The Indian government has opened a new window for small taxpayers to come clean about certain undisclosed foreign assets and income, offering protection from further penalties and prosecution in return for a tax payment. The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the Union Budget 2026-27, comes into force on Sunday (Aug 16). The Income Tax Department notified the scheme on Saturday (Aug 15), with online declarations open until December 31, 2026.The scheme is primarily aimed at taxpayers who may have missed reporting overseas assets or income, including students, young professionals, technology workers and non-resident Indians who have relocated to India.Under FAST-DS, eligible taxpayers must pay tax at 30 per cent on the value of the declared asset or income, along with an additional amount equal to the tax. This effectively takes the levy to 60 per cent.The Central Board of Direct Taxes said the value of foreign assets will be calculated using their fair market value as on March 31, 2026.Also read | <a href="https://www.wionews.com/photos/independence-day-2026-9-lesser-known-facts-about-india-s-freedom-struggle-1786618956261">Independence Day 2026: 9 lesser-known facts about India’s freedom struggle</a>The scheme provides two routes for disclosure. The first covers foreign assets or income that were not previously offered to tax, provided their combined value does not exceed Rs 1 crore.The second applies to foreign assets that were already offered to tax or acquired while the taxpayer was a non-resident but were not reported in the relevant schedule of the income tax return. The limit in this category is Rs 5 crore, subject to a Rs 1 lakh fee.The CBDT said the scheme will allow eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” by paying the prescribed tax or fee.A CBDT example shows that if an undisclosed foreign bank account is worth Rs 60 lakh and undisclosed foreign income stands at Rs 20 lakh, the total tax payable under the scheme would be Rs 48 lakh.Those making valid declarations will receive immunity from further tax, penalties and prosecution under the Black Money Act for the disclosed assets or income, the CBDT said. &nbsp;

The government has launched FAST-DS, allowing eligible small taxpayers to disclose certain undisclosed foreign assets or income at an effective 60% tax, with immunity from further penalties and prosecution.

The Indian government has opened a new window for small taxpayers to come clean about certain undisclosed foreign assets and income, offering protection from further penalties and prosecution in return for a tax payment. The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the Union Budget 2026-27, comes into force on Sunday (Aug 16). The Income Tax Department notified the scheme on Saturday (Aug 15), with online declarations open until December 31, 2026. The scheme is primarily aimed at taxpayers who may have missed reporting overseas assets or income, including students, young professionals, technology workers and non-resident Indians who have relocated to India. Under FAST-DS, eligible taxpayers must pay tax at 30 per cent on the value of the declared asset or income, along with an additional amount equal to the tax. This effectively takes the levy to 60 per cent. The Central Board of Direct Taxes said the value of foreign assets will be calculated using their fair market value as on March 31, 2026. Also read | Independence Day 2026: 9 lesser-known facts about India’s freedom struggle The scheme provides two routes for disclosure. The first covers foreign assets or income that were not previously offered to tax, provided their combined value does not exceed Rs 1 crore. The second applies to foreign assets that were already offered to tax or acquired while the taxpayer was a non-resident but were not reported in the relevant schedule of the income tax return. The limit in this category is Rs 5 crore, subject to a Rs 1 lakh fee. The CBDT said the scheme will allow eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” by paying the prescribed tax or fee. A CBDT example shows that if an undisclosed foreign bank account is worth Rs 60 lakh and undisclosed foreign income stands at Rs 20 lakh, the total tax payable under the scheme would be Rs 48 lakh. Those making valid declarations will receive immunity from further tax, penalties and prosecution under the Black Money Act for the disclosed assets or income, the CBDT said.

The government has launched FAST-DS, allowing eligible small taxpayers to disclose certain undisclosed foreign assets or income at an effective 60 per cent tax, with immunity from further penalties and prosecution.

Have undeclared foreign assets? New govt scheme may help avoid prosecution – Here’s how

India's Black Money Act is one of the most unforgiving tax laws on the books. A resident Indian who holds a foreign bank account, owns overseas property, or has shares in a foreign company — and fails to disclose it in their income tax return — faces a flat penalty of Rs 10 lakh per assessment year. Not a percentage of the asset value. Not a sliding scale. A flat Rs 10 lakh, applied every year the omission continues. With Budget 2026 having introduced the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS 2026) as a limited amnesty window, and the July 31 ITR deadline approaching, here are the seven disclosure mistakes that cost taxpayers the most.&nbsp;Mistake 1: Thinking Small Assets Do Not Need To Be Reported&nbsp;Many taxpayers assume that foreign assets below a certain value are exempt from disclosure. This is wrong. Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, the Rs 10 lakh flat penalty applies regardless of the size of the foreign asset — with one exception: from October 1, 2024, the penalty under Sections 42 and 43 does not apply if the aggregate value of all non-immovable foreign assets is below Rs 20 lakh. Foreign immovable property, however, carries no such safe harbour — it must be declared regardless of value. A foreign bank account with Rs 50,000 in it still needs to appear in Schedule FA of your ITR.&nbsp;Mistake 2: Not Reporting Foreign Assets Inherited Or Received As Gifts&nbsp;Taxpayers who inherit foreign assets — a bank account from a parent who lived abroad, shares in a family-held overseas company, or foreign property — often assume they do not need to declare assets they did not actively acquire. The obligation to disclose applies to all foreign assets held by a resident Indian, regardless of how they were acquired. Inherited or gifted foreign assets must appear in Schedule FA from the year the taxpayer becomes the legal owner.&nbsp;Mistake 3: Returning NRIs Forgetting Overseas Assets&nbsp;Non-resident Indians who return to India and become resident taxpayers must begin disclosing their overseas assets from the year they become residents. Many returning NRIs continue to hold foreign bank accounts, retirement savings plans (such as 401k accounts in the US), or overseas property — and do not realise that these must now be disclosed annually in Schedule FA. A returning NRI who held a foreign account for years without disclosing it after becoming a resident faces compounding penalties for each year of non-disclosure.&nbsp;Mistake 4: Confusing Schedule FA With Schedule FSI&nbsp;Schedule FA and Schedule FSI serve different purposes and both must be filled where applicable. Schedule FA covers assets held outside India — bank accounts, equity, immovable property, trusts, and any other financial interest abroad. Schedule FSI covers income earned from foreign sources — salary received from a foreign employer, dividends from overseas shares, interest from a foreign bank account, or rental income from overseas property. Taxpayers often fill one and skip the other. Both are mandatory for resident taxpayers with overseas exposure, and the information in both schedules must be consistent.&nbsp;Mistake 5: Assuming Tax Disclosure Cures FEMA Violations&nbsp;Budget 2026's FAST-DS 2026 scheme allows individuals to regularise undisclosed foreign income and assets by paying applicable tax and a penalty, obtaining immunity under income tax laws. What it does not do is cure separate violations under the Foreign Exchange Management Act. Common FEMA contraventions include retaining foreign bank balances beyond the permitted repatriation period, acquiring overseas property through impermissible funding sources, or failing to file required reports such as Form FC with the Reserve Bank of India. Paying the income tax penalty under FAST-DS does not automatically resolve a FEMA liability — taxpayers need separate legal advice on FEMA compliance.&nbsp;Mistake 6: Not Reporting Foreign Income That Was Not Remitted To India&nbsp;Some taxpayers believe that foreign income needs to be declared in India only when it is brought into the country. This is incorrect for resident and ordinarily resident taxpayers. Under Indian tax law, residents are taxable on their global income — including income that arose abroad and was never remitted to India. Foreign salary credited to an overseas account, interest earned in a foreign bank that stayed abroad, or dividends from foreign shares that were reinvested overseas — all of these must be declared in Schedule FSI and are potentially taxable in India.&nbsp;Mistake 7: Filing The Wrong Return Form And Skipping Foreign Schedules&nbsp;Schedule FA and Schedule FSI exist only in ITR-2 and ITR-3. Taxpayers with foreign assets who file ITR-1 — perhaps because their salaried income appears to fit that form — have no way to complete the mandatory foreign asset disclosure. Filing ITR-1 when you hold foreign assets is treated as non-disclosure. Resident taxpayers with any overseas bank account, foreign shares, or overseas property must file at minimum ITR-2, which contains both Schedule FA and Schedule FSI. Getting the form wrong is not a technical defence — the penalty for non-disclosure applies regardless of which form was filed.

India imposes a flat Rs 10 lakh penalty for undisclosed foreign assets. Here are seven costly Schedule FA and FSI mistakes Indian taxpayers make — and how to avoid them before July 31.

India's Black Money Act is one of the most unforgiving tax laws on the books. A resident Indian who holds a foreign bank account, owns overseas property, or has shares in a foreign company — and fails to disclose it in their income tax return — faces a flat penalty of Rs 10 lakh per assessment year. Not a percentage of the asset value. Not a sliding scale. A flat Rs 10 lakh, applied every year the omission continues. With Budget 2026 having introduced the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS 2026) as a limited amnesty window, and the July 31 ITR deadline approaching, here are the seven disclosure mistakes that cost taxpayers the most. Mistake 1: Thinking Small Assets Do Not Need To Be Reported Many taxpayers assume that foreign assets below a certain value are exempt from disclosure. This is wrong. Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, the Rs 10 lakh flat penalty applies regardless of the size of the foreign asset — with one exception: from October 1, 2024, the penalty under Sections 42 and 43 does not apply if the aggregate value of all non-immovable foreign assets is below Rs 20 lakh. Foreign immovable property, however, carries no such safe harbour — it must be declared regardless of value. A foreign bank account with Rs 50,000 in it still needs to appear in Schedule FA of your ITR. Mistake 2: Not Reporting Foreign Assets Inherited Or Received As Gifts Taxpayers who inherit foreign assets — a bank account from a parent who lived abroad, shares in a family-held overseas company, or foreign property — often assume they do not need to declare assets they did not actively acquire. The obligation to disclose applies to all foreign assets held by a resident Indian, regardless of how they were acquired. Inherited or gifted foreign assets must appear in Schedule FA from the year the taxpayer becomes the legal owner. Mistake 3: Returning NRIs Forgetting Overseas Assets Non-resident Indians who return to India and become resident taxpayers must begin disclosing their overseas assets from the year they become residents. Many returning NRIs continue to hold foreign bank accounts, retirement savings plans (such as 401k accounts in the US), or overseas property — and do not realise that these must now be disclosed annually in Schedule FA. A returning NRI who held a foreign account for years without disclosing it after becoming a resident faces compounding penalties for each year of non-disclosure. Mistake 4: Confusing Schedule FA With Schedule FSI Schedule FA and Schedule FSI serve different purposes and both must be filled where applicable. Schedule FA covers assets held outside India — bank accounts, equity, immovable property, trusts, and any other financial interest abroad. Schedule FSI covers income earned from foreign sources — salary received from a foreign employer, dividends from overseas shares, interest from a foreign bank account, or rental income from overseas property. Taxpayers often fill one and skip the other. Both are mandatory for resident taxpayers with overseas exposure, and the information in both schedules must be consistent. Mistake 5: Assuming Tax Disclosure Cures FEMA Violations Budget 2026's FAST-DS 2026 scheme allows individuals to regularise undisclosed foreign income and assets by paying applicable tax and a penalty, obtaining immunity under income tax laws. What it does not do is cure separate violations under the Foreign Exchange Management Act. Common FEMA contraventions include retaining foreign bank balances beyond the permitted repatriation period, acquiring overseas property through impermissible funding sources, or failing to file required reports such as Form FC with the Reserve Bank of India. Paying the income tax penalty under FAST-DS does not automatically resolve a FEMA liability — taxpayers need separate legal advice on FEMA compliance. Mistake 6: Not Reporting Foreign Income That Was Not Remitted To India Some taxpayers believe that foreign income needs to be declared in India only when it is brought into the country. This is incorrect for resident and ordinarily resident taxpayers. Under Indian tax law, residents are taxable on their global income — including income that arose abroad and was never remitted to India. Foreign salary credited to an overseas account, interest earned in a foreign bank that stayed abroad, or dividends from foreign shares that were reinvested overseas — all of these must be declared in Schedule FSI and are potentially taxable in India. Mistake 7: Filing The Wrong Return Form And Skipping Foreign Schedules Schedule FA and Schedule FSI exist only in ITR-2 and ITR-3. Taxpayers with foreign assets who file ITR-1 — perhaps because their salaried income appears to fit that form — have no way to complete the mandatory foreign asset disclosure. Filing ITR-1 when you hold foreign assets is treated as non-disclosure. Resident taxpayers with any overseas bank account, foreign shares, or overseas property must file at minimum ITR-2, which contains both Schedule FA and Schedule FSI. Getting the form wrong is not a technical defence — the penalty for non-disclosure applies regardless of which form was filed.

India's income tax law imposes a flat Rs 10 lakh penalty per year for failing to disclose foreign assets — regardless of how small the asset is or whether any tax was evaded. With the government's FAST-DS 2026 amnesty scheme running and the July 31 deadline approaching, here are seven costly mistakes Indian taxpayers make when declaring foreign income and overseas assets in their ITR.

'Rs 10 lakh penalty': 7 foreign income disclosure mistakes to avoid in your ITR 2026

If you ask most Indian taxpayers when the income tax deadline is, the answer is always July 31. That answer is incomplete in 2026. Budget 2026 restructured the ITR filing calendar, creating a tiered system of deadlines based on the type of return being filed rather than a single date for everyone. The result is a compliance calendar that runs from July 31 all the way to March 31, 2027 — and missing the right date for your category can mean penalties, loss of tax benefits, and in some cases, a return that cannot be revised even if you find an error later.&nbsp;Deadline 1 — July 31, 2026: Salaried Filers And Investors&nbsp;The July 31 deadline applies to individuals and HUFs filing ITR-1 or ITR-2 for FY 2025-26. This covers salaried employees, pensioners, and investors with capital gains, dividend income, or multiple house properties — anyone whose income does not include business or professional earnings. Missing July 31 means a late filing fee of Rs 5,000 for those with income above Rs 5 lakh, or Rs 1,000 for those below. More significantly, taxpayers who miss this date permanently lose the right to carry forward capital losses or house property losses to offset against future income. That loss of carry-forward benefit cannot be recovered by filing late.&nbsp;Deadline 2 — August 31, 2026: Small Business And Freelancers&nbsp;This is the most significant new date introduced by Budget 2026. Taxpayers filing ITR-3 or ITR-4 with business or professional income that does not require a statutory audit now have until August 31, 2026. This group includes freelancers, consultants, doctors, lawyers, architects, small traders, and professionals under the presumptive taxation scheme. Previously, these taxpayers shared the July 31 deadline with salaried filers, creating a filing rush for people whose income records take longer to compile. The extra month is designed to reduce errors and last-minute compliance pressure for India's growing self-employed population.&nbsp;Deadline 3 — October 31, 2026: Audit Cases&nbsp;Businesses and professionals whose accounts are required to be audited under the Income Tax Act — typically those with turnover above the specified thresholds — have until October 31, 2026 to file. This deadline covers ITR-3 and ITR-4 filers in audit-mandatory categories, as well as companies filing ITR-6 and partnership firms filing ITR-5 that require statutory audit. The audit report itself — filed in Form 3CA or 3CB along with Form 3CD — must also be submitted before the October 31 deadline, meaning the entire audit process needs to be completed well before the month-end.&nbsp;Deadline 4 — November 30, 2026: Transfer Pricing Cases&nbsp;The November 30 deadline applies to businesses involved in international transactions or specified domestic transactions that require a transfer pricing report under Section 92E of the Income Tax Act. These are typically larger companies, multinationals, and businesses with cross-border related-party transactions. The transfer pricing accountant's report in Form 3CEB must be filed by November 30, and the ITR itself must also be submitted by this date. This is the last of the four filing deadlines for the assessment year.&nbsp;Deadline 5 — December 31, 2026: Belated Returns&nbsp;Taxpayers who missed their applicable deadline — whether July 31, August 31, or October 31 — can still file a belated return until December 31, 2026. However, filing a belated return carries a penalty of Rs 5,000 for taxpayers with income above Rs 5 lakh, and Rs 1,000 for those below. Interest continues to accrue on unpaid tax at 1 percent per month under Section 234A from the original deadline. Belated filers also cannot carry forward most types of losses. December 31 is an absolute cut-off — no original return can be filed after this date for FY 2025-26.&nbsp;Deadline 6 — March 31, 2027: Revised Returns&nbsp;The most taxpayer-friendly change in the 2026 calendar is this: the window to file a revised return — correcting errors or omissions in an already-filed return — has been extended from December 31 to March 31, 2027. Previously, taxpayers had to spot and correct mistakes in their return by December 31, the same deadline as belated returns. Now, anyone who filed on time but later discovers an error — a missed deduction, an incorrect figure, an unreported income source — has until the last day of the assessment year to correct it. This applies only to taxpayers who filed their original return on or before their applicable deadline.&nbsp;The Practical Takeaway&nbsp;The new calendar creates a genuine hierarchy of urgency. Salaried filers face the tightest window and should treat July 31 as non-negotiable. Business filers without audit requirements have August 31 — but using the extra month as a reason to delay until the last week is inadvisable. Audit cases should be commissioning their auditors now, not in September. And every taxpayer, regardless of category, should calendar March 31, 2027 as the safety net for correcting filed returns — because it is now the last real chance to get the numbers right for FY 2025-26.

India's 2026 ITR calendar runs from July 31 to March 2027. Six key dates cover salaried, business, audit, transfer pricing, belated, and revised return filers. Full tracker here.

