (which exempted income up to ₹12.75 Lakh for salaried individuals), Budget 2026 is likely to address “inflation-linked” relief.

Extension of Deductions: There is a strong push to bring back popular “Old Regime” deductions (like 80C for life insurance/PPF or 80D for health insurance) into the New Tax Regime to make it more attractive.
Housing Relief: Experts suggest a hike in the Section 24(b) interest deduction limit for home loans (currently at ₹2 Lakh) to revive the sluggish urban real estate market.
Standard Deduction: A potential increase from the current ₹75,000 to ₹1,00,000 to combat rising essential commodity prices.

2. Why the Big Bet on “Consumption”?

Goldman Sachs predicts a 7.7% surge in consumption growth for India in 2026, but notes that urban recovery “has more legs” only if policy supports lower-income households.

The Strategy: By rationalizing tax slabs and easing TDS/TCS norms, the government wants to boost “disposable income.“
The Goal: Increase domestic demand to buffer the economy against global trade disruptions and a 25% US tariff threat on trade partners.

Also Read | India’s $11.4 Trillion Diabetes Burden: 2nd Highest Globally

3. Sector-Specific Outlook: Railways & MSMEs

The Budget is expected to balance household relief with strategic industrial support.

Sector	Key Expectation for Budget 2026
Railways	Modernization over Expansion: ICRA expects a 5% increase in outlay, focusing on Kavach 4.0 (safety) and de-congesting high-traffic corridors rather than new electrification.
MSMEs	Credit Ease: PHDCCI has proposed a 2% interest subvention on new loans and doubling MUDRA loan limits (e.g., Shishu category from ₹50k to ₹1 Lakh).
Green Transition	Incentives for E100-ready infrastructure and Sustainable Aviation Fuel (SAF) to meet 2030 climate goals.

4. Industry Demands: Stability Over Stimulus

Major consulting firms like EY and NASSCOM are urging the government to prioritize Tax Certainty.

Data Centers: Clearer pathways for investment and simplified treaty-related taxation.
Litigation: Reducing “tax terrorism” through further decriminalization of minor income tax non-compliances.
ESOPs: Startups are seeking a “single point of tax” (only at the time of sale) to help retain talent without the current double-taxation burden.

Also Read | India’s $11.4 Trillion Diabetes Burden: 2nd Highest Globally

The post Union Budget 2026: Reviving the Middle Class & “Consumption” Push first appeared on Rightsofemployees.com.

5 Major Income Tax Changes Shaping Your 2026 Finances

Chandani — Wed, 07 Jan 2026 04:40:21 +0000

The Union Budget 2025 introduced transformative changes to India’s income tax structure, focused on providing more disposable income to the middle class and simplifying the tax-deduction process. These changes are officially in effect for the Financial Year 2025–26 (Assessment Year 2026–27).

Also Read | Bank Alert: 3-Day Shutdown Expected in Late January 2026

1. Zero Tax for Income up to ₹12.75 Lakh

Under the New Tax Regime, the tax-free threshold has seen a massive jump due to the enhanced rebate under Section 87A.

Tax-Free Limit: The income limit for full tax rebate has been increased to ₹12 Lakh.
Standard Deduction: For salaried employees, the standard deduction has been raised to ₹75,000 (up from ₹50,000).
The Result: If your total salary is ₹12,75,000 or less, your net tax liability will be Zero.

Also Read | Bank Alert: 3-Day Shutdown Expected in Late January 2026

2. Relief for Senior Citizens: TDS Limit Doubled

To help retirees manage their cash flow better, the government has significantly increased the threshold for Tax Deducted at Source (TDS) on interest income.

New Threshold: Banks will now only deduct TDS if a senior citizen’s total interest income (from FDs, RDs, etc.) exceeds ₹1,00,000 in a year (up from ₹50,000).
For General Citizens: The threshold has also been marginally increased from ₹40,000 to ₹50,000.

Also Read | Bank Alert: 3-Day Shutdown Expected in Late January 2026

3. Investor Friendly: Higher Dividend TDS Limits

Small investors in the stock market or mutual funds will now receive more of their earnings upfront without tax cuts at the source.

Dividend TDS: The limit for deducting tax on dividend income has been increased from ₹5,000 to ₹10,000.
Impact: If your annual dividend from a single company or mutual fund house is under ₹10,000, you will receive the full amount without a 10% TDS deduction.

4. Clarity on ULIP Taxation

Unit Linked Insurance Plans (ULIPs) now have a clearer taxation roadmap.

High-Premium ULIPs: For policies with an annual premium exceeding ₹2.5 Lakh, the maturity proceeds (profits) are no longer taxed as regular income.
Capital Gains: Instead, they are now treated as Capital Gains, bringing them in line with the tax treatment of Mutual Funds.

Also Read | Bank Alert: 3-Day Shutdown Expected in Late January 2026

5. Extended Window to Correct Errors

The “Updated ITR” (ITR-U) facility has become more flexible, allowing taxpayers to fix past mistakes without the immediate fear of heavy litigation.

Time Limit: Taxpayers now have a 4-year window (increased from 2 years) to file an updated return to correct omissions or errors.
Benefit: This provides a longer “peace of mind” window to ensure compliance and avoid penalties from mismatch notices.

Revised New Tax Regime Slabs (FY 2025–26)

If your income exceeds the ₹12 Lakh rebate threshold, the following slabs apply:

Income Range (₹)	Tax Rate (%)
0 – 4,00,000	Nil
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
Above 24,00,000	30%

Also Read | Bank Alert: 3-Day Shutdown Expected in Late January 2026

The post 5 Major Income Tax Changes Shaping Your 2026 Finances first appeared on Rightsofemployees.com.

Income Tax Act 2025: Biggest Changes & New Rules from April 1

Chandani — Wed, 07 Jan 2026 04:35:46 +0000

The Income Tax Act, 2025: India’s New Tax Era Begins April 1

Starting April 1, 2026, the Income-tax Act, 2025 will replace the 64-year-old Income-tax Act, 1961. This represents the most significant overhaul of India’s direct tax framework in decades, moving toward a simplified, digital-first system that aligns with modern global standards.

Also Read | Republic Day 2026: Online & Offline Ticket Booking Guide

1. Key Structural Changes

The new Act aims to reduce the “red tape” associated with tax filings by drastically trimming the legal text.

Feature	Old (1961 Act)	New (2025 Act)
Total Sections	819 Sections	536 Sections
Total Chapters	47 Chapters	23 Chapters
Yearly Concept	Previous Year & Assessment Year	Unified “Tax Year”
Primary Goal	Traditional Revenue Collection	Facilitation & Digital Compliance

Also Read | Republic Day 2026: Online & Offline Ticket Booking Guide

2. Major Highlights for Taxpayers

The shift isn’t just about numbers; it changes the logic of how you report income.

Removal of AY/PY Confusion: The dual concept of “Previous Year” (when you earn) and “Assessment Year” (when you pay) has been merged. Now, income and taxation are both tracked under a single “Tax Year” (April 1 – March 31).
Consolidated TDS: All Tax Deducted at Source (TDS) provisions—which were previously scattered across dozens of sections—are now unified under Section 393.
Digital Assets defined: Virtual Digital Assets (VDAs) like cryptocurrencies are now formally defined and integrated into the capital gains framework.
Simplified Language: Over 1,200 provisos and 900 explanations have been removed to make the law easier for citizens to read without a legal background.

Also Read | Republic Day 2026: Online & Offline Ticket Booking Guide

3. How to Transition: The CBDT Mapping Utility

To help taxpayers and professionals navigate the change, the Central Board of Direct Taxes (CBDT) has launched a Mapping Utility.

What it does: It provides a side-by-side comparison between the 1961 sections and the new 2025 clauses.
Availability: You can access it on the official Income Tax Department website.

Also Read | Republic Day 2026: Online & Offline Ticket Booking Guide

4. Action Plan for Taxpayers

Experts recommend a proactive approach to the transition:

Old Rules Still Apply: For the current window ending March 31, 2026, you must continue following the 1961 Act.
Audit Your Software: If you are a business owner, ensure your accounting software is updated to the “Tax Year” terminology by April 1.
Consult Your CA: Ask for a specific “impact note” regarding how the restructuring of TDS and house property clauses affects your specific income profile.

Also Read | Republic Day 2026: Online & Offline Ticket Booking Guide

The post Income Tax Act 2025: Biggest Changes & New Rules from April 1 first appeared on Rightsofemployees.com.

Income Tax Myths Busted: What the ITD Actually Tracks

Chandani — Wed, 07 Jan 2026 04:11:03 +0000

In a recent clarification on January 6, 2026, the Press Information Bureau (PIB) fact-checking unit debunked viral social media claims that the Income-Tax Department (ITD) is monitoring citizens’ private digital lives. Contrary to rumors, the department does not have a “lifestyle profiling” mechanism but instead relies on structured, high-value financial data.

Also Read | The 2026 Workplace Horoscope: Harnessing Your Professional “Superpower”

1. The “Privacy” Fact Check

A viral post by ‘bingewealth’ claimed the ITD tracks personal app usage and social media. The PIB has officially stated:

NO Monitoring of: Emails, social media profiles (Instagram/X), personal apps, or general online shopping behavior.
NO Surveillance of: Daily digital payments (small UPI transactions for groceries, etc.) or personal spending habits.

Also Read | The 2026 Workplace Horoscope: Harnessing Your Professional “Superpower”

“The system is transaction-based, not behavioral. There is no mechanism to monitor an individual’s digital activity.” — PIB Fact Check

2. What is Actually Tracked? (Form 61A / SFT)

The ITD receives information only through Statement of Financial Transactions (SFT). Banks and financial institutions are legally required to report transactions that exceed specific thresholds.

Also Read | The 2026 Workplace Horoscope: Harnessing Your Professional “Superpower”

Transaction Type	Reporting Threshold (in a Financial Year)
Savings Account	Cash deposits aggregating to ₹10 Lakh or more.
Current Account	Cash deposits or withdrawals aggregating to ₹50 Lakh or more.
Fixed Deposits (FD)	New cash deposits aggregating to ₹10 Lakh or more.
Credit Card Bills	₹1 Lakh (paid in cash) or ₹10 Lakh (paid via any other mode).
Investments	₹10 Lakh or more in Shares, Mutual Funds, Bonds, or Debentures.
Real Estate	Purchase or sale of immovable property worth ₹30 Lakh or more.

Also Read | The 2026 Workplace Horoscope: Harnessing Your Professional “Superpower”

3. When Should You Be Concerned?

The ITD only intervenes when there is a discrepancy between your reported income in your Income Tax Return (ITR) and the high-value transactions linked to your PAN.

The Process: If a mismatch is found, the ITD issues a Show Cause Notice.
The Solution: If you can justify the transaction (e.g., a property sale used to buy another, or a gift from a relative) with adequate proof, the proceedings are typically dropped….

Also Read | The 2026 Workplace Horoscope: Harnessing Your Professional “Superpower”

The post Income Tax Myths Busted: What the ITD Actually Tracks first appeared on Rightsofemployees.com.

Missed Dec 31 ITR Deadline? Here is Your Recovery Roadmap

Chandani — Sat, 03 Jan 2026 04:39:40 +0000

The December 31, 2025, deadline for filing belated or revised returns (AY 2025–26) has officially passed. If you missed this window and are still expecting a refund, or if you realized you made an error in your submitted return, your options have narrowed—but they haven’t disappeared.

Here is a practical guide on what you can do next, based on the current tax laws and CBDT Circular No. 11 of 2024.

Also Read | India Pre-Publishes Draft Rules for Four Labour Codes (Dec 30, 2025)

Scenario A: You haven’t filed at all (and want a refund)

If you failed to file even a belated return by Dec 31, you can no longer file a normal ITR. However, you can still claim your refund through a special petition.

The Solution: Condonation of Delay (Section 119(2)(b))

You must prove that “genuine hardship” or “reasonable cause” (e.g., serious illness or technical glitches) prevented you from filing.

How to Apply: Submit a request on the e-filing portal under Services > Condonation Request.
Time Limit: You can file this up to 5 years from the end of the relevant assessment year.

Also Read | India Pre-Publishes Draft Rules for Four Labour Codes (Dec 30, 2025)

Authority Limits:
- Up to ₹1 Crore: Principal Commissioner/Commissioner of Income Tax.
- ₹1 Cr to ₹3 Crore: Chief Commissioner of Income Tax.
- Above ₹3 Crore: Principal Chief Commissioner of Income Tax.
The Catch: You will not receive interest ( $Section 244A$ ) on any refund granted through this route.

Scenario B: You filed on time but found a “Mistake”

If you already filed but noticed a calculation error or a TDS mismatch after the Dec 31 revision deadline, you cannot “revise” the return anymore, but you can “rectify” it.

The Solution: Rectification (Section 154)

This is used specifically for mistakes “apparent from the record.”

When to file: Only after your return is processed and you receive an Intimation u/s 143(1).
Utility: Corrects arithmetical errors, TDS/TCS mismatches, or clerical mistakes in tax credits.
How to Apply: Go to Services > Rectification on the e-filing portal.

Also Read | India Pre-Publishes Draft Rules for Four Labour Codes (Dec 30, 2025)

Scenario C: Your status is “Under Processing”

If you filed your return before the deadline and it still shows as “Under Processing,” do not panic.

Timeline: The Centralised Processing Centre (CPC) has until December 31, 2026 (nine months from the end of the financial year in which you filed) to finish processing.
Action: No action is needed unless you receive a notice. If it goes beyond this period, you can raise a Grievance on the portal.

Why “Updated Return” (ITR-U) Won’t Help

While ITR-U allows filing for up to 2 years after the assessment year, it has a no-refund rule:

You cannot use ITR-U to claim a new refund.
You cannot use ITR-U to increase an existing refund.
It is strictly for taxpayers who need to pay additional tax (along with a 25–50% penalty) to avoid legal issues….

Also Read | India Pre-Publishes Draft Rules for Four Labour Codes (Dec 30, 2025)

The post Missed Dec 31 ITR Deadline? Here is Your Recovery Roadmap first appeared on Rightsofemployees.com.

Income Tax Rule 2026: The “New Tax Act” Is Here! Everything You Need To Know

Chandani — Tue, 30 Dec 2025 15:26:26 +0000

The rumors are true! India is officially ditching the 64-year-old Income Tax Act of 1961.¹ Starting April 1, 2026, the New Income Tax Act, 2025 will take over, bringing a massive digital-first makeover to how you pay your taxes.

If you’ve been dreading tax season, this change is for you. The government is slashing the rulebook from 819 sections down to just 536 sections, aiming for “plain English” that an average taxpayer can actually understand.

Also Read | UPSSSC Lekhpal Recruitment 2026: Apply for 7,994 Posts from Today

The ₹12.75 Lakh Rule: Zero Tax for Millions

The biggest win for the middle class from the 2025 Budget continues into 2026. If you are on the New Tax Regime, here is the math you need to know:

The Magic Number: You pay zero tax if your annual income is up to ₹12 Lakhs (thanks to the massive ₹60,000 tax rebate).
The Salaried Bonus: If you are a salaried employee, you get an additional ₹75,000 Standard Deduction.⁵ This means you can earn up to ₹12.75 Lakhs and still pay ₹0 tax.

New 2026 Tax Slabs (New Regime)

Income Bracket	Tax Rate
Up to ₹4 Lakh	Nil
₹4 Lakh – ₹8 Lakh	5%
₹8 Lakh – ₹12 Lakh	10%
₹12 Lakh – ₹16 Lakh	15%
Above ₹24 Lakh	30%

Also Read | UPSSSC Lekhpal Recruitment 2026: Apply for 7,994 Posts from Today

Goodbye “Financial Year,” Hello “Tax Year”

Say goodbye to the confusing “Assessment Year” vs. “Financial Year” labels. Under the 2025 Act, the government is introducing a unified “Tax Year” (April 1 to March 31).⁷ This simple change is expected to clear up 90% of the confusion during filing.

Costlier Sins: Cigarettes & Pan Masala

Planning to quit? 2026 might be the year. To replace the old GST compensation cess, the government has passed the Health Security to National Security Cess Bill.

The Hit: Excise duty on cigarettes is going up, and a new “Capacity-Based Cess” will be levied on Pan Masala.
The Purpose: This money is being specifically earmarked for Public Health and National Security (Modern Warfare) projects.

Customs & GST: The “Faceless” Future

8 Slabs Only: Customs duty has been simplified into just 8 tariff slabs to make importing and exporting faster.
GST Stability: No major rate hikes are expected for 2026, as the “GST 2.0” system (implemented in Sept 2025) is still in its first full year of operation.
Faceless Assessment: Expect fewer visits to tax offices. Almost all scrutiny and appeals are moving to a 100% digital, faceless mode…

Also Read | UPSSSC Lekhpal Recruitment 2026: Apply for 7,994 Posts from Today

Tip: With the new law focusing heavily on digital tracking, make sure your PAN and Aadhaar are perfectly synced. The system will now be able to see “Virtual Digital Assets” (Crypto and NFTs) much more clearly!

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Income Tax Refund on Hold? What Happens if You Don’t File a Revised ITR (2025)

Chandani — Fri, 26 Dec 2025 16:02:31 +0000

If you received an SMS or email from the Income Tax Department stating your refund is “put on hold” under the Risk Management Framework (RMF), you aren’t alone. In late 2024 and 2025, the department launched a massive “Nudge” campaign to flag discrepancies. With the December 31, 2025, deadline for revised returns fast approaching, “doing nothing” is a risky strategy that could lead to financial penalties.

The “Nudge” Campaign: Why Your Refund is Stuck

The department’s AI-driven system now cross-references your ITR with the Annual Information Statement (AIS) and Form 26AS. If you claimed deductions (like 80C, 80D, or HRA) that weren’t reported to your employer, or if you failed to disclose income from mutual funds or crypto, your refund is automatically paused.

Also Read | PAN Card Correction Guide 2025-26: How to Update Your Details Online

Consequences of Ignoring the Refund Hold

If you choose not to respond or file a revised return by the December 31 deadline, here is the chain of events:

Indefinite Refund Hold: The refund will not be released automatically. It stays in a “pending” state until the discrepancy is resolved.
Disallowance of Claims: The department may process your return by stripping away the flagged deductions. This could convert your expected refund into a Tax Demand (meaning you owe the government money).
Mandatory Penalties (Post-Dec 31): After December 31, 2025, you can no longer “revise” your return. You must file an Updated Return (ITR-U), which carries an additional tax liability of 25% to 50% of the tax and interest due.
Scrutiny Risk: Persistent non-compliance increases the probability of your case being picked for a “Limited” or “Full Scrutiny” under Section 143(2).

Also Read: [13 Multibagger Stocks of 2024 Crashed Up to 60% in 2025: Are You Affected?]

Comparison: Revised ITR vs. Taking No Action

Feature	Filing Revised ITR (By Dec 31)	Ignoring the Notice / No Action
Refund Status	Resumes processing once corrected.	Remains on hold indefinitely.
Extra Tax/Penalty	Zero (Only pay actual tax due).	25%-50% additional tax via ITR-U.
Correction Ability	Can fix any error or omission.	Cannot change claims after Dec 31.
Legal Standing	Voluntary compliance (Better).	Seen as “non-responsive” by AI.

Key Figures: Important Deadlines for AY 2025-26

Milestone	Deadline Date
Last Date for Revised ITR	December 31, 2025
Last Date for Belated ITR	December 31, 2025
ITR-U (Updated Return) Window	Starts January 1, 2026
Statutory Processing Deadline	December 31, 2026

Also Read: [How to Close Your Demat Account Online & Offline: 2025 Guide]

Conclusion

If your claims are 100% genuine and backed by physical receipts, you may choose to wait; however, tax experts suggest that filing a response on the Compliance Portal is still safer than total silence. If you find even a minor error, filing a revised return before the year ends is the only way to ensure your refund reaches your bank account without penalties…

Also Read | PAN Card Correction Guide 2025-26: How to Update Your Details Online

Disclaimer: This information is based on current Income Tax rules and the “Nudge” campaign guidelines for December 2025. Tax laws are subject to change. Please consult a qualified Chartered Accountant (CA) for personalized tax advice.

The post Income Tax Refund on Hold? What Happens if You Don’t File a Revised ITR (2025) first appeared on Rightsofemployees.com.

ITR Mismatch 2025: Fix Your Tax Error Before the Dec 31 Deadline

Chandani — Thu, 25 Dec 2025 17:01:08 +0000

The Income Tax Department has issued an urgent advisory for salaried employees regarding discrepancies in their tax filings for Assessment Year 2025-26. Specifically, the department has placed several tax returns on hold due to “potentially ineligible” deduction claims under the old tax regime.

Consequently, taxpayers have until December 31, 2025, to file a revised return or face detailed scrutiny, additional tax demands, and heavy penalties.

Why Salaried Employees are Getting Tax “Nudges”

The Income Tax Department is currently running a data-driven “NUDGE” campaign to ensure accuracy in tax reporting. In fact, advanced risk analytics have identified cases where employees claimed deductions like Section 80C, 80D, or HRA in their ITR that were not declared to their employers.

Consequently, this creates a significant mismatch between the ITR and the salary details reflected in Form 16. Furthermore, the department has flagged “bogus” donations to Registered Unrecognised Political Parties (RUPPs) as a major area of concern.

Also Read |PAN Card Correction Guide 2025-26: How to Update Your Details Online

Common Triggers for ITR Discrepancies

Most intimations are being sent to individuals who opted for the old tax regime but failed to provide supporting evidence for their claims. Specifically, the department has noticed errors such as incorrect PANs of donees and excessive HRA claims. Additionally, non-disclosure of income from other sources, such as mutual fund sales, equity shares, or crypto assets, has triggered automated alerts.

