You pay your rent diligently each month, file your income tax returns on time, and even claim your House Rent Allowance (HRA). But suddenly, an unexpected Income Tax Notice arrives, questioning your rent payments and demanding answers. The trigger? A little-known TDS obligation tied directly to monthly rents above ₹50,000, which many tenants overlook, leaving … Read more
Starting from the financial year 2023-24 (assessment year 2024-25), the new tax regime is now the default option. Unless taxpayers specifically opt for the old tax regime, tax will be deducted based on the new system by default. However, the process of selecting a tax regime depends on the source of income—salaried individuals follow different … Read more
Tax calculations: The Centre has once again aimed to enhance the appeal of the New Tax Regime by introducing lower tax rates and reducing deductions. This restructuring aims to simplify taxation, while the Old Regime continues to provide tax benefits through various exemptions and deductions. The proposed income tax slabs in the Union Budget 2025 … Read more
Budget expectations: On February 1, 2025, Union Budget will be presented by Finance Minister Nirmala Sitharaman at the Lok Sabha. Income taxpayers are expecting significant tax breaks. The taxpayers may expect some big changes as PM Narendra Modi and President Draupadi Murmu hinted at some major shakeup. Ahead of the Budget 2025, President Draupadi Murmu suggested … Read more
Old Tax Regime vs New Ta Regime: Taxpayers often find themselves in a quandary when it comes to selecting the most suitable income tax regime. The Income Tax Department allows individuals to choose their preferred income tax regime for a particular financial year, with the frequency of switches permitted based on one’s profession or specific criteria … Read more
DA increase: The recent increase in dearness allowance (DA) for current central government employees and dearness relief (DR) for pensioners by 3% for the period of July-December 2024 has been implemented by the Central Government. The revised DA has been effective since July 1, 2024, bringing the allowance to 53% of the basic pay. This has … Read more
DA hike: The Centre is anticipated to make an announcement regarding the second hike in Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners from July 2024 in September. It is estimated that the government led by Prime Minister Narendra Modi might sanction a 3% increase in DA and DR during this phase. … Read more
Income Tax returns: With the two tax regimes — New Tax Regime and Old Tax Regime — in play, the taxpayers now have the power to choose the suitable tax regime every year to control the tax outgo. Union Finance Minister Nirmala Sitharaman, in an effort to enhance the attractiveness of the New Tax Regime … Read more
Union Budget 2024: Finance Minister Nirmala Sitharaman on Tuesday tabled the Union Budget 2024-25 in the Parliament on Tuesday, wherein she introduced some changes to the direct taxes. FM Sitharaman made notable adjustments in the Income Tax Regulations to benefit the middle-class sector. One significant change is the 50% increase in the Standard Deduction, now … Read more
By now, most taxpayers should have received their Form 16. Employers deduct House Rent Allowance (HRA) from salaries, and this deduction can be seen in part B of Form 16 when filing an Income Tax Return (ITR). It is crucial to understand that HRA exemption under Section 10(13A) can only be claimed if one lives … Read more