Update in ITR Utility—New Codes Introduced for “Nature of Business/Profession” The Income Tax Department has updated the Income Tax Return (ITR) utility with new codes under the “Nature of Business/Profession” section to align with evolving sectors and taxpayer activities. These changes are applicable for Assessment Year 2025–26. The Tax Dept has updated the ITR-3 utility with …
Income Tax Exemptions and Deductions for Army Personnel (AY 2025–26) Army personnel, like all salaried taxpayers, are liable to pay income tax under the Income Tax Act, 1961. However, given the challenging service conditions and frequent postings in inhospitable areas, the law provides special exemptions and deductions to help them minimize their tax burden. We …
7. Additional Information and Details required in ITR-1 and ITR-4 for A.Y. 2025–26 especially for Taxpayers in Old Regime 1. Enhanced Disclosure for House Rent Allowance (HRA) Taxpayers claiming HRA exemption must now provide comprehensive details, including: •Place of Work •Actual HRA Received •Actual Rent Paid •Basic Salary and Dearness Allowance •50% or 40% of …
Financial Products Taxation Overview (India – FY 2024–25) Financial Product Type of Income Tax Treatment Holding Period TDS Applicable Section Equity Shares / Mutual Funds / ETFs Capital Gains STCG @ 20% (from July 23, 2024); LTCG @ 12.5% over ₹1.25L <12m / >12m No Sec 112A Debt Mutual Funds Capital Gains Pre-Apr 2023: STCG …
5 key changes in income tax return forms for FY 2024–25 (AY 2025–26): Wider Eligibility for ITR-1 and ITR-4 What’s new: Taxpayers having Long-Term Capital Gains (LTCG) from listed equity shares or mutual funds up to ₹1.25 lakh can now file using ITR-1 or ITR-4. Earlier: Such taxpayers were forced to use ITR-2 or ITR-3. …
Non-Deductibility of Settlement Expenses u/s 37 of the Income-tax Act, 1961 : CBDT Introduction Section 37 of the Income-tax Act, 1961, allows deduction of business or professional expenses incurred wholly and exclusively for business purposes. However, Explanation 1 disallows deduction for expenditures incurred for any purpose that is an offense or prohibited by law. Section 37 …
Key differences between ITR-1 vs ITR-2 What is ITR-1 (Sahaj) and who can file it? ITR-1 (Sahaj) Applicable If: Individual is a Resident and Ordinarily Resident (ROR). Total income is ≤ INR 50 lakh. Income sources are limited to: Salary or pension. One house property. Other sources (excluding horse racing, gambling, lottery, etc.). Family pension. …
Quick breakdown for Choosing Old or New Tax Regime for FY 2025-26 (AY 2026-27) Choosing Old or New Tax Regime for FY 25-26: Time to declare to employer it’s a crucial time for salaried individuals to optimize TDS deductions for FY 2025-26. Choosing Old vs New Tax Regime for FY 2025-26, Employees must declare their tax regime …
Major New Income Tax Rules Highlights changes from April 1 As the new financial year begins on April 1, 2025, several significant financial and tax regulations have come into effect in India, impacting income, spending, and compliance requirements. These below changes reflect the government’s efforts to simplify tax structures, enhance compliance, and provide relief to …
Tax Dept intensified scrutiny on Section 80G donations & HRA exemptions The Income Tax Department’s intensified scrutiny on Section 80G donations and HRA exemptions under Section 10(13A) highlights the need for taxpayers to be extra vigilant in ensuring compliance. False House Rent Allowance (HRA) Claims (Section 10(13A)): Employees claiming HRA deductions without actually renting a …