If you ask most Indian taxpayers when the income tax deadline is, the answer is always July 31. That answer is incomplete in 2026. Budget 2026 restructured the ITR filing calendar, creating a tiered system of deadlines based on the type of return being filed rather than a single date for everyone. The result is a compliance calendar that runs from July 31 all the way to March 31, 2027 — and missing the right date for your category can mean penalties, loss of tax benefits, and in some cases, a return that cannot be revised even if you find an error later. Deadline 1 — July 31, 2026: Salaried Filers And Investors The July 31 deadline applies to individuals and HUFs filing ITR-1 or ITR-2 for FY 2025-26. This covers salaried employees, pensioners, and investors with capital gains, dividend income, or multiple house properties — anyone whose income does not include business or professional earnings. Missing July 31 means a late filing fee of Rs 5,000 for those with income above Rs 5 lakh, or Rs 1,000 for those below. More significantly, taxpayers who miss this date permanently lose the right to carry forward capital losses or house property losses to offset against future income. That loss of carry-forward benefit cannot be recovered by filing late. Deadline 2 — August 31, 2026: Small Business And Freelancers This is the most significant new date introduced by Budget 2026. Taxpayers filing ITR-3 or ITR-4 with business or professional income that does not require a statutory audit now have until August 31, 2026. This group includes freelancers, consultants, doctors, lawyers, architects, small traders, and professionals under the presumptive taxation scheme. Previously, these taxpayers shared the July 31 deadline with salaried filers, creating a filing rush for people whose income records take longer to compile. The extra month is designed to reduce errors and last-minute compliance pressure for India's growing self-employed population. Deadline 3 — October 31, 2026: Audit Cases Businesses and professionals whose accounts are required to be audited under the Income Tax Act — typically those with turnover above the specified thresholds — have until October 31, 2026 to file. This deadline covers ITR-3 and ITR-4 filers in audit-mandatory categories, as well as companies filing ITR-6 and partnership firms filing ITR-5 that require statutory audit. The audit report itself — filed in Form 3CA or 3CB along with Form 3CD — must also be submitted before the October 31 deadline, meaning the entire audit process needs to be completed well before the month-end. Deadline 4 — November 30, 2026: Transfer Pricing Cases The November 30 deadline applies to businesses involved in international transactions or specified domestic transactions that require a transfer pricing report under Section 92E of the Income Tax Act. These are typically larger companies, multinationals, and businesses with cross-border related-party transactions. The transfer pricing accountant's report in Form 3CEB must be filed by November 30, and the ITR itself must also be submitted by this date. This is the last of the four filing deadlines for the assessment year. Deadline 5 — December 31, 2026: Belated Returns Taxpayers who missed their applicable deadline — whether July 31, August 31, or October 31 — can still file a belated return until December 31, 2026. However, filing a belated return carries a penalty of Rs 5,000 for taxpayers with income above Rs 5 lakh, and Rs 1,000 for those below. Interest continues to accrue on unpaid tax at 1 percent per month under Section 234A from the original deadline. Belated filers also cannot carry forward most types of losses. December 31 is an absolute cut-off — no original return can be filed after this date for FY 2025-26. Deadline 6 — March 31, 2027: Revised Returns The most taxpayer-friendly change in the 2026 calendar is this: the window to file a revised return — correcting errors or omissions in an already-filed return — has been extended from December 31 to March 31, 2027. Previously, taxpayers had to spot and correct mistakes in their return by December 31, the same deadline as belated returns. Now, anyone who filed on time but later discovers an error — a missed deduction, an incorrect figure, an unreported income source — has until the last day of the assessment year to correct it. This applies only to taxpayers who filed their original return on or before their applicable deadline. The Practical Takeaway The new calendar creates a genuine hierarchy of urgency. Salaried filers face the tightest window and should treat July 31 as non-negotiable. Business filers without audit requirements have August 31 — but using the extra month as a reason to delay until the last week is inadvisable. Audit cases should be commissioning their auditors now, not in September. And every taxpayer, regardless of category, should calendar March 31, 2027 as the safety net for correcting filed returns — because it is now the last real chance to get the numbers right for FY 2025-26.

July 31 is the deadline everyone talks about — but India's income tax calendar for 2026 has five more critical dates that stretch all the way to March 2027. From August 31 for small business owners to November 30 for transfer pricing cases, and December 31 for belated returns, here is the complete compliance tracker every taxpayer needs.

6 Income Tax deadlines every Indian taxpayer must track In 2026

Every year, millions of Indian taxpayers file the wrong income tax return form — not out of dishonesty, but out of genuine confusion about which form their income profile requires. Filing the wrong form can mean a defective return notice, a demand for refiling, or in some cases, penalties for incorrect disclosure. For AY 2026-27, the Income Tax Department has also expanded the eligibility criteria for some forms, meaning taxpayers who previously had to file ITR-2 may now qualify for the simpler ITR-1. Here is a complete guide to all seven ITR forms.&nbsp;ITR-1 (Sahaj): The Simplest Form, Now With Wider Eligibility&nbsp;ITR-1, called Sahaj, is designed for resident individual taxpayers with straightforward income. For AY 2026-27, it applies to taxpayers with total income up to Rs 50 lakh from salary or pension, up to two house properties, interest and dividend income, and long-term capital gains under Section 112A of up to Rs 1.25 lakh. Agricultural income up to Rs 5,000 is also permitted. The key change for this year: the Income Tax Department has expanded ITR-1 eligibility to include taxpayers who own two house properties — previously, ownership of more than one property automatically pushed you to ITR-2. ITR-1 cannot be used by directors of companies, those holding unlisted equity shares, NRIs, or taxpayers with income from business or profession.&nbsp;ITR-2: For Capital Gains, Multiple Properties, And Foreign Income&nbsp;ITR-2 applies to individuals and Hindu Undivided Families who do not have income from business or profession. It is the correct form if you have capital gains from shares, mutual funds, or property sales; income from more than two house properties; foreign assets or foreign source income; or income that does not fit within ITR-1's limits. NRIs and non-ordinarily resident Indians also use ITR-2 for their Indian-source income. With up to 26 internal schedules, ITR-2 looks complex — but filers only need to complete the schedules that apply to their specific situation. The deadline for ITR-2 is July 31, 2026.&nbsp;ITR-3: For Business And Profession Income&nbsp;ITR-3 is filed by individuals and HUFs who earn income through a business or profession — whether it is a sole proprietorship, a trading operation, a consultancy, a medical practice, or any other self-run income-generating activity. Unlike ITR-4, ITR-3 does not limit you to presumptive taxation — it accommodates actual books of accounts, balance sheets, and profit and loss statements. If your business income exceeds the presumptive taxation threshold, or if you have opted out of the presumptive scheme, ITR-3 is your form. Deadline: August 31, 2026 for non-audit cases; October 31 for audit cases.&nbsp;ITR-4 (Sugam): For Presumptive Taxation&nbsp;ITR-4, also called Sugam, is designed for individuals, HUFs, and firms other than LLPs who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Under presumptive taxation, eligible taxpayers declare income at a flat percentage of turnover or gross receipts — 8 percent for business income under 44AD, and 50 percent for professional income under 44ADA — without needing to maintain detailed books of accounts. The expanded eligibility for AY 2026-27 allows more taxpayers to qualify for ITR-4. Total income must not exceed Rs 50 lakh. Deadline: August 31, 2026.&nbsp;ITR-5: For Firms, LLPs, And Associations&nbsp;ITR-5 is not for individuals at all. It is filed by partnership firms, Limited Liability Partnerships, Associations of Persons, Bodies of Individuals, artificial juridical persons, estates of deceased persons, estates of insolvents, business trusts, and investment funds. Cooperative societies not claiming exemption under Section 11 also use ITR-5. Entities required to file ITR-7 — those claiming exemption under charitable or religious trust provisions — cannot use ITR-5.&nbsp;ITR-6: For Companies&nbsp;ITR-6 is exclusively for companies — both private and public — registered under the Companies Act. The single exception: companies that claim exemption under Section 11 of the Income Tax Act, covering income from property held for charitable or religious purposes, must file ITR-7 instead. All other companies, regardless of whether they are profit-making or loss-making, file ITR-6.&nbsp;ITR-7: For Charitable Trusts, Political Parties, And Research Institutions&nbsp;ITR-7 applies to any person — including companies — required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. In practice this means charitable and religious trusts, political parties, research institutions, universities, and entities claiming exemption under Sections 11 and 12. A charitable trust with taxable income above the basic exemption limit that does not need to file under mandatory sections may use ITR-5 — but entities mandatorily required to file under 139(4A) through 139(4F) must use ITR-7.&nbsp;The Single Most Important Rule&nbsp;If you are unsure which form applies to you, the safest starting point is this: any business or profession income puts you between ITR-3 and ITR-4. No business income but capital gains, foreign assets, or more than two properties means ITR-2. Income entirely from salary, pension, interest, and modest LTCG within the Rs 1.25 lakh limit — total income under Rs 50 lakh — means ITR-1 is sufficient. The Income Tax Department's e-filing portal at incometax.gov.in has a form selection tool that confirms the right form based on your income sources.

ITR-1 now covers two house properties. ITR-4 eligibility is wider. Here is a complete guide to all 7 ITR forms — who each is for and who is excluded — for AY 2026-27.

Every year, millions of Indian taxpayers file the wrong income tax return form — not out of dishonesty, but out of genuine confusion about which form their income profile requires. Filing the wrong form can mean a defective return notice, a demand for refiling, or in some cases, penalties for incorrect disclosure. For AY 2026-27, the Income Tax Department has also expanded the eligibility criteria for some forms, meaning taxpayers who previously had to file ITR-2 may now qualify for the simpler ITR-1. Here is a complete guide to all seven ITR forms. ITR-1 (Sahaj): The Simplest Form, Now With Wider Eligibility ITR-1, called Sahaj, is designed for resident individual taxpayers with straightforward income. For AY 2026-27, it applies to taxpayers with total income up to Rs 50 lakh from salary or pension, up to two house properties, interest and dividend income, and long-term capital gains under Section 112A of up to Rs 1.25 lakh. Agricultural income up to Rs 5,000 is also permitted. The key change for this year: the Income Tax Department has expanded ITR-1 eligibility to include taxpayers who own two house properties — previously, ownership of more than one property automatically pushed you to ITR-2. ITR-1 cannot be used by directors of companies, those holding unlisted equity shares, NRIs, or taxpayers with income from business or profession. ITR-2: For Capital Gains, Multiple Properties, And Foreign Income ITR-2 applies to individuals and Hindu Undivided Families who do not have income from business or profession. It is the correct form if you have capital gains from shares, mutual funds, or property sales; income from more than two house properties; foreign assets or foreign source income; or income that does not fit within ITR-1's limits. NRIs and non-ordinarily resident Indians also use ITR-2 for their Indian-source income. With up to 26 internal schedules, ITR-2 looks complex — but filers only need to complete the schedules that apply to their specific situation. The deadline for ITR-2 is July 31, 2026. ITR-3: For Business And Profession Income ITR-3 is filed by individuals and HUFs who earn income through a business or profession — whether it is a sole proprietorship, a trading operation, a consultancy, a medical practice, or any other self-run income-generating activity. Unlike ITR-4, ITR-3 does not limit you to presumptive taxation — it accommodates actual books of accounts, balance sheets, and profit and loss statements. If your business income exceeds the presumptive taxation threshold, or if you have opted out of the presumptive scheme, ITR-3 is your form. Deadline: August 31, 2026 for non-audit cases; October 31 for audit cases. ITR-4 (Sugam): For Presumptive Taxation ITR-4, also called Sugam, is designed for individuals, HUFs, and firms other than LLPs who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Under presumptive taxation, eligible taxpayers declare income at a flat percentage of turnover or gross receipts — 8 percent for business income under 44AD, and 50 percent for professional income under 44ADA — without needing to maintain detailed books of accounts. The expanded eligibility for AY 2026-27 allows more taxpayers to qualify for ITR-4. Total income must not exceed Rs 50 lakh. Deadline: August 31, 2026. ITR-5: For Firms, LLPs, And Associations ITR-5 is not for individuals at all. It is filed by partnership firms, Limited Liability Partnerships, Associations of Persons, Bodies of Individuals, artificial juridical persons, estates of deceased persons, estates of insolvents, business trusts, and investment funds. Cooperative societies not claiming exemption under Section 11 also use ITR-5. Entities required to file ITR-7 — those claiming exemption under charitable or religious trust provisions — cannot use ITR-5. ITR-6: For Companies ITR-6 is exclusively for companies — both private and public — registered under the Companies Act. The single exception: companies that claim exemption under Section 11 of the Income Tax Act, covering income from property held for charitable or religious purposes, must file ITR-7 instead. All other companies, regardless of whether they are profit-making or loss-making, file ITR-6. ITR-7: For Charitable Trusts, Political Parties, And Research Institutions ITR-7 applies to any person — including companies — required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. In practice this means charitable and religious trusts, political parties, research institutions, universities, and entities claiming exemption under Sections 11 and 12. A charitable trust with taxable income above the basic exemption limit that does not need to file under mandatory sections may use ITR-5 — but entities mandatorily required to file under 139(4A) through 139(4F) must use ITR-7. The Single Most Important Rule If you are unsure which form applies to you, the safest starting point is this: any business or profession income puts you between ITR-3 and ITR-4. No business income but capital gains, foreign assets, or more than two properties means ITR-2. Income entirely from salary, pension, interest, and modest LTCG within the Rs 1.25 lakh limit — total income under Rs 50 lakh — means ITR-1 is sufficient. The Income Tax Department's e-filing portal at incometax.gov.in has a form selection tool that confirms the right form based on your income sources.

Filing the wrong ITR form is one of the most common — and costly — mistakes Indian taxpayers make. For AY 2026-27, the rules have changed: ITR-1 now allows two house properties, and the eligibility lines between ITR-2, ITR-3, and ITR-4 have sharpened. Here is a plain-language guide to all seven forms — who each one is for, and who is specifically excluded.

ITR-1 Or ITR-3? Which Income Tax Return form you should actually be filing for AY 2026-27

Every year, Indian taxpayers treat July 31 as if it is the only income tax date that matters in the month. It is not. The July tax compliance calendar runs from the very first week of the month, and missing any of the earlier dates can create cascading problems — penalty notices, interest charges, and in some cases, the permanent loss of the right to carry forward losses to offset against future income. Here are the five income tax deadlines in July 2026 that every taxpayer, employer, and business owner needs to have on their calendar.&nbsp;July 7: TDS And TCS Deposits&nbsp;The first compliance deadline of the month falls on July 7, and it applies to anyone who deducts or collects tax at source. Tax Deducted at Source for the month of June 2026 must be deposited with the government by this date. Additionally, businesses that have been permitted by their Assessing Officer to make quarterly TDS deposits — covering the April to June 2026 quarter — must also deposit by July 7. This date also covers the upload of declarations received from buyers in Form 127 during June 2026, and declarations received from recipients in Form 121 for the quarter ending June 2026.&nbsp;July 15: Reporting By Financial Institutions And Exchanges&nbsp;July 15 is primarily a compliance date for regulated entities rather than individual taxpayers. Financial institutions, stock exchanges, authorised dealers, and certain other reporting entities must submit their required transaction reports by this date. This also includes the issuance of Form 132 certificates for specified taxes deducted in May 2026. While individual filers are not directly affected, this deadline feeds into the pre-filled data available in their ITR forms — making it relevant to anyone who expects their investment or banking income to appear automatically in their tax return.&nbsp;July 30: TDS Challan-Cum-Statement&nbsp;Any individual or entity that deducted tax on payments made during June 2026 must file the corresponding challan-cum-statement by July 30. This is a separate filing from the standard TDS return, and it applies in specific categories of transactions. Missing this date triggers its own penalties under the Income Tax Act and can create compliance mismatches that surface later during scrutiny.&nbsp;July 31: ITR Filing For Salaried And ITR-2 Filers&nbsp;The primary deadline most taxpayers know — July 31, 2026 is the last date to file income tax returns for FY 2025-26 for individuals and HUFs filing ITR-1 or ITR-2. This covers salaried employees, pensioners, and investors with capital gains or multiple house properties. Missing this deadline means a late fee of Rs 5,000 for taxpayers with income above Rs 5 lakh, or Rs 1,000 for those below the Rs 5 lakh threshold. Interest at 1 percent per month also accrues on any outstanding tax under Section 234A. Critically, taxpayers who miss July 31 also lose the ability to carry forward losses — such as capital losses or losses from house property — to set off against income in future years. The right to carry forward losses is available only if the return is filed on time.&nbsp;July 31: TDS And TCS Quarterly Returns, Plus Special Forms&nbsp;The second July 31 obligation is less well known but equally significant. Companies must file their TDS and TCS returns for the April to June 2026 quarter by this date, covering Forms 138, 140, 142, and 144. A range of special forms are also due on July 31: Form 10E for claiming salary arrear relief under Section 89, Form 10BA for deduction of rent paid, Form 10H for foreign income, and Forms 10CCE and 10CCD for royalty and technical know-how deductions. Pension funds must also submit their required reporting through Form 175 by this date. Each of these has its own penalty structure under the Income Tax Act for late or non-filing.&nbsp;Do Not Wait Till July 31&nbsp;With five separate compliance milestones spread across July, the safest approach is to treat July 7 as the month's opening gun — not July 31 as the finish line. For employers and businesses, missing the TDS deposit on July 7 is often more immediately damaging than missing the ITR deadline at the end of the month, since it attracts penalties, disallowance of expense deductions, and prosecution risk under Section 276B of the Income Tax Act. For individual filers, begin gathering Form 16, capital gains statements, and bank interest certificates now — July 31 leaves almost no time to recover if anything is missing.

July 2026 has five income tax compliance deadlines — July 7, 15, 30, and two on July 31. Missing any can trigger penalties or loss of carry-forward loss benefit. Full guide here.

