The government introduced various incentives in the recent times to encourage the adoption of the new regime. These changes show that the government intends to have taxpayers transition to the new regime and eventually phase out the old one. Though the new regime is now the default tax regime, the old tax regime will continue to exist.New Income Tax Bill - UpdatesThe new Income Tax Bill has been tabled by the Honorable Finance Minister in the Lok Sabha.It is to be noted that the old regime and new regime for FY 2024-25, both falls under the existing Income Tax Act.The new tax regime under section 115BAC, is dealt under section 202 of the new Income Tax Bill, 2025. The bill, when passed, will become the new Income Tax Act, which is applicable from 01st April 2026.Changes from FY 2025-26 (AY 2026-27)The income earned up-to Rs.12 Lakhs under new regime will ultimately have Nil tax liability. Here's how!The modified slab rates for new tax regime applicable for FY 2025-2026 are as follows:Income Tax SlabsTax RatesUp-to Rs.

Ever waited for your pending payments only to be disappointed when you got less than the amount expected? One of the primary reasons could be TDS deduction! Tax Deducted at Source is a crucial revenue generating mechanism of the government, whereby tax is deducted at the stage of income generation itself. While making specified payments to persons, it is necessary to deduct tax before making a payment under the provisions of Income Tax Act. You can refer to the following article for TDS rate chart 2025 for the latest tax deduction rates applicable to various types of income.What is TDS? TDS stands for Tax Deducted at Source. The person who is making the payment should deduct TDS for different kinds of transactions. For example, salaries, commissions and professional services.The person who is making the payment is responsible for deducting the tax while making the payment, called deductor. The person receiving the payment is called deductee.

If you are a salaried professional, you will notice a particular deduction on your payslip known as professional tax. The West Bengal state government imposes a specific tax on earning individuals associated with various professions. Workers, self-employed or salaried individuals, and other professionals who earn above a specified income level have to pay this tax compulsorily. In this article, we will learn about professional tax in West Bengal.Professional Tax In West BengalThe West Bengal state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in West Bengal must pay professional tax according to the applicable income slab and professional tax rate.Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually.

Individuals who earn their living through professional careers, labour, or businesses are subject to professional tax. The self-employed working population also pays professional taxes to the respective state government. In this regard, the payment of professional tax in Punjab is facilitated per the provisions of the Punjab State Tax on Professions, Trades, Callings and Employments Act, 1975. But is paying this tax mandatory? How can you pay for it? Read on to find out!Professional Tax in PunjabThe Punjab state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, consultants, etc. Those working in Punjab must pay professional tax according to the applicable income slab and professional tax rate.Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR.Clause 2 of Article 276 of the Indian Constitution covers the payment of professional taxes in India.

The Commercial Taxes Department, regulated by the Telangana government, is responsible for collecting professional tax in Telangana. If you have recently moved to this state or are employed here, it is important to know everything about the professional tax applicable here. In this article we will learn about professional tax in Telangana.Professional Tax in TelanganaThe Telangana state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals engaged in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Telangana have to pay professional tax according to the applicable income slab and professional tax rate of Telangana.Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR. The professional tax amount in Telangana ranges between Rs.1800- 2,500 per annum.Telangana Professional Tax ActAs per the Telangana Professional Tax Act, 1987, earning individuals are required to pay this tax; depending on their income, it can be a maximum of Rs 2500 and a minimum of Rs 110 annually.

The Indian Income Tax Act has provisions for tax collection at source or TCS. According to these provisions, certain persons are required to collect a specified percentage of tax from their buyers on specified transactions. In this article, we will discuss the different transactions on which TCS has to be collected.Latest UpdateUnder Section 206C(1F) of the Income Tax Act 1961 the following items will be included. Thus, attracting TCS @ 1% if the value of the mentioned goods exceeds Rs. 10 lakhs.Sl No.Types of Goods1Wrist Watch2Art pieces like antiques, paintings and sculptures3Collectables such as coins and stamps4Yacht, rowing boats, canoe, and helicopter5Pair of sunglasses6Handbags and Purses7A pair of shoes8Sportswear and equipment9Home theatre system10Horse for racing and polo games What is Tax Collected at Source (TCS)?Tax collected at source (TCS) is the tax payable by the seller which he collected from the buyer on sale. It should be deposited with the tax authorities within the applicable due dates. Section 206C of the Income-tax Act governs the goods on which the seller has to collect tax from the buyers.