Therefore, even if your deductions are genuine, a mismatch with your Annual Information Statement (AIS) could result in an intimation.

[Image showing a digital dashboard of the Income Tax Compliance Portal with a “Pending Action” alert highlighted]

ITR Revision & Compliance – Key Figures

Parameter	Details
Assessment Year	2025-26
Revision Deadline	December 31, 2025
Key Flagged Sections	80G, 80GGC (Donations), HRA, 80C
Revised Returns Filed	Over 15 Lakh (As of Dec 23, 2025)
Late Filing Fee	Up to ₹5,000 (Income > ₹5 Lakh)
Penalty for Misreporting	Up to 200% of the tax evaded

Also Read |PAN Card Correction Guide 2025-26: How to Update Your Details Online

What You Should Do Now

If you have received an intimation, do not panic; instead, reconcile your figures with your Form 16 and AIS immediately. Specifically, log in to the e-filing portal and check the ‘Compliance Portal’ under the ‘Pending Actions’ tab. If you identify an error, you must file a revised return under Section 139(5) before the month ends. However, if your claims are 100% genuine and supported by valid receipts, you may choose to ignore the advisory, though keeping documentation ready for future enquiries is highly recommended.

Also Read |PAN Card Correction Guide 2025-26: How to Update Your Details Online

Conclusion and Disclaimer

Failing to act on these tax intimations by December 31, 2025, may lead to the disallowance of your claims and a delay in tax refunds. Consequently, being proactive now will save you from future litigation and hefty interest charges…

Also Read |PAN Card Correction Guide 2025-26: How to Update Your Details Online

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws are subject to change, and users should consult a certified Chartered Accountant before making any financial decisions or filing revised returns.

The post ITR Mismatch 2025: Fix Your Tax Error Before the Dec 31 Deadline first appeared on Rightsofemployees.com.

Income Tax Mismatch Alert 2025: Don’t Panic! Here’s How to Fix the ITR Error Message

Chandani — Thu, 25 Dec 2025 16:52:58 +0000

The Income Tax Department has launched a “NUDGE” campaign for Assessment Year (AY) 2025-26 to identify discrepancies in tax filings.

Specifically, thousands of taxpayers are receiving SMS and emails regarding significant gaps between their declared income and financial data available with the department.

If you have received this message, it is essential to review your records immediately to avoid potential penalties before the upcoming deadline.

What is the NUDGE Campaign?

The Income Tax Department is using advanced data analytics to cross-verify ITR filings with third-party information. In fact, this initiative, officially titled the “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” campaign, targets ineligible deduction or exemption claims.

Specifically, the department has flagged cases involving “bogus” donations to unrecognised political parties and mismatches in TDS or Annual Information Statement (AIS) data.

Also Read | PAN Card Correction Guide 2025-26: How to Update Your Details Online

Why Did You Receive This Alert?

The department sends these advisory messages to facilitate voluntary compliance. Consequently, if your Form 16 details differ from your AIS or if high-value transactions were not reported, a “nudge” is triggered.

However, the department clarifies that this outreach is advisory. Therefore, taxpayers with genuine claims do not need to worry but should verify their details on the Compliance Portal nonetheless.

ITR Mismatch & Deadlines – Key Figures

Parameter	Details
Campaign Name	NUDGE (AY 2025-26)
Last Date to Revise ITR	December 31, 2025
Targeted Discrepancies	80G/80GGC Donations, TDS-AIS Mismatch
Revised Returns Filed	Over 15 Lakh (As of Dec 24, 2025)
Updated ITR (ITR-U)	Option available from Jan 1, 2026 (with extra tax)

Also Read | PAN Card Correction Guide 2025-26: How to Update Your Details Online

Steps to Resolve the Mismatch

To address the alert, log in to the e-filing portal and navigate to the ‘Compliance Portal’ under the ‘Pending Actions’ tab. Here, you can view the specific information causing the mismatch. If the department’s data is incorrect, you can provide feedback online. In contrast, if you find an error in your original filing, you must file a revised ITR on or before December 31, 2025.

Conclusion and Disclaimer

Ignoring these messages could lead to delayed refunds or detailed investigations. Therefore, it is prudent to review your AIS and respond promptly. Even though the tone of these messages may seem firm, they are intended to help taxpayers avoid long-term legal hurdles…

Also Read | PAN Card Correction Guide 2025-26: How to Update Your Details Online

Disclaimer: This article is for informational purposes and does not constitute professional tax advice. Please consult a qualified Chartered Accountant for specific issues related to your tax filings and notices.

The post Income Tax Mismatch Alert 2025: Don’t Panic! Here’s How to Fix the ITR Error Message first appeared on Rightsofemployees.com.

Digital Tax Raids: New 2026 Powers for Income Tax Dept

Chandani — Tue, 23 Dec 2025 17:36:06 +0000

The thing is, the Income Tax department is about to get a lot more invasive starting April 1, 2026. Specifically, the new Income Tax Bill, 2025 is swapping old-school raids for a “digital-first” approach. Tax officers won’t just be looking for cash in your cupboards anymore.

Also Read | Indian Railways Fares Hike: New Prices from Dec 26

They’ll have the legal green light to dive into what the bill calls your “virtual digital space.” This includes everything from your private emails and DMs to your cloud storage and crypto wallets. And then the search follows.

Here’s the kicker: the law explicitly gives officers the power to override your access codes. Specifically, if you refuse to hand over a password or a PIN during a sanctioned search, they are now legally authorized to bypass that encryption.

They can dig through your social media profiles, online trading dashboards, and even casual messages if they think there’s a link to tax evasion. Let’s be real, the boundary between “financial data” and “personal life” is getting incredibly thin, or nothing.

Also Read | Indian Railways Fares Hike: New Prices from Dec 26

But don’t panic just yet if you’re a regular, law-abiding taxpayer. The government—and even PIB Fact Check—is stressing that this isn’t a “blanket surveillance” tool. Specifically, officers can’t just scroll through your DMs for fun or during a routine audit.

They still need a formal “reason to believe” that you’re hiding serious money. This power is strictly for Search and Survey operations targeting large-scale tax evasion and black money. And then there are the privacy critics, who argue that this level of access is totally disproportionate, or nothing.

The situation is a bit of a legal tightrope. While the government says they are just catching up to a world where money has moved online, privacy advocates worry about the lack of judicial oversight. Specifically, there’s no requirement for a judge’s warrant before they crack open your digital life.

Consequently, if you find yourself under a formal search, your entire digital footprint is basically fair game. Specifically, the rollout is set for the start of the next financial year, so the “digital teeth” are coming whether we’re ready or not.

Also Read | Indian Railways Fares Hike: New Prices from Dec 26

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Income Tax Dept Emails Flag Undisclosed Foreign Assets

Chandani — Thu, 18 Dec 2025 16:17:42 +0000

Income Tax Department Nudges Taxpayers: Revise ITR for Foreign Assets by Dec 31

Deadline Alert: Why Dec 31 is Your Last Chance to Avoid the Black Money Act
The “NUDGE 2.0” Strategy: How Global Data-Sharing Flagged Your Account
The Forms Matter: Why You Must Switch from ITR-1 to ITR-2 or ITR-3
Penalty Risks: The ₹10 Lakh Fine and Exceptions You Should Know

The Income Tax Department is keeping a very close eye on your global bank accounts. The thing is, thousands of taxpayers are currently receiving bulk emails about undisclosed foreign assets.

Also Read | Holiday Heart Syndrome: The Growing Cardiac Risk for Young Adults

Actually, these alerts are part of the department’s “NUDGE 2.0” campaign. They are using global data-sharing agreements to match what you reported in your ITR against what they see in overseas records.

As a result, if you hold foreign stocks, ESOPs, or even a dormant bank account abroad, you might be on their radar. Consequently, you have until December 31, 2025, to fix any mistakes (let’s be real, the pressure is on).

And here’s the kicker. You cannot simply “update” your existing ITR-1 or ITR-4. In fact, those simple forms don’t even have the schedules needed for foreign disclosures.

Also Read | Holiday Heart Syndrome: The Growing Cardiac Risk for Young Adults

Basically, if you have even one foreign asset, those forms become invalid. Instead of sticking with the easy forms, you must switch to ITR-2 or ITR-3 to access “Schedule FA” (Foreign Assets).

Schedule FA: This is where you report bank accounts, shares, and immovable property. Specifically, it covers the calendar year 2024.
Schedule FSI: Used for disclosing any income earned from those foreign sources, like dividends or interest.
Peak Balance: You must report the highest value the asset reached during the year, not just the year-end balance. Actually, this is a common point of error.

Also Read | Holiday Heart Syndrome: The Growing Cardiac Risk for Young Adults

Moreover, the penalties for “forgetting” are quite steep. Specifically, non-disclosure can trigger a ₹10 lakh fine under the Black Money Act.

Actually, there is a small bit of relief. No penalty applies if the aggregate value of your foreign assets—excluding immovable property—is ₹20 lakh or less. As a result, small-time investors might be safe from the big fine, but they still need to disclose (those too).

The thing is, the tax department is getting this data through the Automatic Exchange of Information (AEOI). In fact, last year’s drive led to the disclosure of over ₹29,000 crore in foreign assets.

Basically, the system is becoming too transparent to hide anything. Instead of waiting for a formal notice, tax experts suggest revising your return immediately if you received that “nudge” email….

And then Y followed. The portal will close for AY 2025-26 revisions on December 31. Consequently, if you miss this window, you lose the chance to voluntarily come clean.

Also Read | Holiday Heart Syndrome: The Growing Cardiac Risk for Young Adults

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ITR Filing Online: Your Essential Step-by-Step India Guide

Chandani — Wed, 10 Dec 2025 13:21:05 +0000

Filing an Income Tax Return (ITR) in India?

ITR Filing in India? It sounds like this complicated, bureaucratic nightmare, right? The thing is, for most of us, it’s not really.

It’s all online now, sitting right there on the official Income Tax Department e-filing portal. But you gotta go in prepared. If you don’t have your docs, you’re dead in the water.

The pre-game drill. Get this stuff ready first:

It’s just a pile of documents, mostly: Your PAN. Aadhaar (yes, they have to be linked, seriously, check that first). Your bank statements are a must. The famous Form 16 from your boss. And, oh god, all those investment proofs. Get the folder out.

Here’s the breakdown. A messy, narrative list of how this whole thing goes down:

Just Get Logged In: Hit up that official e-filing site. New user? Click ‘Register.’ You give them your PAN, some contact details, and create an account. Done. If you’ve been here before, log in. Use your PAN (it’s your User ID). Use your password. Pay attention to that secure access message. This is where people mess up: Your PAN and Aadhaar must be linked, or nothing moves. This is step zero, basically.
Find the File Button: You land on the dashboard. It looks busy. Look for ‘e-File.’ It’s the main menu item. Then you select ‘Income Tax Returns.’ X happened. And then Y followed: Click that final ‘File Income Tax Return’ button. You’re in.
Tell Them Who You Are: A new form pops up. It needs to know:
- Assessment Year (AY): Don’t confuse the Financial Year (when you earned the money, like 2024-25) with the Assessment Year (when you file it, like AY 2025-26). It’s a common typo, or nothing gets processed right.
- Mode of Filing: Choose ‘Online.’ Obviously.
- Status: Are you just an ‘Individual’? A HUF? A Firm? Pick what fits you.
- ITR Form: Here’s the kicker. You have to pick the right one.
  - ITR-1 (Sahaj): This is for simple folks. Residents with income up to ₹50 lakh. Salary, one house property, and interest income. That’s it.
  - ITR-2: If you have capital gains—stocks, land, anything complicated—or multiple rental properties. Use this.
  - ITR-3: This is the big one for people with a business or a proper profession.
  - ITR-4 (Sugam): Small businesses and professionals who opted for that presumptive income scheme? This simplifies things, but only if your income stays under ₹50 lakh.
Check the Auto-Fill and Fix the Gaps: The portal pre-fills some data. They know your personal details, your salary (from Form 16), and some tax deductions (from 26AS/AIS). Messy, narrative-driven list time:
- Review and Validate: Look at the pre-filled stuff. Check the bank account where you want your refund to land. If the number is wrong, you’ll be chasing that cash for months.
- Enter Remaining Information: This is where people get lazy. You have to add any missing interest income—that tiny savings account interest, FD interest that wasn’t covered. Claim your deductions (80C, 80D, all of them). Don’t leave money on the table.
The Final Tally and Payment: The software calculates the total tax you owe.
- Dues: If you owe money, you pay it right then and there with the “Pay Now” option. Do it before you hit submit.
- Refund: If they owe you money, the amount is sitting there in the summary. Good for you.
The Submission Sprint: Preview the entire form. Scroll through. Look for obvious mistakes. If it looks right, you hit ‘Proceed to Validation.’ That’s step one. If validation passes, you hit ‘Proceed to Verification.’
The 30-Day Clock: E-Verify It: An unverified return is literally not filed. You have 30 days. Don’t wait.
- Aadhaar OTP: Fastest, easiest way. Just use your phone.
- EVC: Get an Electronic Verification Code through your bank or Demat account.
- Or: Go to the post office. Print the ITR-V. Sign it blue ink only and speed post the signed paper to the CPC in Bengaluru. Seriously, who has time for that? Just use the OTP.

You e-verify. You get an acknowledgement email. That’s the end of the line. The window closes, but the process is ongoing. Log in later to ‘View Filed Returns’ to track its status.

Recommended Reading:

PF Transfer After Job Change: The Official Online Step-by-Step Guide for…

DISCLAIMER: This content is for informational and educational purposes only and should not be considered professional financial or legal advice. Always consult with a qualified financial advisor or the official Income Tax Department for specific guidance related to your tax compliance. We are just giving you the field notes on how the process works.

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Unexplained Cash at Home Attracts 84% Tax and Penalty: New Rules.

Chandani — Mon, 08 Dec 2025 15:00:24 +0000

The talk about India’s income tax rules is getting intense. Everybody is asking if the government can really take away almost all your cash. The short answer is: Yes, they can. Unexplained cash found during a search can attract a tax and penalty that totals up to 84%.¹

Also Read | File Online Police Complaint: Universal Step-by-Step India Guide.

Cash at Home: Why Unexplained Money Can Cost You 84%

India’s rules for cash dealings are much tighter now. The government is strengthening laws to curb unaccounted money.² Let’s be real. If the Income Tax Department finds cash at your place, and you cannot explain where it came from, the penalty is extreme.³

CA Sarthak Ahuja, an investment banker, recently explained the breakdown:

The total tax and penalty combined is 84%.⁴
This 84% covers the base tax, plus a surcharge, a cess, and a hefty penalty.⁵

In simple terms, nearly every rupee of unaccounted cash can be taken by the department. It almost completely wipes out the amount they find.

How Officials Find Out

The government’s tracking systems are far more advanced now. Banks and financial institutions share data with the tax department automatically. This makes it easy to spot unusual cash movements that do not match a person’s declared income.

Bank Reporting: If you withdraw more than ₹10 lakh as cash from your savings account in a year, the bank must report it to the I-T Department.
TDS Deduction: If you withdraw over ₹20 lakh in a year, the bank will also deduct TDS (Tax Deducted at Source).⁶

If officials sense anything suspicious based on this data, a search or inquiry follows.

Cash Penalties Are Heavy, Or Nothing

The strict rules apply to receiving cash, giving cash, and property deals. The penalty is often 100% of the transaction value.

Transaction Type	Cash Limit	Penalty	The Kicker
Property Sale	Receiving more than ₹20,000 in cash.	100% penalty on the entire cash amount.	If you receive ₹50,000 in cash, you pay ₹50,000 as a penalty.
Cash Receipts	Receiving more than ₹2 lakh in cash from one customer in a day.	100% penalty on the entire amount received.	This applies whether you are selling goods or services.
Cash Loans	Taking any loan from someone in cash.	100% penalty on the loan amount.	Under the law, all loans must be transacted through banking channels.

As Ahuja advised, “Please be mindful, the government can literally catch anyone today with the amount of information they have on your transactions.” It is vital to use banking channels for all large dealings.

Also Read | File Online Police Complaint: Universal Step-by-Step India Guide.

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ITR Refund Stuck? Check Status with PAN; Fix Delays Fast

Chandani — Mon, 08 Dec 2025 13:50:55 +0000

Lots of taxpayers are asking the same thing: Where is my ITR refund? The money is taking way longer than usual this year. It creates confusion. The thing is, you can check the status quickly. You avoid all that stressful back-and-forth.

Also Read Baal Aadhaar Card: Apply Online, Documents & Biometric Update Guide

ITR Refund Stuck? How to Check Status Using PAN Card

An income tax refund happens when you pay too much tax. This usually means your Tax Deducted at Source (TDS) or advance payments exceeded your final tax bill. The Income Tax Department returns this extra amount to your bank.

The refund process starts only after your ITR is successfully e-verified. It typically takes about four to five weeks after you file.

Why Your Refund Is Delayed

If the money hasn’t shown up, simple errors are the most common reason. Here’s the kicker: the Department is also doing much stricter verification this year, especially for high-value claims or complex returns. That causes delays.

Common mistakes that stop your refund:

Bank details are wrong. Your bank account is not pre-validated.
The names do not match. The bank account name and your PAN name must be identical.
Old bank details. You used an incorrect IFSC code or an account that is now inactive or closed.
Aadhaar link is missing. Your PAN is not linked with your Aadhaar card.
Mismatched Data. The tax figures in your ITR do not match what the department has on record (like Form 26AS or the Annual Information Statement). This triggers a manual review.
You forgot to verify. Your ITR was filed but not e-verified within 30 days. The return becomes invalid until you verify it.

Also Read Baal Aadhaar Card: Apply Online, Documents & Biometric Update Guide

How to Track Your Refund

You can check the status in just a few clicks. Use your PAN number for both methods.

Option 1: The E-Filing Portal

Go to the official e-filing site: https://www.incometax.gov.in/iec/foportal/
Log in using your PAN and password.
On the home page, go to e-File → Income Tax Returns → View Filed Returns.
You will see a list of your filed returns. Check the status next to the relevant Assessment Year.

Option 2: The TIN-NSDL Portal

Go to the direct tracking page: https://tin.tin.nsdl.com/oltas/refund-status-pan.html
Enter your PAN and the Assessment Year.
The refund status displays instantly.

Understanding the Status Messages

What the portal shows tells you what to do next:

Submitted and pending for e-verification: You filed it. You still need to verify it.
Successfully e-verified: Verified. Now the Department must process it.
Processed: The return completed successfully. Your refund is on the way.
Defective: Errors were found. You will get a notice (under Section 139(9)) asking you to fix them. Respond fast, or nothing happens.

Also Read Baal Aadhaar Card: Apply Online, Documents & Biometric Update Guide
Case transferred to Assessing Officer: The tax system flagged your case. Your local AO is doing a further check. This will take longer.

Also Read Baal Aadhaar Card: Apply Online, Documents & Biometric Update Guide

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3-Year Tax Trap: Section 54 for Under-Construction Homes.

Chandani — Thu, 04 Dec 2025 18:29:39 +0000

This is a critical puzzle for anyone upgrading their home: timing the sale of the old property to perfectly meet the tax-saving deadline for the new, under-construction one. Get the timing wrong, and you wipe out all your Long-Term Capital Gains (LTCG) tax savings.

Also read | Labour Codes Target April 2026 Rollout; Draft Rules Imminent.

The situation is clear: a buyer has a new, expensive property coming in December 2028 (costing ₹3.34 crore) and an old house (purchased in 2009) to sell for around ₹1.8 crore.

Here is the breakdown of what the tax experts are saying, focusing on the strict, non-negotiable rules of Section 54.

Section 54: The 3-Year Time Bomb

Section 54 is your only shield here. It says if you sell a long-held residential house, the profits (the LTCG) are exempt from tax if you reinvest them in another residential property. But the conditions are brutal when construction is involved.

Also read | Labour Codes Target April 2026 Rollout; Draft Rules Imminent.

The Absolute Deadline

The Rule: If you are constructing a new house—which applies to an under-construction property—the construction must be completed within three years from the date you sell your old property.
The Critical Date: The new property finishes in December 2028. The buyer must ensure the sale of the old property happens after June 2026 (December 2028 minus three years).
- The Risk: Selling now would mean the three-year clock starts immediately. If the builder is even a little delayed, or if the December 2028 date slips to, say, January 2029, the entire Section 54 exemption is invalidated, and the full LTCG becomes taxable.
- The Advice: Wait until after June 2026 to sell the old house. This maximizes the window and significantly increases the chance of the construction being completed within the three-year limit.

Also read | Labour Codes Target April 2026 Rollout; Draft Rules Imminent.

💰 The Financial Side: Tax vs. Loan

The LTCG Calculation Reality Check: The original gain on a 2009 property is a complex calculation now. While some estimate a small gain (e.g., ₹1.46 lakh), here’s the kicker: The government allows a seller of an old property to choose the best option: 20% tax rate with the full inflation benefit (indexation) OR the new 12.5% rate without indexation. For a property held since 2009, indexation is highly likely to make the final taxable gain much smaller, or even zero. The taxpayer must choose the beneficial method.

The thing is, since the cost of the new house (₹3.34 crore) is massively larger than any likely LTCG, the gain is likely to be fully tax-exempt anyway, provided the timeline is met.

The real headache is the financing and interest—not the tax.

The Logic: Home loan interest rates are typically lower than other loans… [Continue with the original text: “Experts are cautioning against throwing every single rupee of the ₹80 lakh savings…”]

Also read | Labour Codes Target April 2026 Rollout; Draft Rules Imminent.