Every year, Indian taxpayers treat July 31 as if it is the only income tax date that matters in the month. It is not. The July tax compliance calendar runs from the very first week of the month, and missing any of the earlier dates can create cascading problems — penalty notices, interest charges, and in some cases, the permanent loss of the right to carry forward losses to offset against future income. Here are the five income tax deadlines in July 2026 that every taxpayer, employer, and business owner needs to have on their calendar. July 7: TDS And TCS Deposits The first compliance deadline of the month falls on July 7, and it applies to anyone who deducts or collects tax at source. Tax Deducted at Source for the month of June 2026 must be deposited with the government by this date. Additionally, businesses that have been permitted by their Assessing Officer to make quarterly TDS deposits — covering the April to June 2026 quarter — must also deposit by July 7. This date also covers the upload of declarations received from buyers in Form 127 during June 2026, and declarations received from recipients in Form 121 for the quarter ending June 2026. July 15: Reporting By Financial Institutions And Exchanges July 15 is primarily a compliance date for regulated entities rather than individual taxpayers. Financial institutions, stock exchanges, authorised dealers, and certain other reporting entities must submit their required transaction reports by this date. This also includes the issuance of Form 132 certificates for specified taxes deducted in May 2026. While individual filers are not directly affected, this deadline feeds into the pre-filled data available in their ITR forms — making it relevant to anyone who expects their investment or banking income to appear automatically in their tax return. July 30: TDS Challan-Cum-Statement Any individual or entity that deducted tax on payments made during June 2026 must file the corresponding challan-cum-statement by July 30. This is a separate filing from the standard TDS return, and it applies in specific categories of transactions. Missing this date triggers its own penalties under the Income Tax Act and can create compliance mismatches that surface later during scrutiny. July 31: ITR Filing For Salaried And ITR-2 Filers The primary deadline most taxpayers know — July 31, 2026 is the last date to file income tax returns for FY 2025-26 for individuals and HUFs filing ITR-1 or ITR-2. This covers salaried employees, pensioners, and investors with capital gains or multiple house properties. Missing this deadline means a late fee of Rs 5,000 for taxpayers with income above Rs 5 lakh, or Rs 1,000 for those below the Rs 5 lakh threshold. Interest at 1 percent per month also accrues on any outstanding tax under Section 234A. Critically, taxpayers who miss July 31 also lose the ability to carry forward losses — such as capital losses or losses from house property — to set off against income in future years. The right to carry forward losses is available only if the return is filed on time. July 31: TDS And TCS Quarterly Returns, Plus Special Forms The second July 31 obligation is less well known but equally significant. Companies must file their TDS and TCS returns for the April to June 2026 quarter by this date, covering Forms 138, 140, 142, and 144. A range of special forms are also due on July 31: Form 10E for claiming salary arrear relief under Section 89, Form 10BA for deduction of rent paid, Form 10H for foreign income, and Forms 10CCE and 10CCD for royalty and technical know-how deductions. Pension funds must also submit their required reporting through Form 175 by this date. Each of these has its own penalty structure under the Income Tax Act for late or non-filing. Do Not Wait Till July 31 With five separate compliance milestones spread across July, the safest approach is to treat July 7 as the month's opening gun — not July 31 as the finish line. For employers and businesses, missing the TDS deposit on July 7 is often more immediately damaging than missing the ITR deadline at the end of the month, since it attracts penalties, disallowance of expense deductions, and prosecution risk under Section 276B of the Income Tax Act. For individual filers, begin gathering Form 16, capital gains statements, and bank interest certificates now — July 31 leaves almost no time to recover if anything is missing.

Most taxpayers only know about the July 31 ITR filing deadline — but there are four other income tax compliance dates in July 2026 that affect businesses, employers, financial institutions, and salaried individuals alike. Missing any one of them can trigger penalties, interest charges, or loss of the right to carry forward tax losses.

5 income tax deadlines in July 2026 you cannot miss

If your income comes from salary but you also sold shares, own more than one property, hold foreign assets, or received income from virtual digital assets in FY 2025-26, ITR-1 is not the right form for you. ITR-2 is — and while it can look intimidating at first glance, with up to 26 schedules inside the form, the rule is simple: you only fill what applies to your situation. Here is a section-by-section breakdown of the 15 most important schedules for AY 2026-27, what is new this year, and what you can safely ignore.&nbsp;Who Should File ITR-2&nbsp;ITR-2 applies to individuals and Hindu Undivided Families who do not have income from business or profession. If you have salary income alongside capital gains, income from more than one house property, dividend income, foreign income or assets, or income from virtual digital assets — ITR-2 is your form. Non-residents and non-ordinarily resident Indians also use ITR-2 for Indian-source income. The filing deadline for ITR-2 is July 31, 2026.&nbsp;What Is New For AY 2026-27&nbsp;Two auto-selections have been introduced this year: the filing status field is pre-filled as ‘Filed u/s 139(1)’ — the standard on-time filing section — and the tax regime selector defaults to the new regime. If you intend to file under the old regime, you will need to manually override this. The other important change: the split capital gains reporting requirement introduced after Budget 2024 — where gains before and after July 23, 2024 had to be disclosed separately — has been removed. Capital gains reporting is now consolidated, simplifying the schedule considerably.&nbsp;The 15 Key Schedules&nbsp;Part A General: Start by verifying the pre-filled profile data covering contact details, residential status, bank accounts, and filing status. Bank Details: All bank accounts must be listed; at least one must be pre-validated for tax refunds to be credited. Schedule House Property: Report income or loss from self-occupied, let-out, or deemed let-out properties individually. Each property gets its own block with gross rent, municipal tax deduction, 30 percent standard deduction, and home loan interest under Section 24. Land and building transfers must be reported per property — consolidated reporting is not permitted here. Schedule Capital Gains: Segregates capital gains by asset type. Post-Budget 2024 rates: short-term capital gains under Section 111A are taxed at 20 percent; long-term capital gains under Section 112A are taxed at 12.5 percent. For multiple assets of the same type, consolidated calculation is allowed — except for land and building, which require individual computations. Schedule VDA: A dedicated schedule for virtual digital asset income including cryptocurrency and NFTs. This auto-populates into Schedule CG.&nbsp;Loss Schedules You Cannot Ignore&nbsp;Schedule CYLA shows income after adjusting current-year losses across heads. Schedule BFLA applies brought-forward losses from prior assessment years to reduce current income. Schedule CFL identifies losses that are eligible to be carried forward to future years. If you have capital loss carry-forwards from earlier years, these three schedules work together and must be filled in sequence.&nbsp;Deductions, Clubbing, And Foreign Disclosures&nbsp;Schedule VI-A covers all deductions — Section 80C investments, Section 80D health insurance premiums, and others. This schedule is primarily relevant for taxpayers staying in the old regime. Schedule SPI applies when income from a spouse or minor child must be clubbed with the taxpayer's own income. Schedule FSI is mandatory for residents reporting income from foreign sources — whether from employment abroad, interest in a foreign bank, or dividends from overseas holdings. Schedule TR summarises the tax relief claimed for foreign taxes already paid, country by country. Schedule FA requires residents to disclose all foreign assets — bank accounts, equity, immovable property, trusts — held at any point during the year. Non-residents and non-ordinarily resident Indians are exempt from Schedule FA.&nbsp;High-Income Filers And Special Cases&nbsp;Schedule AL is mandatory for all taxpayers whose total income exceeds Rs 1 crore. It requires a full disclosure of movable and immovable assets and the liabilities attached to them. Schedule 5A applies only to taxpayers governed by the Portuguese Civil Code community property rules — relevant for residents of Goa and certain Union Territories. If neither applies to you, both can be skipped. With roughly half of ITR-2's 26 schedules applicable only to specific situations, the key to filing correctly is not completing every section — it is knowing which ones your financial profile actually requires.

ITR-2 contains 26 schedules but you only fill what applies. Here is a section-by-section guide for AY 2026-27 covering capital gains, house property, foreign assets, VDA, and what changed this year.

If your income comes from salary but you also sold shares, own more than one property, hold foreign assets, or received income from virtual digital assets in FY 2025-26, ITR-1 is not the right form for you. ITR-2 is — and while it can look intimidating at first glance, with up to 26 schedules inside the form, the rule is simple: you only fill what applies to your situation. Here is a section-by-section breakdown of the 15 most important schedules for AY 2026-27, what is new this year, and what you can safely ignore. Who Should File ITR-2 ITR-2 applies to individuals and Hindu Undivided Families who do not have income from business or profession. If you have salary income alongside capital gains, income from more than one house property, dividend income, foreign income or assets, or income from virtual digital assets — ITR-2 is your form. Non-residents and non-ordinarily resident Indians also use ITR-2 for Indian-source income. The filing deadline for ITR-2 is July 31, 2026. What Is New For AY 2026-27 Two auto-selections have been introduced this year: the filing status field is pre-filled as ‘Filed u/s 139(1)’ — the standard on-time filing section — and the tax regime selector defaults to the new regime. If you intend to file under the old regime, you will need to manually override this. The other important change: the split capital gains reporting requirement introduced after Budget 2024 — where gains before and after July 23, 2024 had to be disclosed separately — has been removed. Capital gains reporting is now consolidated, simplifying the schedule considerably. The 15 Key Schedules Part A General: Start by verifying the pre-filled profile data covering contact details, residential status, bank accounts, and filing status. Bank Details: All bank accounts must be listed; at least one must be pre-validated for tax refunds to be credited. Schedule House Property: Report income or loss from self-occupied, let-out, or deemed let-out properties individually. Each property gets its own block with gross rent, municipal tax deduction, 30 percent standard deduction, and home loan interest under Section 24. Land and building transfers must be reported per property — consolidated reporting is not permitted here. Schedule Capital Gains: Segregates capital gains by asset type. Post-Budget 2024 rates: short-term capital gains under Section 111A are taxed at 20 percent; long-term capital gains under Section 112A are taxed at 12.5 percent. For multiple assets of the same type, consolidated calculation is allowed — except for land and building, which require individual computations. Schedule VDA: A dedicated schedule for virtual digital asset income including cryptocurrency and NFTs. This auto-populates into Schedule CG. Loss Schedules You Cannot Ignore Schedule CYLA shows income after adjusting current-year losses across heads. Schedule BFLA applies brought-forward losses from prior assessment years to reduce current income. Schedule CFL identifies losses that are eligible to be carried forward to future years. If you have capital loss carry-forwards from earlier years, these three schedules work together and must be filled in sequence. Deductions, Clubbing, And Foreign Disclosures Schedule VI-A covers all deductions — Section 80C investments, Section 80D health insurance premiums, and others. This schedule is primarily relevant for taxpayers staying in the old regime. Schedule SPI applies when income from a spouse or minor child must be clubbed with the taxpayer's own income. Schedule FSI is mandatory for residents reporting income from foreign sources — whether from employment abroad, interest in a foreign bank, or dividends from overseas holdings. Schedule TR summarises the tax relief claimed for foreign taxes already paid, country by country. Schedule FA requires residents to disclose all foreign assets — bank accounts, equity, immovable property, trusts — held at any point during the year. Non-residents and non-ordinarily resident Indians are exempt from Schedule FA. High-Income Filers And Special Cases Schedule AL is mandatory for all taxpayers whose total income exceeds Rs 1 crore. It requires a full disclosure of movable and immovable assets and the liabilities attached to them. Schedule 5A applies only to taxpayers governed by the Portuguese Civil Code community property rules — relevant for residents of Goa and certain Union Territories. If neither applies to you, both can be skipped. With roughly half of ITR-2's 26 schedules applicable only to specific situations, the key to filing correctly is not completing every section — it is knowing which ones your financial profile actually requires.

ITR-2 is the correct return for salaried individuals with capital gains, multiple house properties, or foreign income — but it contains up to 26 schedules that can overwhelm even experienced filers. Here is a quick guide to the 15 most important sections, what changed for AY 2026-27, and which schedules you can skip entirely.

Filing ITR-2 for AY 2026-27? Here are 15 key sections explained

For years, July 31 was the one date every Indian taxpayer circled on their calendar. Salaried employees, freelancers, small business owners, consultants — everyone raced against the same deadline. That era is over. Budget 2026 has restructured the ITR filing calendar entirely, tying deadlines to the type of return being filed rather than forcing every category of taxpayer to comply on the same date. If you assume your deadline is still July 31, you may be right — or you may have an extra month, or even four months. The difference depends on which ITR form applies to you.&nbsp;What Changed And Why&nbsp;The old calendar was a blunt instrument. A salaried employee with straightforward income and a small business owner with complex accounts, inventory, and GST filings both had to comply by the same July 31 date — even though the compliance burden was vastly different. Budget 2026 acknowledged this imbalance and introduced a tiered deadline system based on ITR form type, not taxpayer category. The goal was to reduce last-minute filing pressure, reduce errors in returns filed in a rush, and give businesses that genuinely need more time — particularly those subject to statutory audits — room to file correctly rather than quickly.&nbsp;The New Calendar At A Glance&nbsp;Salaried employees, pensioners, and investors filing ITR-1 or ITR-2 — covering income from salary, interest, capital gains, dividends, and up to two house properties — retain the July 31, 2026 deadline. Nothing has changed for this group. Taxpayers filing ITR-3 or ITR-4 with business or professional income that does not require a statutory audit have received a meaningful relief: their deadline is now August 31, 2026 — a full extra month. For business income cases that do require a statutory audit under the Income Tax Act, the deadline is October 31, 2026. Companies and partnerships involved in international transactions or specified domestic transactions requiring transfer pricing reports have until November 30, 2026.&nbsp;What This Means For The Self-Employed&nbsp;The biggest beneficiaries of this change are freelancers, consultants, doctors, lawyers, chartered accountants, architects, and small business owners who previously scrambled to meet the July 31 deadline while also managing quarterly advance tax payments and monthly GST filings. For the non-audit cases in this group — the majority of small businesses and professionals operating under the presumptive taxation scheme — the August 31 date provides a meaningful buffer. It reduces the risk of errors that come from filing in a rush, and it aligns their compliance window more closely with the actual time they need to compile income records from the full financial year.&nbsp;Miss It And It Costs You&nbsp;For anyone who misses their applicable deadline, a belated return can still be filed until December 31, 2026, but it comes with a penalty of up to Rs 5,000 under Section 234F — reduced to Rs 1,000 for taxpayers with total income below Rs 5 lakh. Interest on any outstanding tax liability also continues to accrue at 1 percent per month under Section 234A. In a significant additional change, the window for filing a revised return — allowing taxpayers to correct mistakes after the initial filing — has been extended from December 31 to March 31, 2027, the last day of the assessment year. This gives taxpayers who file on time but discover errors later a longer window to fix them without penalty.&nbsp;Check Your Form Before Assuming Your Date&nbsp;The critical action for every taxpayer right now is to confirm which ITR form applies to their situation before assuming a deadline. A salaried person with freelance income on the side, or an investor who also runs a small consultancy, may find their applicable form — and therefore their deadline — different from what they expect. The Income Tax Department's e-filing portal (incometax.gov.in) allows taxpayers to check their applicable form based on income sources. With July 31 approaching rapidly, salaried filers who haven't begun should treat the deadline as urgent. For business filers with a later date, the extra time is a relief — but not an invitation to delay.

India changed ITR filing deadlines in 2026. July 31 is not universal anymore. Salaried filers, business owners, and audit cases now have different due dates. Here's the full calendar.

For years, July 31 was the one date every Indian taxpayer circled on their calendar. Salaried employees, freelancers, small business owners, consultants — everyone raced against the same deadline. That era is over. Budget 2026 has restructured the ITR filing calendar entirely, tying deadlines to the type of return being filed rather than forcing every category of taxpayer to comply on the same date. If you assume your deadline is still July 31, you may be right — or you may have an extra month, or even four months. The difference depends on which ITR form applies to you. What Changed And Why The old calendar was a blunt instrument. A salaried employee with straightforward income and a small business owner with complex accounts, inventory, and GST filings both had to comply by the same July 31 date — even though the compliance burden was vastly different. Budget 2026 acknowledged this imbalance and introduced a tiered deadline system based on ITR form type, not taxpayer category. The goal was to reduce last-minute filing pressure, reduce errors in returns filed in a rush, and give businesses that genuinely need more time — particularly those subject to statutory audits — room to file correctly rather than quickly. The New Calendar At A Glance Salaried employees, pensioners, and investors filing ITR-1 or ITR-2 — covering income from salary, interest, capital gains, dividends, and up to two house properties — retain the July 31, 2026 deadline. Nothing has changed for this group. Taxpayers filing ITR-3 or ITR-4 with business or professional income that does not require a statutory audit have received a meaningful relief: their deadline is now August 31, 2026 — a full extra month. For business income cases that do require a statutory audit under the Income Tax Act, the deadline is October 31, 2026. Companies and partnerships involved in international transactions or specified domestic transactions requiring transfer pricing reports have until November 30, 2026. What This Means For The Self-Employed The biggest beneficiaries of this change are freelancers, consultants, doctors, lawyers, chartered accountants, architects, and small business owners who previously scrambled to meet the July 31 deadline while also managing quarterly advance tax payments and monthly GST filings. For the non-audit cases in this group — the majority of small businesses and professionals operating under the presumptive taxation scheme — the August 31 date provides a meaningful buffer. It reduces the risk of errors that come from filing in a rush, and it aligns their compliance window more closely with the actual time they need to compile income records from the full financial year. Miss It And It Costs You For anyone who misses their applicable deadline, a belated return can still be filed until December 31, 2026, but it comes with a penalty of up to Rs 5,000 under Section 234F — reduced to Rs 1,000 for taxpayers with total income below Rs 5 lakh. Interest on any outstanding tax liability also continues to accrue at 1 percent per month under Section 234A. In a significant additional change, the window for filing a revised return — allowing taxpayers to correct mistakes after the initial filing — has been extended from December 31 to March 31, 2027, the last day of the assessment year. This gives taxpayers who file on time but discover errors later a longer window to fix them without penalty. Check Your Form Before Assuming Your Date The critical action for every taxpayer right now is to confirm which ITR form applies to their situation before assuming a deadline. A salaried person with freelance income on the side, or an investor who also runs a small consultancy, may find their applicable form — and therefore their deadline — different from what they expect. The Income Tax Department's e-filing portal (incometax.gov.in) allows taxpayers to check their applicable form based on income sources. With July 31 approaching rapidly, salaried filers who haven't begun should treat the deadline as urgent. For business filers with a later date, the extra time is a relief — but not an invitation to delay.