All joint owners can individually avail of tax benefits on a joint home loan, provided certain conditions are met. Let’s examine them.It’s pertinent to note that ‘ownership’ of the property is a prerequisite to availing any tax benefits against the property. You may have taken the loan jointly, but unless you are an owner/co-owner of the property – you may not be entitled to the tax benefits.There have been situations where a parent and a child jointly own the property and take out a loan, which is paid off only by the child. In such a case, the child, who is not a co-owner, is devoid of the tax benefits on the home loan. Conditions to Claim the Tax Benefit on the PropertyYou must be a co-owner of the property– To be able to claim tax benefits for a home loan, you must be an owner of the property. Many a time, a loan is taken jointly, but the borrower is not an owner as per the property documents. In such a case, you may not be able to claim tax benefits.You must be a co-borrower for the loan– Besides being an owner, you must also be an applicant as per the loan documents.

The best way a company can express gratitude to its employees for their contributions is through variable pay. It includes disbursing bonuses, incentives, profit sharing, etc., depending upon their performance and seniority. But, as they form a part of your income, you are liable to pay tax on variable pay. Thus, knowing how to avail deductions on your bonuses and reduce your overall tax liability is beneficial. Keep reading to find out! What is Variable Pay?Variable pay also known as performance-linked pay, is extra compensation that employees can earn on top of their regular salary. It’s usually tied to how well they perform individually, as well as how the company is doing overall. This kind of pay often comes in the form of bonuses, commissions, or other incentives, and it's a way for employers to reward hard work and great results.What are the Different Types of Variable Pay?The three most common forms are:Incentive PlanIn this type of arrangement, specific performance targets are set for a particular period, and the payouts are done if the specified criteria are met.

Transfer pricing in India refers to the rules and methods for pricing transactions between associated enterprises, particularly when at least one party is located outside India. The primary objective is to ensure that such transactions are conducted at an "arm’s length price"—the price that would be charged if the parties were unrelated and dealing independently. Transfer Pricing was introduced through inserting Section(s) 92 A-F and relevant Rule(s) 10 A-E of the Income Tax Rules 1962. In this article, we will discuss few important provisions related to transfer pricing.Section 92 of the Income Tax Act, 1961 – Computation of Income from International Transactions having Regard to Arm’s Length PriceThis section states that any international or specified domestic transaction between associated enterprises which has been mutually agreed and undertaken for the purpose of allocation or apportionment of any cost or expense incurred or to be incurred for a benefit, service or facility undertaken or to be undertaken by one or more of the enterprises, then the cost or expense allocated, must be contributed having regard to the arm’s length price of such benefit, service or facility.Section 92A of the Income Tax Act, 1961  – Meaning of Associated EnterprisesFor the purpose of Sections 92, 92B, 92C, 92D, 92E, and 92F the term associated enterprises in relation to another enterprise shall mean, an enterprise-Which participates either directly or indirectly or through one or more intermediaries in the control or management or capital of the other enterprise.In respect of one or more persons that participate either directly or indirectly or through one or more intermediaries in the control or management or capital are the same persons that participate either directly or indirectly or through one or more intermediaries in the control or management or capital of the other enterprise.For the purpose of this section, two enterprises will be deemed to be associated enterprises if any time during the previous year at any time-One enterprise holds directly or indirectly, shareholding carrying not less than 26% of the voting power in another enterprise.Any individual or an enterprise holds directly or indirectly not less than 26% of the voting power in each of such enterprises.Any loan advanced from one enterprise to the other company constitutes not less than 51% of the book value of the total assets of the other enterprise.The guarantees of one enterprise is not less than 10% of the overall borrowings of the other enterprise.More than half of the board of directors or the governing board, or the executive members or directors are appointed by the other enterprise.One enterprise has a dependency in terms of know-how, patents, trademarks, rights or any other business or commercial rights or any data, documentation, drawing or specification relating to any such patent, invention, model or design for manufacturing or processing of goods, and the other enterprise holds the rights to such patents.90% or more of the raw materials or consumables are supplied by the other enterprise or by persons specified by the other enterprise, and the prices and other conditions relating to supply are influenced by such other enterprises.The goods or articles required by one enterprise are supplied by another enterprise, and the prices and other several conditions relating to supply are influenced by such other enterprises.Where one enterprise is controlled by an individual and the other enterprise is also in control of the same individual or his relative jointly.Where one enterprise is controlled by an undivided Hindu family, the other enterprise is controlled by a member of such Hindu undivided family or by a relative of a member of such Hindu undivided family or jointly by such member and his relative.Where one enterprise is a firm, association of persons or body of individuals, the other enterprise holds not less than 10% interest in such a firm, an association of persons or body of individuals.There exists between the two enterprises, any relationship of mutual interest, as may be prescribed.Section 92B of the Income Tax Act, 1961 – Meaning of international transactionThis section defines international transaction(s) for the purpose of this Section and the Section(s) 92, 92C, 92D and 92E as a transaction between two or more associated enterprises, wherein either one or both the enterprises are non-residents. (Non-resident means a body corporate whose control and management lies outside India)The nature of transaction can be purchase, sale or lease of tangible or intangible assets, or provision of services, or lending or borrowing money, or any other transaction having an effect on the profits, income, losses or assets of such enterprises.Transaction between enterprise and unrelated person shall be deemed to be international transaction if:There exists a prior agreement between associated enterprise and unrelated person, orTerms of transaction are determined by associated enterpriseSection 92C - Computation of Arm Length PriceAs per this Section the arm's length price for an international transaction or specified domestic transaction shall be determined using the most appropriate method, based on factors such as the nature of the transaction, the parties involved, the functions performed, and any other relevant criteria prescribed by the Board.