…..

The post 3-Year Tax Trap: Section 54 for Under-Construction Homes. first appeared on Rightsofemployees.com.

LTCG: The Tax Trap Between Sections 54 and 54F.

Chandani — Thu, 04 Dec 2025 18:17:09 +0000

The core rule is: What you sold determines how much you must reinvest to avoid tax.

Also Read |8th CPC: Finance Ministry Confirms Pension Revision is Included.

1. Section 54: You Sold a House

This is the most generous section. It applies only when you sell a residential house you held for more than two years.

What to Reinvest: You only need to reinvest the Capital Gain amount.
- Example: If your gain is ₹40 lakh, and the new house costs ₹45 lakh (more than the gain), the full ₹40 lakh is exempt. If the new house costs ₹35 lakh (less than the gain), only ₹35 lakh is exempt. The leftover ₹5 lakh is taxable.
The Big Concessions:
- Two Houses: If your capital gain is ₹2 crore or less, you get a one-time option to invest in two residential houses, not just one.
- Maximum Cap: The maximum exemption is now capped at a ₹10 crore investment in the new asset, put in place by the Finance Act, 2023.

2. Section 54F: You Sold Anything Else

This is for long-term gains from selling assets other than a residential house. Think land, gold, mutual funds, commercial property, shares—anything that generated LTCG.

What to Reinvest: You must reinvest the Entire Sale Consideration (the full sale amount) for a full exemption. This is the stringent rule.
- Example: Raj sells equity mutual funds for ₹60 lakh, and his gain is ₹40 lakh. If he only reinvests ₹30 lakh (part of the sale proceeds) in a house, the exemption is calculated proportionately:Also Read |8th CPC: Finance Ministry Confirms Pension Revision is Included.
  $Exemption = Capital Gain \times \frac{Amount Reinvested}{Net Sale Consideration}$
  
  $\text{Exemption} = ₹40 \text{ lakh} \times \frac{₹30 \text{ lakh}}{₹60 \text{ lakh}} = ₹20 \text{ lakh}$
  
  The remaining ₹20 lakh is taxable. He has to put the full ₹60 lakh in to make the gain zero.
The Key Restriction: You must not own more than one residential house (besides the new one) on the date you sell the original asset. If you already own two homes, 54F is off the table.

Also Read |8th CPC: Finance Ministry Confirms Pension Revision is Included.

3. The Time Limits (Common Ground)

Both sections share the same critical timeline for reinvestment:

Action	Time Limit from Date of Sale
Buy a new house	1 year before or 2 years after the sale
Construct a new house	Within 3 years after the sale

4. The Short-Term Trap

Here’s the kicker: both sections have a common lock-in. If you sell that newly purchased or constructed house within three years, the tax exemption you claimed earlier gets reversed. The tax you saved becomes immediately taxable in the year you sell the new house. That rule prevents you from using these provisions as a short-term parking arrangement.

The nature of the asset sold decides which section applies, but your planning decides how much you save. The stakes are huge.

Also Read |8th CPC: Finance Ministry Confirms Pension Revision is Included.

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Tax-Saving Investments: Maximize 80C, 80D, and NPS Benefits.

Chandani — Thu, 04 Dec 2025 18:08:28 +0000

Tax planning isn’t just about avoiding a penalty. It’s about using the government’s rules to build your personal wealth. The entire system is built around Section 80C.

Also read |Ayushman Card: Free Treatment Limit, Eligibility, and Benefits.

I. Section 80C: Your ₹1.5 Lakh Core

This is the foundation. You can claim up to ₹1.5 lakh deduction every financial year. The key is to blend high-risk, high-return options with guaranteed safety.

Investment	Returns (Est.)	Lock-in Period	Risk Level	The Catch (Tax Treatment)
ELSS Mutual Funds	10–15%	3 years (Shortest!)	High	Gains taxed as LTCG if over ₹1 lakh/year.
PPF (Public Provident Fund)	7.1%	15 years	Very Low	Fully tax-free. EEE (Exempt-Exempt-Exempt) status.
Tax-saving FD	6.5–7.5%	5 years	Low	Interest earned is fully taxable (added to income).
NSC (National Savings Certificate)	7.7%	5 years	Low	Interest is taxable (but re-invested interest qualifies for 80C deduction).
SSY (Sukanya Samriddhi Yojana)	8.2%	Until child turns 21	Very Low	Fully tax-free. Excellent for girl child education/marriage.

Real-World Example: Priya, earning ₹8 lakh (20% bracket), invests ₹1.5 lakh across these options. That investment happened. And then a tax saving of ₹30,000 followed. That’s money back in her bank account.

II. Beyond 80C: Stacking Extra Deductions

Don’t stop at ₹1.5 lakh. The system allows you to layer on more savings using other sections.

Section 80D (Health Insurance): Premiums paid for health insurance qualify. You can claim up to ₹25,000 for self/spouse/children. But here’s the kicker: if you pay premiums for senior citizen parents, you get an additional ₹50,000 deduction.
- Total Potential: ₹75,000 extra deduction.
Section 80CCD(1B) (NPS): The National Pension Scheme offers a major loophole—an additional deduction of ₹50,000 that is over and above the ₹1.5 lakh limit of 80C.
- If you are in the 30% tax bracket and invest that ₹50,000, that’s an extra ₹15,000 saved in taxes.

Also read |Ayushman Card: Free Treatment Limit, Eligibility, and Benefits.

Portfolio Strategy: The Age Factor

Smart planning means aligning your risk tolerance with your age. Your 80C allocation should reflect this, not just the tax deadline.

20s–30s (Aggressive Growth): You have time to recover from market swings. Focus on growth.
- ELSS: 60% (₹90,000).
- PPF: 30%.
- FD: 10%.
40s–50s (Balanced Approach): Stability becomes more important as retirement nears.
- PPF: 40% (₹60,000).
- FD: 35% (Guaranteed returns).
- ELSS: 25% (Still need some growth).

Mistakes to Avoid (The Field Notes)

Last-Minute Rushing: Rushing in March leads to poor product selection. Start in April. That allows for rupee-cost averaging in ELSS. You get better NAV prices.
Ignoring Liquidity: PPF locks your money up for 15 years. FDs for 5 years. ELSS for 3. Balance your long-term goals with your need for access.
Forgetting Post-Tax Returns: The interest on a Tax-saving FD is taxed, which reduces the final return. PPF and SSY are fully tax-free and often better long-term choices.

Start by maximizing 80C through a diversified mix—that’s the key. Don’t let those thousands in potential savings slip away.

Also read |Ayushman Card: Free Treatment Limit, Eligibility, and Benefits.

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Form 26AS: Step-by-Step Download Guide

Chandani — Tue, 02 Dec 2025 14:47:06 +0000

Also read |Don’t Ignore These 3 Silent Heart Attack Warning Signs!

This is the fastest way to confirm your tax money actually hit the government’s account. Don’t skip this.

Go to the Portal: Open the official Income Tax e-filing portal. That link is: https://www.incometax.gov.in/iec/foportal/
Log In: Use your PAN as the User ID, your password, and the CAPTCHA.
Find the Menu: Once logged in, go to the ‘e-File’ tab in the main menu.
Select the Form: From the dropdown menu, select ‘Income Tax Returns,’ and then click ‘View Form 26AS (Tax Credit).’
Redirect Confirm: You’ll see a disclaimer. Click ‘Confirm’. This will immediately redirect you to the government’s TRACES (TDS-CPC) website. Don’t panic; it’s the right place.
Agree & Proceed: On the TRACES site, check the box to agree to the usage policy and click ‘Proceed.’
Select View Link: Click the prominent link that says ‘View Tax Credit (Form 26AS)’.
Final Selection: Choose the Assessment Year (AY) you need, and then select the format.
- For a quick look, use HTML.
- To save or file, select HTML again, then click ‘View/Download,’ and finally ‘Export as PDF’. (The password for the PDF is your Date of Birth in the DDMMYYYY format.)

End. . .

Also read |Don’t Ignore These 3 Silent Heart Attack Warning Signs!

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ITR Refund Stuck? Use Your PAN to Find the Hold-Up (Tax Guide)

Chandani — Mon, 24 Nov 2025 13:31:00 +0000

Let’s be real. Your Income Tax Return (ITR) refund is taking longer than usual this year. That happened. And then the stress followed. You need to check the status, or nothing moves.

A refund is simple: You paid the government extra tax (TDS, advance tax). The government owes you the surplus back. The thing is, if there’s a problem, they won’t send the money. You have to fix it.

Also read: 📱 Tech Alert: iPhone Air Price Halves in Croma’s Black Friday Sale

💻 Mission: Tracking Your Money via PAN

You use your PAN card. That’s your tax ID. You have two ways to check the status.

Method A: The Official E-Filing Portal (The Full Story)

This shows you the whole timeline of your filings.

Log In: Go to the official e-filing site. Hit Login. Use your PAN and password.
Navigate: Click e-file $\to$ Income Tax Returns $\to$ View Filed Returns.
Read the Truth: The refund status for your specific Assessment Year (AY) will be clearly reflected.

Method B: The TIN Website (The Fast Peek)

For a quick “where is it” answer, this is faster.

Go to the specific TIN refund website.
Enter your PAN and the Assessment Year.
Click Proceed. Status displayed instantly.

Also read: 📱 Tech Alert: iPhone Air Price Halves in Croma’s Black Friday Sale

🛑 Why Is It Stuck? The Top 5 Fixes

It should take four to five weeks after you e-verify. If it’s been longer, something happened. Check this list—these are the top reasons for the hold-up:

Bank Account Not Pre-Validated: This is compulsory. If the government can’t confirm the account is yours, they can’t send the money. Or nothing.
Name Mismatch: The name on your PAN card must match the name on your bank account—exactly.
Bad Account: You listed a closed account or an invalid IFSC code. That’s a fail.
PAN-Aadhaar Link: Your PAN is not linked with your Aadhaar card. Fix this immediately.
Defective Return Status: You got a notice (Section 139(9)) about a mistake. Action: If you don’t respond, your ITR is treated as invalid. You lose the refund.

This is an ongoing process. You track the status, you fix the error, and you wait for the cash.

Also read: 📱 Tech Alert: iPhone Air Price Halves in Croma’s Black Friday Sale

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Tax Refund Backlog: Why Your Income Tax Return is Delayed and When You Can Expect Payment

Chandani — Fri, 21 Nov 2025 11:30:17 +0000

Despite the Central Board of Direct Taxes (CBDT) receiving over 7.57 crore Income Tax Returns (ITR) by the revised deadline of September 16, a significant number of taxpayers still await their refunds for the Assessment Year 2025–26.

More than two months after the filing period, CBDT Chairman Ravi Agrawal has provided clarity on the backlog and set a clear timeline for resolution.

Also read: The Professional Exit: 10 Essential Steps to Take Before You Resign

The Core Reason for Delays: System Scrutiny

Agrawal confirmed that the department is currently conducting a detailed review of certain refund claims that the system automatically flagged. The scrutiny process focuses on preventing erroneous or inflated payouts.

Reasons why the Income Tax Department’s system flags a claim include:

High-Value Claims: Returns with exceptionally large refund requests.
Incorrect Deductions: Claims where the system detects unusual or potentially ineligible deduction patterns.
Mismatched Data: Discrepancies between the data filed by the taxpayer and the information available to the department.

Agrawal stated the department is analyzing these cases carefully to prevent wrongful refunds. He also noted that officers are examining returns more closely where the system detected unusual deduction patterns, slowing down the overall process.

Action and Timeline for Resolution

To address the flagged claims, the tax department has taken proactive steps:

Requesting Revised Returns: The department has written to some taxpayers, advising them to file revised returns if they missed or wrongly reported any information.
Low-Value Claims Released: The department confirms it is already releasing low-value refunds quickly.

Timeline: CBDT Chairman Agrawal expects the department to clear the majority of the remaining pending refunds by the end of December 2025.

Context: The Drop in Refund Issuances

Official data indicates a sharp decrease in the total value of refunds issued this year. As of November 10, total refunds fell by nearly 18% to approximately ₹2.42 lakh crore compared to the same period last year.

Agrawal attributed this decline to two primary factors:

Fewer Claims: The overall number of refund claims has decreased.
TDS Rationalization: Earlier rationalization of Tax Deducted at Source (TDS) rates led to smaller refund amounts overall.

Furthermore, Agrawal noted that the department is actively working to reduce direct tax litigation. Appellate authorities have cleared over 40% more appeals than last year, successfully reducing the pending backlog built up during previous years.

. . . . .

Also read: The Professional Exit: 10 Essential Steps to Take Before You Resign

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Income Tax Refund 2025: Haven’t received your money yet? Millions of taxpayers are worried, CBDT chief reveals the real reason

Pravesh Maurya — Wed, 19 Nov 2025 06:39:38 +0000

Income Tax Refund Delay 2025: Millions of taxpayers across the country are still awaiting their ITR refunds. The CBDT Chairman has now explained the reasons for the delay. Let’s explore the details.

Income Tax Refund Delay 2025: Millions of taxpayers filed their income tax returns months ago, but they still haven’t received their refunds. Every morning, taxpayers are checking their bank accounts, but their refunds haven’t arrived. Why are ITR refunds so delayed? CBDT Chairman Ravi Agarwal himself has provided the answer. Let’s explore the details.

CBDT Chairman Explains These Reasons
Inaugurating the Taxpayers’ Lounge at the India International Trade Fair 2025 on Monday, CBDT Chairman Ravi Agarwal said, “In many cases, incorrect or excessive deduction claims have been made. These are being investigated. While small refunds are being issued regularly, the department is taking precautions with suspicious returns. Many taxpayers have been sent messages asking them to file revised returns.” He further stated, “We are trying to ensure that all remaining refunds are issued this month or by December.”

Interest will be charged if the refund is delayed.

Furthermore, he stated that if the refund is delayed through no fault of yours, the government will transfer the refund along with interest. Under Section 244A of the Income Tax Act, taxpayers receive simple interest at the rate of 0.5 percent per month for delayed refunds. However, there are certain conditions.

1. If the ITR is filed on time, interest will be charged from April 1, 2025.

2. If the ITR is filed late, interest will be charged from the date of filing.

3. Interest continues to accrue even during scrutiny, provided the delay is not due to you.

4. However, if the refund is less than ₹100 or is due to an overpayment of self-assessment tax, no interest will be charged.

Refunds can also be withheld due to these five reasons:

1. If the form does not match Form 26AS, AIS, or TIS, the refund is withheld. Refunds can also be withheld due to TDS credit errors, such as incorrect TAN, outdated invoices, or differences in net-gross interest.

2. Furthermore, returns with foreign income, capital gains, income from multiple sources, or high-value transactions face increased scrutiny. This often results in refund delays.

3. Refunds can also be withheld if the taxpayer’s PAN is inoperative, TDS credit is denied, e-verification is not performed, the bank account is not active, or the PAN is not linked to Aadhaar.

4. Furthermore, if e-verification is not completed within 30 days of filing the return, the return is considered invalid.

5. Refunds can also be withheld if there is any outstanding tax from the previous year.

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Income Tax Payment : Pay tax through UPI without going to the bank, read the step-by-step process here

Pravesh Maurya — Mon, 17 Nov 2025 04:40:57 +0000

Income Tax UPI Payment: Now, filing taxes is no longer as hassle-free as it once was. The e-filing portal now offers the option to make payments directly through the UPI app. Scanning a QR code on your mobile device allows for payment within minutes, and an invoice is generated instantly. This new method is proving to be a significant relief for individuals.

Income Tax UPI Payment: Earlier, the thought of filing income tax would often bring to mind banks, net banking, and the numerous hassles involved. But now, the picture has completely changed. The Income Tax Department has simplified the payment process so much that you can pay your tax in minutes using your own mobile phone, using your own UPI app, without visiting a bank or going through any lengthy procedures.

Why has paying taxes through UPI become easier?

Now, the Income Tax e-filing portal offers the option to make UPI payments directly from apps like Paytm, PhonePe, and Google Pay. The money is deducted directly from your bank account, and the challan is generated within seconds. This eliminates the need for long waits and extra setup.

How to make an income tax payment using UPI? Learn the step-by-step process

Go to incometax.gov.in and log in with your PAN and password.
Select the ‘e-Pay Tax’ option on the dashboard (you can do it without logging in, but logging in is preferable).
Click on ‘New Payment’ and select the tax type (Advance/Self-Assessment, etc.).
Select the correct Assessment Year and enter the amount you need to pay.
Check and confirm the name and PAN.
The portal will generate the invoice and display the available payment modes, from which select UPI mode.
Note down or keep the QR code or the provided UPI ID on the screen.
Open Paytm/PhonePe/Google Pay on your mobile and select ‘Scan & Pay’.
Scan the QR code, verify the amount, and confirm the payment by entering the UPI PIN.
Keep your phone open until the app displays ‘Payment successful.’ Go to the e-filing portal and check the ‘Payment history’ status; it usually changes to ‘Paid’ within 1–2 minutes.
Then download your receipt/challan from ‘Payment history’ and save the CIN/UTR number (required for legal proof).
If the portal shows ‘Pending’ after payment, wait 30–60 minutes and then refresh and check.
If the money has been deducted from the bank statement but the challan has not been generated, raise a ticket or contact the bank/UPI support with the UTR.
Failed UPI payments are usually reversed within some time; make the payment again only when the status is clear.

While making payments through UPI may seem like a lot of steps, it’s now much simpler than before. Overall, the income tax filing process is no longer as complicated as it once was. This new UPI payment option is a huge relief for individuals. Whether it’s advance tax or self-assessment, simply pick up your phone, scan a QR code, and complete your tax payment instantly.

Income Tax Refund: Why are refunds delayed? What should taxpayers do? Learn the full details.

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ITR Deadline Extended : Taxpayers get relief due to extension of deadline, know till when they got time

Pravesh Maurya — Thu, 30 Oct 2025 04:01:14 +0000

ITR Deadline Extended: The Income Tax Department has extended the ITR filing date for tax audit cases to December 10, 2025. This provides significant relief to taxpayers. The previous deadline was October 31. Read the full report.

ITR Deadline Extended: For those stuck in audit cases or worried about deadlines, there’s some relief. The Income Tax Department announced on Wednesday, October 29, 2025, that the last date for filing audit reports and Income Tax Returns (ITRs) has been extended to December 10, 2025.

CBDT Extends ITR Date
The Income Tax Department shared on the social media platform X that the Central Board of Direct Taxes (CBDT) has decided to extend the previous deadline of October 31 to December 10. The Income Tax Department stated in the post that for taxpayers who are required to file returns under Section 139(1) for the assessment year 2025-26 (whose due date was previously October 31, 2025), the due date has now been extended to December 10, 2025. This decision was taken by the Central Board of Direct Taxes (CBDT).

This means that taxpayers who are required to be audited can now file their returns by December without penalty.

The Central Board of Direct Taxes (CBDT) has decided to extend the due date of furnishing of Return of Income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26, which is 31st October 2025 in the case of assessees referred in clause (a) of Explanation… pic.twitter.com/w7Hl94Y9Ns

— Income Tax India (@IncomeTaxIndia) October 29, 2025

The deadline had been extended before.
Initially, the deadline for submitting tax audit reports was September 30, 2025. It was later extended to October 31, following demands from tax professionals and CA institutes. However, as this deadline approached, the department extended the deadline again, extending it to November 10, 2025, and now to December 10, 2025.

What if the deadline is missed?
If a company or taxpayer fails to submit a tax audit report on time, they may be subject to a penalty under Section 271B of the Income Tax Act. Mint, in a report, stated that this penalty can be up to 0.5% of total sales or a maximum of ₹150,000. However, if the taxpayer proves that there was a valid reason for the delay, they may be exempted from the penalty.

Who is required to undergo an audit?

Taxpayers with business turnover exceeding ₹1 crore in a financial year, or up to ₹10 crore when cash transactions constitute less than 5% of total transactions, are required to undergo an income tax audit. Professionals with annual income exceeding ₹50 lakh are also required to undergo a tax audit. Professionals should also have their accounts audited if their annual gross receipts exceed ₹50 lakh.

Delhi Budget Homes : DDA flats for just ₹12 lakh! Your dream of owning a prime location will come true, learn the registration date.

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Tax notices are a warning! Surveillance begins on those withdrawing excess cash from banks!

Pravesh Maurya — Wed, 22 Oct 2025 11:30:36 +0000

Bank Account Cash Withdrawal: If you frequently withdraw large amounts of cash from your bank account, be cautious. The Income Tax Department may be keeping an eye on you. Let’s find out why.

Savings Account Cash Withdrawal: Even if you have a savings account in the bank, you still have to pay special attention to some things. If you do not keep track of your account transactions, you may receive an income tax notice. If you want to avoid getting into this mess, then definitely read this news. Let us know when the Income Tax Department keeps an eye on the savings account.

According to the report of ET Times, if you withdraw large amounts from the savings account repeatedly, the bank reports it to the Income Tax Department. The Income Tax Department looks at that report and if it finds something wrong in it, it can issue a notice to the bank account holder. Apart from this, if the cash flow in the bank account increases, then also the Income Tax Department keeps an eye on it.

What are the rules for withdrawing cash from a bank?
It should be noted that rules apply to cash withdrawals from a bank account. For example, HDFC Bank allows free cash withdrawals of up to ₹1 lakh per month. After four free transactions, a fee of ₹150 per withdrawal may apply. Even after that, if you withdraw more cash, the bank goes into alert mode and informs the Income Tax Department. If you fail to respond to an Income Tax notice, the Income Tax Department may impose a penalty.