India has quietly overhauled its income tax filing calendar for 2026, and the old one-size-fits-all July 31 deadline no longer applies to everyone. Depending on whether you are salaried, run a business, or require an audit, your ITR due date could be July 31, August 31, October 31, or even November 30. Here is the complete new calendar — and why missing it could cost you.

ITR 2026: Your deadline is not same as before! Here's the new calendar

Jeff Bezos has said that the bottom half of income earners in the United States should not pay any federal income tax, arguing that the current system places an unnecessary burden on lower-income workers. Speaking in a recent interview, Bezos said that the bottom 50 per cent of taxpayers contribute only about 3 per cent of total income tax revenue, and therefore removing their tax burden would have limited impact on government finances.&nbsp;<h2>What Bezos said about the tax system</h2>Bezos argued that the current system is not balanced for lower-income workers. He pointed out that many people earning modest salaries still pay a significant portion of their income in taxes.Using examples such as a nurse earning around $75,000 a year or a worker earning $50,000, he questioned why such individuals are taxed at all. According to him, removing taxes on this group could directly improve their financial stability.He also noted that higher-income groups contribute a much larger share of total tax revenue, suggesting that changes at the lower end would not significantly affect government funding.<h2>What the data shows</h2>According to analysis of US tax data:&nbsp;The average income tax rate was around 14.1 per cent in 2023The top 1 per cent paid an average rate of 26.3 per centThe bottom 50 per cent paid about 3.7 per cent on averageThese figures show a progressive tax system, where higher earners pay a larger share. However, Bezos argues that even the smaller tax burden on lower-income groups should be removed.&nbsp;<h2>Income gap and wage concerns</h2>The discussion comes alongside concerns about income levels and wage differences.Research cited in reports shows that delivery drivers at Amazon earn an average of around $19 per hour, compared to about $35 per hour for unionised drivers at UPS.Studies also suggest:Around 26 per cent of Amazon drivers face food insecurityAbout 33 per cent struggle to pay utility billsThese figures highlight financial pressures faced by some workers, which forms part of the wider debate around taxation and income inequality.&nbsp;<h2>Debate around tax reforms</h2>Bezos’ comments come at a time when tax policies are being widely debated in the United States. Some policymakers have proposed tax relief for lower-income groups. For example, proposals such as making the first $75,000 of income tax-free have been discussed.At the same time, there have also been calls for higher taxes on wealthy individuals, including proposals for a “billionaire tax” in states like California.<h2>Bezos’ wealth and broader context</h2>Bezos is currently among the richest individuals globally, with an estimated net worth of over $267 billion, according to reports.His views on taxation are therefore part of a broader discussion on how wealth, income and tax responsibilities should be balanced in modern economies.<h2>What this means for policy debate</h2>The proposal to eliminate income tax for the bottom half of earners adds to ongoing discussions about fairness in taxation. Supporters argue it could increase disposable income for millions of households, while critics may raise concerns about government revenue and long-term fiscal impact. As debates continue, the focus is likely to remain on how to balance economic growth, income distribution and public spending in a changing financial landscape.

Jeff Bezos has said that the bottom half of income earners in the United States should not pay any federal income tax, arguing that the current system places an unnecessary burden on lower-income workers.


Jeff Bezos has said that the bottom half of income earners in the United States should not pay any federal income tax, arguing that the current system places an unnecessary burden on lower-income workers. Speaking in a recent interview, Bezos said that the bottom 50 per cent of taxpayers contribute only about 3 per cent of total income tax revenue, and therefore removing their tax burden would have limited impact on government finances. What Bezos said about the tax system Bezos argued that the current system is not balanced for lower-income workers. He pointed out that many people earning modest salaries still pay a significant portion of their income in taxes. Using examples such as a nurse earning around $75,000 a year or a worker earning $50,000, he questioned why such individuals are taxed at all. According to him, removing taxes on this group could directly improve their financial stability. He also noted that higher-income groups contribute a much larger share of total tax revenue, suggesting that changes at the lower end would not significantly affect government funding. What the data shows According to analysis of US tax data: The average income tax rate was around 14.1 per cent in 2023 The top 1 per cent paid an average rate of 26.3 per cent The bottom 50 per cent paid about 3.7 per cent on average These figures show a progressive tax system, where higher earners pay a larger share. However, Bezos argues that even the smaller tax burden on lower-income groups should be removed. Income gap and wage concerns The discussion comes alongside concerns about income levels and wage differences. Research cited in reports shows that delivery drivers at Amazon earn an average of around $19 per hour, compared to about $35 per hour for unionised drivers at UPS. Studies also suggest: Around 26 per cent of Amazon drivers face food insecurity About 33 per cent struggle to pay utility bills These figures highlight financial pressures faced by some workers, which forms part of the wider debate around taxation and income inequality. Debate around tax reforms Bezos’ comments come at a time when tax policies are being widely debated in the United States. Some policymakers have proposed tax relief for lower-income groups. For example, proposals such as making the first $75,000 of income tax-free have been discussed. At the same time, there have also been calls for higher taxes on wealthy individuals, including proposals for a “billionaire tax” in states like California. Bezos’ wealth and broader context Bezos is currently among the richest individuals globally, with an estimated net worth of over $267 billion, according to reports. His views on taxation are therefore part of a broader discussion on how wealth, income and tax responsibilities should be balanced in modern economies. What this means for policy debate The proposal to eliminate income tax for the bottom half of earners adds to ongoing discussions about fairness in taxation. Supporters argue it could increase disposable income for millions of households, while critics may raise concerns about government revenue and long-term fiscal impact. As debates continue, the focus is likely to remain on how to balance economic growth, income distribution and public spending in a changing financial landscape.

Jeff Bezos has said that the bottom half of income earners in the United States should not pay any federal income tax, arguing that the current system places an unnecessary burden on lower-income workers.

Amazon founder Jeff Bezos says bottom half of earners should not pay income tax

Indian Union Finance Minister Nirmala Sitharaman, on Sunday (Feb 1), while presenting the Budget 2026-27, confirmed that the new Income Tax Act, 2025, will soon replace the old 1961 law. The timeline for this significant change has been set for April 1, 2026. She said the new system will feature simpler rules and redesigned forms so that “ordinary citizens can comply without difficulty”. Here's all you need to know.Also read | <a href="https://www.wionews.com/photos/beyond-the-budget-story-behind-indian-finance-minister-nirmala-sitharaman-s-iconic-budget-day-sarees-through-the-years-in-pics-1769913382545">What's the story behind FM Nirmala Sitharaman’s iconic Budget Day saree for 2026? Look at her drapes through the years | In Pics</a><h2>India's new Income Tax Act</h2>Finance Minister Nirmala Sitharaman has announced sweeping changes to India’s direct tax framework, unveiling a new Income Tax Act that will come into force from April 1, 2026. Presenting the Union Budget 2026–27, Sitharaman said the government has completed a comprehensive review of the Income Tax Act, 1961, “in record time”. The new Income Tax Act, 2025, will replace the existing law, with simplified rules and redesigned forms to make compliance easier for taxpayers. "In July 2024, I announced a comprehensive review of the Income Tax Act, 1961. This was completed in record time, and the Income Tax Act, 2025 will come into effect from 1 April 2026."&nbsp;She said the new forms will be notified shortly, “giving adequate time to taxpayers to familiarise themselves with the new requirements”.Also read | <a href="https://www.wionews.com/india-news/what-budget-2026-means-for-your-salary-is-there-a-change-in-income-tax-slabs-all-you-need-to-know-middle-class-union-budget-2026-1769931020866">What Budget 2026 means for your salary: Is there a change in income tax slabs? All you need to know</a><h2>Key relief for Indians</h2>Among key relief measures, the finance minister announced that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be fully exempt from income tax, with procedural requirements removed. “I propose that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any tedious procedures in this regard will be done away with.”&nbsp;Sitharaman also proposed cutting the Tax Collected at Source (TCS) on overseas tour packages to 2 per cent, down from the current 5 per cent and 20 per cent, without any minimum threshold. TCS rates for education and medical expenses under the Liberalised Remittance Scheme (LRS) will also be reduced from 5 per cent to 2 per cent.<a href="https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed">https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed</a>“I also propose to reduce the TCS rate for pursuing education and for medical purposes under the Liberalised Remittance Scheme (LRS) from 5 per cent to 2 per cent. The supply of manpower services is proposed to be specifically brought within the ambit of payments to contractors for the purpose of TDS, to avoid ambiguity. Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only.”&nbsp;

India is set for a big tax overhaul. FM Nirmala Sitharaman has confirmed a brand new Income Tax Act will replace the 1961 law from April 2026, promising simpler rules, new forms and key reliefs for taxpayers. But what exactly changes, and who really benefits? Scroll down to know.

Indian Union Finance Minister Nirmala Sitharaman, on Sunday (Feb 1), while presenting the Budget 2026-27, confirmed that the new Income Tax Act, 2025, will soon replace the old 1961 law. The timeline for this significant change has been set for April 1, 2026. She said the new system will feature simpler rules and redesigned forms so that “ordinary citizens can comply without difficulty”. Here's all you need to know. Also read | What's the story behind FM Nirmala Sitharaman’s iconic Budget Day saree for 2026? Look at her drapes through the years | In Pics India's new Income Tax Act Finance Minister Nirmala Sitharaman has announced sweeping changes to India’s direct tax framework, unveiling a new Income Tax Act that will come into force from April 1, 2026. Presenting the Union Budget 2026–27, Sitharaman said the government has completed a comprehensive review of the Income Tax Act, 1961, “in record time”. The new Income Tax Act, 2025, will replace the existing law, with simplified rules and redesigned forms to make compliance easier for taxpayers. "In July 2024, I announced a comprehensive review of the Income Tax Act, 1961. This was completed in record time, and the Income Tax Act, 2025 will come into effect from 1 April 2026." She said the new forms will be notified shortly, “giving adequate time to taxpayers to familiarise themselves with the new requirements”. Also read | What Budget 2026 means for your salary: Is there a change in income tax slabs? All you need to know Key relief for Indians Among key relief measures, the finance minister announced that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be fully exempt from income tax, with procedural requirements removed. “I propose that any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and any tedious procedures in this regard will be done away with.” Sitharaman also proposed cutting the Tax Collected at Source (TCS) on overseas tour packages to 2 per cent, down from the current 5 per cent and 20 per cent, without any minimum threshold. TCS rates for education and medical expenses under the Liberalised Remittance Scheme (LRS) will also be reduced from 5 per cent to 2 per cent. https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed “I also propose to reduce the TCS rate for pursuing education and for medical purposes under the Liberalised Remittance Scheme (LRS) from 5 per cent to 2 per cent. The supply of manpower services is proposed to be specifically brought within the ambit of payments to contractors for the purpose of TDS, to avoid ambiguity. Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only.”

India is set for a big tax overhaul. FM Nirmala Sitharaman has confirmed a brand new Income Tax Act will replace the 1961 law from April 2026, promising simpler rules, new forms and key reliefs for taxpayers. But what exactly changes, and who really benefits? Scroll down to know.

Budget 2026: FM Sitharaman confirms India's new Income Tax act to take effect from THIS date

Finance Minister Nirmala Sitharaman on Sunday (Feb 1) used the Union Budget 2026–27 to roll out a wide set of changes aimed at making India’s tax system simpler, more digital, and less intimidating for ordinary taxpayers. The most immediate change is for small taxpayers seeking lower or nil tax deduction certificates. Sitharaman announced that this will now be handled through a fully automated, rule-based system, removing the need to deal with tax officers altogether.For investors, there is more relief. Depositories will now be allowed to directly collect Form 15G and 15H and forward them to companies, easing compliance for people who hold securities across multiple firms.Also read | <a href="https://www.wionews.com/india-news/what-budget-2026-means-for-your-salary-is-there-a-change-in-income-tax-slabs-all-you-need-to-know-middle-class-union-budget-2026-1769931020866">What Budget 2026 means for your salary: Is there a change in income tax slabs?</a><h2>Longer window to fix mistakes</h2>Taxpayers will also get more breathing room to revise returns. The deadline for revising ITRs has been extended from December 31 to March 31, with a small fee.The filing calendar will now be staggered. Individuals filing ITR-1 and ITR-2 will still follow the July 31 deadline, while non-audit businesses and trusts will be allowed to file till August 31.<h2>Cutting down tax harassment</h2>A major theme of this Budget is reducing litigation. Sitharaman proposed merging assessment and penalty orders into a single decision to avoid multiple proceedings. She also cut the mandatory pre-payment during appeals from 20 per cent to 10 per cent.Also read | <a href="https://www.wionews.com/india-news/budget-2026-fm-sitharaman-confirms-india-s-new-income-tax-act-to-take-effect-from-this-date-1769928667367">Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date</a>Taxpayers will no longer pay interest on penalty amounts while their appeal is pending. "There will be no interest liability on the taxpayer on the penalty amount for the period of appeal before the first appellate authority, irrespective of the outcome of the appeal process," said Sitharaman.In another big change, taxpayers can now update returns even after reassessment starts, by paying an extra 10 per cent tax. The updated return will become the final basis for proceedings. “As an additional measure for reducing litigation, I propose to allow taxpayers to update their returns even after reassessment proceedings have been initiated and an additional 10% tax rate over and above the rate applicable for the relevant year. The assessing officer will use only this updated return in his proceedings.”<a href="https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed">https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed</a>&nbsp;

Budget 2026 brings a quieter but important shift in how Indians deal with taxes. FM Nirmala Sitharaman is pushing for fewer human interfaces, longer timelines to fix mistakes, and less litigation. Scroll down to see what actually affects you.

Finance Minister Nirmala Sitharaman on Sunday (Feb 1) used the Union Budget 2026–27 to roll out a wide set of changes aimed at making India’s tax system simpler, more digital, and less intimidating for ordinary taxpayers. The most immediate change is for small taxpayers seeking lower or nil tax deduction certificates. Sitharaman announced that this will now be handled through a fully automated, rule-based system, removing the need to deal with tax officers altogether. For investors, there is more relief. Depositories will now be allowed to directly collect Form 15G and 15H and forward them to companies, easing compliance for people who hold securities across multiple firms. Also read | What Budget 2026 means for your salary: Is there a change in income tax slabs? Longer window to fix mistakes Taxpayers will also get more breathing room to revise returns. The deadline for revising ITRs has been extended from December 31 to March 31, with a small fee. The filing calendar will now be staggered. Individuals filing ITR-1 and ITR-2 will still follow the July 31 deadline, while non-audit businesses and trusts will be allowed to file till August 31. Cutting down tax harassment A major theme of this Budget is reducing litigation. Sitharaman proposed merging assessment and penalty orders into a single decision to avoid multiple proceedings. She also cut the mandatory pre-payment during appeals from 20 per cent to 10 per cent. Also read | Budget 2026: Sitharaman says new Income Tax law to take effect from THIS date Taxpayers will no longer pay interest on penalty amounts while their appeal is pending. "There will be no interest liability on the taxpayer on the penalty amount for the period of appeal before the first appellate authority, irrespective of the outcome of the appeal process," said Sitharaman. In another big change, taxpayers can now update returns even after reassessment starts, by paying an extra 10 per cent tax. The updated return will become the final basis for proceedings. “As an additional measure for reducing litigation, I propose to allow taxpayers to update their returns even after reassessment proceedings have been initiated and an additional 10% tax rate over and above the rate applicable for the relevant year. The assessing officer will use only this updated return in his proceedings.” https://www.wionews.com/videos/union-budget-2026-focus-on-growth-people-s-aspirations-sabka-saath-sabka-vikas-1769926861323/embed

Budget 2026 brings a quieter but important shift in how Indians deal with taxes. FM Nirmala Sitharaman is pushing for fewer human interfaces, longer timelines to fix mistakes, and less litigation. Scroll down to see what actually affects you.

Budget 2026: What changes for India's taxpayers, from ITR deadlines to penalties | Key takeaways

India's central board of direct taxes has reported a significant rise in the filing of revised and updated income tax returns during the ongoing financial year. According to the cbdt, more than 1.5 million revised I-t returns have already been filed for the current assessment year.

