• Debit Note vs Credit Note: Key Differences

    Debit Note vs Credit Note: Key Differences Businesses use debit and credit notes as formal accounting documents to manage purchase returns and sales returns. These notes indicate to the buyer or seller how much credit is available or how much is owed. Understanding the difference is important, especially for businesses that frequently handle both types…

  • Section 11 of the Income Tax Act: Tax Exemption for Charitable Trusts

    Section 11 of the Income Tax Act: Tax Exemption for Charitable Trusts To encourage the work of religious and charitable organizations, the Indian government offers tax exemptions under Section 11 of the Income-tax Act. These benefits apply only to specific types of income, and eligible entities must meet certain conditions to claim them. Budget 2025…

  • Section 80EEA – Additional Deduction on Home Loan Interest for Affordable Housing

    Section 80EEA – Additional Deduction on Home Loan Interest for Affordable Housing Overview: Section 80EEA provides an extra deduction of up to Rs. 1.5 lakh per year on home loan interest, in addition to the benefits available under Sections 24 and 80C. This deduction applies to loans sanctioned between 1st April 2019 and 31st March…

  • Section 43B(h) of the Income Tax Act: Applicability, Due Date, Limit & Example

    Section 43B(h) of the Income Tax Act: Applicability, Due Date, Limit & Example Section 43B(h) provides that any amount payable to Micro and Small Enterprises (MSEs) for goods supplied or services provided will be allowed as an expense in the same financial year only if it is paid within the time frame specified under the…

  • Section 36 of the Income Tax Act: Deductions for Business Expenses

    Section 36 of the Income Tax Act: Deductions for Business Expenses The Income Tax Act, 1961 provides several deductions to help taxpayers reduce their tax burden. Section 36 lists specific expenses that can be claimed as deductions from income earned through business or profession. Below are the types of expenses covered under this section. Expenses…

  • Section 112A of Income Tax Act – Long-Term Capital Gains on Shares

    Section 112A of Income Tax Act – Long-Term Capital Gains on Shares Long-term capital gains (LTCG) on shares refer to profits earned from selling equity shares or units of equity-oriented mutual funds held for over 12 months. Section 112A governs LTCG arising from listed equity shares, equity-oriented mutual funds, and units of business trusts. These…

  • Income Tax Clearance Certificate: Meaning, Importance & Download Process

    Income Tax Clearance Certificate: Meaning, Importance & Download Process Certain transactions in India require obtaining an Income Tax Clearance Certificate (ITCC). This certificate, issued by the tax authorities, acts as proof that all your tax dues are settled. But who is required to get it—and why? This blog explains what an ITCC is, why it…

  • Form DPT-3: Applicability, Purpose, Due Date & Penalty

    Form DPT-3: Applicability, Purpose, Due Date & Penalty Form DPT-3 is a mandatory return of deposits that companies must submit, providing details of deposits as well as any outstanding loans or money received that do not fall under the definition of deposits. Background To protect the interests of creditors and depositors, the Central Government, in…

  • Limited Liability Partnership (LLP) Registration in India

    Limited Liability Partnership (LLP) Registration in India A Limited Liability Partnership (LLP) has emerged as a popular business structure for entrepreneurs in India, offering the combined advantages of a traditional partnership and a company. As its name indicates, an LLP is formed by at least two partners who execute an LLP agreement. Unlike a regular…

  • Understanding Section 45 of the Income Tax Act

    Understanding Section 45 of the Income Tax Act Section 45 of the Income-tax Act, 1961, serves as the primary provision for taxing capital gains. It specifies when capital gains become taxable and outlines the circumstances under which such income is chargeable. This section forms the basis for determining the tax liability arising from the transfer…

  • Form 26AS – What Is It? How to Download & View Form 26AS Online

    Form 26AS – What Is It? How to Download & View Form 26AS Online Form 26AS is a consolidated annual tax statement that shows all TDS or TCS collected, advance tax or self-assessment tax paid, and high-value financial transactions linked to a taxpayer during a particular financial year. How to Download Form 26AS Online in…

  • Section 115BAC New Tax Regime 2025: Slabs, Deductions, Exemptions & Benefits

    Section 115BAC New Tax Regime 2025: Slabs, Deductions, Exemptions & Benefits Section 115BAC of the Income Tax Act introduces the new tax regime, featuring lower tax slab rates in return for giving up most deductions and exemptions. This section allows taxpayers to select the regime that suits them best each financial year, subject to prescribed…

  • Income Tax Raid, Search and Seizure: What, When, and How

    Income Tax Raid, Search and Seizure: What, When, and How Under Section 132, Income Tax Raids or Search and Seizure actions are initiated by senior officers of the Income Tax Department—such as the Principal Director General, Director General, Chief Commissioner, and others—when they suspect that an individual possesses wholly or partially undisclosed income, assets, cash,…