You may receive a notice even after making a deposit.
If you deposited ₹10 lakh or more in cash into your savings account during a financial year (April 1 to March 31), the bank will provide this information to the Income Tax Department. In such cases, the Income Tax Department may investigate your income and expenses, especially if the transactions do not match your income. Therefore, it is always important to keep a record of all your transactions so that you can respond if you receive a notice from the Income Tax Department.

EPFO has changed these major rules, how will it affect you? Read the details.

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Income Tax Portal Update: Now know the complete ITR status report in seconds!

Pravesh Maurya — Tue, 21 Oct 2025 11:10:32 +0000

Income Tax Portal : The Income Tax Department has made changes to its e-filing portal, allowing taxpayers to track the status of their files. This will increase accountability among officials and ensure timely processing of files. The new rule will come into effect in 2026-27.

Income Tax Portal 2025: If you file your income tax returns, this news is very useful for you. The Income Tax Department has made a major change to its e-filing portal. This change will directly impact income tax payers. Let’s find out what the Income Tax Department has changed in its e-filing portal.

What has changed on the e-filing portal?
After filing your ITR return, you will be able to track your file. In simple terms, you will be able to find out when the assessing officer has viewed your file.

This feature of the Income Tax Department will strengthen trust between taxpayers and the Income Tax Department. It will also ensure accountability of officials. This will let taxpayers know whether their file has been viewed or not. This new feature takes full care of privacy. Only you, and no one else, will be able to see the status of your return file.

What benefits will taxpayers receive?
The new feature on the Income Tax portal will benefit taxpayers by allowing them to immediately know when their return filing has been processed. Officials will be pressured to process files on time, as digital records of every process will now be available. This will make it easier to resolve delays or disputes.

When will the notification be issued?
The Income Tax Department will issue a notification for this feature by the end of the year. After that, the feature will be implemented in the beginning of 2026-27, allowing those filing ITRs next year to use it.

Reduced Rules
The new income tax rule will come into effect next year. The purpose of this rule was to eliminate the complexities currently prevalent in the income tax law. Currently, there are over 500 income tax rules, while the new income tax structure will have 400 rules.

Gold Price Today : Gold crosses Rs 1.30 lakh on MCX, silver also expensive, know the new rates

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Gold Silver Rate : Gold and silver again skyrocketed, a new record was made today

Pravesh Maurya — Fri, 17 Oct 2025 07:01:39 +0000

Gold and Silver Price Today: Gold and silver prices have once again hit record levels today, driven by positive global cues.

Gold with December expiry date on the Multi Commodity Exchange (MCX) today rose by Rs 2,400, or nearly 2%, to reach an all-time high of Rs 1,32,294 per 10 grams. Silver with December expiry date on the MCX also rose by Rs 2,750, or 1.6%, to reach its highest level of Rs 1,70,415 per kg.

This week’s biggest rise since 2008
In the international market, it is heading for its biggest weekly rise since 2008. Trade tensions between China and the United States are increasing. Furthermore, there are expectations of an interest rate cut by the US Federal Reserve. This is why gold prices are rallying. The dollar’s weakness is also playing a significant role in gold’s luster. The dollar index fell 0.20%, making gold cheaper in foreign currency and increasing its demand.

Gold Silver Rate Today on 17 October: Gold and silver prices have once again reached all-time highs in the domestic commodity market. This rise was recorded following positive signals from the global market. Weakness in the dollar and strong spot demand also supported gold prices. Gold with December expiry date on the Multi Commodity Exchange (MCX) today rose by Rs 2,400, or nearly 2%, to reach an all-time high of Rs 1,32,294 per 10 grams. Silver with December expiry date on the MCX also rose by Rs 2,750, or 1.6%, to reach its highest level of Rs 1,70,415 per kg.

City	24 carat gold	22 carat gold
Delhi	₹1,32,920	₹1,21,850
Mumbai	₹1,32,700	₹1,21,700
Kolkata	₹1,32,700	₹1,21,700
Chennai	₹1,32,700	₹1,21,700

Bank Holiday Alert : Banks will remain closed from Dhanteras to Chhath! See the full list

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Income Tax on Savings Account : Is interest earned on savings accounts taxable? Learn the Income Tax Department’s rules.

Pravesh Maurya — Tue, 07 Oct 2025 10:37:46 +0000

Saving is a habit and a necessity for everyone. To secure their future, people open savings accounts in banks, where they earn interest on their deposits. But did you know that this interest can also be taxed?

Tax on Savings Account: If you have a bank account, this news will prove to be very useful for you. Middle-class people save money to secure their future and keep it in a bank account, which is used for their own benefit and that of their families. Today, we’ll discuss the interest earned on this money. When money remains in a bank account for a long time, it starts earning interest, but now the question arises whether that interest is taxable. Let’s find out how much tax is levied on the interest earned on money kept in a savings account.

Is tax payable on savings account interest?

If the bank pays interest on the money in your savings account, it will be considered part of your income and you will have to pay tax on it. However, the Income Tax Department has also provided some exemptions on this.

How much exemption is available?

If you have received interest of more than ₹10,000 in your bank account, you must pay tax under Section 80TTA of the Income Tax Act. However, if the interest is up to or less than ₹10,000, you are not required to pay tax. This exemption applies to savings accounts held at banks, post offices, or cooperative banks.

How is tax levied above ₹10,000?

If you have received interest of more than ₹10,000 in your bank account, you must pay tax on the excess amount. For example, if your total income falls in the 20% tax slab and you received ₹15,000 in interest, you will be taxed at 20% on ₹5,000.

Are FDs also eligible for exemption?

The Income Tax Department has granted exemption only on savings accounts. If you have invested in a fixed deposit (FD) or recurring deposit (RD), the interest earned on those deposits is not eligible for exemption.

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Toll Tax New Rule : If you travel without FASTag, read this news; toll charges will increase from November 15.

Pravesh Maurya — Mon, 06 Oct 2025 05:52:10 +0000

Toll tax charges: The government has made a major change for those traveling at toll plazas. New rules will come into effect on November 15th, which could lead to travelers having to pay more by cash or UPI. How much and how will the toll system change?

Toll tax new rule : The Ministry of Road Transport and Highways has changed the toll tax rules. Now, if a vehicle does not have a Fastag, double the toll will be charged for cash payments, and one and a quarter times the toll will be charged for payments made through UPI. The government has issued a notification regarding this change. According to the ministry, these rules will come into effect nationwide from November 15th.

Why the fee hike?

The government says the purpose of this move is to promote digital payments. Efforts are being made to gradually eliminate cash transactions completely to make toll collection easier and transparent. To this end, the National Highway Fee (Determination and Collection of Rates) Rules, 2008, have been amended.

What do the new rules say?

Under the new rules, if your vehicle doesn’t have a valid Fastag and you pay with cash at the toll plaza, you’ll have to pay double the toll. However, if non-valid Fastag users pay with UPI without a Fastag, they’ll have to pay one and a quarter times the toll.

Example:

If your vehicle has a valid Fastag, you’ll have to pay ₹100. However, if you don’t have a Fastag and pay with cash, you’ll have to pay ₹200, or double the toll. However, if you pay with UPI without a Fastag, you’ll have to pay ₹125, or one and a quarter times the toll. This means that the toll amount will be less if you pay with UPI.

What does the government say?

The ministry says that the purpose of this change is not just to collect money, but to make the toll system more robust, transparent, and simple. This will also reduce long queues at toll plazas and make travel easier for commuters.

With this new rule, most people will switch to digital payments or Fastag instead of cash. This will make it easier for the government to collect toll taxes and increase transparency.

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Toll Tax Free : These 7 people in the country do not pay toll tax. Know the full list.

Pravesh Maurya — Fri, 03 Oct 2025 08:10:28 +0000

VIPs Exempted From Toll Tax: If you travel on national highways, you likely pay toll tax at toll plazas. But did you know that there are some special people in the country who are not required to pay toll tax?

Their vehicles cross toll plazas without paying any tax. This exemption is not an offer; rather, it is granted to them under the law. Let’s find out who these seven people are whose vehicles pass without stopping at toll plazas.

Who are those seven people?

President of India
Vice President of India
Prime Minister
Governor (in their state)
Chief Minister (in their state)
Chief Justice of India and Supreme Court Judge
Speaker of the Lok Sabha and Chairman of the Rajya Sabha

The National Highways Authority of India (NHAI) has granted complete toll tax exemption to people holding certain positions and services. Their vehicles are not stopped at any toll plaza in the country.

How do these vehicles get the exemption?

Whenever these vehicles travel on the highway, security vehicles accompany them, signaling the arrival of a convoy. Furthermore, these vehicles also have special stickers. As soon as these stickers are captured by the toll booth camera, the employee working there becomes aware that these vehicles are exempt.

These Others Also Get Exemptions

In addition to the vehicles of these seven individuals, some other vehicles also receive exemptions. However, some operate under special circumstances. For example, when uniformed defense and police officers are on official duty, their vehicles are exempt from toll tax. Similarly, officials of the Ministry of Road Transport who are on inspection duty also receive this exemption. Furthermore, foreign state guests, ambulances, fire brigades, and hearses are also exempt from toll tax.

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NRI Repatriation rules : Are you an NRI and have you sold property in India? Learn the important rules for sending money abroad.

Pravesh Maurya — Fri, 26 Sep 2025 08:49:41 +0000

NRI Repatriation Rules: Many people have left India and settled abroad, but their connection to India remains. Be it a house, a shop, or a farm, many NRIs own property in India. When they sell it, the biggest question is how to send the money abroad. It sounds simple, but there are numerous regulations related to FEMA, RBI, and Income Tax.

If the documents and approvals are obtained correctly, sending the money becomes quite easy. However, if any mistakes are made, they may face both delays and penalties.

Who can sell the property?

If an NRI owns residential or commercial property, they can sell it to an Indian citizen, another NRI, or a Person of Indian Origin (PIO), but under FEMA rules. If an NRI owns agricultural land, a farmhouse, or a plantation, they can sell it only to an Indian citizen. NRIs can mortgage their property only with an Indian bank or a registered housing finance company.

Rules for sending money abroad: When and how much can you send?

If an NRI purchased property while living in India, i.e., before becoming an NRI, they can sell the property and send up to $1 million (approximately Rs. 8.3 crore) abroad annually. This transfer is only permitted through authorized banks under FEMA regulations. If the amount exceeds this limit, you will need special permission from the RBI.

If you purchased property in India after becoming an NRI, using a foreign currency, NRE, or FCNR account, you can send the entire sale amount abroad. However, this facility is only available for two residential properties in a lifetime. If you follow the correct rules and complete the documentation, there is no problem in sending money abroad.

What are the rules for inherited property?

If an NRI wants to sell an inherited property in India and send the money abroad, they must first submit a will or legal heir certificate. A tax clearance certificate is also required. The same $1 million annual limit applies to such transfers. If the inheritance is from another NRI, RBI approval may be required. This means that if the documents are complete, the process is easy; otherwise, obstacles may arise.

Step-by-step method for repatriating money:

After selling the property, deposit the money into an NRO account.
Fill Form 15CA, 15CB, and the Repatriation Application.
Also submit documents such as the tax clearance, sale deed, and bank statement.
The bank will verify the money, and then the money will be sent abroad.

What does the tax math say?

If the property you sold is less than three years old, the gain on it will be taxable according to your income tax slab. This means that the tax will be levied based on your income. However, if the property is more than three years old, it will be taxed at 20%, although it does benefit from indexation.

Indexation means increasing the purchase price based on inflation to reduce tax. For example, if you purchased a property for ₹10 lakh and, due to inflation, its indexed value is ₹14 lakh at the time of sale, tax will be levied based on the purchase price of ₹14 lakh, reducing your taxable gain.

Furthermore, if you reinvest the proceeds from the sale in a new property or government bonds (Section 54/54EC), you may also receive a tax exemption.

If you have the right documents and planning, remitting money becomes quite easy. But if any rule is missed or the document is incomplete, then both delay and penalty may be faced.

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GST on Sin Goods: Things that have become expensive from today… See the list of Sin Tax items, which now attract 40% GST.

Pravesh Maurya — Mon, 22 Sep 2025 12:05:43 +0000

New GST rates have come into effect across the country from today. While everyday items like milk, ghee, cheese, butter, and even oil and shampoo have become cheaper,…

‘Sin goods’ become more expensive as they reach the 40% slab
Following the GST reform announced by Prime Minister Narendra Modi on August 15th, the new GST rates have come into effect from September 22nd, 2025, the first day of the Navratri festival. The government has reduced the number of GST slabs to two and eliminated the 12-28% slab. All goods included in these slabs have been placed in the 5% and 18% categories, reducing the prices of most of these goods. Meanwhile, goods and services that are harmful to the public have been placed in a separate 40% slab. Many of these have been moved from 28% to 40% and have become more expensive from today.

Even cold drinks are included in this category.
Sin goods are goods or services that cause both health and financial harm to the public, such as pan masala, cigarettes, gutkha, and cold drinks. Additionally, activities that could cause financial harm to individuals, such as gambling, betting, and other gaming services, are also included in this list. These will now be subject to a higher GST rate of 40%. Meanwhile, the government has also classified super-luxury items as sin goods, including large and luxury cars, private jets, yachts, helicopters, and some motorcycles.

Tobacco Products

Pan Masala
Gutkha
Chewing Tobacco
Unprocessed Tobacco Waste
Cigarettes
Small and Large Cigars

These Drinks on the High GST List

Carbonated Drinks
Sugar-Added Cold Drinks
Caffeinated Drinks

Cars and Bikes with Heavy Engines

Petrol Cars (over 1200cc)
Diesel Cars (over 1500cc)
Bikes (over 350cc)

Luxury Items

Super-Luxury Yachts
Private Jets
Private Helicopters

IPL Tickets Will Also Be Expensive
In addition to all the items mentioned above, the government has dealt a major blow to cricket fans (especially IPL fans). In fact, watching IPL matches has also become more expensive, and instead of the previously applicable 28 percent GST on tickets, it has been included in the 40 percent GST slab. Coal, lignite and peat (organic matter) are also kept in this category, which have become expensive.

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8th Pay Commission: Central employees may get these two big gifts before Diwali

Pravesh Maurya — Wed, 17 Sep 2025 13:34:08 +0000

8th Pay Commission: If all goes well, central government employees and pensioners could receive two significant gifts before Diwali. There’s talk that the government may decide on the formation of the 8th Pay Commission. Additionally, an increase in dearness allowance (DA) is also likely to be announced. If both decisions are implemented, approximately 12 million employees and pensioners will benefit.

How much could dearness allowance increase?
Central government employees currently receive 55% DA. According to media reports, this could increase by 3% in the second half of the year. It’s worth noting that under the 7th Pay Commission rules, the government reviews DA twice a year.

January to June
July to December

Typically, announcements are made in February-March and September-October.

Eye on 8th Pay Commission
Central employees have been waiting for the announcement of the 8th Pay Commission for a long time. The government had indicated its formation in January 2025, but no official update has come so far. Now it is believed that a notification regarding the formation of the commission can be issued before Diwali in October 2025.

Why is the pressure increasing?

The pressure on the government is constantly increasing regarding the formation of the Pay Commission. Recently, railway employees’ organizations have emphasized on this. The All India Railway Employees Federation (AIRF) has even warned that if the government does not take action soon, the employees will hold a nationwide protest on September 19.

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Belated ITR filing: How to file belated returns, what are the penalties and late fees; know every detail

Pravesh Maurya — Wed, 17 Sep 2025 10:25:25 +0000

Belated ITR filing: If you missed the deadline for filing your income tax return (ITR), you’ll now need to file a “belated return.” This must be done before December 31st to avoid additional penalties or notices. The original deadline for filing ITRs was July 31st. It was first extended to September 15th and then finally to September 16th, providing a 24-hour extension.

What is belated return?

An ITR filed after the due date specified in Section 139(1) is considered a belated return. This date is usually July 31st. However, due to several changes to ITR forms this assessment year, the deadline was extended to September 16th. This means that ITRs filed after September 16th and until December 31st are considered belated ITRs.

Penalties and fees on belated returns

Taxpayers with annual income of more than ₹5 lakh will be charged a penalty of ₹5,000.
Taxpayers with annual income less than ₹5 lakh will be charged a penalty of ₹1,000.
Apart from this, 1% interest will have to be paid every month on the tax due.
According to the Income Tax Department, “Under section 234F, a late fee of ₹5,000 will be applicable for filing the return after the due date specified in 139(1). However, if the total income is less than ₹5 lakh, the fee will be ₹1,000.”

Limitations on Belated Returns

You can claim a refund through a belated return, but you can’t change your tax regime. This means that if you don’t file your ITR on time, you may end up paying more tax and receiving a lower refund. Certain deductions and exemptions (such as sections 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID, and 80-IE) are not available with a belated return.

Additionally, taxpayers who miss the deadline also lose certain other benefits. For example, business and capital gains losses cannot be carried forward to subsequent years. However, house property losses can be carried forward to belated returns.

If the tax is not paid, the penalty is imprisonment for a term of three months to two years. If the outstanding tax exceeds ₹25 lakh, the penalty is imprisonment for six months to seven years. This generally does not apply to salaried individuals.

How to file belated return?

Login to the e-filing portal .
Go to e-File and select Income Tax Returns.
Click on File Income Tax Return.
Select the mode.
Click on Start New Filing.
Select Status (individual/HUF/others).
Select the applicable ITR form.
Verify all the details in Personal Information.
In the Filing section, select 139(4) (Belated Return filed after due date).
Fill in income details, deductions etc. and submit ITR.

Can I get a refund on a belated return?

Yes, you can claim a refund from a belated return as well, but it is necessary to pre-validate your bank account and e-verify your ITR.

Can a belated return be revised?

Yes, you can also file a revised return for a belated return. However, keep in mind that the deadline for filing a revised return is December 31st of the same assessment year. According to the Income Tax Department, “An income return can be revised three months before the end of the assessment year or before the completion of the assessment, whichever is earlier.”

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Big news: Deadline for filing ITR extended, know when you can file return

Pravesh Maurya — Tue, 16 Sep 2025 06:06:46 +0000

The Income Tax Department wrote on the social media platform X, more than seven crore ITRs have been filed so far and the counting is still going on. The department appealed to all those who have not yet filed ITR to file their returns.

The Income Tax Department on Monday extended the last date for filing income tax returns (ITR) by one day to September 16 (today). The last date for filing ITR for individuals, Hindu Undivided Families (HUFs) and those who do not want to get their accounts audited was earlier extended from July 31 to September 15.

The Central Board of Direct Taxes (CBDT) said in a statement that the last date for filing ITR for the year 2025-26 is being extended from September 15, 2025 to September 16, 2025.

ITR deadline extended

In a statement issued, the CBDT said that to make changes in the utilities, the e-filing portal will be in maintenance mode from 12 am on September 16 to 2.30 pm. 11.48 pm on September 15. The ITR deadline was extended after chartered accountants and common people complained about glitches on the e-filing portal on social media.

KIND ATTENTION TAXPAYERS!

The due date for filing of Income Tax Returns (ITRs) for AY 2025-26, originally due on 31st July 2025, was extended to 15th September 2025.

Complaints about technical glitches in filing returns

The Income Tax Department on Monday said that more than seven crore income tax returns have been filed so far. This has been said amid complaints of glitches on the portal by internet users and demand for extension of the deadline. Following the demand for extension of the deadline, the department has extended the deadline for filing income tax returns (ITR) for the financial year 2024-25 (assessment year 2025-26).

More than seven crore ITRs have been filed till now

The department wrote on the social media platform X, more than seven crore ITRs have been filed so far and the counting is still going on. The department urged all those who have not yet filed ITR for the assessment year 2025-26 to file their returns. Last year, 7.28 crore ITRs were filed till July 31.

In the past few days, many chartered accountants and others have claimed on social media that there are glitches while making tax payments and downloading AIS (Annual Information Statement) on the income tax portal. Internet users also complained on Monday that they were unable to log in to the e-filing portal.

Last date for filing ITR

The Income Tax Department had termed a statement circulated on social media on late night of 14 September as fake, which said that the last date for filing ITR has been extended to 30 September 2025. The department requested taxpayers to rely only on the handle of IncomeTax India for any information. The department had said that the last date for filing ITR is September 15 only. However, now it has been extended by one more day.

Continuously working helpdesk

On a complaint about problems in uploading ITR and paying tax, the Income Tax Department had said on Monday morning that the e-filing portal is working fine. Please clear your browser cache or try accessing the portal from another browser. The Income Tax Department said that its helpdesk is working continuously to help taxpayers in filing ITR, paying tax and other related services and taxpayers are being helped through phone, live chat, Webex sessions and X.

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ITR after 15 September: There is still a chance! This is how you can file late ITR after 15 September, know the complete method

Pravesh Maurya — Mon, 15 Sep 2025 12:32:16 +0000

ITR filing after 15 September: Today is the last date for filing income tax returns. As the deadline approached, many people got upset with the problems of the portal. There was also a demand to extend the deadline on social media. But an update came from the Income Tax Department that the deadline is 15 September only and there is little scope for extending it.

Now what to do if the deadline is missed. Let us know whether ITR can be filed after missing the last date for filing ITR. How much penalty will be levied and what is its method?

What is the option?

If you have not filed the return by the last date of filing income tax return i.e. 15 September, then the opportunity is not over. Under section 139(4) of the Income Tax Act, you can file belated returns till 31 December 2025. Though a little late, but filing ITR is still possible. It is important to file belated returns so that you remain within the ambit of the law and avoid penalty.

