Income Tax Department

IT rules for online lower, nil TDS certificates to be notified soon: Govt

The Income Tax department is currently in the process of framing rules to implement the 2026-27 Budget provision that allows taxpayers to electronically apply for lower or nil TDS certificates electronically, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said Section 395(1) of the Income-tax Act, 2025 provides for the issuance of certificates for deduction of tax at source at Nil or lower rates. Vide Finance Act, 2026, to ease the compliance burden of small taxpayers, an option has been enabled for the payee, to file the application for issuance of certificates for lower or nil deduction of income-tax electronically and the certificate may be issued or rejected subject to fulfilment of conditions as may be prescribed. "... the enabling rule is currently under preparation and shall be notified in due course," Chaudhary said in a written reply in the Lok Sabha. A taxpayer typically applies for a lower or nil TDS certificate when their actual tax ...

Income tax department's NUDGE drive resulted in 12.5 mn updated ITRs

The income tax department's NUDGE campaign has resulted in 1.25 crore taxpayers filing updated or revised ITRs with payment of Rs 9,494 crore in additional taxes over the past 2 years, Minister of State for Finance Pankaj Chaudhary said on Monday. The Central Board of Direct Taxes (CBDT) has undertaken the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign by leveraging data analytics, behavioural insights and digital communication platforms for improved tax collection efficiency in a non-intrusive manner. Under these campaigns, communications are sent to select taxpayers after due risk analysis to review and revise/update their Income Tax Returns (ITRs) already filed. The taxpayers are selected on the basis of advanced risk analysis identifying incorrect or non-reporting of assets or income, or excess claims of deductions or exemptions in their ITRs. During 2024-25 and 2025-26, the NUDGE campaign has resulted in 1.25 crore updated or revised ITR filings, and payment o

Tax Bill to widen steps to attract foreign investment, ease rules

The government plans to widen tax incentives for offshore funds, electronics, data centres and diamond trading to attract long-term foreign investment and boost ease of doing business

Disputed tax demand drops ₹16,690 cr after hike in tax appeal limits: Govt

The increase in monetary thresholds for filing tax dispute appeals at ITAT, high courts, and the Supreme Court has led to about Rs 16,690 crore reduction in disputed tax demand, Parliament was informed on Monday. In a written reply to the Lok Sabha, Finance Minister Nirmala Sitharaman gave details of the total number of cases withdrawn/not filed, and the estimated reduction in disputed tax demand due to enhanced monetary limits for filing departmental appeals, from September 17, 2024. About 443 cases have been withdrawn and while 11,390 appeals were not filed before the Income Tax Appellate Tribunal (ITAT) after the increase in monetary threshold. The total estimated reduction in disputed tax demand at ITAT was Rs 3,662.82 crore. Similarly, 4,791 cases were withdrawn and 5,565 appeals were not filed before the high courts. The reduction in disputed demand was an estimated Rs 9,218.71 crore. At the Supreme Court, 744 cases were withdrawn and appeals not filed in 534 cases. This ...

More than 59 million ITRs filed for AY27 by July 31: I-T department

Over 5.9 crore ITRs have been filed for AY 2026-27 by July 31, the income tax department said on Saturday. The last date for filing income tax returns (ITRs) 1 and 2 -- for assessees who do not have to get their accounts audited -- for Assessment Year 2026-27 without penalty and interest -- was July 31. Last year, over 7.3 crore ITRs were filed by September 16, 2025, which was the extended date for filing tax returns for AY 2025-26. "Over 5.9 crore ITRs filed for AY 2026-27 by July 31st!," the I-T department said in a post on X on Saturday. ITR Form 1 (Sahaj) is a simpler form that caters to a large number of small and medium taxpayers. Sahaj can be filed by a resident individual having annual income up to Rs 50 lakh and who has salary income, one house property, and agricultural income up to Rs 5,000 a year. ITR-2 is filed by individuals and HUFs not having income from profits and gains in business or profession, but having income from capital gains.

Over 55 million income tax returns filed by Friday noon: I-T department

The department has been urging taxpayers, particularly those eligible to file simpler forms such as ITR-1 (Sahaj) and ITR-2, to complete the process early

CBDT's crypto asset tax reporting: What it means for exchanges, investors

The Central Board of Direct Taxes (CBDT) has issued a guidance note specifying that crypto exchanges and other intermediaries will have to report all transactions on their platforms to the Income Tax department. The objective of the guidance note on crypto asset reporting obligations is to bridge the information gap that existed because such assets could be transferred or held outside the traditional financial system. It is more procedural in nature while ensuring that crypto transactions become part of a transparent global tax reporting ecosystem. The note intends to explain the reporting obligations of Reporting Crypto-Asset Service Providers (RCASP) in line with the Crypto-Asset Reporting Framework (CARF) developed jointly by the Organisation for Economic Cooperation and Development (OECD) and participating countries, including India. The CARF is a global tax transparency framework which provides for the automatic exchange of tax-relevant information on transactions in crypto ..