India Sees Surge in Revised Income Tax Returns

New Delhi: The new Income Tax Act has been formulated using simple language to eliminate complicated legal challenges and make tax provisions more accessible to common taxpayers, according to RN Parbat, Member (Legislation) at the Central Board of Direct Taxes (CBDT).&nbsp;In an interview with ANI, Parbat explained that the apex income tax body has moved away from archaic terminology and complex explanations that previously made tax laws difficult for ordinary citizens to comprehend.&nbsp;"The common assessee, if he reads the provisions, he can understand what the law says in his case," Parbat said. “The common person will be able to know his rights. He will be able to understand the law under which he is paying income tax.”&nbsp;The CBDT has adopted tabular formats and contemporary language to replace outdated legal terminology.&nbsp;Parbat emphasised that this approach will provide greater certainty to taxpayers and reduce the likelihood of future legal disputes.&nbsp;"The language is simple. We have used tabular forms. We have done away with archaic words and written in a more simpler language. This is definitely going to provide more certainty to assessees," he stated.&nbsp;CBDT member Parbat also lauded Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their leadership.&nbsp;A dedicated committee was constituted on February 13, the same day the Bill was introduced in Parliament, to work on simplification and formulation of new rules and forms.&nbsp;The committee completed substantial work and conducted public consultations, receiving thousands of suggestions from citizens. The committee had suggested a few changes, which were understandably accommodated in the new legislation.&nbsp;"The committee has been working day and night," Parbat noted. “All these new rules and forms are being sent to the TPL division in the CBDT, where they will be examined and re-examined.”&nbsp;According to CBDT, all new rules and forms would be ready for rollout by the end of this year, ahead of the Act's implementation on February 26, 2026.&nbsp;Addressing concerns about enforcement powers, Parbat clarified that the new Act explicitly mentions powers that were already available to income tax authorities, particularly regarding digital assets and online evidence collection.&nbsp;"Evidences are available online. They are kept in clouds, and undisclosed income is being invested in virtual digital assets. We need to have access to all of this," he explained.&nbsp;The CBDT will introduce new Standard Operating Procedures (SOPs) for handling digital assets, with these powers being invoked only during search, seizure, and survey operations, which remain limited in number each financial year.&nbsp;Regarding pending tax litigation cases, Parbat assured that the CBDT is making full-fledged efforts to dispose of cases as quickly as possible through administrative preparedness.&nbsp;The Government had proposed in the budget in July 2024 that a time-bound comprehensive review of the Income-tax Act, 1961, would be undertaken to make the Act concise, lucid, and easy to read and understand.&nbsp;The Government had introduced the Income Tax Bill, 2025, in the Lok Sabha on February 13, 2025, and it was soon referred to the Select Committee for examination.&nbsp;The Select Committee laid its report in the Lok Sabha on July 21, 2025, with suggestions. The BJP MP Baijayant Panda-headed 31-member Select Committee had suggested a few changes to the legislation.&nbsp;The previous Bill was withdrawn, only to be reintroduced and passed in the Parliament, with a few changes.

The new Income Tax Act has been formulated using simple language to eliminate complicated legal challenges and make tax provisions more accessible to common taxpayers, according to RN Parbat, Member (Legislation) at the Central Board of Direct Taxes (CBDT).

New Delhi: The new Income Tax Act has been formulated using simple language to eliminate complicated legal challenges and make tax provisions more accessible to common taxpayers, according to RN Parbat, Member (Legislation) at the Central Board of Direct Taxes (CBDT). In an interview with ANI, Parbat explained that the apex income tax body has moved away from archaic terminology and complex explanations that previously made tax laws difficult for ordinary citizens to comprehend. "The common assessee, if he reads the provisions, he can understand what the law says in his case," Parbat said. “The common person will be able to know his rights. He will be able to understand the law under which he is paying income tax.” The CBDT has adopted tabular formats and contemporary language to replace outdated legal terminology. Parbat emphasised that this approach will provide greater certainty to taxpayers and reduce the likelihood of future legal disputes. "The language is simple. We have used tabular forms. We have done away with archaic words and written in a more simpler language. This is definitely going to provide more certainty to assessees," he stated. CBDT member Parbat also lauded Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their leadership. A dedicated committee was constituted on February 13, the same day the Bill was introduced in Parliament, to work on simplification and formulation of new rules and forms. The committee completed substantial work and conducted public consultations, receiving thousands of suggestions from citizens. The committee had suggested a few changes, which were understandably accommodated in the new legislation. "The committee has been working day and night," Parbat noted. “All these new rules and forms are being sent to the TPL division in the CBDT, where they will be examined and re-examined.” According to CBDT, all new rules and forms would be ready for rollout by the end of this year, ahead of the Act's implementation on February 26, 2026. Addressing concerns about enforcement powers, Parbat clarified that the new Act explicitly mentions powers that were already available to income tax authorities, particularly regarding digital assets and online evidence collection. "Evidences are available online. They are kept in clouds, and undisclosed income is being invested in virtual digital assets. We need to have access to all of this," he explained. The CBDT will introduce new Standard Operating Procedures (SOPs) for handling digital assets, with these powers being invoked only during search, seizure, and survey operations, which remain limited in number each financial year. Regarding pending tax litigation cases, Parbat assured that the CBDT is making full-fledged efforts to dispose of cases as quickly as possible through administrative preparedness. The Government had proposed in the budget in July 2024 that a time-bound comprehensive review of the Income-tax Act, 1961, would be undertaken to make the Act concise, lucid, and easy to read and understand. The Government had introduced the Income Tax Bill, 2025, in the Lok Sabha on February 13, 2025, and it was soon referred to the Select Committee for examination. The Select Committee laid its report in the Lok Sabha on July 21, 2025, with suggestions. The BJP MP Baijayant Panda-headed 31-member Select Committee had suggested a few changes to the legislation. The previous Bill was withdrawn, only to be reintroduced and passed in the Parliament, with a few changes.

A dedicated committee was constituted on February 13, the same day the Bill was introduced in Parliament, to work on simplification and formulation of new rules and forms.

New Income Tax Act written in simple language. Here's why

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals.The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter.Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said.These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets.<h2>Broader surveillance as deficits soar</h2>The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales.According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period.Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers.Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations.According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains.In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners.<h2>Data sharing and the global tax net</h2>China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad.While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country.Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024.Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023.As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals. The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter. Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said. These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets. Broader surveillance as deficits soar The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales. According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period. Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers. Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations. According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains. In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners. Data sharing and the global tax net China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad. While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country. Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024. Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023. As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China widens tax crackdown to middle-class overseas investors

Starting April 1st, 2026, India's income tax authorities will have the ability to access a person's social media accounts, such as WhatsApp, Telegram, and email. However, they can only do so if they believe an individual has concealed taxable income or cryptocurrency holdings. Under Section 132 of the existing 1961 IT Act, armed with a magistrate's order, income tax authorities can search and seize assets and financial documents if they have reason to believe an individual is hiding income, property, or relevant paperwork.

India: Social media, emails to come under tax scrutiny

From the next financial year, which begins on April 1, the tax authorities of India can access your account on communication platforms like WhatsApp, Telegram and emails under the provisions of the Income Tax Bill, 2025.
<h2>Why has government brought the bill?</h2>
Union Finance Minister Nirmala Sitharaman on Tuesday (Mar 27) explained why the new Income Tax Bill, 2025, was introduced in the Lok Sabha on February 13.&nbsp;
Also read | <a href="https://www.wionews.com/entertainment/kunal-kamra-responds-to-second-summons-with-nirmala-sitharaman-parody-song-8893516">Kunal Kamra responds to second summons with Nirmala Sitharaman parody song</a>
The bill, which would replace the Income Tax Act of 1961, would allow the government to detect unaccounted money and illegal activities. While it retains most of the original provisions, it aims to simplify the language and remove redundant sections.
Sitharaman said that the new bill would help keep tax enforcement up to date with new technology and ensure that virtual assets like cryptocurrencies are not overlooked. The evidence from digital accounts would provide the officials with evidence to prove tax evasion in court and calculate the exact amount of tax evaded.
Also read | <a href="https://www.wionews.com/india-news/finance-minister-nirmala-sitharaman-announces-57mn-corpus-for-manipur-8846060">Finance Minister Nirmala Sitharaman announces $57mn corpus for Manipur</a>
&ldquo;Encrypted messages on mobile phones led to unearthing Rs 250 crore unaccounted money. Evidence from WhatsApp messages of crypto assets has been detected. WhatsApp communication helped unearth ₹200 crore unaccounted money,&rdquo; the finance minister said.
Sitharaman also highlighted that Google Maps history helped identify locations frequently visited to hide cash. She added that Instagram accounts were analysed to determine &lsquo;benami&rsquo; property ownership.
Also read | <a href="https://www.wionews.com/india-news/prasad-given-at-religious-places-exempt-from-gst-says-fm-nirmala-sitharaman-8889590">&lsquo;Prasad&rsquo; served at religious places exempt from GST, says FM Nirmala Sitharaman</a>
<h2>What can officials access under new bill?</h2>
The finance minister detailed that the new bill would grant officials the right to access digital communication platforms like WhatsApp, Telegram and emails. In addition, business software and servers used to hide financial transactions would also be accessible by the government.
The bill would cover virtual digital assets within the definition of undisclosed income. It would include digital tokens, cryptocurrencies, and other cryptographic representations of value.
Also read | <a href="https://www.wionews.com/india-news/union-budget-2025-indian-fms-focus-on-bihar-sparks-meme-fest-online-nitish-kumar-narendra-modi-8681960">Union Budget 2025: Nirmala Sitharaman's focus on Bihar sparks meme fest online</a>
It also grants income tax authorities permission to access virtual digital spaces during search and seizure operations. This covers email servers, social media accounts, online investment and trading platforms, and websites that store asset ownership details. It also grants authorities the power to override access codes for inspection of digital environments as part of tax investigations.
(With inputs from agencies)

India news | Union Finance Minister Nirmala Sitharaman on Tuesday (Mar 27) explained why the new Income Tax Bill, 2025, was introduced in the Lok Sabha on February 13.

From the next financial year, which begins on April 1, the tax authorities of India can access your account on communication platforms like WhatsApp, Telegram and emails under the provisions of the Income Tax Bill, 2025. Why has government brought the bill? Union Finance Minister Nirmala Sitharaman on Tuesday (Mar 27) explained why the new Income Tax Bill, 2025, was introduced in the Lok Sabha on February 13. Also read | Kunal Kamra responds to second summons with Nirmala Sitharaman parody song The bill, which would replace the Income Tax Act of 1961, would allow the government to detect unaccounted money and illegal activities. While it retains most of the original provisions, it aims to simplify the language and remove redundant sections. Sitharaman said that the new bill would help keep tax enforcement up to date with new technology and ensure that virtual assets like cryptocurrencies are not overlooked. The evidence from digital accounts would provide the officials with evidence to prove tax evasion in court and calculate the exact amount of tax evaded. Also read | Finance Minister Nirmala Sitharaman announces $57mn corpus for Manipur “Encrypted messages on mobile phones led to unearthing Rs 250 crore unaccounted money. Evidence from WhatsApp messages of crypto assets has been detected. WhatsApp communication helped unearth ₹200 crore unaccounted money,” the finance minister said. Sitharaman also highlighted that Google Maps history helped identify locations frequently visited to hide cash. She added that Instagram accounts were analysed to determine ‘benami’ property ownership. Also read | ‘Prasad’ served at religious places exempt from GST, says FM Nirmala Sitharaman What can officials access under new bill? The finance minister detailed that the new bill would grant officials the right to access digital communication platforms like WhatsApp, Telegram and emails. In addition, business software and servers used to hide financial transactions would also be accessible by the government. The bill would cover virtual digital assets within the definition of undisclosed income. It would include digital tokens, cryptocurrencies, and other cryptographic representations of value. Also read | Union Budget 2025: Nirmala Sitharaman's focus on Bihar sparks meme fest online It also grants income tax authorities permission to access virtual digital spaces during search and seizure operations. This covers email servers, social media accounts, online investment and trading platforms, and websites that store asset ownership details. It also grants authorities the power to override access codes for inspection of digital environments as part of tax investigations. (With inputs from agencies)

From April 1, Indian govt can see your WhatsApp messages, emails. Here's what you need to know

Hungary and Slovakia are resisting the European Union's proposed sanctions against Russia. Hungary has demanded that several powerful businessmen be removed from the EU blacklist, even as Brussels is racing to find a compromise in the face of a deadline that ends on Saturday. Over the last 3 years, the EU has imposed sanctions on over 2,400 individuals and companies linked to Moscow's war effort. They include Vladimir Putin, Sergei Lavrov, and key oligarchs, and the list is renewed every 6 months. But Hungary, now joined by Slovakia, has been trying to weaken the measure. Watch in for more details!

Hungary and Slovakia demand removal of oligarchs from EU list

Hungary has announced a sweeping tax exemption for mothers of two or more children, just over a year ahead of the 2026 elections. Prime Minister Viktor Orbán has declared that mothers with three children will be exempt from income tax starting in October, while the exemption for mothers with two children will be phased in starting from January. Watch in for more details!

Hungary exempts mothers of two or more from income tax

Hungary has announced a sweeping tax exemption for mothers of 2 or more children, just over a year ahead of the 2026 elections. Prime Minister Viktor Orban declared that mothers with three children will be exempt from income tax starting October, while the exemption for mothers with two will be phased in from January.

Hungary exempts mothers of 2 or more from income tax

The Indian government is likely to table the much anticipated New Income Tax Bill in Parliament on Thursday (Feb 13). The proposed legislation spans over 600 pages, proposing the new legislation as the Income Tax Act, 2025.&nbsp;
Once the bill is passed, it will come into effect from April 1, 2026.
The bill is meant to simplify the language of the tax laws and it would later be sent to Parliament's Standing Committee on Finance. It will not change the existing tax slabs or review the tax rebates given.
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<h2 dir="ltr">Aim of bringing new tax bill</h2>
The government has already made it clear that the bill will focus on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers rather than introducing any new taxes.
Several amendments are expected to be introduced to the existing law, with a focus on reducing litigation. One of the provisions could include a reduction in penalties for certain offences, making the tax framework less punitive and more taxpayer-friendly.
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<h2 dir="ltr">Union Budget 2025&nbsp;</h2>
Finance Minister Nirmala Sitharaman on Feb 1 introduced significant changes to the income tax regime in the Union Budget for the financial year 2025-26.&nbsp;
The government has revised personal income tax rates for taxpayers to encourage spending. Previously, under the 2020 tax system, annual earnings of up to Rs 15 lakh were taxed at rates between 5 and 20 per cent, while those exceeding Rs 15 lakh faced a 30 per cent tax.
However, with the new tax slabs, Sitharaman has announced that individuals earning up to Rs 12 lakh annually will no longer be taxed.
(With inputs from agencies)

India News: Discover the extensive New Income Tax Bill expected to be presented in Parliament, introducing the Income Tax Act with over pages of detailed reforms.

The Indian government is likely to table the much anticipated New Income Tax Bill in Parliament on Thursday (Feb 13). The proposed legislation spans over 600 pages, proposing the new legislation as the Income Tax Act, 2025. Once the bill is passed, it will come into effect from April 1, 2026. The bill is meant to simplify the language of the tax laws and it would later be sent to Parliament's Standing Committee on Finance. It will not change the existing tax slabs or review the tax rebates given. Also read | Non-consensual ‘unnatural sex’ with wife not rape, rules Indian High Court Aim of bringing new tax bill The government has already made it clear that the bill will focus on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers rather than introducing any new taxes. Several amendments are expected to be introduced to the existing law, with a focus on reducing litigation. One of the provisions could include a reduction in penalties for certain offences, making the tax framework less punitive and more taxpayer-friendly. Also read | Explained | From remarks to legal troubles: All about Ranveer Allahbadia controversy Union Budget 2025 Finance Minister Nirmala Sitharaman on Feb 1 introduced significant changes to the income tax regime in the Union Budget for the financial year 2025-26. The government has revised personal income tax rates for taxpayers to encourage spending. Previously, under the 2020 tax system, annual earnings of up to Rs 15 lakh were taxed at rates between 5 and 20 per cent, while those exceeding Rs 15 lakh faced a 30 per cent tax. However, with the new tax slabs, Sitharaman has announced that individuals earning up to Rs 12 lakh annually will no longer be taxed. (With inputs from agencies)

New Income Tax bill to be introduced in Parliament tomorrow

Cabinet clears new I-T bill; to be introduced in Parliament next week New Delhi, Feb 7 (PTI) The Union Cabinet on Friday approved the new income tax bill, which will replace the six decades I-T Act, sources said.
The new bill seeks to make direct tax law simple to understand and not to impose any new tax burden. It will not have provisos and explanations or long sentences.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the New Income Tax Bill, sources said.
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Sources said the new income tax bill will now be introduced in the Parliament next week and will be sent to Parliament's Standing Committee on Finance.
The first leg of the ongoing budget session ends on February 13. The session will reconvene on March 10 and sit through April 4.
Finance Minister Nirmala Sitharaman announced in Budget 2025-26 that the new tax bill will be introduced in the ongoing session of Parliament.
Sitharaman had first announced a comprehensive review of the Income-tax Act, 1961 in the July 2024 Budget.
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The CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, and litigations, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.
Public inputs and suggestions were invited in four categories -- simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions.
The income tax department has received 6,500 suggestions from stakeholders on the review of the Income Tax Act.
Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.
&nbsp;

India News: The Union Cabinet has approved a new income tax bill set to replace the six-decade-old I-T Act, with plans for its introduction in Parliament next week.

