Tax Deductions

Sudden I-T 'NUDGE' unsettles taxpayers ahead of December 31 deadline

CBDT is reaching out via SMS and email under its NUDGE campaign, urging identified taxpayers to review potentially ineligible deductions for AY 2025-26 and revise returns by December 31, 2025

40% tax deduction applies only to income from long-term finance: SC

The Supreme Court has held that statutory corporations cannot claim a 40% tax deduction on income not directly derived from long-term finance

Political donations, medical claims:How to avoid I-T scrutiny on deductions

Ignorance is not a defence and taxpayers have to give proof to justify claims, say experts

I-T dept conducts raids in multiple cities in bogus tax deductions case

The Income-Tax Department on Monday launched multi-city raids as part of a tax evasion probe against those entities which assist certain individuals avail bogus deductions in their returns by claiming a variety of exemptions, official sources said. They said false deductions claimed by persons in lieu of making political donations to registered or unregistered political parties, payment of medical insurance, tuition fee and certain category of loans are among those cases which are being investigated as part of these raids. Certain individuals and their tax advisors like filers and accountants, who help them claim bogus exemptions, are being searched as part of the operation, they said. The action was taken after it was found that certain taxpayers have not filed their updated correct ITRs (Income Tax Returns) even after the tax department approaching them under the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign which has a philosophy of 'trust taxpayers first', the

How to save tax smartly under the new regime without 80C or HRA

The ITR deadline is September 15 and if you’ve opted for the new tax regime, you might be wondering: Can I still save on taxes without 80C, HRA, or LTA? In this episode of PF Guide, we break down:

Retired and saving? CBDT's new guide helps you maximise tax benefits

CBDT's new brochure breaks down tax benefits for retirees, covering exemptions, deductions, and filing ease, making post-retirement money matters clearer and easier to manage

Old vs new tax regime: which one saves you more money in ITR filing

A breakdown of deductions, exemptions, savings under the old and new systems will help you manage your finances

Companies can't claim tax deduction on regulatory settlements, says govt

The tax department clarified that any expenditure incurred to resolve proceedings under four specific laws will not be treated as a business expense

Failure to deduct tax under Section 194-IA may deem transferee as default

From April 1, 2025, the higher TDS rate for non-filers (as per Section 206AB) will not apply under Section 194-IA

Donations to Ayodhya Ram Mandir can help you save taxes: Here is how

You can claim a 50% deduction on your donation under Section 80G of the Income Tax Act

March 31 deadline: Invest in tax saving instruments to claim deduction

If you have chosen the old tax regime, ensure that your tax-saving investments under Sections 80C, 80D, 80G, and others are made before March 31 to maximise tax benefits

40,000 taxpayers under lens for deductions, CBDT targets TDS defaulters

The focus will be on habitual violators, cases showing significant gaps between tax deductions and advance tax payments, instances involving frequent revisions to deductee details

Budget proposals to garner up to Rs 45,000 cr bank deposit: DFS Secy

Budget proposals for income tax cuts and other tax changes will help banks to mobilise Rs 40,000-45,000 crore additional deposits, Financial Services Secretary M Nagaraju on Monday said. The Union Budget 2025 has proposed an increase in the tax deduction at source (TDS) threshold on interest earned from fixed deposits for general (non-senior) citizens from the current Rs 40,000 to Rs 50,000 per financial year. The TDS threshold for fixed deposit interest income earned by senior citizens will go up from Rs 50,000 to Rs 1 lakh from FY2025-26, he said. "We see over Rs 20,000 crore coming back into the banking system due to the hike in tax rebate limit, over Rs 15,000 crore from the hike in TDS threshold on interest earned from savings deposits by senior citizens," he said in a post-Budget media briefing. Besides these two, Rs 7,000 crore is seen coming from the non-senior individuals tax savings due to the income tax slab changes, he added. Asked about MTNL debt resolution and haircu

What is standard deduction for salary, pension income post Budget 2025?

The standard deduction was last hiked in Interim Budget 2024, but only in the new tax regime

90k salaried individuals withdraw wrongful tax claims worth Rs 1,070 crore

As many as 90,000 salaried individuals, both from PSUs and the private sector, have withdrawn wrongful tax deductions claims totalling Rs 1,070 crore as of December 31, 2024, government sources said on Thursday. During various search & seizure and survey operations conducted by Income Tax Department, it has come to notice that various individuals are claiming incorrect deductions, under sections 80C, 80D, 80E, 80G, 80GGB, 80GGC, in their ITRs, leading to reduction of tax payable to the government. During investigation, it was revealed that such individuals are employees of organisations operating in diverse fields including PSUs, big corporations, MNCs, LLPs, Private Ltd Companies, etc, sources said. Also, most of them who claimed wrongful deductions were working in the same company. Analysis of the information with the department showed that there is a vast mismatch between total deductions under section 80GGB/80GGC claimed by taxpayers in their ITRs as against the total receipts

Buy base policy, super top-up from same insurer to simplify claims

The deductible is the amount paid through the base policy or out of pocket before the super top-up kicks in. A higher deductible reduces the premium

Union Budget 2024: How Key changes in TDS rates simplify life for taxpayers

Budget has proposed to provide a standard operating procedure for TDS defaults and simplify the compounding guidelines for defaults

Budget 2024: Capital markets eyeing hike in STT on high-frequency traders

Union Budget 2024: The Securities Transaction Tax (STT) applies to every sale and purchase of equities listed on exchanges. The STT rate for selling options is 0.017%, while for futures, it is 0.01%

Budget 2024: FinMin seeks views on tax rates, laws for reducing litigation

The Finance Ministry has invited suggestions on direct and indirect taxes and changes in laws to reduce compliances for the 2024-25 Budget from trade and industry associations. The suggestions are to be sent to the ministry by June 17 and the full budget for 2024-25 is expected to be presented in Parliament in the second half of July. The suggestions could include changes in the duty structure, rates and ideas on broadening of tax base on both direct and indirect taxes giving economic justification for the same, as per the ministry. For changes in customs and excise duties, the trade and industry would have to supplement and justify their demand with relevant statistical information about production, prices, and revenue implication of the changes suggested. The request for correction of inverted duty structure would have to be supported by value addition at each stage of manufacturing of the commodity. With regard to direct taxes, the ministry said the suggestions could be also on

Tax tribunals in Delhi and Mumbai allow deductions for CSR donation

Tax authorities had earlier argued that since CSR expenditures were mandated by law, they were not voluntary and therefore, did not qualify as donations for tax deductions