  • Guidelines on TDS Under Section 194S of the Income Tax Act – Simplified

    Guidelines on TDS Under Section 194S of the Income Tax Act – Simplified Section 194S of the Income Tax Act mandates a 1% TDS on the transfer of Virtual Digital Assets (VDAs). What is TDS Under Section 194S? Section 194S requires a 1% TDS deduction on the sale or transfer of cryptocurrencies and other VDAs.…

  • Section 80TTB Deduction for Senior Citizens

    Section 80TTB Deduction for Senior Citizens Section 80TTB is a tax benefit introduced to reduce the financial pressure on senior citizens. Since many elderly individuals rely heavily on interest earnings to manage daily expenses and increasing medical needs, this provision offers a dedicated deduction to support their financial well-being during retirement. Key Highlights What is…

  • GST on UPI Payments: Applicability, Charges and Exemptions

    GST on UPI Payments: Applicability, Charges and Exemptions Unified Payments Interface (UPI) has become one of the most preferred digital payment options for both everyday users and small businesses. Its popularity stems from its simplicity, instant transfers, and the various cashback and reward offers it provides. Recently, UPI has drawn attention again due to discussions…

  • What is e-Invoicing Under GST? Applicability, Limit, Rules & Implementation Date

    e-Invoicing under GST refers to the electronic authentication of invoices. Similar to how GST-registered businesses generate e-way bills for the movement of goods, certain registered taxpayers are required to create e-invoices in India. When a GST invoice or credit/debit note is verified by the GSTN-approved Invoice Registration Portal (IRP), it becomes an e-invoice. This system…

  • How to Save Tax on a Salary Above ₹12 Lakhs?

    India follows a progressive tax system, where tax rates rise as income increases. By understanding the available tax-saving options, you can lower your overall tax outflow. Various deductions and exemptions can help reduce your taxable income. For FY 2025–26, the rebate limit has been raised to ₹60,000. As a result, individuals whose taxable income (excluding…

  • Difference Between Assessment Year (AY) and Financial Year (FY)

     Financial Year (FY) and Assessment Year (AY) are commonly used terms in Income Tax, yet many taxpayers mix them up. The AY always follows the FY and is the period during which taxes on income earned in the previous year are computed and paid. This section clarifies what a financial year and an assessment year…

  • Section 194Q of the Income Tax Act: TDS on Purchase of Goods, TDS Rate, Example, and Turnover Limit

    Section 194Q of the Income-tax Act, 1961 covers the deduction of Tax Deducted at Source (TDS) on the purchase of goods. Under this provision, the buyer must deduct TDS at 0.1% when making payment to a resident seller, provided the value of goods purchased exceeds ₹50 lakh in a financial year. What is Section 194Q?…

  • Form 60: Who Needs It, How to Fill It, and How to Download It Online

    Form 60 is a declaration submitted by an individual (other than a company or firm) or a foreign company that does not possess a PAN but is involved in any transaction listed under Rule 114B of Section 139A of the Income Tax Act, 1961. Certain transactions require quoting a PAN so the government can monitor…

  • RTGS Full Form, Meaning, Features, Benefits and How RTGS Works

    RTGS Full Form, Meaning, Features, Benefits and How RTGS Works RTGS stands for Real-Time Gross Settlement. It is a payment system used by banks to transfer funds instantly, where each transaction is processed individually and settled in real time. Knowing how RTGS works is important for anyone who needs to move high-value funds quickly between…

  • Section 195 of Income Tax Act – TDS Applicability for NRIs

    Section 195 of the Income Tax Act, 1961 governs the deduction of Tax Deducted at Source (TDS) on payments made to Non-Resident Indians (NRIs) or foreign companies. Whenever an Indian resident makes a payment—excluding salary—that is taxable in India to a non-resident, TDS must be deducted under this section. The intention is to ensure that…

  • Dearness Allowance (DA) – Meaning, Types, Calculation & Taxation

    Dearness Allowance (DA) is a salary component given to employees working in public sector organisations to help them manage the impact of inflation and increasing living expenses. It is calculated as a percentage of the basic salary and is revised twice a year based on movements in the Consumer Price Index (CPI). DA is fully…

  • Penalty for Late Filing of Income Tax Return

    Taxpayers must file their Income Tax Return (ITR) reporting the income earned and clearing their tax liabilities for the previous financial year. The Income Tax Department specifies due dates for filing returns and paying taxes. If the return is not submitted within the prescribed deadline, a penalty under Section 234F and interest under Section 234A…

  • Section 80E of Income Tax Act: Deduction for Interest on Education Loan

    Section 80E of the Income Tax Act, 1961 allows taxpayers to claim a deduction on the interest paid on education loans taken for themselves or their relatives. What is Section 80E Education Loan Deduction? Section 80E offers a deduction for the interest paid on loans taken for higher education. Whether the loan is for the…