What are the disadvantages of late filing?
You will have to pay late fees for filing ITR late. If your income is up to 5 lakhs, then a penalty of Rs 1,000 can be imposed and if it is more than 5 lakhs, then a penalty of Rs 5,000 can be imposed. Apart from this, interest may also have to be paid under section 234A, 234B and 234C. The biggest disadvantage of late filing is that you will lose many types of tax benefits.

For example, you will not be able to carry forward business loss or capital loss to the next year. Yes, you can still get the benefit of house property loss. Exemptions or deductions available under section 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE will no longer be available. These benefits are available only to those who file ITR before the deadline.

You may also receive a notice from the tax department
If you file your ITR late or do not file it at all, you may receive a notice from the income tax department. Then you may have to submit documents, reply and all this can lead to unnecessary tension and hassle. Therefore, it would be better to file a belated return if you miss the deadline.

How to file belated return?

Online method

Step 1: First of all go to the Income Tax website and login to your account.

Step 2: Click on the ‘e-File’ option given above → then select ‘Income Tax Returns’ → and click on ‘File Income Tax Return’.

Step 3: Select the assessment year for which you want to file the return (eg AY 2025–26).

Step 4: If you choose the ‘Online’ mode, then follow steps 5 to 10 given below.

Step 5: Click on the ‘Start new filing’ button.

Step 6: Select your correct status, like Individual, HUF, etc.

Step 7: Now select the ITR form that is correct for you (eg ITR-1, ITR-2).

Step 8: Go to the ‘Personal Information’ section and check all your details to see if everything is correct.

Step 9: Scroll down and select Section 139(4) in the Filing Section – this is the option for Belated Return.

Step 10: Now fill in your income details, calculate tax and pay the outstanding tax, if any.

Offline method

Download the offline ITR preparation utility from the income tax website.

Fill in all your details in it and prepare the ITR.

When everything is done, upload the .json file on the website and then verify the return.

What if you miss the belated return as well?

If you miss the deadline for belated return as well, then you have the option of ITR-U i.e. Updated Return, which can be filed within 48 months under certain conditions. But additional tax has to be paid in this.

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Taxpayers pay attention! If your refund is stopped after ITR, then the money will come only after e-verification, know where the mistake happened

Pravesh Maurya — Mon, 01 Sep 2025 17:32:14 +0000

Income Tax Refund: When taxpayers file income tax returns, they eagerly await their refund. The question remains in their minds as to when they will get the refund amount. Actually, the refund process starts after the date on which e-verification is done by the taxpayers. It has generally been observed that after e-verification, it can take from two weeks to two months for the refund to arrive.

Why is there a delay in refund?
If taxpayers have made any mistakes in the refund, they may have to file a revised return. As per the guidelines of the Income Tax Department, the refund process starts as soon as the ITR is filed. In case of e-verification, the refund is received quickly. However, in some cases the refund gets stuck. Most of the cases are those where e-verification has not been done within 30 days of filing the ITR or the bank details have been entered incorrectly.

Therefore, it is important that ITR is filed correctly and e-verification is done within 30 days. If this is not done, the return may be invalid. The Income Tax Department starts the refund process only after e-verification.

What to do if you don’t get a refund?

Those who file ITR-1 usually get their refund within 10 to 15 days.
Those filing ITR-2 may take 20 to 45 days.
It may take about two months for those filing ITR-3 to receive their refund.

If there is a delay in the permit, one can call the Income Tax Department’s passport number 1800-103-4455. Apart from this, officials can also be contacted through mail by emailing at Ask@incometax.gov.in.

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PAN Card Linking : Link PAN card to bank account like this, work will be done within 7 days

Pravesh Maurya — Mon, 01 Sep 2025 14:39:55 +0000

PAN Card Linking with Bank Account: Nowadays every small and big thing related to money is directly linked to the government records. Whether you are taking salary, doing freelance work or making online payment, your bank account and tax records are linked to each other. This is why it has become very important to link PAN card to your bank account.

If this linking is not done, then you may face many problems in your income tax refund , online payment or bank transactions. Meaning, without linking, your money and banking work may get disrupted.

Why is it necessary to link PAN to bank account?
The Central Board of Direct Taxes (CBDT) has made it clear that it is mandatory to link every savings account with a PAN number. By doing this, your income tax refund comes directly into the account.

If your account is not linked to PAN , the bank can restrict some transactions. Transfer and debit services may be stopped due to incomplete KYC. Restrictions have also been imposed on such accounts since December 2016.

Step-by-step process to link PAN and bank account:

Linking PAN card to bank account is now very easy. For this, just follow these steps:

First of all see how many bank accounts are in your name.
Login to your bank’s internet banking site or mobile app.
Go to the dashboard and look for the “Services” or “Service Request” section.
There you will get the option of “Link PAN” or “Update PAN”.
Click on it and fill the required information – PAN number, date of birth, registered email ID.
Double check all the details before submitting.

After submission, the bank will link your account with PAN within 7 working days.

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ITR Filing Last Date: You have only this many days left, file soon or else you may face this problem!

Pravesh Maurya — Sat, 30 Aug 2025 15:39:42 +0000

The last date for filing ITR for the financial year 2024-25 is 15 September 2025 (ITR Filing Last Date). Till now only 3.68 crore returns have been filed which is half of last year. Delay may cause problems like server down. For salaried class, file ITR early otherwise there may be trouble. The deadline for audited taxpayers is 31 October.

There is an alert for those who file Income Tax Return (ITR). The last date for filing ITR for the financial year 2024-25 has been fixed as 15 September 2025 ( ITR Filing Last Date ). That is, now you have less than 20 days left. If you have not filed the return yet, then delaying it can prove costly.

This time the surprising thing is that the number of ITRs filed so far is not even half of what it was last year. According to the Income Tax Department’s website, only 3.68 crore returns have been filed till August 25.

Out of these, about 3.54 crore have been verified and 2.30 crore have been processed. Whereas last year more than 9 crore returns were filed in the entire financial year. This means that crores of people are still left to file ITR.

then this trouble can come
In view of this, experts believe that those who file returns should fill ITR early, otherwise a big problem may arise in the last days. Because, when people suddenly file ITR, they may have to face problems like server down.

Earlier the deadline was 31 July
The government had extended the deadline this time. Earlier the last date was 31 July, which has now been extended to 15 September. This deadline is for those taxpayers who do not require audit. That is, most of the salaried class people have to file ITR by this date. For those taxpayers who need to get audit done, the deadline is 31 October.

Top earners of 1 to 5 crores
If we look at the figures, the number of people earning more than Rs 1 crore in the country is increasing rapidly. As of March 31, 2025, 10,814 people with income of more than Rs 10 crore filed returns. At the same time, 16,797 people with income of 5 to 10 crores and about 2.97 lakh people with income of 1 to 5 crores filed ITR.

There is no tax on income up to 12 lakhs
There have been changes in the tax slabs as well. In the new tax regime, there will be no tax on income up to Rs 12 lakh. Salaried people will also get a standard deduction of Rs 75,000. That means a total income of up to Rs 12.75 lakh will be tax free. At the same time, a new slab of 25% tax will be applicable on people with an income of 20 to 24 lakh.
Let us tell you that the Income Tax Department keeps an eye on your every big transaction. Your account details reach the tax department through the bank. For example, if you deposit more than 10 lakh cash in your savings account or make a big FD-RD in cash, then its information goes directly to the tax department.

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ITR Filing Last Date Update: Why are you worried about the last date? Fill ITR soon, otherwise you will have to pay a heavy penalty

Pravesh Maurya — Sat, 30 Aug 2025 03:53:21 +0000

ITR Filing Last Date: Every year when the time comes to file Income Tax Return (ITR), many people keep postponing it till the last day. Then there is a rush in the last hour and there is also a worry in the mind whether it will be filed on time or not. If you are also one of those people who procrastinate about filing ITR, then this news is very important for you.

First of all, know that the last date for filing Income Tax Return (ITR) this year is 15 September 2025. Earlier this date was 31 July, but the government has extended it to 15 September so that taxpayers have more time. This date is for those whose accounts are not required to be audited, such as most salaried employees. For those whose business or financial records are audited, the last date for filing ITR is 31 October 2025.

Keep in mind that you can file income tax returns even after September 15, but after that there may be a penalty for late filing and in some cases a notice may also come. Therefore, it would be better to file your ITR before the deadline so that you can avoid any hassle.

How much is the penalty?
If you file your income tax return (ITR) after the deadline of 15 September 2025, you may have to pay a penalty. This penalty depends on your income: if your income is less than Rs 5 lakh, then the penalty will be ₹ 1,000 and if it is more than Rs 5 lakh, then the penalty will be up to ₹ 5,000. Apart from this, 1% interest will also have to be paid every month on the outstanding tax amount. Therefore, it is better to file ITR on time to avoid penalty and interest.

Let us tell you that filing income tax return is necessary for every taxpayer. This lets the government know how much your annual income is and whether you have paid the correct tax on it or not. It is very important to file ITR to collect tax from you in the correct manner and deposit it in the correct account.

Benefits of filing ITR
Filing ITR also gives you many benefits. The biggest benefit is that your legal responsibility is fulfilled and you are saved from any kind of tax lawsuit. Apart from this, if you have paid more tax, then you also get its refund. Also, the record of filing ITR is also important for you in things like taking a loan or applying for a visa.

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ITR Filing 2025: Those filing returns for the first time should be alert, register here quickly, know the process

Pravesh Maurya — Thu, 28 Aug 2025 18:28:24 +0000

ITR Filing 2025: If you are going to file ITR for the first time, then first of all you have to register yourself on the e-filing portal of the Income Tax Department. This portal provides many important tax related services to taxpayers online. The process of registration has now become very easy.

ITR Filing 2025: If you have not filed your income tax return yet, then you do not have much time left now. The government has made the last date for filing ITR for the financial year 2024-25 15 September 2025. Earlier this date was 31 July, which was later extended. One should not wait for the deadline to file income tax return. You may make many mistakes in haste. In such a situation, if you are going to file ITR for the first time, then first of all you have to register yourself on the e-filing portal (www.incometax.gov.in) of the Income Tax Department. This portal provides many important tax related services to taxpayers online. The process of registering has now become very easy.

Any taxpayer can register on the e-filing portal of the Income Tax Department through a valid PAN (Permanent Account Number) number. Once the registration is complete, you will start getting many tax related services online. After this, filing ITR will become easy. Without registration, you can neither file ITR nor claim refund. This registration is completely free.

ITR Filing 2025: Documents required for registration
1- A valid and active PAN card

2 – Mobile number

3 – Email ID

Separate registration has to be done for each PAN card.

Let us tell you that the e-filing portal is a kind of digital platform for taxpayers , where you can not only file ITR but can also manage your tax profile. Here you get many tax related services, such as tax payment information, viewing refund status, responding to notices and checking the record of old filing.

How to register?

1 – First of all go to the Income Tax e-filing portal and click on the ‘Register’ button on the homepage.

2 – Select ‘Taxpayer’ option and enter your PAN number, then click on ‘Validate’.

3 – If PAN is valid, fill in the basic details like your name, DOB, gender and residency status on the next screen.

4 – Next, fill in the contact details like mobile number, email ID and address.

5 – Two separate OTP will be sent to the entered mobile number and email. Enter both the OTP correctly and proceed.

6 – If any information is incorrect then correct it and confirm it.

7 – Now set the password and type a security message which will appear on every login.

8 – As soon as you click on the ‘Register’ button, your registration will be completed and after that you can login.

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Made a Mistake in Your ITR? Here’s a Step-by-Step Guide to Correct It

Pravesh Maurya — Fri, 22 Aug 2025 09:17:49 +0000

Even after filing ITR, certain errors can be rectified, such as accidental under-reporting of income, errors in personal information, omission of exemptions, alteration of ITR form, incorrect tax calculation, change in tax liability, or if tax authorities have sent a notice for rectification.

It’s time again to file Income Tax Returns (ITR). Although filing returns online has become easier than before, the process can still be a bit tricky for first-time filers. If you make a mistake while filing returns and want to correct it, here’s what you should do.

Last date for filing return

The last date for filing income tax returns without paying penalty this year is September 15, 2025. Even after this, you can file a delayed return till December 31, 2025, but for this you will have to pay a penalty ranging from Rs 1,000 to Rs 10,000. This amount will depend on the period of delay and your taxable amount.

Things to remember before filing return

Before filing the return, make sure that your PAN and Aadhaar are linked. Verify the bank account where you want to receive your refund amount. Do not forget to choose the correct ITR form. File your return within the stipulated time limit and do e-verification. If you have received any notice from the Income Tax Department, then do reply to it by the due date.

How to rectify mistakes in returns

According to the Income Tax Department, people who have made a mistake in their returns can correct it by filing a ‘revised return’. Note that, once filed, the revised return replaces the original return. This facility is provided under Section 139(5) of the Income Tax Act, 1961.

Through this, you can rectify the following mistakes like accidental under-reporting of income, error in personal information, omission of exemptions, change in ITR form, incorrect tax calculation, change in tax liability, or if tax authorities have sent a notice for rectification.

Last date for filing revised returns

For this financial year, you can file a revised return till December 31, 2025, provided the original return is filed on time. There is no limit on filing revised returns and there will be no penalty for using this service.

You can also correct belated returns. Even after you have received your refund, you can file a revised return if it is before the deadline (31 December).

Steps to File Revised Return

First of all login to the official website of Income Tax Department.
Then select the relevant financial year and download the ITR form you require.
Fill in the form with correct information and enter the acknowledgement number and date of the original return.
After this, validate the form and generate an XML document.
After checking this document, go to the e-filing section, select ‘Upload Return’ and upload the corrected form.
Finally, submit the revised return and e-verify it using Aadhaar OTP, net banking or through post.

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ITR Filing Made Easy: Which Form – ITR-1, ITR-2, ITR-3, or ITR-4 – Suits You Best?

Pravesh Maurya — Thu, 21 Aug 2025 09:28:04 +0000

Taxpayers are now gradually filing income tax. So that the last minute rush can be avoided. If you are also going to file ITR, then before that know which form is right for you among ITR-1, ITR-2, ITR-3 and ITR-4. Along with this, what are ITR-1, ITR-2, ITR-3 and ITR-4 and what are their uses?

First of all, we will know which ITR form is for whom.-

ITR 1- Salary
ITR 2- Salary + Capital Gain
ITR 3- Business + Capital Gain
ITR 4- Income from business

ITR 1 is the easiest, only those people file income tax under ITR 1 whose income is only from salary. Apart from this, people who invest in stock market or elsewhere or have other sources of income also use ITR 2 form.

Similarly, those who earn only from business file their returns under ITR-3 and those who earn from sources other than business file their returns under ITR 4.

What is included in capital gains?

Apart from business and salary, income from other sources is included in capital gains. These include stock market, mutual funds, real estate and valuable things etc. Valuable goods include those things which are valuable. Like gold-silver, any expensive painting etc.

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5 Common ITR Filing Mistakes That Can Trigger an Income Tax Notice

Pravesh Maurya — Tue, 19 Aug 2025 04:30:24 +0000

The last date for filing Income Tax Return 2025 is 15 September 2025. Many taxpayers have not yet filed ITR. If you are also among them, then know which 5 mistakes you should avoid while filing ITR. So that action by the Income Tax Department can be avoided.

If you make mistakes in ITR, then not only will you come under the scrutiny of the Income Tax Department, but you may also have to pay a heavy fine along with punishment.

Lakhs of cases identified by Income Tax Department

The last date for filing ITR is approaching, in such a situation, the department has identified about 1.5 lakh cases for detailed investigation under section 143 (2). Your responsibility does not end just by filing ITR. If you have made mistakes in the income tax return, then notices can be issued by the Income Tax Department.

Let us know about 5 such mistakes which if done while filing income tax return, then you will come under the eyes of the Income Tax Department-

1. Matching of documents

You have filed your ITR, but if there is a difference in the TDS details and the income details declared by you, then it can be investigated by the Income Tax Department. Such problems are generally common among salaried and freelancers. Therefore, while filing income tax return, match the declared income with your TDS details in advance.

2. False claims in greed for higher refund

If you are also among those taxpayers who give wrong information in the income tax return to get more refund, then the Income Tax Department can take action against you. To avoid such problems, it is better to file all the correct information. If the taxpayer declares less income, then a penalty of 50% can be imposed on him. On the other hand, a penalty of 200% may have to be paid under section 270A for submitting fake documents.

3. Income Tax Department’s eye on high value transactions

High value transactions are monitored by the Income Tax Department. If you do not include details of such major activities in your ITR, then you may get into trouble.

4. Avoid disclosing all sources of income

Many taxpayers do not include information about all the sources of income earned in their income tax returns. Due to which they can also come under the radar of the Income Tax Department. For example, if you are a salaried person and have made capital gains in the financial year, have received income from rent, have received bank interest or have earned profit through shares or crypto, then all such income will have to be included in your income tax return. If you do not include the details of income earned from all sources in your ITR, then you may have to pay a penalty on it later. Along with this, you may also have to face questions from the Income Tax Department.

5. Sudden decrease in income

In many cases, if the taxpayer’s income suddenly decreases compared to the previous year, the Income Tax Department may ask for an explanation. In response to this, the taxpayer will have to submit the necessary documents.

If you are also thinking of filing income tax return, then enter the correct information of all your documents. If necessary, you can consult a financial advisor. So that your income tax return is filed without any mistakes and you can avoid action by the Income Tax Department.

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ITR Deadline Extension: Will the Income Tax Return Filing Date Be Extended Again?

Pravesh Maurya — Sun, 17 Aug 2025 08:28:41 +0000

Income Tax Return Deadline: Can the date for filing income tax returns be extended? If the demand of Gujarat Chamber of Commerce and Industry (GCCI) is accepted, then taxpayers can get more time to file ITR.

GCCI has written a letter to the Central Board of Direct Taxes (CBDT) saying that this time the process of ITR filing started late because the necessary utilities and forms were released about three months late. Many forms were not available even till the beginning of August, due to which taxpayers and chartered accountants got very little time to prepare.

The government had already given some relief

The government has already extended the last date for filing ITR for non-audit taxpayers from July 31 to September 15, 2025. But GCCI says that this extension was not of much use due to the late release of the forms. The real problem is that people did not get a chance to prepare on time.

Slow internet and changing forms became a problem

GCCI says that frequent utility changes and weak internet connection in many areas are causing great difficulties to taxpayers and professionals. That is why they have demanded from CBDT to extend the deadline for ITR filing and tax audit report to 30 September.

Which forms were issued and when?

This year ITR forms and utilities were released late.

ITR-1 to ITR-4 were issued between May and July.

ITR-5 came on 8th August.

ITR-6 Excel Utility released on 15th August.

ITR-7 has not been issued yet.

Audit related forms 3CA-3CD and 3CB-3CD were released on July 29.

Different dates for different categories

September 15, 2025: Taxpayers who do not require audit have to file ITR by this date.

September 30, 2025: Last date for submission of audit report.

31 October 2025: ITR deadline for companies, partnership firms and those whose accounts are to be audited.

November 30, 2025: Last date to file ITR for taxpayers whose cases are related to international transactions or specific domestic dealings.

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PAN Card Services to Be Suspended for 2 Days: Income Tax Department Issues Notice

Pravesh Maurya — Sat, 16 Aug 2025 08:01:42 +0000

If you need to get a PAN card then this news is important for you. The Income Tax Department has recently released an update regarding making instant e-PAN. According to the information, this service will not be available for two days.

The Income Tax Department said that this service will be disrupted due to necessary maintenance on the portal.

If you are thinking of getting your e-PAN card made soon, then there is important news for you. The Income Tax Department has recently given a big update regarding making a PAN card. The department said that the facility of making instant e-PAN will not be available for two days.

E-PAN is a digital PAN card, which you can get instantly online with the help of your Aadhaar card and mobile number linked to Aadhaar. The Income Tax Department said that the service of instant PAN will be disrupted due to necessary maintenance on the portal.

The facility will remain closed for these two days

The Income Tax Department has informed that the e-PAN service will not be available from 12 midnight of 17 August 2025 to 12 midnight of 19 August 2025. That is, during these two days you will not be able to create instant e-PAN. However, if you have already applied for e-PAN, then you can check its status and also download it.

The biggest advantage of this service is that it is free, completely digital, and does not require photocopy of any document or filling of any form. This is very beneficial for those people who have not yet received a PAN card, but they have to do income tax related work or start banking services. This service is only for those people who do not have a PAN card yet, but they do have a valid Aadhaar number and mobile number linked to it.

Why the two-day halt?

The Income Tax Department is doing some necessary technical work on its portal. Due to this reason, the facility of e-PAN will be temporarily closed from 17 to 19 August. The department has requested the users to make their plans according to this information so that there is no problem.

Why is e-PAN necessary?

In today’s time, PAN card has become necessary for many government and private works, such as filing income tax returns, opening a bank account, investing in mutual funds, etc. In such a situation, for those who do not have a PAN yet, this instant e-PAN service is an easy and fast option.

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Income Tax Update: Govt Raises Standard Deduction to ₹75,000 Under New Regime

Pravesh Maurya — Sat, 16 Aug 2025 05:03:25 +0000

The government has amended the Income Tax Act, 1961 to clarify the position regarding the standard deduction of Rs 75,000 in the new regime.

The government had announced in the Union Budget 2024 to increase the standard deduction from Rs 50,000 to Rs 75,000 in the new regime. This clarification has also been included in the Income Tax Bill, 2025. The bill has been passed in Parliament. It is expected to come into force from April 1 next year.

