Income Tax

Centre's net direct tax collections rose 9% to ₹18.38 trillion till Jan 11

Net direct tax collection grew 8.82 per cent to over Rs 18.38 lakh crore in the current fiscal till January 11, the Income Tax Department said on Monday. The mop-up includes net corporate tax collection of over Rs 8.63 lakh crore and tax from non-corporates, including individuals and HUFs, of Rs 9.30 lakh crore. Securities Transaction Tax collection stood at Rs 44,867 crore between April 1 and January 11. Refunds dropped 17 per cent to Rs 3.12 lakh crore during the period. Gross direct tax collection increased 4.14 per cent to about Rs 21.50 lakh crore till January 11 of this fiscal. In the current fiscal (2025-26), the government has projected its direct tax collection at Rs 25.20 lakh crore, up 12.7 per cent year-on-year. The government aims to collect Rs 78,000 crore from STT in FY26.

Income Tax Act, 2025 to replace the 1961 law from April 1: Explained

What the Income Tax Act, 2025 changes and what stays the same for taxpayers

Budget 2026: Why higher super-rich tax may backfire, experts explain

Tax specialists warn higher surcharges could push wealth and talent overseas

Budget 2026: Experts ask govt to not up income tax surcharge on super rich

The government should refrain from raising income tax surcharge on the super-rich and reintroducing wealth tax in the upcoming 2026-27 Budget, as the move could prompt persons in high-income brackets to leave the country for low-tax jurisdictions, according to tax experts. Currently, a surcharge on income tax is payable by high-income individuals with earnings above Rs 50 lakh. A 10 per cent surcharge is levied on income between Rs 50 lakh and Rs 1 crore, 15 per cent (Rs 1-2 crore), and 25 per cent (Rs 2-5 crore). Those earning above Rs 5 crore and are in the new income tax regime pay a 25 per cent surcharge, while those under the old tax regime pay a surcharge at a 37 per cent rate. According to estimates by independent economists, the GST rate cut and lower income tax collections are likely to cost the exchequer around Rs 2 lakh crore in the current fiscal. Any additional source of revenue in FY27 could help the government in additional allocations towards defence and other ...

Simplified Income Tax Act 2025 to come into force from Apr 1: What it means

Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation. The 2025 I-T law is revenue neutral with no change in tax rates. It has only made direct tax laws simple to understand, removed ambiguities thus reducing scope for litigations. It reduces text volume and sections by about 50 per cent vis-a-vis the 1961 income tax act. The new law simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single 'tax year' framework. It also allows taxpayers to claim TDS refund even when ITRs are filed after deadlines, without any penal charges. Any changes with regard to taxation of individuals, corporates, HUFs and others, which are announced in the Budget for 2026-27 on February 1 will be incorporated in the new I-T Act, 2025. The rules to implement the new Income Tax law are .

Govt may relax transfer-pricing regime, make eligibility rules flexible

Move aimed at making safe-harbour rules more attractive and practical

I-T dept flags inaccuracies in returns, allows revised returns up to Dec 31

The notices have been issued under Section 142(1) of the Income-tax Act, which empowers the department to seek information or documents during assessment proceedings

Claimed donations in your ITR? Here's why many are revising returns now

CBDT's NUDGE campaign prompts over 1.5 mn taxpayers to revise their returns as the tax department cracks down on donation claims linked to unrecognised political parties and trusts

Can tax officials access emails and social media under new tax rules 2025?

Section 247 under the new Act allows authorised officers to access computer systems or virtual spaces, but strictly during search and survey operations where there is credible evidence of evasion

ITR refund stuck? Experts warn December 31 delays could block revisions

'Act fast: Rectification can save your refund if ITR isn't processed by year-end,' say experts

Got tax alert on property deals or foreign assets? I-T dept explains why

Authorities clarify that compliance alerts for high-value transactions are prompts for voluntary correction rather than a precursor to enforcement action

Income Tax dept emails flag cash deposits, property deals: What to do

Emails about high-value transactions in Annual Information Statements nudge people on compliance processes, say experts

Belated return: Claim refunds, credits, carry forward house property loss

If you file an updated return later, you will have to pay interest and additional tax, and will not be able to claim refunds

Foreign firms can't claim full head office expense deduction in India: SC

Tax experts said the ruling brings finality to the treatment of inter-office expenses for foreign banks and other multinational enterprises with Indian branches

I-T dept flags ₹5,500 cr in suspicious political donation-linked tax claims

Investigations found that intermediaries were advertising "guaranteed refunds" in cinema halls and on social media platforms, luring taxpayers into making non-genuine claims in return for a commission

I-T department sends SMS, emails warning of bogus political donation claims

The Income Tax department has started sending SMS and email advisories to taxpayers for wrongful deduction claims related to unrecognised political parties or charitable institutions, the finance ministry said on Saturday. The Central Board of Direct Taxes (CBDT) said through data analysis it has observed that huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations and have also claimed bogus refunds. "A targeted NUDGE campaign has been launched as a taxpayer-friendly measure, providing them opportunity to update their ITRs and withdraw wrong claims, if any. SMSs and Email advisories are being issued from 12th December 2025 to such taxpayers on their registered mobile numbers and emails," the finance ministry said in a statement. The CBDT said that evidence gathered from enforcement actions indicated that RUPPs, many of which were non-filers, non-operational at

I-T flags 25,000 “high-risk” cases for undisclosed foreign assets

The Income Tax Department has launched a fresh compliance drive targeting undisclosed foreign assets and income. Around 25,000 individuals will receive SMS and email alerts asking

ITO most feasible for Delhi govt's proposed twin-tower project: Officials

The Delhi government is expected to finalise ITO as the location for its proposed twin-towers, as it has received consent of the Income Tax (IT) department for sharing 4.5 acre land for the project, officials said on Tuesday. Delhi PWD minister Parvesh Verma held a meeting in which the issue of twin-tower was discussed by officials of his department and the Income Tax department. "A meeting was held today with the ACS (PWD) and the Principal Chief Commissioner of Income Tax regarding the Twin Tower matter. Senior officials from both departments were present," said the minister in a post on X. All key points were discussed in detail and clear directions were issued to take the necessary steps in a coordinated and effective manner, he stated. "There are several options available to us. But ITO has emerged as the most feasible location after all our discussions. Especially with cooperation from the Income Tax department now, we have availability of a bigger plot to come up with ...

Charitable institution forms to be overhauled ahead of new I-T Act rollout

Das said he shared stakeholders' concerns regarding the complexity of the existing audit report forms filed by trusts

ITR forms, rules under new Income Tax Act to be notified by Jan: CBDT chief

The I-T department will by January notify the ITR forms and rules under the simplified Income Tax Act, 2025, which will come into effect from next fiscal beginning April 1, Central Board of Direct Taxes (CBDT) chief Ravi Agrawal said on Monday. The intent of the department is to keep the I-T Return forms simple to ease compliance under the new law, which replaces the six-decade old Income Tax Act, 1961, he said. "We are in the process of designing forms and rules. We are working towards putting this in place by January so that taxpayers have sufficient time to adapt their processes within their system," Agrawal told reporters after launching the Taxpayers' Lounge at the India International Trade Fair (IITF). The intent is to keep the income tax return (ITR) forms simple for taxpayers to ease compliance, he added. The Income Tax Act, 2025 was passed by Parliament on August 12. All the different forms applicable under the Income Tax Act, like TDS quarterly return form and ITR forms,