Filing your Income Tax Return (ITR) is an essential part of managing your tax obligations, and it’s important to stay updated with the latest deadlines and requirements. This guide highlights the ITR filing due dates for different categories of taxpayers, helping you navigate the tax filing process with ease.Budget 2025 UpdateIn Budget 2025, the deadline for taxpayers to file updated income tax returns has been extended from 2 years to 4 years from the end of the relevant assessment year.When is the Last Date to File ITR?The last date to file ITR is 31st July of the following financial year for non-audit taxpayers. So, for the Financial Year 2024-25 (Assessment Year 2025-26) the last date to file ITR would be 31st July 2025. However, if you miss filing on this deadline you can file a belated return by 31st December 2025 with penalties and interest.Income Tax Filing Due Dates for FY 2024-25 (AY 2025-26)\Category of TaxpayerDue Date for Tax Filing - FY 2024-25*(unless extended)Individual / HUF/ AOP/ BOI     (books of accounts not required to be audited)31st July 2025Businesses (Requiring Audit)31st October 2025Businesses requiring transfer pricing reports (in case of international/specified domestic transactions)30th November 2025Revised return31st December 2025Belated/late return31st December 2025Updated return31 March 2030 (4 years from the end of the relevant Assessment Year)Here's an image for your easy understanding:Consequences of Missing the ITR Filing DeadlineInterestIf you submit your return after the deadline, you will be liable to pay interest at a rate of 1% per month or part month on the unpaid tax amount as per Section 234A.Late feeIn case of late filing, Section 234F imposes a late fee ofRs.5,000, if your total income exceeds Rs. 5 Lakh.Rs.1,000, if your total income is within Rs.5 lakhLoss AdjustmentIn case you have incurred losses from sources like the stock market, mutual funds, properties, or any of your businesses, you have the option to carry them forward and offset them against your income in the subsequent year. This provision substantially reduces your tax liability in future years. However, you will not be allowed to carry forward these losses if you miss filing your ITR before the deadline.What if ITR Filing is Missed?Worried that you missed the due date for filing ITR? You can still file ITR in the following ways.Belated ReturnIf you miss the ITR filing due date, you can file a return after the due date, called a belated return. However, you will still have to pay the late fee and interest charges, and you will not be allowed to carry forward any losses for future adjustments. You can still claim deductions and exemptions while filing belated returns.The last date for filing a belated return is 31st December of the assessment year (unless extended by the government). Updated ReturnStill, if you miss the 31st December deadline due to unavoidable reasons still you can file the updated return (ITR U) subject to the conditions specified therein.What if ITR Filing has Errors?Worried that you have already filed ITR and made some mistakes in it? You can easily revise the return that is already filed.Revised Return Revised returns allows the assessee to rectify the errors made in the original return filed by the him.The due date for filing revised returns is 31st December following the end of the financial year.Lets understand this with an example.