Only employed people can avail the benefit of standard deduction

It is important to keep in mind that the benefit of standard deduction is available only to employed people. Earlier, the standard deduction was Rs 50,000 in both the new and old regimes of income tax. In the Union Budget 2024, the government increased it to Rs 75,000 in the new regime. But, it is still Rs 50,000 in the old regime. Standard deduction reduces the tax liability of the employee. The government had added a new provision in section 16(ia) of the Finance (No 2) Act, 2024 to increase the standard deduction to Rs 75,000 in the new regime.

Finance Minister posted about the amendment on social media

Finance Minister Nirmala Sitharaman has posted about this on the social media platform X. She has said in it that apart from the new Income Tax Bill, we are making some special amendments in the Income Tax Act, 1961. Its purpose is to clarify the situation about the new regime of income tax. In this amendment, it has been said that some special deductions will have to be made before calculating the income coming under ‘salary’.

The amendment was also incorporated in the Income Tax Bill, 2025

Under the new provision included in section 16(ia), a deduction of Rs 50,000 will have to be made. If income tax is calculated under clause (ii) of sub-section (1O) of section 115BAC, then the provision of this clause will be the same as for Rs 50,000, but instead of this, the option of Rs 75,000 will be used. This change has also been incorporated in the Income Tax Bill, 2025.

The situation regarding deduction in UPS is now clear

In this amendment, the confusion regarding deduction for Unified Pension Scheme (UPS) has been removed. After this, it has become clear that the same tax benefits will be available in UPS as are available in National Pension System (NPS). The Income Tax Bill, 2025 is expected to come into force from April 1 next year. It will replace the Income Tax Act, 1961. The rules of Income Tax Act, 1961 came into force from April 1, 1962.

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New GST Slabs May be Implemented Before Diwali, Four Slabs Will be Reduced to Only Two

Pravesh Maurya — Sat, 16 Aug 2025 04:10:26 +0000

The central government has sent a major proposal for new GST slabs, under which it is planned to reduce the existing four slabs to just two rates — 5% and 18%. This proposal has been sent to the Rate Rationalization GoM and the state governments.

The government has suggested that GST rates on goods related to the common man, farmers, students and the middle class be reduced from 18% to 5% or brought into the GST-free category. There is also a proposal to reduce GST rates on farmers’ tools, handicrafts, livelihood enhancing products in villages, some medicines and insurance services.

99% of the items falling in the current 12% slab will be brought into the 5% category. Similarly, 90% of the items falling in the 28% slab will be shifted to the 18% category. It has been recommended to impose 40% GST on only 5-7 items like tobacco, pan masala etc., so that the consumption of items having harmful effects on health can be reduced.

The government aims to implement the new GST structure before the festive season, especially Diwali. In this regard, the GST Council meeting is likely to be held in September or October, in which detailed discussions will be held with the states.

This proposal is expected to provide relief to the common people as most of the household items will be cheaper, while revenue will also increase by imposing higher taxes on hobby and harmful items.

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New Income Tax Bill Passed: Major Relief for Taxpayers with Fresh Exemptions and Benefits

Pravesh Maurya — Fri, 15 Aug 2025 09:23:42 +0000

There is a relief news for taxpayers. Recently, Parliament has passed the Income Tax (No. 2) Bill, 2025, which will come into force from April 1, 2026 and will replace the old Income Tax Act of 1961.

If you are a salaried class and you pay tax then there is good news for you. Let us tell you that recently the Parliament has passed the Income Tax (No. 2) Bill, 2025, which will come into force from April 1, 2026 and will replace the old Income Tax Act of 1961. In the new system, tax slabs have been simplified, rebates have been increased and the rules have been made cleaner than before. Under the rule, there is no tax on the first ₹ 4 lakh income and there will be a big rebate on income up to ₹ 12 lakh. The government says that this will reduce the hassle of tax filing and more money will be saved in the pockets of the people. Let’s know in detail…

What is the provision

The major provisions of the New Income Tax Bill 2025 provide great relief to the salaried class and middle class taxpayers. In the new tax system, there will be no tax on income up to ₹ 4 lakh. At the same time, 5% tax rate will be applicable on ₹ 4–8 lakh, 10% on ₹ 8–12 lakh and 15% on ₹ 12–16 lakh. Also, under Section 87A, those earning up to ₹ 12 lakh will get full tax rebate of up to ₹ 60,000, due to which no tax will have to be paid on salary income up to ₹ 12.75 lakh by adding the standard deduction of ₹ 75,000. Simplifying the complex provisions of the old law, the number of sections has been reduced from 819 to 536 and the new concept of ‘tax year’ has been implemented. Apart from this, provision has also been made for faceless digital assessment, action with advance notice, and early payment of TDS refund. This new law will come into effect from April 1, 2026 and will be applicable from the financial year 2025–26.

Tax exemption

In the new tax regime, under section 87A, those earning up to ₹ 12 lakh will now get a full tax rebate of up to ₹ 60,000. This means that by adding the standard deduction of ₹ 75,000, no tax will have to be paid on salary income up to ₹ 12.75 lakh. Earlier in the new tax regime, this rebate was available only on income up to ₹ 7 lakh, which has now been increased significantly. At the same time, in the old tax system, the current limit of section 87A will continue to be ₹ 5 lakh and the rebate will be ₹ 12,500 as before. Please note that this rebate will not be applicable on special income like short term capital gain (STCG).

Simplification of tax slabs

Under the new tax regime, the proposed tax slabs will be 5% on income from ₹4,00,001 to ₹8 lakh, 10% on income from ₹8,00,001 to ₹12 lakh and 15% on income from ₹12,00,001 to ₹16 lakh. Income from ₹16,00,001 to ₹20 lakh will be taxed at 20%, while income up to ₹24 lakh will be taxed at 25%. Income above ₹24 lakh will be taxed at up to 30%. The aim of these slabs is to simplify tax calculations and reduce the impact of higher marginal rates.

Property Tax

Section 20 clarifies the taxation of property tax, where income from owned buildings or land is taxable under the head ‘Income from house property’. The annual value will now be the higher of the estimated or actual rent received. However, properties used for business purposes are taxed under the head business income. This amendment seeks to provide clarity and fairness in property taxation.

UPS Alignment

The bill also aligns the Integrated Pension Scheme (UPS) with the National Pension System (NPS) for taxation. Up to 60% of the pension amount on retirement is tax-free. In addition, employee and employer contributions will continue to be eligible for tax deductions under sections 80CCD(1) and 80CCD(2). The aim is to remove the disparities in tax treatment between UPS and NPS and encourage more retirement planning.

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Income Tax Dept Launches ITR-6 Excel Utility: Who Can File Using It?

Pravesh Maurya — Fri, 15 Aug 2025 08:28:14 +0000

The Income Tax Department has released the ITR-6 Excel utility for the financial year 2024-25. Now taxpayers using ITR-6 can file income tax returns (ITR). This form has been updated.

The last date for filing income tax returns this year is September 15. Tax experts say that taxpayers should not wait for the last date to file ITR.

Who can use ITR-6 Form?

ITR-6 is used by all companies registered under the Companies Act, 2013 (or earlier versions). The only companies that cannot use this form are those that claim exemption under section 11. This means that private limited companies, public limited companies and one person companies can use ITR-6. It is also important to note that the ITR-6 form is not for individuals and HUFs and taxpayers who use forms like ITR-1, ITR-3 and ITR-5.

Why was the ITR filing deadline extended?

The Income Tax Department had extended the last date for filing ITR to 15 September this year. Taxpayers who are not required to get their accounts audited can file ITR till 15 September. The government had made several changes in the income tax rules including capital gains. According to this, it was necessary to change the ITR form. Therefore, the deadline for filing income tax returns was extended this year. Generally, the last date for filing income tax returns is 31 July. Taxpayers whose accounts are required to be audited can file income tax returns till 31 October this year.

What will happen if the return is not filed by 15th September?

Tax experts say that if taxpayers are unable to file returns by September 15 for any reason, they can file belated returns by December 31. However, taxpayers will have to pay interest and penalty on tax for filing belated returns. If the annual income is less than Rs 5 lakh, the penalty will be Rs 1,000. If the annual income is more than Rs 5,000, the penalty will be Rs 5,000. Experts say that filing belated returns delays the refund.

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Why Salaried Taxpayers Earning Up to ₹12 Lakh May Lose Out Under the New Income Tax Regime

Pravesh Maurya — Wed, 13 Aug 2025 07:00:03 +0000

The new income tax regime has become attractive as the government has made income up to Rs 12 lakh per annum tax-free. The new regime is easy for taxpayers. There is no need to provide proof of investment in it.

There is also less chance of mistakes in filing income tax returns. But, tax experts say that salaried taxpayers whose income is up to Rs 12 lakh may have to pay more tax. The reason for this is that the new regime does not provide the benefit of deductions.

If there is capital gain, you may have to pay more tax

Taxspanner CEO Sudhir Kaushik said that filing Income Tax Return is easy in the new regime. Taxpayers do not have to provide proof of investment. But the problem is regarding capital gains. In the new income tax regime, if the total income is up to Rs 12 lakh, then rebate is available under section 87A, which makes the tax zero. But, capital gains have been excluded from this benefit.

Deductions and exemptions are not allowed in the new regime

This can be understood with the help of an example. Suppose a person has an annual income of Rs 9 lakh from salary and short term capital gains of Rs 70,000. According to the rules applicable from July 23, 2024, 20 percent tax is applicable on short term capital gains. This will result in a tax of Rs 14,000 on short term capital gains of Rs 70,000. On the other hand, in the old regime of income tax, deduction is available on section 80C, 80D and exemption on HRA, LTA and NPS. This reduces the tax liability of the taxpayer on the same income.

Deductions and exemptions reduce tax liability

If a taxpayer takes full advantage of deductions and exemptions, his tax is reduced significantly in the old regime. Under Section 80C, deduction can be claimed on PPF, ELSS, life insurance policy, children’s tuition fees. A maximum deduction of Rs 1.5 lakh can be claimed in a financial year. Apart from this, deduction on health policy premium is allowed under Section 80D. Under Section 24B, deduction on home loan interest, exemption on HRA and standard deduction of Rs 50,000 is also available. This takes the total deduction to Rs 3-4 lakh.

Many taxpayers benefited from the old regime for FY25

Tax experts say that despite the government’s efforts to increase the use of the new regime, the old regime is more beneficial for many taxpayers for the financial year 2024-25. Niyati Shah, vertical head (personal tax) at 1 Finance, said, “The price of convenience should not be higher tax liability. If a salaried taxpayer is entitled to deductions, then the old regime may be beneficial for him.”

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ITR Filing Deadline Extended by 45 Days: No Income Tax up to ₹12 Lakh from Next Year – What You Need to Know

Pravesh Maurya — Tue, 12 Aug 2025 06:28:34 +0000

ITR: The government has recently announced that there will be no tax on income up to Rs 12 lakh in the financial year 2025-26 (ie income from 1 April 2025 to 31 March 2026), but this rule does not apply to the current ITR filing (for FY 2024-25).

The Income Tax Department has extended the last date for filing Income Tax Return (ITR) for the financial year 2024-25 i.e. from 1 April 2024 to 31 March 2025 to 15 September 2025. Almost everyone knows this update. With the new date instead of 31 July 2025, tax payers have got an additional 45 days of time.

Why was the date extended?

The Central Board of Direct Taxes (CBDT) said that this time many changes have been made in the ITR forms (which are for AY 2025-26). It was taking more time to implement these changes in the system and prepare online tools (utilities) for filing ITR. Therefore, the date was extended so that people do not face any problems.

Which tax system to choose?

New Regime: This is now the default. Meaning, if you do not say anything, your return will be calculated according to this system.

Old Regime: If salaried individuals want, they can choose the old system while filing ITR by the new deadline (15 September 2025). Many deductions are available in this, such as HRA, exemption on interest (home loan) etc.

Keep in mind that if you file ITR after the deadline (i.e. after 15 September 2025) (which is called ‘belated return’), then you can file returns only in the new tax system. There will be no option to choose the old system.

What are the benefits of the new tax system? (For FY 2024-25)

1. Standard Deduction: Salary or pension earners will get a straight deduction of Rs 75,000. This will already be deducted from your income.

2. Section 87A Rebate: If your total taxable income does not exceed Rs 7 lakh in the new system, you will get a tax rebate of up to Rs 20,000. This means that those with taxable income up to Rs 7 lakh will not have to pay any tax!

3. NPS exemption (Section 80CCD(2)): Even in the new system, if you are a salaried employee and contribute to NPS (National Pension System), you can claim deduction of up to 14% of your basic salary.

What about “no tax up to Rs 12 lakh”?

Here understand a very important thing, the government has recently announced that there will be no tax on income up to Rs 12 lakh in the financial year 2025-26 (ie income from 1 April 2025 to 31 March 2026), but this rule does not apply to the current ITR filing (for FY 2024-25). This facility will be available next year, when you file the return of income from April 2025 to March 2026.

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ITR Filing 2025: Key Tax Rule Differences for Freelancers vs Salaried Employees

Pravesh Maurya — Mon, 11 Aug 2025 16:00:03 +0000

ITR Filing 2025: The world of freelancing is growing rapidly today, but along with it it is equally important to have an understanding of rules like tax, TDS and GST.

In India, freelancers have to pay their own tax, whereas the tax of employed people is paid by their company by deducting it from their salary. It is necessary for every eligible citizen of the country to pay income tax. In fact, as the time for filing income tax returns approaches, many freelancers and consultants are confused about how their tax calculation differs from that of salaried people.

The main difference is not just limited to the choice of ITR form, but also the calculation of tax, deductions and filing deadlines. While filing ITR, the income of salaried persons is taxed as ‘salary’ whereas the income from freelance or consultancy work falls under the “profits from business or profession” category. This classification determines what deductions are available and how you record.

Rules for deduction of tax

Salary class people are given Form 16 by the company. On the other hand, freelancers have to follow more stringent rules. Companies deduct tax at source before paying salary to salaried class people. On the other hand, freelancers have to manage and pay their taxes themselves. Freelancer taxpayers can choose ITR 3 or ITR 4 for filing ITR.

TDS Deduction

TDS means Tax Deducted at Source. This is a method by which the government deducts tax on your income in advance so that there is no tax evasion later. Usually the client deducts 10% TDS before making your payment and deposits it to the government under your PAN number (Permanent Account Number). You should collect Form 16A from your clients and match it with Form 26AS to ensure that the tax deducted is correct. This will allow you to claim the deducted tax while filing your income tax return and avoid paying tax again.

Do all freelancers have to register under GST?

If your annual income is more than Rs 20 lakh (or Rs 10 lakh in some states), you must register under GST. After registration, you will have to pay 18% GST on invoices to your customers in India. GST registration and filing of returns from time to time may be necessary. Following the rules not only helps in avoiding penalties but also ensures that your business continues without any interruption.

How to do tax filing?

Freelancers usually have to file taxes using ITR-3 or ITR-4 form . If you opt for presumptive taxation under section 44ADA, you can pay tax on 50% of your total income. This method is easy and does not require much calculation. You should also keep the receipts of professional expenses like your office rent, internet bill, software subscription etc. This can help you reduce your taxable income.

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ITR Filing Warning: This Crucial Step Must Be Done Within 30 Days of Tax Payment

Pravesh Maurya — Thu, 07 Aug 2025 13:06:00 +0000

Income Tax Return Filing 2025: Even after filing the income tax return, e-verification is as important as filing the return. If you complete this step on time, you will get the refund quickly, avoid penalty and your tax record will also be completely clear.

Filing Income Tax Return (Income Tax Return Filing 2025) is not enough. Now e-verification has also become necessary. If you do not verify it within 30 days of filing the return, then your ITR can be considered invalid. This will delay your refund, and penalty may also be imposed. In such a situation, if you are a taxpayer, then this information is very important for you.

30 days time, otherwise return may be cancelled

More than 2.51 crore ITRs have been filed so far for the financial year 2024-25 and assessment year 2025-26. Out of these, 2.43 crore returns have already been verified. But it is worth noting that unless you do e-verification, your filing is considered incomplete.

The Income Tax Department has clarified that it is necessary to do e-verification within 30 days of filing ITR. This time limit will be counted from the date of filing. If you miss this step, your return will not be considered valid and you may have to file the return again.

What will happen if e-verification is not done?

If you do not complete e-verification within 30 days, you may face many problems.

Your return will not be considered filed on time.
Refunds may be delayed or cancelled.
You may receive an ITR notice from the Income Tax Department.
You may have to file Revised ITR again.
Late fine and interest may apply.

How to do ITR e-verification? Know the easy way

Let us tell you that income tax e-verification has now become very easy. You can complete it in a few minutes sitting at home. Here we are telling you the step-by-step method which will make your work easier.

Login to the income tax website
Click on ‘e-Verify Return’ option

Here you can e-Verify using these methods:

Via Aadhaar OTP
Net Banking (PAN must be linked)
Through bank account or demat account
Digital Signature Certificate (DSC)

Let us tell you that if your mobile number is linked to Aadhaar, then Aadhaar OTP is the easiest way.

Pay special attention to these things

Note down your ITR filing date and set a reminder after 30 days.
Keep the mobile number linked to Aadhaar active.
Keep bank and PAN details updated.
Make sure to save or print the e-verification acknowledgement.

Deadline for filing ITR extended, e-verification still mandatory

The government has extended the last date for filing ITR (ITR Filing Last Date 2025) to 15 September 2025, which was earlier 31 July. But this extended date is for those taxpayers whose returns were to be filed by 31 July. No matter when you file, it is necessary to do e-verification within 30 days of that.

Even after filing income tax return, e-verification is as important as filing the return. If you complete this step on time, you will get refund quickly, you will avoid penalty and your tax record will also be completely clear. However, if e-verification is not done within 30 days, then your entire return may become useless.

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TDS Deducted on Dividend Below Exemption Limit? Here’s How to Claim Refund Easily

Pravesh Maurya — Wed, 06 Aug 2025 10:02:22 +0000

Income Tax: Under Section 139 of the Income Tax Act, if a person’s total taxable income exceeds the exemption limit before claiming deductions, then he is required to file Income Tax Return (ITR). Even if the income is less than this limit, a person can voluntarily file a return

Investing in shares gives dividend. If the total income of a taxpayer is less than the exemption limit, then TDS can be deducted on it. In such a situation, it is necessary for the taxpayer to claim refund. He will get the TDS money back only after the claim. The question is what is the method of claiming refund?

Jain said that under section 139 of the Income Tax Act, if a person’s total taxable income exceeds the exemption limit before claiming deduction, then he is required to file Income Tax Return (ITR). In the old regime of income tax, this exemption limit is Rs 2.5 lakh for a person below 60 years of age. It is Rs 3 lakh for a person aged 60 to 79 years. For a person aged 80 years and above, i.e. super senior citizens, it is Rs 5 lakh.

In the new income tax regime, the basic exemption limit is Rs 3 lakh for all people. If a person’s income is less than this limit, then it is not necessary for him to file income tax return. However, he can voluntarily file ITR. If tax has been deducted from your income, but your total income is less than the exemption limit, then you will have to file ITR for refund of TDS.

He said that we can easily understand this with the help of an example. Suppose a person has shares of a listed company, from which he has received a dividend of Rs 70,000 in the last financial year. TDS of Rs 2,500 has been deducted on this dividend income. But, his total income is less than the exemption limit. In such a situation, he will have to file income tax return for refund of TDS.

There is a fixed rule for TDS on dividend income. If a person receives more than Rs 10,000 dividend from a company in a financial year, then TDS will be deducted on it. If that person wants that TDS should not be deducted on his dividend income, then he will have to submit Form 15G to every company from which he is expected to receive dividend. Form 15G is for a person whose age is less than 60 years. If the person is more than 60 years of age, then he will have to submit Form 15H.

After submitting this form, the company will pay dividend to the person without deducting TDS. Taxpayers should submit this form at the beginning of the year. This will prevent the company from deducting TDS on their dividend income. It is important to keep in mind that you have to submit this form to every company from which you expect to receive dividend.

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ITR Filing Deadline 2025: Will It Be Extended? Here’s What Experts Predict

Pravesh Maurya — Mon, 04 Aug 2025 07:02:55 +0000

Income Tax Return 2025: The possibility of extending the deadline for filing income tax returns is being discussed. The government has fixed 15 September 2025 as the last date for filing ITR for the financial year 2024-25. Some experts believe that further extension may be given due to technical reasons.

With the beginning of August, a big question has arisen for crores of taxpayers of the country whether the deadline for filing income tax return (ITR) can be extended this year as well? For the past few days, there has been a discussion on social media as well as among experts and tax consultants whether the government will extend the last date for ITR filing, or will the extended deadline of 15 September 2025 remain final.

What do the experts say?

For the financial year 2024-25 (assessment year 2025-26), the Income Tax Department has extended the last date for filing ITR from 31 July to 15 September 2025. The reason for this was said to be major changes in the ITR form, delay in updating the digital system and to provide a better experience to taxpayers. According to experts, this time the extension has been extraordinary, because the deadline was not extended for the last three years.

Some tax experts say that various technical changes and online-offline utility of some ITR forms (such as Form 5, 6, 7) have not been released yet. In such a situation, it is very possible that taxpayers associated with these forms may get further extension. At the same time, for most common taxpayers like salaried class or small businessmen, the last date of September 15 is currently valid. When this question was asked to CA Dr. Suresh Surana, he said that the time limit for filing ITR may be extended, although no statement has come from the government on this yet.

What if the date is not extended?

Late fees and interest will have to be paid for filing returns after September 15, 2025.
You can file belated return till 31st December 2025, but the exemption benefits on it are reduced.
It is always advisable to file returns before the last date to avoid technical issues or errors in documentation.