Cabinet clears new I-T bill; to be introduced in Parliament next week New Delhi, Feb 7 (PTI) The Union Cabinet on Friday approved the new income tax bill, which will replace the six decades I-T Act, sources said. The new bill seeks to make direct tax law simple to understand and not to impose any new tax burden. It will not have provisos and explanations or long sentences. The Cabinet, chaired by Prime Minister Narendra Modi, approved the New Income Tax Bill, sources said. Also read | Who is Mohini Mohan Dutta? Mystery man to inherit Ratan Tata's USD 57 million will Sources said the new income tax bill will now be introduced in the Parliament next week and will be sent to Parliament's Standing Committee on Finance. The first leg of the ongoing budget session ends on February 13. The session will reconvene on March 10 and sit through April 4. Finance Minister Nirmala Sitharaman announced in Budget 2025-26 that the new tax bill will be introduced in the ongoing session of Parliament. Sitharaman had first announced a comprehensive review of the Income-tax Act, 1961 in the July 2024 Budget. Also read | Kejriwal alleges EC 'refused' to upload voters' data, launches party's own website for 'transparency' The CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, and litigations, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act. Public inputs and suggestions were invited in four categories -- simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions. The income tax department has received 6,500 suggestions from stakeholders on the review of the Income Tax Act. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Cabinet approves Income Tax bill, to be introduced in Parliament next week

The Union Cabinet is expected to approve a new Income Tax Bill on Friday (Feb 7), setting the stage for its introduction in the Lok Sabha by Monday. This bill is a key component of a larger effort to overhaul India's taxation system.
The proposed legislation, which is often referred to as the Direct Tax Code, is aimed at overhauling the existing tax structure, making it more streamlined and transparent.
While presenting the Union Budget 2025-26 on February 1, Finance Minister Nirmala Sitharaman announced the government&rsquo;s plan to introduce the new Income Tax Bill in Parliament.
The bill is likely to be referred to the Standing Committee for further discussion and refinement of its provisions.
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<h2 dir="ltr">Objective of bringing new tax bill</h2>
The government has already made it clear that the bill will focus on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers rather than introducing any new taxes.
Several amendments are expected to be introduced to the existing law, with a focus on reducing litigation. One of the provisions could include a reduction in penalties for certain offences, making the tax framework less punitive and more taxpayer-friendly.
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The new income tax law will be in simple language, which will help taxpayers and tax experts understand the provisions better. Also, digital processes will be promoted, which will make tax filing completely digital. This can also reduce legal disputes.
<h2 dir="ltr">Income Tax Bill to be tabled in Parliament</h2>
As a Finance Bill, it will only be submitted to the Lok Sabha, although the Rajya Sabha can suggest amendments. Ultimately, the Lok Sabha will decide whether to accept these recommendations. This new bill aims to reform the tax system, making it more streamlined and transparent, with a focus on simplification and rationalisation of the tax filing process.
(With inputs from agencies)
&nbsp;

India News: The Union Cabinet is set to approve a new Income Tax Bill, aiming for Lok Sabha introduction soon, marking a pivotal move in reforming India's taxation landscape.

The Union Cabinet is expected to approve a new Income Tax Bill on Friday (Feb 7), setting the stage for its introduction in the Lok Sabha by Monday. This bill is a key component of a larger effort to overhaul India's taxation system. The proposed legislation, which is often referred to as the Direct Tax Code, is aimed at overhauling the existing tax structure, making it more streamlined and transparent. While presenting the Union Budget 2025-26 on February 1, Finance Minister Nirmala Sitharaman announced the government’s plan to introduce the new Income Tax Bill in Parliament. The bill is likely to be referred to the Standing Committee for further discussion and refinement of its provisions. Also read | Opposition slams Centre over US deportation row; 'what stops our government from sending aircraft' Objective of bringing new tax bill The government has already made it clear that the bill will focus on simplifying tax laws, removing ambiguities, and ensuring ease of compliance for taxpayers rather than introducing any new taxes. Several amendments are expected to be introduced to the existing law, with a focus on reducing litigation. One of the provisions could include a reduction in penalties for certain offences, making the tax framework less punitive and more taxpayer-friendly. Also read | Congress party's priority is 'family first' and its policies around it: PM Modi The new income tax law will be in simple language, which will help taxpayers and tax experts understand the provisions better. Also, digital processes will be promoted, which will make tax filing completely digital. This can also reduce legal disputes. Income Tax Bill to be tabled in Parliament As a Finance Bill, it will only be submitted to the Lok Sabha, although the Rajya Sabha can suggest amendments. Ultimately, the Lok Sabha will decide whether to accept these recommendations. This new bill aims to reform the tax system, making it more streamlined and transparent, with a focus on simplification and rationalisation of the tax filing process. (With inputs from agencies)

Union Govt to approve new Income Tax Bill tomorrow: Everything to know

Indian Finance Minister Nirmala Sitharaman announced in her budget speech on Saturday that people with salaries up to ₹12 lakh ($13,841) would not have to pay income tax as per the new tax regime under the <a href="https://www.wionews.com/india-news/union-budget-2025-fm-sitharaman-exempts-basic-custom-duty-on-lifesaving-drugs-and-medicines-8680995">Union Budget 2025</a> and the internet can't keep calm.&nbsp;
Just after the announcement, thrilled netizens took to social media to express their joy, and the internet was filled with hilarious memes.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/tax-simplification-is-complete-after-budget-2025-fm-nirmala-sitharaman-promises-income-tax-reforms-bill-next-week-8681348">'Tax simplification is complete': After Budget 2025, FM Sitharaman promises income tax reforms&nbsp;bill&nbsp;next&nbsp;week</a>
From Bollywood movies like Krrish, Welcome, and Lagaan, to using an AI image of Nirmala Sitharaman to show her as Jaya Bachchan from Kabhi Khushi Kabhi Gham, take a look at this hilarious memefest:&nbsp;
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m6m1ejwa-bwc8mnmy-tky5dhwp">
No tax till ₹12 Lakh income under new regime 😳. <a href="https://twitter.com/hashtag/Budget2025?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2025</a> <a href="https://t.co/Ncx03MdRgb">pic.twitter.com/Ncx03MdRgb</a>
&mdash; k ♡ (@sarphiribalika_) <a href="https://twitter.com/sarphiribalika_/status/1885579853019197795?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m6m1euey-ddwl86kk-9kpininq">
NO INCOME TAX UPTO RS 12 LAKH! <a href="https://t.co/3k1EMgMipo">pic.twitter.com/3k1EMgMipo</a>
&mdash; Abhishek (@MSDianAbhiii) <a href="https://twitter.com/MSDianAbhiii/status/1885581548780478972?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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Finally No income tax upto rs 12 lakhs. Party guys<a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://t.co/8E8bthFNwE">pic.twitter.com/8E8bthFNwE</a>
&mdash; 👑Che_ಕೃಷ್ಣ🇮🇳💛❤️ (@ChekrishnaCk) <a href="https://twitter.com/ChekrishnaCk/status/1885583160626549183?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
Also read: <a href="https://www.wionews.com/india-news/indian-union-budget-2025-26-key-tds-changes-announced-this-year-8681206">Indian Union Budget 2025-26: Key TDS changes announced this year</a>
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m6m1flaq-ie0tfc1f-rgs719dk">
No Tax for up to ₹ 12 lakh income under new income tax regime. Meanwhile Salaried Middle Class Indian:-<a href="https://twitter.com/hashtag/NirmalaSitharaman?src=hash&amp;ref_src=twsrc%5Etfw">#NirmalaSitharaman</a> <a href="https://twitter.com/hashtag/BudgetSession?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSession</a><a href="https://twitter.com/hashtag/Budget2025?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2025</a> <a href="https://twitter.com/hashtag/%E0%A4%AC%E0%A4%9C%E0%A4%9F2025?src=hash&amp;ref_src=twsrc%5Etfw">#बजट2025</a> <a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://t.co/o2fMic4Sjm">pic.twitter.com/o2fMic4Sjm</a>
&mdash; Ashutosh Srivastava 🇮🇳 (@sri_ashutosh08) <a href="https://twitter.com/sri_ashutosh08/status/1885583773053710680?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
Also read: <a href="https://www.wionews.com/india-news/union-budget-2025-govt-to-set-up-daycare-cancer-centres-in-all-district-hospitals-8681148">Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals</a>
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No income tax upto 12 lacs Working Class right now: <a href="https://t.co/I21xlVoFIC">pic.twitter.com/I21xlVoFIC</a>
&mdash; Harshhh! (@Harsh_humour) <a href="https://twitter.com/Harsh_humour/status/1885582596039663759?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
&nbsp;
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No new income tax payable up to Rs 12 lakh income <a href="https://t.co/DDxKLPh9Aj">pic.twitter.com/DDxKLPh9Aj</a>
&mdash; rozgar_CA (@Memeswalaladka) <a href="https://twitter.com/Memeswalaladka/status/1885582492876341747?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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No Income Tax Payable Up to 12 Lakh Rupees <a href="https://twitter.com/hashtag/Budget2025?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2025</a> <a href="https://t.co/ESAZiJGdt8">pic.twitter.com/ESAZiJGdt8</a>
&mdash; $achin Nayak (@SachinN18342436) <a href="https://twitter.com/SachinN18342436/status/1885582489865118010?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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Middle Class Reaction to No Income Tax upto 12 lakh 🔥🔥👏👏 <a href="https://twitter.com/hashtag/Budget2025?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2025</a> <a href="https://twitter.com/hashtag/BudgetSession2025?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSession2025</a> <a href="https://twitter.com/hashtag/NirmalaSitharaman?src=hash&amp;ref_src=twsrc%5Etfw">#NirmalaSitharaman</a> <a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://t.co/pG7NTw8z6S">pic.twitter.com/pG7NTw8z6S</a>
&mdash; Rosy (@rose_k01) <a href="https://twitter.com/rose_k01/status/1885581871620190464?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
Also read: <a href="https://www.wionews.com/india-news/union-budget-2025-govt-to-set-up-daycare-cancer-centres-in-all-district-hospitals-8681148">Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals</a>
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No income tax upto 12 lacs Working Class right now: 😄 <a href="https://twitter.com/hashtag/BudgetSession?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSession</a> <a href="https://t.co/1u4njfBaQs">pic.twitter.com/1u4njfBaQs</a>
&mdash; Akash (@Akash03893128) <a href="https://twitter.com/Akash03893128/status/1885582580919263704?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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🔥NO INCOME TAX UP TO INCOME OF 12 LAKH PER ANNUM<a href="https://twitter.com/hashtag/BudgetSession?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetSession</a> <a href="https://twitter.com/hashtag/Budget2025?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2025</a> <a href="https://twitter.com/hashtag/BudgetDay?src=hash&amp;ref_src=twsrc%5Etfw">#BudgetDay</a> <a href="https://twitter.com/hashtag/NirmalaSitharaman?src=hash&amp;ref_src=twsrc%5Etfw">#NirmalaSitharaman</a> <a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://t.co/jIKpf9vYna">pic.twitter.com/jIKpf9vYna</a>
&mdash; Saikiran Kannan | 赛基兰坎南 (@saikirankannan) <a href="https://twitter.com/saikirankannan/status/1885579940004774090?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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No income till 12 Lakh <a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://t.co/Y89U3vbVlF">pic.twitter.com/Y89U3vbVlF</a>
&mdash; Abhishek Singh (@Shiv3627) <a href="https://twitter.com/Shiv3627/status/1885581361093693789?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
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No tax till 12 lakhs. Rejoice till it lasts. Consumerism shall rise again<a href="https://twitter.com/hashtag/IncomeTax?src=hash&amp;ref_src=twsrc%5Etfw">#IncomeTax</a> <a href="https://twitter.com/hashtag/NirmalaSitharaman?src=hash&amp;ref_src=twsrc%5Etfw">#NirmalaSitharaman</a> <a href="https://t.co/OQl5SGS81x">pic.twitter.com/OQl5SGS81x</a>
&mdash; MutualFundaz 🎖 (@FundazMutual) <a href="https://twitter.com/FundazMutual/status/1885581568191979664?ref_src=twsrc%5Etfw">February 1, 2025</a></blockquote>
<figure class="image"><img alt="Budget 2025 memes" src="https://img-cdn.thepublive.com/fit-in/796x569/filters:format(webp)/wion/media/media_files/2025/02/01/rA4AoExPjaDjmItAstF9.JPG" style="width: 796px;">
<figcaption>Budget 2025 memes Photograph: (X)</figcaption>
</figure>
&nbsp;Under the new tax regime, taxpayers earning up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000) will have to pay zero tax.&nbsp;
(With inputs from agencies)
&nbsp;

India news | Indian Finance Minister Nirmala Sitharaman announced that people with salaries up to ₹12 lakh ($13,841) would not have to pay any income tax as per the new regime under the Union Budget 2025, and the internet can't keep calm.

Indian Finance Minister Nirmala Sitharaman announced in her budget speech on Saturday that people with salaries up to ₹12 lakh ($13,841) would not have to pay income tax as per the new tax regime under the Union Budget 2025 and the internet can't keep calm. Just after the announcement, thrilled netizens took to social media to express their joy, and the internet was filled with hilarious memes. Also read: 'Tax simplification is complete': After Budget 2025, FM Sitharaman promises income tax reforms bill next week From Bollywood movies like Krrish, Welcome, and Lagaan, to using an AI image of Nirmala Sitharaman to show her as Jaya Bachchan from Kabhi Khushi Kabhi Gham, take a look at this hilarious memefest: No tax till ₹12 Lakh income under new regime 😳. #Budget2025 pic.twitter.com/Ncx03MdRgb — k ♡ (@sarphiribalika_) February 1, 2025 NO INCOME TAX UPTO RS 12 LAKH! pic.twitter.com/3k1EMgMipo — Abhishek (@MSDianAbhiii) February 1, 2025 Finally No income tax upto rs 12 lakhs. Party guys#IncomeTax pic.twitter.com/8E8bthFNwE — 👑Che_ಕೃಷ್ಣ🇮🇳💛❤️ (@ChekrishnaCk) February 1, 2025 Also read: Indian Union Budget 2025-26: Key TDS changes announced this year No Tax for up to ₹ 12 lakh income under new income tax regime. Meanwhile Salaried Middle Class Indian:-#NirmalaSitharaman #BudgetSession#Budget2025 #बजट2025 #IncomeTax pic.twitter.com/o2fMic4Sjm — Ashutosh Srivastava 🇮🇳 (@sri_ashutosh08) February 1, 2025 Also read: Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals No income tax upto 12 lacs Working Class right now: pic.twitter.com/I21xlVoFIC — Harshhh! (@Harsh_humour) February 1, 2025 No new income tax payable up to Rs 12 lakh income pic.twitter.com/DDxKLPh9Aj — rozgar_CA (@Memeswalaladka) February 1, 2025 No Income Tax Payable Up to 12 Lakh Rupees #Budget2025 pic.twitter.com/ESAZiJGdt8 — $achin Nayak (@SachinN18342436) February 1, 2025 Middle Class Reaction to No Income Tax upto 12 lakh 🔥🔥👏👏 #Budget2025 #BudgetSession2025 #NirmalaSitharaman #IncomeTax pic.twitter.com/pG7NTw8z6S — Rosy (@rose_k01) February 1, 2025 Also read: Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals No income tax upto 12 lacs Working Class right now: 😄 #BudgetSession pic.twitter.com/1u4njfBaQs — Akash (@Akash03893128) February 1, 2025 🔥NO INCOME TAX UP TO INCOME OF 12 LAKH PER ANNUM#BudgetSession #Budget2025 #BudgetDay #NirmalaSitharaman #IncomeTax pic.twitter.com/jIKpf9vYna — Saikiran Kannan | 赛基兰坎南 (@saikirankannan) February 1, 2025 No income till 12 Lakh #IncomeTax pic.twitter.com/Y89U3vbVlF — Abhishek Singh (@Shiv3627) February 1, 2025 No tax till 12 lakhs. Rejoice till it lasts. Consumerism shall rise again#IncomeTax #NirmalaSitharaman pic.twitter.com/OQl5SGS81x — MutualFundaz 🎖 (@FundazMutual) February 1, 2025 Budget 2025 memes Photograph: (X) Under the new tax regime, taxpayers earning up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000) will have to pay zero tax. (With inputs from agencies)

Union Budget 2025: No income tax up to ₹12 lakh. Internet has hilarious reactions

Indian Finance Minister Nirmala Sitharaman today (Saturday, Feb 1) presented the Union Budget for 2025-26, a day after unveiling the Economic Survey.
Indian Finance Minister Nirmala Sitharaman on Saturday (Feb 1) announced a major relief for the middle class in India with a special tax exemption for salaried individuals. The new tax structure is designed to reduce taxes for middle-income earners, leaving more disposable income for household consumption, savings, and investment, which can help boost economic growth.

Income tax slabs Budget 2025: Zero income tax up to an income of Rs 12 lakh | WION detailed coverage

US President<a href="https://www.wionews.com/tags/donald-trump-0" rel="dofollow"> Donald Trump</a> proposed to abolish the income tax for American citizens, stressing that it would boost disposable income for individuals and families.&nbsp;
Trump described the move as a return to the old American practices, which helped drive national prosperity and a step that made America richer.&nbsp;
"It&rsquo;s time for the United States to return to the system that made us richer and more powerful than ever before&hellip;," he said on Monday.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/us-irs-launches-crackdown-on-125000-unfiled-high-income-tax-returns-695453" rel="dofollow">US IRS launches crackdown on 125,000 unfiled high-income tax returns</a>
The US president further said that he would introduce across-the-board import tariffs to replace income tax.
"Instead of taxing our citizens to enrich foreign nations, we should be taxing foreign nations to enrich our citizens. It will be massive amounts of money pouring into our treasury coming from foreign sources," Trump added.
He noted that the US was the wealthiest from 1870 to 1913 when a tariff-based economic system was in place. Trump said that import tariffs will help offset the revenue shortfall from income tax reductions that are being proposed by him.
Also read:<a href="https://www.wionews.com/world/deepseek-donald-trump-wake-up-call-us-tech-industry-8661569" rel="dofollow"> 'If you could do it cheaper...': Trump calls DeepSeek a 'wake-up call' for US tech industry</a>
<h2>What does the proposal include?</h2>
The proposal made by Trump includes replacing income tax, which is a key contributor to federal revenue, with tariffs on imported goods.&nbsp;
Trump also announced to create the External Revenue Service, a new body under his administration, which will be responsible for managing tariffs and related revenues.&nbsp;
Also read:<a href="https://www.wionews.com/world/donald-trump-transgender-people-us-military-executive-orders-8661366" rel="dofollow"> Trump signs order banning transgender people from US military. What are the new guidelines?</a>
The plan has attracted both support and criticism. The economists have warned of potential inflationary pressures and sustained high interest rates due to increased import costs.&nbsp;
Moreover, the Congress has also opposed it, with lawmakers raising concerns about potential deficits and logistical hurdles in implementing the overhaul.
However, Trump emphasised his commitment to prioritising American families and workers. "We will immediately begin overhauling our trade system to protect American interests,&rdquo; he said.&nbsp;
(With inputs from agencies)

World: Donald Trump described the move as a return to the old American practices, which helped drive national prosperity and a step that made America richer. 