Don't make citizens run from pillar to post: Sitharaman to I-T officials

Union Finance Minister Nirmala Sitharaman on Sunday urged the Income Tax department to work for the benefit of common people without making them run from pillar to post. She also went public with her disappointment at the "laidback" nature of government departments, which leads to illegal occupation or encroachments on government lands and underlined the need for integrity in conduct from all officials. Citing the challenges faced by the department in getting permissions to construct a building in the Nariman Point business district, which she inaugurated on Sunday, Sitharaman said these experiences, despite serving in the Indian Revenue Service (IRS), would have given them an idea of what the common man goes through. An IRS officer has the name of the Income Tax department behind him, a "powerful force to frighten people", Sitharaman reminded, adding that despite this, the officials had to run from pillar to post to get clearances from authorities to proceed with work on the 13-flo

FM Sitharaman nudges I-T authorities to speed up appeal disposals

Finance Minister Nirmala Sitharaman said the tax department must strengthen litigation management and prevent disputes as over 5.4 lakh first appeals remain pending

Tax laws are made for the living; I-T notice to dead person invalid: HC

Allahabad High Court said tax authorities cannot make an invalid notice valid by later adding a legal heir, and must instead issue fresh notice directly to legal representative within prescribed time

Income tax department running short of 26,997 officers and support staff

The Income Tax Department is running short of 26,997 officers and support staff as of January 1, 2026, Parliament was informed on Monday. "The vacancies in Group A, B & C in the Income Tax Department as on January 1, 2026, are 26,997. Occurrence and filling up of vacancies is a continuous process," Minister of State for Finance Pankaj Chaudhary said in a written response to the Lok Sabha. As and when vacancies arise, such vacancies are filled regularly in accordance with the terms of the mode of recruitment prescribed in the relevant recruitment rules, namely direct recruitment through UPSC/SSC or through promotion as applicable, it added. Further, the introduction of the New Income Tax Act, 2025, has resulted in a landmark development to simplify language, remove obsolete provisions and consolidate & restructure provisions, it said. Measures have been taken to strengthen and modernise the tax administration by leveraging information and digital technology for ease of filing, .

I-T department raises Cost Inflation Index for current fiscal to 384

The income tax department has increased the Cost Inflation Index for the current fiscal for calculating long-term capital gains arising from the sale of immovable property, securities and jewellery. The Cost Inflation Index (CII) is used by taxpayers to calculate gains from the sale of capital assets after adjusting inflation. The Cost Inflation Index for FY 2026-27 is 384, as per a notification of the Central Board of Direct Taxes (CBDT). The CII for fiscal 2025-26 was 376. AMRG Global Managing Partner Rajat Mohan said the annual notification of the Cost Inflation Index reflects the government's commitment to maintaining an objective inflation-adjustment mechanism wherever indexation benefits continue under the new tax framework. It provides taxpayers, valuers and tax professionals with clarity for computing the indexed cost and reduces interpretational disputes, Mohan added. CII or Cost Inflation Index is notified under the Income-tax Act, 1961 every year. It is popularly used

File full and accurate details in tax return forms to claim deductions

Providing incomplete or inaccurate information can have penal consequences

I-T dept flags up to 20,000 ITRs for 'swapped provisions': What to do

Revised returns are meant for corrections, not tax-saving experiments; experts explain why 'swapped provisions' can trigger action

Net direct tax collections rise 14.6% to ₹5.21 trn till June 17 in FY27

Gross direct tax collections increased 12.46 per cent to ₹6.1 trillion from ₹5.4 trillion recorded a year earlier

Could your income tax return face complete scrutiny under CBDT's new rules?

The CBDT has identified six categories of taxpayers for mandatory complete scrutiny in FY27. Understanding the triggers can help taxpayers stay prepared

Indispensable checks you must run before using Form 16 to file ITR

Before filing ITRs, salaried taxpayers should reconcile Form 16 and Form 16A with AIS, Form 26AS and personal records to avoid errors and notices

CBDT pushes banks, MFs to file error-free transactions by May 31

CBDT has asked banks, mutual funds and other reporting entities to ensure timely and error-free filing of Statements of Financial Transactions

SC to hear tax department plea against Vedanta relief in TDS dispute

The Supreme Court agreed to examine the Income Tax Department's plea against a Madras High Court ruling that granted Vedanta partial relief in a TDS dispute

Charities, trade bodies come under Income-Tax Department scrutiny

The Income Tax Department has issued notices to trusts and associations, flagging "commercial receipts" and questioning their eligibility for tax exemptions under the law