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What is Rule of Tax filing on Joint Husband wife Rental property Income

Pravesh Maurya — Sat, 02 Aug 2025 08:28:50 +0000

ITR Filing 2024-25: The central government has extended the last date for filing ITR for the financial year 2024-25 from July 31 to September 15, 2025. There is also a lot of confusion regarding tax filing. If you also own a house and have given it on rent to someone.

Are you wondering whether tax will be levied on his income or not or if that house is in the name of both husband and wife, then who will have to pay tax? If such questions are coming to your mind, then you are at the right place. Let us tell you about the rules related to tax on rental property.

Provisions have been made by the Income Tax Department for tax on rental income. First of all, tax has to be paid on rental income. But there are rules for this. If a husband and wife own a house and they get some fixed amount of rent on it. Then tax will be levied on them. According to Section 26 of the Income Tax Act, 1961, when a joint property (house) is owned by multiple people and their shares are fixed and clear, then the income from that property is calculated for tax in the name of each co-owner according to their share.

Can claim

At the same time, each co-owner can calculate the income of his share independently. They can also claim deductions like standard deduction under section 24 or interest on borrowed capital separately. This income has to be shown by each co-owner in his individual income tax return. This means that each one pays tax on the basis of his share, which ensures clarity and fairness in tax calculation. This rule ensures that the income of the joint property is divided properly.

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MCD has extended 10% discount period till 31 August on property tax

Pravesh Maurya — Sat, 02 Aug 2025 08:05:27 +0000

Delhi Mayor Sardar Raja Iqbal Singh said that the MCD has extended the deadline for 10 percent discount on property tax payable for the current financial year 2025-26 to August 31, 2025.

According to the corporation, this decision is a positive step towards ensuring the convenience of taxpayers, broadening the tax base and increasing revenue collection.

The mayor said that a large number of taxpayers are coming forward and the corporation is receiving an encouraging response regarding tax payment. Keeping this active participation in mind, the exemption period was earlier extended till 31 July.

10 percent discount popular among taxpayers

Now in view of the positive attitude of the taxpayers and the success of Suniyo Yojana 2025-26, this exemption period has been extended by one more month to 31 August 2025. Standing Committee Chairman Satya Sharma said that Suniyo Yojana and 10 percent discount are becoming popular among the taxpayers and are encouraging revenue collection.

Pay property tax by August 31

Now, in view of the enthusiastic participation of taxpayers and the success of Suniyo Yojana 2025-26, this period has been extended for one more month, till 31 August 2025. Satya Sharma has appealed to all the citizens to avail the benefit of 10 percent discount by depositing their property tax by 31 August 2025 and join hands with the Municipal Corporation of Delhi to become a partner in the development of the capital.

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ITR-3 Online Filing Starts: Know Eligibility and Filing Rules

Pravesh Maurya — Thu, 31 Jul 2025 09:05:38 +0000

The Income Tax Department has informed that it has started online filing of ITR-3 form on the e-filing portal. Know which people will have to fill the ITR-3 form.

If you have income from share trading (futures and options, F&O) or professional income, then you will have to fill the ITR-3 form to file income tax. Actually, the Income Tax Department has informed that it has started online filing of ITR-3 form on the e-filing portal.

In such a situation, individuals earning income from share trading (such as futures and options), business income, or investment in unlisted shares like National Stock Exchange can now file ITR-3 directly through the e-filing portal.

Let us tell you, on July 30, 2025, the Income Tax Department said in a notification that Income Tax Return Form ITR-3 is now available for filing through online mode.

Who can file ITR-3?

ITR-3 is applicable for individuals and Hindu Undivided Families (HUFs) who earn business or professional income. It is considered a comprehensive or ‘master’ form as it gives eligible filers a platform to report different types of income at one place.

Eligibility Criteria to File ITR-3

Individuals or HUFs (whether subject to tax audit or not) engaged in any business or profession.

Individuals earning income from house property, salary or pension, capital gains, and other sources.

Individuals receiving remuneration from a partnership firm.

Who need not file ITR-3…

Entities other than individuals and HUFs.

Those who do not have income from remuneration from business, profession, or partnership firm.

Those who are eligible to file ITR-1, ITR-2, or ITR-4 forms.

According to the Income Tax Department, several important updates have been made in ITR-3:

Schedule-Capital Gains: Now gains made before and after July 23, 2024, need to be reported separately, following amendments made in the Finance Act, 2024.

Capital Loss on Share Buyback: Capital loss can be claimed if dividend income relating to buyback after October 1, 2024 is declared under ‘Income from Other Sources’.

Limits on Asset and Liability Declaration: The limit for mandatory asset and liability declaration has been increased when total income exceeds Rs 1 crore.

Section 44BBC: Incorporated under presumptive taxation for reporting of income from cruise ship business.

Enhanced Reporting of Deductions: Enhanced reporting requirements for deductions such as Sections 80C and 10(13A).

New TDS Section Code in Schedule-TDS: New requirement for reporting of TDS Section Code.

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ITR-U Explained: Who Can File Updated Returns and What You Need to Know

Pravesh Maurya — Thu, 31 Jul 2025 07:05:51 +0000

There is good news for taxpayers planning to file updated Income Tax Return (ITR-U). The Income Tax Department has opened the window to file updated returns for assessment years 2020-21 and 2022-23. Taxpayers who forgot to mention any of their income in the income tax return or made a mistake in giving the information can update their returns.

Updated return filing started in 2022

The Income Tax Department has informed about this on the social media platform X.To file ITR-U , the taxpayer has to visit the e-filing portal ( incometax.gov.in ). The updated return was started in 2022. The facility of updated return was started for such taxpayers who missed filing income tax return for some reason, gave any wrong information in ITR or forgot to mention any of their income in the return.

Can be filed within 48 months from the end of the assessment year

Section 139(8A) of the Income Tax Act, 1961 deals with updated returns. It states that taxpayers can file updated income tax returns within 48 months from the end of the assessment year. Earlier this period was 24 months. In the Union Budget 2025, it was increased to 48 months.

Benefits of updated return facility

Sometimes, due to some compulsions, some taxpayers are not able to file returns. However, there is a facility to file belated returns for taxpayers who do not file returns till the deadline. But, there are some taxpayers who also miss filing belated returns. Belated returns can be filed till 31st July of the respective assessment year. If a taxpayer has neither filed a return nor filed a belated return, he can file an updated return i.e. ITR-U.

Who cannot file ITR-U

There are certain situations in which taxpayers are not allowed to file updated returns. If filing an updated return reduces the taxpayer’s tax liability or he has a refund claim, then he cannot file an updated return. If a taxpayer is subjected to income tax search or seizure or if a tax case is pending against him in court, then he cannot file an updated return.

You will have to pay more tax for filing ITR-U

Taxpayers have to pay additional tax for filing updated returns. If they file updated returns within 12 months of the end of the relevant assessment year, they will have to pay an additional 12 per cent tax. If a taxpayer files ITR-U within 12 to 24 months, they will have to pay 50 per cent additional tax. If they file within 24 to 36 months, they will have to pay 60 per cent tax and if they file within 36-48 months, they will have to pay 70 per cent tax.

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ITR 2025 Update: Now File ITR-3 Easily as Form Goes Live Online

Pravesh Maurya — Wed, 30 Jul 2025 16:02:40 +0000

If you earn from trading, futures and options (F&O), unlisted shares or any other source, then this news is important for you. Because now you can fill the ITR-3 form online by directly visiting the Income Tax website. The Income Tax Department issued a notice on July 30, 2025 and informed that now the facility of online filing of ITR-3 form has been started.

The Income Tax Department has officially started the facility of filling the ITR-3 form online. After this decision, now those people who trade in the stock market (such as futures and options – F&O), do any business, or invest in unlisted shares (such as NSE shares) can now fill the ITR-3 form online by directly visiting the Income Tax website. The Income Tax Department has announced this today on 30th July.

What is ITR-3 form for?

ITR-3 form is applicable for individuals and HUFs who have profit or loss in business. This form is also special because it is known as a “comprehensive” or “master form” in which reporting of multiple types of income is possible at one place.

Who can fill ITR-3 form

These forms income from share trading or F&O (speculative or non-speculative)
Investment in Unlisted Equity Shares
Income as a partner in a firm
Income from salary, pension, house property or other sources
Income from abroad or foreign assets
Whose total income is more than ₹50 lakh
Those who are not eligible to file ITR-1, ITR-2 or ITR-4

Key changes in ITR-3 for FY 2024-25

New Capital Gains Reporting

Now it has become mandatory to report short term and long term capital gains separately based on dates before and after July 23, 2024.

Reporting a Loss on Buyback

If there is a capital loss on share buyback and the corresponding dividend income is shown under “other sources”, the loss can be claimed.

Change in income limit

Now if the total annual income is more than Rs 1 crore (earlier this limit was Rs 50 lakh) then it will be necessary to provide details of assets and liabilities.

TDS Section Code Reporting

Now in Schedule-TDS, the section code for TDS deduction will have to be filled clearly.

Tax Regime Option (Form 10-IEA)

In this, the taxpayer will have to tell whether he had opted for the new tax regime last year or not and which option he wants to adopt this year.

Changes in capital gains reporting

Now capital exchanges before and after July 23, 2024 will have to be recorded separately.

Indexation information

If the land or building is sold before 23 July 2024, then the acquisition cost and improvement cost will have to be mentioned separately. At the same time, if the income is more than ₹ 1 crore, then it is necessary to give information about assets and liabilities.

New line of dividend income

Dividend income received from company buyback will need to be disclosed separately under Section 2(22)(f).

Reporting losses on share buybacks

A new line has been added in which taxpayers can show capital loss incurred due to company buyback.

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Must-Know ITR Rules for Freelancers: Filing, Deductions & Compliance

Pravesh Maurya — Mon, 28 Jul 2025 23:58:15 +0000

ITR Rules for Freelancers: Usually, income tax stories talk about salaried people. We ignore freelancers. Today we will know how freelancers can file ITR. Along with this, if they file ITR under the old tax regime, then under which section can they claim tax deduction. Also, what is the tax slab for freelancers?

Which ITR form is correct for Freelancer?

Freelancer taxpayers can choose ITR 3 or ITR 4 to file ITR. There are different ITR forms for different uses, which are as follows-

ITR 1- Salary
ITR 2- Salary + Capital Gain
ITR 3- Business + Capital Gain
ITR 4- Income from business

It is very important to choose the right ITR form

Now let’s talk about what is the tax slab for freelancers. From the tax slab, you can know how much income a freelancer is eligible for tax filing.

What is tax slab?

How can freelancers file ITR?

Step 1- First of all, you have to calculate the total income of the current financial year.

Step 2- After this, the total expenditure and deductions incurred in the financial year will have to be calculated.

Step 3- Then login to the official website of Income Tax and enter all the required details.

Now let us know under which rules freelancers can claim tax deduction.

What are the sections?

Section 80D- Money paid in medical insurance premium can be claimed under this section.
Section 80E- If you pay interest on education loan, you can claim under this.
Section 80EEA- If you have bought a house for the first time, that too on interest, then the interest money can be claimed under this section.
Section 80G- If you donate for social work, then you can claim under this
Section 80U- Under this a disabled person can claim deduction.

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Income Tax Bill 2025: Rules for income tax refund are going to change – big news for taxpayers

Pravesh Maurya — Mon, 28 Jul 2025 23:04:33 +0000

If you file Income Tax Return (ITR) only for TDS refund, while your income is below the taxable limit, then there is good news for you. The Select Committee of the Lok Sabha has suggested a major change in the draft of the Income Tax Bill 2025, which can provide relief to lakhs of small taxpayers from unnecessary hassles.

What is the matter- As per the current rules, if your income does not come under the tax bracket but TDS has been deducted from the bank or job, then it is necessary for you to file ITR to get a refund.

If you do not file ITR on time, then there is a risk of penalty or prosecution – even if you do not have any tax liability.

What will be the effect-

This provision has the greatest impact on people whose income is limited, such as:

Senior citizens

People living on pension

Temporary/contract employees

Small investors from whose FDs TDS is deducted

Most of these people do not come under the tax bracket, but still they are forced to file returns just for the refund.

What the committee says-

The Lok Sabha Select Committee has recommended the removal of sub-clause (1)(ix) of Section 263, which makes filing of ITR mandatory for refund.

The committee report says that forcing people with low income to file ITR only for refund is an undue burden. Failure to do so also creates a fear of punishment – which is wrong in practice.

What will change if the recommendation is accepted?

People whose income is less than the basic exemption limit will not be required to file ITR for refund. There will be no fear of penalty or legal action. Simplicity and justice will increase in the system.

What does it mean for taxpayers- If you file ITR every year only for refund, then now this compulsion can end. This will provide great relief to the elderly and people with limited income. The tax system will become more taxpayer-friendly.

What happened in Parliament

Bill introduced: 13 February 2025

Sent to committee: Same day

Report presented: 21 July 2025 (Select Committee Chairperson Baijayant Panda)

Members in the committee: 31 Lok Sabha MPs

Overall- If your income is less than the tax and you file returns only for refund, then the upcoming law can give you freedom from this hassle. This change is being considered a big step towards a simple tax system and respect for honest taxpayers.

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PAN-Aadhaar Link: You can link Aadhaar-PAN till 31 December 2025, only these people can do this

Pravesh Maurya — Thu, 24 Jul 2025 10:00:05 +0000

If you had applied for Aadhaar before 1 October 2024 and your PAN card is made on the basis of the same Aadhaar enrollment ID, then there is a relief news for you.

The government has given such people time till 31 December 2025 to link PAN and Aadhaar. Those who have been issued PAN on the basis of the old application form of Aadhaar have now been given time till 31 December 2025 to provide their Aadhaar number information to the Income Tax Department.

However, for all other PAN card holders, the last date for linking with Aadhaar without penalty was 30 June 2023. Now if anyone wants to get the linking done, he will have to pay a penalty of Rs 1,000.

How can we link?

The process of linking PAN and Aadhaar can be done both online and offline.

Online: You can easily do the linking by visiting the official website of the Income Tax Department.

Offline: You will have to go to any service center of NSDL or UTIITSL and fill the ‘Annexure-I’ form. You will also have to take a copy of PAN and Aadhar card with you.

Before linking PAN and Aadhaar, make sure that the name, date of birth and gender details in both are the same. If there is any difference in these details, the linking may be rejected. In such a case, you will have to get correction done either in Aadhaar or PAN.

This update is special for those who are new PAN holders and whose PAN is made on the basis of Aadhaar enrollment ID. Such people need not panic, they have now got time till December 2025.

If other people have not yet linked their PAN and Aadhaar, they should pay the fine and complete this work as soon as possible so that there is no problem in future.

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No ITR Filing Needed for These Citizens: Latest Government Notification

Pravesh Maurya — Mon, 21 Jul 2025 11:16:01 +0000

ITR Filing 2025: Nowadays most of the people are busy filing their Income Tax Return (ITR). Because if the return is not filed before the deadline, then a penalty has to be paid. But do you know that if your age is 75 years or more, then you may get exemption from filing the return. Let us tell you that this exemption is not for everyone, for this it is necessary to fulfill some special conditions.

The aim of this initiative of the government is to make tax compliance easier for senior citizens. Let us know under what circumstances this exemption is available, which form has to be filled and who will not get the benefit of this.

Who can avail exemption from ITR filing?

This exemption is available only to such senior citizens:
Whose age is 75 years or more in the assessment year 2025-26.
Who are residents of India.
Whose source of income is only pension and interest from the same bank.

That is, if your income comes from any source other than pension, such as rent, profit from shares, capital gains or income from business, then you will not get this exemption. Apart from this, if you get pension and interest from two different banks or interest is being deposited in more than one bank account, then also it will be mandatory for you to file ITR.

What needs to be done to get exemption from ITR?

If you fulfill all the conditions mentioned above, then you do not need to file a return with the Income Tax Department. You just have to fill Form 12BBA and submit it to your bank. This form authorizes the bank to assess your total annual income, calculate your tax taking into account tax deductions (such as Section 80C, 80D etc.) and tax credits (such as 87A) and deduct TDS accordingly and deposit it to the government.

The bank will calculate your total taxable income. This will include exemptions under sections 80C, 80D etc. and tax credit under section 87A. The bank will complete the TDS process. If the bank has deposited the tax correctly, you will not need to file ITR.

You will not get this exemption in these circumstances?

If your pension and interest amount comes from different banks.
If you have rent, capital gains, business income or any other source of additional income.
If interest is deposited in more than one bank account.
In such a situation, you will not get the benefit of this relief and will have to file ITR under the normal procedure.

Why is this exemption necessary for senior citizens?

Filing tax returns is often a difficult process for the elderly. It is not easy for them to understand and follow things like the online system, rules for filling forms, deductions and tax calculations properly. That is why this law has been brought.

The government’s objective behind introducing this rule is that senior citizens whose income is limited, regular and clear, do not have to depend on tax consultants and do not have to face problems related to tax compliance.

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Income Tax Department launched TAXASSIST, will get help in filing income tax return, know how?

Pravesh Maurya — Sat, 19 Jul 2025 10:41:49 +0000

The Income Tax Department has launched TAXASSIST to provide relief to crores of taxpayers of the country. With its help, return filers can easily get a solution to their query and file returns.

Explaining the latest initiative, the Income Tax Department said that the launch of TaxAssist is designed to simplify all tax related concerns. The Income Tax Department explained through an example the situations in which taxpayers claiming tax exemption under section 80GGC may face problems.

This section provides tax exemption to donors who donate to a political party or electoral trust. The department shared three different scenarios to explain how the TAXASSIST tool helps taxpayers document these claims, clarify and respond to notices. This initiative has been launched with the aim of bringing transparency and simplifying the tax claim process.

Case 1: Exemption claimed by mistake

If the taxpayer has wrongly claimed exemption under 80GGC, TAXASSIST will advise them to revise their return or file ITR-U and deposit the tax and interest and return the excess refund. Failure to do so may result in scrutiny or penalty.

Introducing “TAXASSIST”
your go-to support for all tax concerns!

From helping you navigate departmental communications and keeping your finances in check, to reminding you of key tax deadlines
This campaign is designed to guide, support, and simplify.

Stay informed. Stay… pic.twitter.com/Kg3flUM80f

— Income Tax India (@IncomeTaxIndia) June 30, 2025

Case 2: Claim of fake donation

If someone has claimed exemption by showing fake or illegal political donations, it will be considered tax evasion. In such cases, TAXASSIST will advise the taxpayer to file ITR-U and deposit the due tax and interest, so that legal action can be avoided.

Case 3: Donation claim

If the donation is made to a legitimate political party, TAXASSIST advises to keep the donation receipts and proof of bank transactions safe as they may be needed during investigation. This initiative is part of the Income Tax Department’s effort to make tax filing easier and transparent.

Deadline for filing returns is 15 September

This time the Income Tax Department has extended the deadline for filing returns from July 31 to September 15. This has been done to provide relief to taxpayers. The last date for filing Income Tax Return (ITR) for the financial year 2024–25 is September 15, 2025.

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Tax free countries – Citizens in these countries do not have to pay income tax! See the list…

Jyoti — Mon, 30 Jun 2025 08:25:16 +0000

Tax free countries – In today’s era where tax rates are skyrocketing in many parts of the world, there are some countries where citizens do not have to pay income tax. These tax-free policies make these countries attractive to investors and high-earning people.

Let us know the list of these countries. Let us tell you that Oman has announced to impose tax in the country by the year 2028. Let us tell you which are the countries in the world where no tax is collected from the people.

What changes have taken place in Oman?

Oman was also one of the few countries where there was no personal income tax on citizens. But now the Omani government is planning to impose a tax on income. Oman has already implemented a 5 percent VAT and is also imposing a corporate tax on companies. In the near future, it is possible that an income tax may be imposed on citizens working there, especially expatriate workers.

This step is being taken to move the country’s economy away from dependence on oil and towards a sustainable model. According to media reports, it will be implemented from 2028. Under this, a 5 percent tax will be imposed on income exceeding 42 thousand Omani Rials (about Rs. 93.5 lakh) annually.

Which countries do not impose taxes?

Citizens of most countries around the world have to pay income tax on their earnings, but there are some countries where no tax is levied on personal income. These countries usually earn their income from other sources such as oil, gas or tourism and provide tax breaks to citizens.

The United Arab Emirates, Kuwait, Qatar, Saudi Arabia, Bahrain, Brunei, Bahamas, Monaco, Cayman Islands, British Virgin Islands, Anguilla and Oman are countries where people do not have to pay any income tax on their salary or business income. These countries are commonly called tax havens because the tax system here is either very simple or non-existent. This is the reason why many wealthy people, businessmen and expatriates consider these countries as their first choice.

However, some of these countries are now moving towards changing their tax policies. For example, Oman, which was tax-free until now, may impose an income tax on personal income in the near future. The aim is to make the country more stable and diversified by moving away from its dependence on oil. The Omani government believes that strengthening the tax system is essential for its economic structure.

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ITR Verification Rule: Verification is necessary after filing the return, heavy penalty will be imposed on default

Jyoti — Fri, 27 Jun 2025 04:04:18 +0000

ITR Verification Rule: Verification is mandatory after filing Income Tax Return (ITR). If you do not do the verification, then all your hard work of filing ITR can go waste. Verification should also be done within 30 days of filing the return. This rule is effective from 1 August 2022. Earlier, taxpayers used to get up to 120 days for verification.

Let us know how to verify ITR after filing it. What will happen if it is not verified. Also, how will we know whether ITR verification has been done or not.