US President Donald Trump proposed to abolish the income tax for American citizens, stressing that it would boost disposable income for individuals and families. Trump described the move as a return to the old American practices, which helped drive national prosperity and a step that made America richer. "It’s time for the United States to return to the system that made us richer and more powerful than ever before…," he said on Monday. Also read: US IRS launches crackdown on 125,000 unfiled high-income tax returns The US president further said that he would introduce across-the-board import tariffs to replace income tax. "Instead of taxing our citizens to enrich foreign nations, we should be taxing foreign nations to enrich our citizens. It will be massive amounts of money pouring into our treasury coming from foreign sources," Trump added. He noted that the US was the wealthiest from 1870 to 1913 when a tariff-based economic system was in place. Trump said that import tariffs will help offset the revenue shortfall from income tax reductions that are being proposed by him. Also read: 'If you could do it cheaper...': Trump calls DeepSeek a 'wake-up call' for US tech industry What does the proposal include? The proposal made by Trump includes replacing income tax, which is a key contributor to federal revenue, with tariffs on imported goods. Trump also announced to create the External Revenue Service, a new body under his administration, which will be responsible for managing tariffs and related revenues. Also read: Trump signs order banning transgender people from US military. What are the new guidelines? The plan has attracted both support and criticism. The economists have warned of potential inflationary pressures and sustained high interest rates due to increased import costs. Moreover, the Congress has also opposed it, with lawmakers raising concerns about potential deficits and logistical hurdles in implementing the overhaul. However, Trump emphasised his commitment to prioritising American families and workers. "We will immediately begin overhauling our trade system to protect American interests,” he said. (With inputs from agencies)

'Time to return to system that made us richer,' Trump hints at removing income tax for US citizens

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption.
However, the sources said the discussions are ongoing and no concrete decisions have been taken yet.
The announcement will come in the budget on February 1.
Even if the government does decide to go ahead with tax cuts, it would be under the new regime introduced in 2020.
According to the discussions, individuals with earnings up to ₹1.5 million will not pay any tax.
Currently, for income between ₹300,000 and ₹1.5 million the tax rate is 5 to 20 &nbsp;per cent, while higher income is taxed at 30 &nbsp;per cent.
Under the new regime, though, there are no exemptions allowed, compared to the older regime, which allows exemptions on housing rentals, home loan interest and principal repayment, and insurance.
However, filing tax returns under the 2020 regime is less complicated.
<h2>Default and options</h2>
The new regime was the default tax structure, with Indians given a choice to opt for the old regime.
While some murmurs are floating the government will mandate the new regime, reports suggest India will continue with both regime options similar to the current fiscal year's choices.
Individuals have the option of choosing the old regime, although, they cannot alter their choice once the new regime is opted for.
<h2>New vs old regime</h2>
Individuals need to look at the tax burden based on both regime's based on their investment choices for the year and make choice.
Take a look at the tax rates under both regimes for comparison and making the choice.
<figure class="image"><img alt="Taxation regimes" src="https://img-cdn.thepublive.com/fit-in/1920x1080/filters:format(webp)/wion/media/media_files/2024/12/27/TTGSHhgt4mDpmcgUHpJ8.jpg" style="width: 1920px;">
<figcaption>Taxation regimes Photograph: (WION)</figcaption>
</figure>
<h2>Government's plan to stimulate growth</h2>
Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country&rsquo;s slowing economy.
The tax cuts would primarily impact city dwellers, who are facing high living costs, and could encourage more taxpaye₹to opt for the newer 2020 tax system.
The potential tax reductions could make the simplified 2020 system more attractive to taxpayers, as it removes many exemptions but offe₹lower rates.
India&rsquo;s central government sources quoted by Reute₹indicate that such tax reforms could encourage wider adoption of this system,
Especially in the face of rising food inflation and weaker consumer demand.
The government has not yet specified the exact revenue loss from any cuts, but the goal is to stimulate economic activity amid sluggish growth.
India&rsquo;s economy has faced a significant slowdown, with growth dropping to its slowest pace in seven quarters between July and September unexpectedly.
Despite this, the government is optimistic that rural demand will continue to show resilience, and urban demand is expected to pick up.
The country&rsquo;s growth forecast for the fiscal year 2024/25 stands at 6.5 percent, at the lower end of its projected range.
With challenges such as high inflation and global uncertainties, including a stronger US dollar, India&rsquo;s tax reforms could play a critical role in boosting domestic consumption and supporting the middle class, which remains politically vocal about high tax burdens.
<h2>Changes to tax structure this year</h2>
Modifications to the income tax system occurred midway through the year 2024.
The reason behind this is that the government announced the Union Budget 2024 in July, following the general elections that took place between April and June of that year.
The income tax law amendments that were revealed in July 2024 may have slipped the minds of many taxpayers due to the budget's mid-year presentation.
Beginning with the fiscal year 2024&ndash;25, the majority of the income tax adjustments that were announced in July 2024 go into effect.
When you file your income tax return (ITR) in July 2025, you'll be able to claim different tax deductions and exemptions because of these changes.
The government adjusted the income tax brackets under the new tax system.
<a href="https://www.wionews.com/india-news/major-relief-for-indian-middle-class-govt-considering-tax-cut-amid-rising-economic-challenges-reports-8569145">Major relief for Indian middle class? Govt mulls tax cuts amid economic challenges: Reports</a>
For the current fiscal year 2024&ndash;25, taxpayers will benefit from increased savings due to the reduced income tax brackets of the new tax system.
The government raised the standard deduction limit and modified the income tax brackets under the new tax system.
<h2>Standard deduction changes</h2>
The standard deduction for people filing under the new tax regime for FY 2024-25 is ₹75,000, an increase from ₹50,000 in the prior regime.
The revised tax structure raises the standard deduction for family pensioners from ₹15,000 to ₹25,000.
For the fiscal year 2024&ndash;25 (modified for 2025&ndash;26), the standard deduction limit stays constant for individuals opting to utilise the prior tax framework.
<a href="https://www.wionews.com/videos/india-considers-income-tax-cuts-to-boost-consumption">India considers income tax cuts to boost consumption</a>
The old tax system provided a standard deduction of ₹50,000 for salaried and pensioner individuals, and ₹15,000 for family pensioners.
Salary earners and retirees can reduce their tax liability via the new regime's increased standard deduction, which they can use to their advantage.
Salary, pension, or family pension recipients are eligible to take a standard deduction from their gross income before determining their tax liability.
Funds paid out by insurance firms cannot be claimed as a standard deduction.
<h2>National Pension Scheme changes</h2>
An individual can get a bigger break on their employer's National Pension System (NPS) contribution if they choose the new tax system in FY 2024-25.
Under the new system, worke₹can deduct their employers' NPS contributions up to 14 per cent of their base income.
Up to 10 per cent of a worker's base income can be deducted in the past.
To determine taxable income, this deduction is taken from gross income in accordance with Section 80CCD (2) of the Income Tax Act, 1961.&nbsp;
This deduction is the sole one available under the new tax system, aside from the standard deduction.
The previous tax system allowed for an additional deduction of ₹50,000 for NPS investments made under Section 80CCD (1b) and a Section 80C deduction of ₹1.5 lakh.
Under the older tax system, the maximum amount that an employer may deduct from their NPS contributions for tax reasons remained unchanged.
People who want to pay less tax under the new system will be able to do so thanks to a larger deduction offered under the new system compared to the previous one.
Keep in mind that you would be responsible for paying taxes on employer contributions to EPF, NPS, and Superannuation funds if their combined value exceeds ₹7.5 lakh in a given fiscal year.
Additionally, taxes will be withheld on both the interest and return that is generated on the excess contribution.
<h2>Tax on capital gains changes</h2>
In the fiscal year 2024&ndash;25, the government will enforce new laws on capital gains taxes. The objective of the amendments was to optimise the framework for taxing capital gains.
A 20 per cent tax will be imposed on all short-term capital gains derived from shares and equity-oriented mutual funds. This has been increased from 15 per cent to 20 per cent.
Income tax brackets applicable to earnings will be imposed on short-term capital gains derived from diverse assets, such as real estate, gold, and other non-financial holdings.
The taxation rate for long-term capital gains is 12.5 per cent, irrespective of the asset type. The long-term capital gains tax rates will now be standardised across all asset classes.
Long-term capital gains (LTCG) on investments in stocks and equity-oriented mutual funds are now exempt from taxes up to ₹1.25 lakh every fiscal year, an increase from the previous threshold of ₹1 lakh.
The income tax on long-term capital gains (LTCG) on the sale of residential property is no longer entirely indexable.
If an individual acquires a residence on or before July 22, 2024, and then divests it, they will incur taxation on long-term capital gains (LTCG) in two manners, as stipulated by the new regulations.
Two methodologies exist:
(a) LTCG tax with indexation, calculated at 20 per cent, and
(b) LTCG tax without indexation, calculated at 12.5 per cent. In the absence of indexation benefits, long-term capital gains (LTCG) on the sale of a house acquired on or after July 23, 2024, will be subject to a tax rate of 12.5 per cent.
Only residents and Hindu Undivided Families (HUFs) may elect the LTCG taxation option for homes acquired before July 23, 2024.
Other taxable entities, including non-residents, will be obligated to remit 12.5 per cent without indexation.
The revised capital gains tax framework simplifies the method by which individuals ascertain their taxable income from capital gains.
In the past, various capital assets were subject to separate regulations for determining capital gains tax.
<h2>Capital gains holding period changes</h2>
The government has modified the time period for capital assets to further categorise capital gains as long-term or short-term.
The new criteria stipulate two holding periods for capital assets to determine whether earnings are classified as short-term or long-term.
Profits from the sale of any listed investment held for twelve months are classified as long-term capital gains.
Conversely, for capital gains on non-listed assets to qualify as long-term, the holding period for these securities must be 24 months.
Adjusting the holding period will facilitate taxpayers in monitoring the duration for which they must retain specific assets prior to sale, ensuring that their capital gains qualify as long-term capital gains.

Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country’s slowing economy. 

A Reuters report quoting government sources showed the Indian government is considering cutting personal income tax for the middle class to boost consumption. However, the sources said the discussions are ongoing and no concrete decisions have been taken yet. The announcement will come in the budget on February 1. Even if the government does decide to go ahead with tax cuts, it would be under the new regime introduced in 2020. According to the discussions, individuals with earnings up to ₹1.5 million will not pay any tax. Currently, for income between ₹300,000 and ₹1.5 million the tax rate is 5 to 20 per cent, while higher income is taxed at 30 per cent. Under the new regime, though, there are no exemptions allowed, compared to the older regime, which allows exemptions on housing rentals, home loan interest and principal repayment, and insurance. However, filing tax returns under the 2020 regime is less complicated. Default and options The new regime was the default tax structure, with Indians given a choice to opt for the old regime. While some murmurs are floating the government will mandate the new regime, reports suggest India will continue with both regime options similar to the current fiscal year's choices. Individuals have the option of choosing the old regime, although, they cannot alter their choice once the new regime is opted for. New vs old regime Individuals need to look at the tax burden based on both regime's based on their investment choices for the year and make choice. Take a look at the tax rates under both regimes for comparison and making the choice. Taxation regimes Photograph: (WION) Government's plan to stimulate growth Sources reveal that this move aims to provide relief to the middle class and stimulate consumption in response to the country’s slowing economy. The tax cuts would primarily impact city dwellers, who are facing high living costs, and could encourage more taxpaye₹to opt for the newer 2020 tax system. The potential tax reductions could make the simplified 2020 system more attractive to taxpayers, as it removes many exemptions but offe₹lower rates. India’s central government sources quoted by Reute₹indicate that such tax reforms could encourage wider adoption of this system, Especially in the face of rising food inflation and weaker consumer demand. The government has not yet specified the exact revenue loss from any cuts, but the goal is to stimulate economic activity amid sluggish growth. India’s economy has faced a significant slowdown, with growth dropping to its slowest pace in seven quarters between July and September unexpectedly. Despite this, the government is optimistic that rural demand will continue to show resilience, and urban demand is expected to pick up. The country’s growth forecast for the fiscal year 2024/25 stands at 6.5 percent, at the lower end of its projected range. With challenges such as high inflation and global uncertainties, including a stronger US dollar, India’s tax reforms could play a critical role in boosting domestic consumption and supporting the middle class, which remains politically vocal about high tax burdens. Changes to tax structure this year Modifications to the income tax system occurred midway through the year 2024. The reason behind this is that the government announced the Union Budget 2024 in July, following the general elections that took place between April and June of that year. The income tax law amendments that were revealed in July 2024 may have slipped the minds of many taxpayers due to the budget's mid-year presentation. Beginning with the fiscal year 2024–25, the majority of the income tax adjustments that were announced in July 2024 go into effect. When you file your income tax return (ITR) in July 2025, you'll be able to claim different tax deductions and exemptions because of these changes. The government adjusted the income tax brackets under the new tax system. Major relief for Indian middle class? Govt mulls tax cuts amid economic challenges: Reports For the current fiscal year 2024–25, taxpayers will benefit from increased savings due to the reduced income tax brackets of the new tax system. The government raised the standard deduction limit and modified the income tax brackets under the new tax system. Standard deduction changes The standard deduction for people filing under the new tax regime for FY 2024-25 is ₹75,000, an increase from ₹50,000 in the prior regime. The revised tax structure raises the standard deduction for family pensioners from ₹15,000 to ₹25,000. For the fiscal year 2024–25 (modified for 2025–26), the standard deduction limit stays constant for individuals opting to utilise the prior tax framework. India considers income tax cuts to boost consumption The old tax system provided a standard deduction of ₹50,000 for salaried and pensioner individuals, and ₹15,000 for family pensioners. Salary earners and retirees can reduce their tax liability via the new regime's increased standard deduction, which they can use to their advantage. Salary, pension, or family pension recipients are eligible to take a standard deduction from their gross income before determining their tax liability. Funds paid out by insurance firms cannot be claimed as a standard deduction. National Pension Scheme changes An individual can get a bigger break on their employer's National Pension System (NPS) contribution if they choose the new tax system in FY 2024-25. Under the new system, worke₹can deduct their employers' NPS contributions up to 14 per cent of their base income. Up to 10 per cent of a worker's base income can be deducted in the past. To determine taxable income, this deduction is taken from gross income in accordance with Section 80CCD (2) of the Income Tax Act, 1961. This deduction is the sole one available under the new tax system, aside from the standard deduction. The previous tax system allowed for an additional deduction of ₹50,000 for NPS investments made under Section 80CCD (1b) and a Section 80C deduction of ₹1.5 lakh. Under the older tax system, the maximum amount that an employer may deduct from their NPS contributions for tax reasons remained unchanged. People who want to pay less tax under the new system will be able to do so thanks to a larger deduction offered under the new system compared to the previous one. Keep in mind that you would be responsible for paying taxes on employer contributions to EPF, NPS, and Superannuation funds if their combined value exceeds ₹7.5 lakh in a given fiscal year. Additionally, taxes will be withheld on both the interest and return that is generated on the excess contribution. Tax on capital gains changes In the fiscal year 2024–25, the government will enforce new laws on capital gains taxes. The objective of the amendments was to optimise the framework for taxing capital gains. A 20 per cent tax will be imposed on all short-term capital gains derived from shares and equity-oriented mutual funds. This has been increased from 15 per cent to 20 per cent. Income tax brackets applicable to earnings will be imposed on short-term capital gains derived from diverse assets, such as real estate, gold, and other non-financial holdings. The taxation rate for long-term capital gains is 12.5 per cent, irrespective of the asset type. The long-term capital gains tax rates will now be standardised across all asset classes. Long-term capital gains (LTCG) on investments in stocks and equity-oriented mutual funds are now exempt from taxes up to ₹1.25 lakh every fiscal year, an increase from the previous threshold of ₹1 lakh. The income tax on long-term capital gains (LTCG) on the sale of residential property is no longer entirely indexable. If an individual acquires a residence on or before July 22, 2024, and then divests it, they will incur taxation on long-term capital gains (LTCG) in two manners, as stipulated by the new regulations. Two methodologies exist: (a) LTCG tax with indexation, calculated at 20 per cent, and (b) LTCG tax without indexation, calculated at 12.5 per cent. In the absence of indexation benefits, long-term capital gains (LTCG) on the sale of a house acquired on or after July 23, 2024, will be subject to a tax rate of 12.5 per cent. Only residents and Hindu Undivided Families (HUFs) may elect the LTCG taxation option for homes acquired before July 23, 2024. Other taxable entities, including non-residents, will be obligated to remit 12.5 per cent without indexation. The revised capital gains tax framework simplifies the method by which individuals ascertain their taxable income from capital gains. In the past, various capital assets were subject to separate regulations for determining capital gains tax. Capital gains holding period changes The government has modified the time period for capital assets to further categorise capital gains as long-term or short-term. The new criteria stipulate two holding periods for capital assets to determine whether earnings are classified as short-term or long-term. Profits from the sale of any listed investment held for twelve months are classified as long-term capital gains. Conversely, for capital gains on non-listed assets to qualify as long-term, the holding period for these securities must be 24 months. Adjusting the holding period will facilitate taxpayers in monitoring the duration for which they must retain specific assets prior to sale, ensuring that their capital gains qualify as long-term capital gains.

Explainer : India considers income tax cuts, all you need to know

The Indian chapter of Swedish smartphone application Truecaller was raided by Indian tax officials on Thursday (Nov 7) over an alleged violation of transfer pricing regulation action. The raids were carried out at several locations, including Gurugram in Haryana state and&nbsp;Bengaluru in Karnataka. The application, used for features like calling ID and spam blocking by more than 400 million customers in India, is under scrutiny for alleged tax evasion.