7 options to verify returns

The Income Tax Department’s priority is e-verification to speed up processing and avoid delays or loss of physical documents. However, the facility of physical verification is still available. Taxpayers can verify ITR in the following 7 ways:

Aadhaar OTP: OTP comes on the mobile number linked to your Aadhaar.
Bank EVC: Electronic Verification Code (EVC) is generated from pre-validated bank account.
Demat EVC: EVC can also be generated from validated demat account.
ATM EVC: EVC can also be generated through ATM card, but this facility is available in only a few banks.
Net Banking: EVC can also be generated from the net banking portal of authorized banks.
Digital Signature Certificate (DSC): DSC is mandatory in some cases. ITR can also be verified through this.
Physical verification: If one is unable to do e-verification, then one has to print the ITR-V form, sign it with a blue pen and send it to the CPC office in Bengaluru. This process also has to be completed within 30 days of ITR filing.

Also Read: Navya Scheme 2025: Central government started ‘Navya’ scheme for girls, Key benefit and how to apply

Delayed returns may be void

According to the Income Tax Department, if the ITR is not verified on time, it will be considered ‘invalid’. This will mean that the taxpayer did not file the return. Due to this, taxpayers may be charged a late fee of up to ₹ 5,000 under section 234F. Also, 1% interest will have to be paid every month on the outstanding tax.

Delay in refund and risk of interest

Tax refund can also be withheld if the ITR is not valid. If taxpayers are unable to verify within the 30-day time limit, they can apply for ‘Condonation of Delay’. However, this depends on the approval of the department and there is no guarantee of approval.

How to know whether the verification was successful or not?

After e-verification, a success message and transaction ID is displayed on the screen and a confirmation is also sent to the registered email. The status of physical verification can be tracked in the ‘View Returns/Forms’ section on the e-filing portal.

Permission for verification from representative

Taxpayers can also get the verification done through their representative (such as a chartered accountant or family member) if they wish. For this, they are allowed to use Aadhaar OTP, Net Banking or Bank/Demat EVC. However, OTP or EVC will be sent only to the mobile/email of the concerned representative.

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Income Tax: Taxpayers urge I-T department to release excel utilities of ITR-2, ITR-3

Jyoti — Tue, 24 Jun 2025 06:28:59 +0000

ITR-2, ITR-3 Form Release Date Update: The Income Tax Department has so far released only the offline and online utilities for ITR-1 and ITR-4 to facilitate income tax return (ITR) filing. However, utilities for other forms, such as ITR-2 and ITR-3, are still pending.

Although the filing deadline has been extended to 15 September 2025, taxpayers remain anxious for the release of the remaining ITR form utilities.

Taxpayers have voiced their frustration on social media over the delay. One user on platform ‘X’ urged that the utilities for ITR-2 and ITR-3 be released without further delay. Meanwhile, chartered accountants have also questioned why the Income Tax Department has remained silent on the timeline for releasing the Excel utilities.

About ITR-1 And ITR-4

The Central Board of Direct Taxes (CBDT) notified ITR-1 and ITR-4 via an official notification issued on April 29, 2025.

ITR-1: This form is meant for individuals who are residents in India (but not ordinarily resident), with a total income of up to ₹50 lakh. It applies to those earning income from salary, one house property, other sources, long-term capital gains up to ₹1.25 lakh under Section 112A, and agricultural income up to ₹5,000.

ITR-4: This form is applicable to individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with a total income of up to ₹50 lakh, who declare income from business or profession under sections 44AD, 44ADA, or 44AE. It also permits reporting of long-term capital gains up to ₹1.25 lakh under Section 112A.

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Income Tax On High-Value Transactions: How To Avoid Tax Notices?

Jyoti — Tue, 24 Jun 2025 04:02:09 +0000

The season for filing Income Tax Returns (ITR) has begun. Especially after the employers have issued Form 16, salaried taxpayers have also started filing returns. However, this time the deadline for filing income tax returns is 15 September.

But, experts say that taxpayers should not use the last date to file returns. While filing returns, you should not try to hide any kind of income.

Income should be based on high value transactions

Experts say that the Income Tax Department keeps track of every financial transaction of taxpayers. It especially keeps an eye on high value transactions. This means that if a person makes a high value transaction, but shows a very low income in the income tax return, then it is certain that he will come under the scrutiny of the Income Tax Department. The purpose of tracking high value transactions is to curb cases of tax evasion.

There is a special eye on the data of deposits in the bank

The Income Tax Department keeps an eye on high value transactions of taxpayers with the help of data received from banks and financial institutions. Vivek Jalan, partner, Tax Connect Advisory Services LLP, said that as per the rules, banks and other financial institutions are required to give information about many types of transactions to the Income Tax Department. For example, if a person deposits more than Rs 10 lakh in savings accounts in a financial year, then the bank has to give this information to the Income Tax Department.

The income tax department becomes cautious even if you withdraw more money

If a person withdraws or deposits more than Rs 50 lakh from the current account, the bank will have to give its information to the Income Tax Department. If a person pays a credit card bill of Rs 10 lakh (excluding cash) in a financial year, then the bank issuing the credit card will give its information to the Income Tax Department. If Rs 2 lakh comes into your account from the sale of goods or services, then the department will get its information.

These are the biggest weapons of the Income Tax Department

It is important for you to understand that the Income Tax Department does not track individual transactions of taxpayers. Instead, the department uses Annual Information Statement (AIS) and Form 26AS. Both these documents contain every transaction of taxpayers, big or small. For example, if you have bought or sold shares, then its information will be there in it. If you have traded in the stock markets, then its information will also be there in it.

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ITR Filing: It is easy to file ITR online yourself, know step by step

Jyoti — Mon, 16 Jun 2025 13:29:50 +0000

Income Tax Return Filing 2025: Filing income tax return i.e. ITR can seem scary to many people, especially when you are doing it online for the first time. But if you have the right information, this process becomes very easy.

This year the deadline for return filing (15 September 2025) has been kept shorter than last time, so it is important to prepare in advance.

The utility required for ITR filing is not yet available on the portal

The ITR filing facility was started on the portal in mid-April last year, but the portal has not been updated for AY 2025-26 (FY 2024-25) till 26 May 2025 this year. That is, returns cannot be filed right now. Till then you can use this time to prepare for filing and gather information.

How to file ITR online? Know the complete step-by-step guide here

Step 1: Login or Register

Website: https://www.incometax.gov.in
If you are already registered, login (User ID/PAN, Password and Captcha).
New users will need to register first.

Step 2: Select the ‘File Income Tax Return’ option

Click on the ‘e-File’ tab on the dashboard
Then select ‘Income Tax Returns’ and then ‘File Income Tax Return’

Step 3: Fill in the details

Select Assessment Year: AY 2025-26
Mode of Filing: Online

Step 4: Select filing status

Select from Individual, HUF or Other

Step 5: Choose the correct ITR form

Form	For whom is it for
ITR-1 (Sahaj)	Individuals with income up to Rs 50 lakh from salary, one house, other sources
ITR-2	For those with income or capital gains of more than Rs 50 lakh
ITR-3	Business/Profession or Firm Partner
ITR-4 (Sugam)	Those with a presumptive income scheme
ITR-5/6/7	For LLP, Companies, Trusts etc

Step 6: Specify the reason for filing ITR

Your taxable income is above the basic exemption limit
Or you have fulfilled certain special conditions like foreign travel expenses of more than Rs 2 lakh etc

Step 7: Check the pre-filled details

Check the pre-filled details on the portal like PAN, Aadhaar, bank details etc.
Provide correct information about all income, tax exemptions and deductions

Step 8: Verify the return

Verification is required within 30 days
You can verify in the following ways:
- Aadhaar OTP
- E-Verification Code (EVC)
- Net Banking
- Or send ITR-V form by printing it

Why is it beneficial to file ITR yourself?

You have direct control over your financial details
You will need a professional only if you have foreign income, share trading, business etc.
Ordinary salaried persons or persons having income from a single source can file on their own

What’s new in ITR for AY 2025-26?

Relief in rules for small taxpayers
Changes in ITR forms
New rates of capital gains tax
Incentives to promote digital payments
New compliance rules

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Why is the June 15 deadline so special for those who pay tax? If you miss it, it will cost you dearly

Jyoti — Thu, 12 Jun 2025 07:28:23 +0000

If you are a taxpayer and you have advance tax liability, you should take special care of June 15. This is the last date for depositing advance tax. If you do not deposit your tax on time, it can cost you dearly. Advance tax is the amount of income tax that is paid in advance instead of a lump sum payment at the end of the year. It is also known as income tax. Advance tax is paid in installments as per the due dates fixed by the Income Tax Department.

Who has to deposit advance tax

Every taxpayer having an estimated tax liability of ₹ 10,000 or more in a financial year is required to pay advance tax. According to ICICI Bank, salaried individuals can pay advance tax on income earned from their jobs. Freelancers can pay advance tax on their various sources of income earned throughout the year. Businessmen can pay advance tax on income earned through their company under the taxation scheme of Section 44AD. Senior citizens who have earned income from business in a financial year are required to pay advance tax.

Important dates for depositing advance tax

Advance tax has to be paid throughout the year by the due dates. 15% on or before 15 June, 45% on or before 15 September, 75% on or before 15 December and 100% on or before 15 March.

Why is it important to pay advance tax

According to ICICI Bank, advance tax is income tax paid in advance for income earned in a particular financial year. Normally, tax must be paid when the income is earned. However, under the tax provisions of advance tax, the payer has to estimate the income for the entire year. And based on this estimate, tax is paid at certain time intervals. It is important that the taxpayer estimates the income and then calculates the estimated tax on it to know whether he needs to pay advance tax or not and how much.

How much does it cost to miss a deadline

As per Section 234B of the Income Tax Act, you are required to pay at least 90% of your total tax due by way of advance tax or tax deducted at source/tax collected at source (TDS/TCS) by March 31. If you fail to pay the advance tax, you will have to pay interest at the rate of 1% on the unpaid amount under Section 234B.

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ITR Filing 2025: 1.23 lakh returns filed in the first 5 days, know when the refund process will start

Pravesh Maurya — Tue, 10 Jun 2025 04:32:11 +0000

ITR Filing 2025 In the first 5 days of income tax return filing for the financial year 2024-25, about 1.25 lakh returns have been filed. However, this year return filing has started a little late. In this news, we are telling when the processing of returns will start after filing. When are the taxpayers who are entitled to a refund expected to get it?

Income Tax Return filing 2025 for FY 2024-25 or Assessment Year 2025-26 has officially started. More than 1.23 lakh returns (ITR) have been filed in the first five days. 90% of these returns have also been verified. Now people’s attention is on when the Income Tax Department will start processing returns and refunds (ITR refund status).

Return filing started late this year

The Income Tax Department has started the filing process for FY 2024-25 with the release of Excel-based utility (V1.0) and validation tool. These tools support ITR-1 (Sahaj) and ITR-4 (Sugam). Soon after releasing the offline tool, the department also started online filing of ITR-1 and ITR-4 with pre-filled data through the e-filing portal.

This year’s ITR filing started later than usual due to the delayed release of the forms and related utilities. ITR forms were made available by the end of April, but the filing utilities were made available only after some time.

So many returns filed in the first five days

After the delayed start, taxpayers are filing returns rapidly. Within just 5 days of the release of the utility, more than 1.23 lakh (ITR e-filing statistics) ITRs were filed and more than 1.12 lakh were verified. Now the question arising in the minds of taxpayers is when will the processing of ITR and the refund process start.

Till when will the processing of returns and refund take place

Broking firm Angel One has written in a blog that the Income Tax Department can start processing returns by mid-June 2025. In the absence of any mistake on the part of the taxpayer, the refund usually arrives in his bank account within 5 to 7 days of the issuance of the information.

Before processing the return, the Centralized Processing Center (CPC) verifies the data filed in the return from third-party sources. These sources include Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).

This data is filled based on the information provided by financial institutions, employers and other entities during TDS returns. The last date for filing TDS returns for the previous quarter is May 31, so the final data is expected to appear on the income tax portal soon.

The CPC starts processing the return only after successful verification. This verification can be completed using Aadhaar OTP, net banking or by physically submitting the ITR-V at the Bengaluru CPC office. Without verification, the return is not processed.

Finance Minister Nirmala Sitharaman had told the Parliament that in 2013, it took an average of 93 days to process returns, now due to technology upgradation, this time has been reduced to about 10 days.

Cash Deposit Limit! Income tax notice can be received on depositing how much cash in the bank account, check details

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ITR Filing Deadline : File ITR by 31 July 2025 or else you will have to pay a penalty of Rs 5,000

Pravesh Maurya — Mon, 09 Jun 2025 10:25:01 +0000

The last date for filing ITI for the financial year 2024-25 and assessment year 2025-26 is 31st July 2025. This date is mandatory for those taxpayers whose accounts are not required to be audited. These include salaried persons, small businessmen etc.

It is mandatory for all taxpayers to file Income Tax Return (ITR). Those who miss the last date for filing ITR have to pay a penalty later. Income tax return filing for the financial year 2024-25 has started. You can also avoid penalty by filing your return before the last date.

Last date for filing ITR 2025

The last date for filing ITI for the financial year 2024-25 and assessment year 2025-26 is 31 July 2025. This date is mandatory for those taxpayers whose accounts are not required to be audited. These include salaried persons, small businessmen etc. Apart from this, for such professionals or businesses whose accounts are required to be audited, the last date for filing income tax return is 31 October 2025.

Penalty for not filing ITR on time

If you are a salaried person or run a small business, then you must file your income tax return by 31 July 2025. If you miss the last date for filing ITR, then you will have to pay a penalty of up to Rs 5,000 under section 234F of the Income Tax Act, 1961. For those whose income is less than Rs 5 lakh, the amount of deposit is limited to Rs 1000.

Loss due to late filing of income tax return

If you delay filing income tax returns, you will have to face many disadvantages.
1. You may have to pay 1% monthly interest on tax under section 234A.
2. Those who do not file income tax returns on time do not have the benefit of adjusting losses in the next years.
3. Filing a late return may also delay getting a refund.

Benefits of filing income tax returns on time

If you file income tax return on time, then it will give you many benefits such as –

1. By filing income tax return on time, you will avoid a penalty of up to Rs 5000.

2. The sooner you file income tax return, the sooner the refund is processed.

3. If you file returns on time, you can also avoid investigation and notice from the Income Tax Department.

4. People who strengthen their personal records by filing income tax returns on time find it easy to apply for visa and loan.

ITR Filing : If you make this mistake then your refund will get stuck, know this before filing ITR

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ITR Filing : If you make this mistake then your refund will get stuck, know this before filing ITR

Pravesh Maurya — Mon, 09 Jun 2025 09:22:10 +0000

ITR Filing– The work of filing income tax returns has started. The Income Tax Department has extended the last date for filing ITR for the financial year 2024-25 (AY 2025-26) from 31 July to 15 September. One should be very careful while filing income tax returns. While your refund can get stuck due to even a small mistake, you can also come under the radar of the Income Tax Department.

While filing income tax return, it is mandatory to enter all the required information correctly and upload the required documents. Usually every year many taxpayers make some common mistakes. Due to this, their return gets suspended and they are not able to get refund and have to file the return again.

Not choosing the right form: There are forms from ITR-1 to 7 for different types of taxpayers. Forms have been prescribed for different taxpayers based on the sources of income. Filling the wrong return form will make your ITR invalid and you will have to file the return again. So always use the correct form.

Not disclosing the source of income: Declare all sources of income. Not doing so can prove costly for you. Concealing income from other sources can attract a penalty of 50% to 200% of the tax liability. Information related to other income and liabilities including foreign income, assets, accounts and shares must be given in ITR.

Not giving information about big expenses: If you have made big expenses like your annual electricity bill is more than one lakh, if you have spent more than 10 lakh on credit card or have made big expenses like buying an expensive car or have made big expenses on foreign travel, then you must give information about it and show coherence between income and expenses. If this is not done, you may get income tax notice and refund may be stopped.

Not disclosing exempted income: A big mistake while filing income tax return is not declaring exempted income. Agricultural income is tax free. If you are earning income from farming, then definitely tell it. Profit share received from partner firm is tax free. If you earn income from this, then enter it in the prescribed column.

Not cross checking: Before filing ITR, cross check Form 26AS and Form 16 or TDS certificate. If the details are different, find out the reason and get it corrected from the employer. If you do not do this, the refund you get may be reduced.

Error in Form 16: If you have changed your job, then give the Form 16 received from the old employer to the new employer. So that the new employer can deduct the correct TDS. You can get the proper benefit of standard deduction. If you do not give the information, it is possible that you have got the benefit of standard deduction from both the employers, which is wrong. You may have to pay more tax at the time of return.

Giving incorrect information: Personal details like name, address, mail ID, phone number, PAN, date of birth, etc. should be written correctly in the ITR. These should match with your PAN card. If you are claiming a refund, your bank details should also be correct.

Wrong claim of HRA: Under the old tax regime, salaried persons could claim HRA exemption as part of their salary component. Rent agreement, rent receipts and PAN number of the landlord for rent up to Rs 1 lakh per annum are required for valid claims. Residence in the rented premises is also a must as the department can verify your claim.

Not doing e-verification: E-verification is necessary after filing ITR. If for some reason you are unable to do this, then sign the ITR-V form within 30 days of filing and send it to the Centralized Processing Center (CPC) by post.

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ITR Filing: Know how Income Tax catches fake rent receipts, otherwise you are sure to get a notice!

Jyoti — Thu, 05 Jun 2025 09:43:28 +0000

ITR Filing: To save income tax, many people smartly use fake rent receipts. People think that the income tax department will not come to know, but it is not so. The income tax department also sees all this and now it has started cracking down on such people. Let us know how the income tax department catches ITRs with fake rent receipts and sends notices.

Frauds are caught with AI

The Income Tax Department is using Artificial Intelligence i.e. AI. The Income Tax Department is catching fake rent receipts with the help of AI. For this, it matches Form-16 with AIS Form and Form-26AS.

The difference comes to the fore

All the transactions related to PAN card are recorded in AIS form and Form-26AS. In such a situation, when a taxpayer claims house rent allowance through rent receipt, the Income Tax Department matches his claim with these forms. If there is any increase or decrease, the difference is immediately visible. This entire process is done automatically and in a jiffy by AI.

When is it necessary to provide the landlord’s PAN?

There is a rule related to House Rent Allowance i.e. HRA that an employee can claim deduction of HRA only if he is getting HRA from the company. At the same time, if the employee pays rent of more than Rs 1 lakh, then he will also have to provide the PAN number of his landlord.

Matching claim amount with PAN

The Income Tax Department matches the amount you claim under HRA with the amount sent to your landlord’s PAN number. If a difference is found between the two, a notice is sent by the Income Tax Department.

Up to what amount of rent is there no inspection?

If your company gives HRA and you are claiming annual rent of less than Rs 1 lakh, then you do not have to provide the PAN of your landlord. In this case, you can claim HRA up to Rs 1 lakh, which will not even be checked by the Income Tax Department whether it is correct or fake.

Why fraud in HRA?

The biggest reason for fraud related to HRA is that it saves tax on a lot of income. However, from next year, in the new tax system, income up to Rs 12 lakh will be tax free with rebate, so perhaps the scope of HRA will also decrease and due to that, fraud can also be reduced.

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Form 16 Due Date: By what date will Form-16 come? Know what is the Income Tax Rule

Jyoti — Fri, 30 May 2025 12:46:16 +0000

The last date for filing Income Tax Return (ITR) has been extended recently. Now you can file ITR till 15th September, which was earlier required to be done by 31st July.

The last date for filing Income Tax Return (ITR) has been extended recently. Now you can file ITR till 15th September, which was earlier required to be done by 31st July. However, employed people are still not able to file income tax return, because they have not received Form-16. Now a big question here is that when will Form-16 come, what are its rules? Let’s know.

What is the rule for issuing Form-16?

These days, employees in different companies have started getting Form-16. According to the rules of Income Tax Act, Form-16 has to be issued within 15 days after filing TDS return by the deductor. Here, let us tell you that the last date for filing TDS for the deductor is 31st May. In this way, employees will get Form-16 from all the companies between 1st June to 15th June. If even after this you do not get Form-16, then you must talk to your HR for this.

What is Form-16?

Form-16 shows how much tax is levied on you and which deductions you have got. It contains information about the salary you received, the tax levied on it, the source of your income and all kinds of deductions. The good thing is that now all the information of Form-16 is already filled in the ITR form, you just have to check it and e-verify it after filing the ITR. Meaning you can file your ITR in hardly 2-3 minutes.

Form-16 has two parts

Form 16 has two parts. One is Part A and the other is Part B. Part A contains the company’s TAN, company’s PAN, employee’s PAN, address, assessment year, period of employment. Apart from this, details of TDS deposited to the government are also given in it.

Part-B is very important

If we talk about Part B of Form-16, it contains information about tax along with salary breakup. It tells what is your gross salary, what is your net salary, how much house rent allowance you have received, how much money has gone into your PF account. Also, you get to know how much professional tax has been levied on your salary and what deductions you have got under different sections. It also contains information about your investments, what investments you have made in medical, how much money you have invested in saving plans and what other tax exemptions you have got.

Match Form-16 with Form-26AS

Form 26AS is a consolidated tax statement. It contains details of tax deductions from different sources of income of the taxpayer. Form 26AS can be downloaded from the e-filing account on the Income Tax website. Before filing the return, it is important that you reconcile the income given in your Form 26AS and Form 16.

The post Form 16 Due Date: By what date will Form-16 come? Know what is the Income Tax Rule first appeared on Rightsofemployees.com.

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