News agency PTI reported that the IT department officers conducted searches to gather information and peruse documents to detect potential tax evasion.

Later, Truecaller in a statement also confirmed its offices were visited by IT officials and said it was fully ready to cooperate with the authorities.

“This came without prior notice and Truecaller is currently awaiting official confirmation and communication from the tax departments,” the company said in a statement.

“This is not an uncommon practice and Truecaller will cooperate fully with the relevant authorities,” Truecaller added.

It also stressed that it is "not subject to any tax investigation in India outside the routine tax audits" and that it has "always paid all taxes due in India and all regions where it operates."

Also read:&nbsp;<a data-ved="2ahUKEwiarYH26MqJAxUglK8BHRSTHsoQxfQBKAB6BAgMEAE" href="https://www.wionews.com/world/god-spared-my-life-for-a-reason-trump-hails-election-victory-in-rousing-speech-here-are-the-top-quotes-773960" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/world/god-spared-my-life-for-a-reason-trump-hails-election-victory-in-rousing-speech-here-are-the-top-quotes-773960&amp;ved=2ahUKEwiarYH26MqJAxUglK8BHRSTHsoQxfQBKAB6BAgMEAE">`God spared my life for a reason`: Trump hails election victory in rousing speech; here are the top quotes</a>

Addressing the concerns over transfer pricing regulation, Truecaller said its policy is in line with international standards.

“The purpose is to ensure that Truecaller pays tax in a way that is correct from the perspective of both the Swedish and the Indian tax authorities. The policy is continuously independently reviewed to ensure that it meets the tax law requirements of both countries,” the company noted.

Also read:&nbsp;<a data-ved="2ahUKEwjD57766MqJAxX3ZvUHHYWFMCsQxfQBKAB6BAgIEAE" href="https://www.wionews.com/trending/telegram-gets-probed-by-indian-govt-for-gambling-and-extortion-may-face-ban-report-753392" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/trending/telegram-gets-probed-by-indian-govt-for-gambling-and-extortion-may-face-ban-report-753392&amp;ved=2ahUKEwjD57766MqJAxX3ZvUHHYWFMCsQxfQBKAB6BAgIEAE">Telegram gets probed by Indian govt for gambling and extortion, may face ban: Report</a>

It's important to highlight that India is the biggest market for the Swedish company. In their financial report for July to September 2024, they stated that their monthly active user base grew by 12 per cent, reaching a total of 413.5 million users.

(With inputs from agencies)

The Indian chapter of Swedish smartphone application Truecaller was raided by Indian tax officials on Thursday (Nov 7) over an alleged violation of transfer pricing regulation action.

The Indian chapter of Swedish smartphone application Truecaller was raided by Indian tax officials on Thursday (Nov 7) over an alleged violation of transfer pricing regulation action. The raids were carried out at several locations, including Gurugram in Haryana state and Bengaluru in Karnataka. The application, used for features like calling ID and spam blocking by more than 400 million customers in India, is under scrutiny for alleged tax evasion. News agency PTI reported that the IT department officers conducted searches to gather information and peruse documents to detect potential tax evasion. Later, Truecaller in a statement also confirmed its offices were visited by IT officials and said it was fully ready to cooperate with the authorities. “This came without prior notice and Truecaller is currently awaiting official confirmation and communication from the tax departments,” the company said in a statement. “This is not an uncommon practice and Truecaller will cooperate fully with the relevant authorities,” Truecaller added. It also stressed that it is "not subject to any tax investigation in India outside the routine tax audits" and that it has "always paid all taxes due in India and all regions where it operates." Also read: `God spared my life for a reason`: Trump hails election victory in rousing speech; here are the top quotes Addressing the concerns over transfer pricing regulation, Truecaller said its policy is in line with international standards. “The purpose is to ensure that Truecaller pays tax in a way that is correct from the perspective of both the Swedish and the Indian tax authorities. The policy is continuously independently reviewed to ensure that it meets the tax law requirements of both countries,” the company noted. Also read: Telegram gets probed by Indian govt for gambling and extortion, may face ban: Report It's important to highlight that India is the biggest market for the Swedish company. In their financial report for July to September 2024, they stated that their monthly active user base grew by 12 per cent, reaching a total of 413.5 million users. (With inputs from agencies)

Truecaller raided in India for alleged tax evasion, firm says all okay

The Central Board of Direct Taxes (CBDT) has announced the formation of an internal committee tasked with a thorough review of the Income Tax Act. This initiative aims to modernise tax regulations and enhance the user experience of the e-filing portal.

Brief history of the Central Board of Direct Taxes<o:p></o:p>

The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue in the Ministry of Finance. On one hand, CBDT provides essential inputs for policy and planning of direct taxes in India, at the same time it is also responsible for administration of direct tax laws through the Income Tax Department. 

Hence, the newly established committee will focus on identifying areas within the Income Tax Act that require updates or modifications. It seeks to ensure that the legislation remains relevant in today’s dynamic economic landscape. The CBDT is actively inviting suggestions from stakeholders, including taxpayers and tax professionals, to contribute their insights on improving the e-filing process.

The overall goal of the internal committee is to ensure easier tax filing, lesser litigation, and a seamless experience for citizens. With the increasing reliance on digital platforms, the CBDT aims to streamline the e-filing portal, making it more user-friendly. The committee's recommendations will be pivotal in addressing existing challenges faced by taxpayers, ensuring a smoother and more efficient filing process.

Public participation encouraged<o:p></o:p>

In a bid to foster transparency and inclusivity, the CBDT is encouraging public participation in this review process. Stakeholders are invited to submit their suggestions, which will be considered in shaping the future of income tax regulations in India.

According to a Press Information Bureau (PIB) release issued on October 7, 2024 the committee invites public inputs and suggestions in four categories i.e., litigation reduction, compliance, and redundant or obsolete provisions. 

To submit suggestions tax payers are required to visit to the official website of income tax and enter their details under the tab titled: “Suggestions for comprehensive review of Income Tax Act”, upon doing the same they can submit their suggestions through the portal. <o:p></o:p>

This initiative reflects the government’s commitment to adapting tax policies that align with contemporary needs while simplifying compliance for taxpayers. As discussions unfold, it remains crucial for all interested parties to engage and share their perspectives on this significant reform.

The Central Board of Direct Taxes (CBDT) has announced the formation of an internal committee tasked with a thorough review of the Income Tax Act. This initiative aims to modernise tax regulations and enhance the user experience of the e-filing portal.

The Central Board of Direct Taxes (CBDT) has announced the formation of an internal committee tasked with a thorough review of the Income Tax Act. This initiative aims to modernise tax regulations and enhance the user experience of the e-filing portal. Brief history of the Central Board of Direct Taxes The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue in the Ministry of Finance. On one hand, CBDT provides essential inputs for policy and planning of direct taxes in India, at the same time it is also responsible for administration of direct tax laws through the Income Tax Department. Hence, the newly established committee will focus on identifying areas within the Income Tax Act that require updates or modifications. It seeks to ensure that the legislation remains relevant in today’s dynamic economic landscape. The CBDT is actively inviting suggestions from stakeholders, including taxpayers and tax professionals, to contribute their insights on improving the e-filing process. The overall goal of the internal committee is to ensure easier tax filing, lesser litigation, and a seamless experience for citizens. With the increasing reliance on digital platforms, the CBDT aims to streamline the e-filing portal, making it more user-friendly. The committee's recommendations will be pivotal in addressing existing challenges faced by taxpayers, ensuring a smoother and more efficient filing process. Public participation encouraged In a bid to foster transparency and inclusivity, the CBDT is encouraging public participation in this review process. Stakeholders are invited to submit their suggestions, which will be considered in shaping the future of income tax regulations in India. According to a Press Information Bureau (PIB) release issued on October 7, 2024 the committee invites public inputs and suggestions in four categories i.e., litigation reduction, compliance, and redundant or obsolete provisions. To submit suggestions tax payers are required to visit to the official website of income tax and enter their details under the tab titled: “Suggestions for comprehensive review of Income Tax Act”, upon doing the same they can submit their suggestions through the portal. This initiative reflects the government’s commitment to adapting tax policies that align with contemporary needs while simplifying compliance for taxpayers. As discussions unfold, it remains crucial for all interested parties to engage and share their perspectives on this significant reform.

CBDT establishes committee to overhaul income tax act and enhance e-filing experience

Addressing an event to mark the 165th year of the Income Tax Department, Finance Minister Nirmala Sitharaman on Wednesday urged the department to simplify the language of notices and further expedite the refund processes. She also asked the tax department to work towards being “fair and friendly”.

Indian FM Nirmala Sitharaman urges Income Tax Department to simplify tax procedures

India's Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 on Tuesday (July 23) in the Parliament made some major announcements regarding&nbsp;income tax rates.

All the changes announced by FM Sitharaman were in the new tax regime and not in the old tax regime.&nbsp;

<h2>Here are the changes announced in the tax slab</h2>

The finance minister said that in the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000.&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/india-news/union-budget-2024-heres-what-nitishs-bihar-and-naidus-andhra-gets-for-being-key-allies-743362">Union Budget 2024: Here's what Nitish's Bihar and Naidu's Andhra get for being key allies</a>

Meanwhile, for those filing tax in the new tax regime, the tax slab was revised as follows:

No tax up to Rs 3 lakh 
Rs 3-7 lakh at 5% 
Rs 7-10 lakh at 10% 
Rs 10-12 lakh at 15% 
Rs 12-15 lakh at 20% 
Above Rs 15 lakh 30%

The change introduced in the tax slab is the increase in the tax-exempt salary from Rs 2,50,000 to Rs 3,00,000. With these changes, salaried employee can save up to Rs17,500 in income tax in New Tax Regime.&nbsp;

<img alt="tax" data-entity-type="file" data-entity-uuid="a04043f2-2309-48b7-835c-ef662ad95fb4" src="//cdn.wionews.com/sites/default/files/inline-images/employment%20%281%29.png" />

<h2>FM abolishes Angel tax, reduces TDS rate&nbsp;</h2>

Meanwhile, the finance minister abolished the Angel tax for all classes of investors and decreased the corporate tax rate on foreign companies from 40 to 35 per cent.&nbsp;

"Monetary limit for filing Tax appeals increased to Rs 60 lacs for ITAT, Rs 2 crores for High Courts and Rs 5 crores for Supreme Court...I propose to abolish the Angel tax abolished for all classes of investors. Corporate tax rate to be reduced on foreign companies from 40 to 35 per cent," Sitharaman said.&nbsp;

FM Sitharamanm speaking on TCS &amp; TDS, said, "TDS rate on e-commerce operators reduced from 1% to 0.1%"

"A comprehensive review of the customs duty structure over the next 6 months. TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date," the finance minister added.

Watch:&nbsp;Budget 2024: Nirmala Sitharaman presents the first budget of Modi's 3.0 government

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2024-nirmala-sitharaman-presents-the-first-budget-of-modis-30-government-743363/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," said Sitharaman, in her Budget speech.

"I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months,"&nbsp;the finance minister further said.

(With inputs from agencies)

India's Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 on Tuesday (July 23) in the Parliament made some major announcements regarding income tax rates.

India's Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 on Tuesday (July 23) in the Parliament made some major announcements regarding income tax rates. All the changes announced by FM Sitharaman were in the new tax regime and not in the old tax regime. Here are the changes announced in the tax slab The finance minister said that in the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000. Also Read: Union Budget 2024: Here's what Nitish's Bihar and Naidu's Andhra get for being key allies Meanwhile, for those filing tax in the new tax regime, the tax slab was revised as follows: No tax up to Rs 3 lakh Rs 3-7 lakh at 5% Rs 7-10 lakh at 10% Rs 10-12 lakh at 15% Rs 12-15 lakh at 20% Above Rs 15 lakh 30% The change introduced in the tax slab is the increase in the tax-exempt salary from Rs 2,50,000 to Rs 3,00,000. With these changes, salaried employee can save up to Rs17,500 in income tax in New Tax Regime. FM abolishes Angel tax, reduces TDS rate Meanwhile, the finance minister abolished the Angel tax for all classes of investors and decreased the corporate tax rate on foreign companies from 40 to 35 per cent. "Monetary limit for filing Tax appeals increased to Rs 60 lacs for ITAT, Rs 2 crores for High Courts and Rs 5 crores for Supreme Court...I propose to abolish the Angel tax abolished for all classes of investors. Corporate tax rate to be reduced on foreign companies from 40 to 35 per cent," Sitharaman said. FM Sitharamanm speaking on TCS & TDS, said, "TDS rate on e-commerce operators reduced from 1% to 0.1%" "A comprehensive review of the customs duty structure over the next 6 months. TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date," the finance minister added. Watch: Budget 2024: Nirmala Sitharaman presents the first budget of Modi's 3.0 government "I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," said Sitharaman, in her Budget speech. "I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," the finance minister further said. (With inputs from agencies)

Union Budget 2024: FM Sitharaman makes big announcements on Income Tax. Here's all you need to know

India's income tax receipts witnessed a significant rise of 17.7% for the financial year 2023/24, reaching nearly $235 billion. This growth reflects an increase in both personal income and corporate profits.

India sees 17.7% surge in income tax receipts

India's finance ministry clarified that they won't introduce any new change in the tax regime from April 1, 2024, as the income tax proposals of the interim budget come into effect from April 1.&nbsp;

In a post on X, the finance ministry cleared all the confusion over the new tax regime. There are low rates in the new tax regime. However, it has fewer exemptions and deductions.

Union Finance Minister Nirmala Sitharaman, while presenting the interim budget on February 1, 2024, had said that no changes will be made to taxation. She further said that the ministry will retain the same direct and indirect tax rates.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/wion-business-wrap-indias-direct-tax-collection-rise-airbus-ceos-concern-over-boeing-and-more-702213">WION Business Wrap | India’s direct tax collection rise, Airbus CEO's concern over Boeing and more</a>

<h2>What did the finance ministry clarify on the new tax regime?</h2>

In a post on X, the finance ministry said, “It has come to notice that misleading information related to new tax regime is being spread on some social media platforms.”

Six points regarding the taxes were shared by the ministry for the financial year 2024-25.&nbsp;

In the post, the ministry said, "It is therefore clarified that:

<ul>
	<li>There is no new change which is coming in from 01.04.2024.&nbsp;</li>
	<li>The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, as compared to the existing old regime (without exemptions) (SEE TABLE BELOW)</li>
	<li>New tax regime is applicable for persons other than companies and firms, is applicable as a default regime from the Financial Year 2023-24 and the Assessment Year corresponding to this is AY 2024-25.&nbsp;</li>
	<li>Under the new tax regime, the tax rates are significantly lower, though the benefit of various exemptions and deductions (other than standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime.&nbsp;</li>
	<li>New tax regime is the default tax regime, however, tax payers can choose the tax regime (old or new) that they think is beneficial to them.&nbsp;&nbsp;</li>
	<li>Option for opting out from the new tax regime is available till filing of return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year. So, they can choose new tax regime in one financial year and old tax regime in another year and vice versa."</li>
</ul>

Watch:&nbsp;Congress gets tax notice triggering a sit-in protest in Kerala

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/congress-gets-tax-notice-triggering-a-sit-in-protest-in-kerala-706087/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

According to the interim Budget, the government has also not changed the income tax slabs for the new financial year (FY2024-25).&nbsp;

<img alt="tax" data-entity-type="file" data-entity-uuid="9166379b-ffd6-4b22-9738-5ebfe7552504" src="//cdn.wionews.com/sites/default/files/inline-images/GKBLjDZXkAEduFS.jpg" />

(With inputs from agencies)

India's finance ministry clarified that they won't introduce any new change in the tax regime from April 1, 2024, as the income tax proposals of the interim budget come into effect from April 1.

India's finance ministry clarified that they won't introduce any new change in the tax regime from April 1, 2024, as the income tax proposals of the interim budget come into effect from April 1. In a post on X, the finance ministry cleared all the confusion over the new tax regime. There are low rates in the new tax regime. However, it has fewer exemptions and deductions. Union Finance Minister Nirmala Sitharaman, while presenting the interim budget on February 1, 2024, had said that no changes will be made to taxation. She further said that the ministry will retain the same direct and indirect tax rates. Also Read: WION Business Wrap | India’s direct tax collection rise, Airbus CEO's concern over Boeing and more What did the finance ministry clarify on the new tax regime? In a post on X, the finance ministry said, “It has come to notice that misleading information related to new tax regime is being spread on some social media platforms.” Six points regarding the taxes were shared by the ministry for the financial year 2024-25. In the post, the ministry said, "It is therefore clarified that: There is no new change which is coming in from 01.04.2024. The new tax regime under section 115BAC(1A) was introduced in the Finance Act 2023, as compared to the existing old regime (without exemptions) (SEE TABLE BELOW) New tax regime is applicable for persons other than companies and firms, is applicable as a default regime from the Financial Year 2023-24 and the Assessment Year corresponding to this is AY 2024-25. Under the new tax regime, the tax rates are significantly lower, though the benefit of various exemptions and deductions (other than standard deduction of Rs. 50,000 from salary and Rs. 15,000 from family pension) is not available, as in the old regime. New tax regime is the default tax regime, however, tax payers can choose the tax regime (old or new) that they think is beneficial to them. Option for opting out from the new tax regime is available till filing of return for the AY 2024-25. Eligible persons without any business income will have the option to choose the regime for each financial year. So, they can choose new tax regime in one financial year and old tax regime in another year and vice versa." Watch: Congress gets tax notice triggering a sit-in protest in Kerala According to the interim Budget, the government has also not changed the income tax slabs for the new financial year (FY2024-25). (With inputs from agencies)

India's finance ministry clears confusion on new tax regime. Here's its six-point sum-up

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