accounting tally taxation tutorials: Income Tax

Showing posts with label Income Tax. Show all posts

Thursday, July 16, 2026

tcs new rules on overseas tour package for the financial year 2026-2027

TCS on Overseas Tour Package

Earlier:

Below 7Lakhs: 5%
Above 7Lakhs: 20%

WEF: 01.04.2026:

Uniform 2% flat

TCS full form and definition in Taxation.

TCS full form is Tax Collection at Source

Tax Collected at Source (TCS) is a tax collection mechanism under Section 206C of the Income-tax Act, 1961, under which specified sellers are required to collect tax from buyers, licensees, or lessees at the time of specified transactions. The tax collected is then deposited with the Central Government. It is collected on notified goods and specified transactions at the prescribed rates and can generally be claimed by the buyer as a tax credit while filing their income tax return, subject to applicable provisions.

source:

Introduction of Tax Year in Income Tax Act wef 01.04.2026

Earlier:

Two confusing terms:
Previous Year (you earn) + Assessment Year (you file)

WEF: 01.04.2026:

Tax Year=the year you earn income and file taxes

How will it affect you?:

Tax Year 2026 =income earned Apr 2025-Mar2026. Simpler, cleaner, less confusing for everyone.
source:

Saturday, July 11, 2026

Form 26AS/AIS replaced by Form 168 for the financial year 2026-2027

Form 26AS/AIS (Summary of all taxes linked to PAN)

Under the new income tax rules 2026, Form 26AS/AIS was replaced by new Form 168

AIS (Annual Information Statement)

Form 168 Read Full Information:

https://www.incometaxindia.gov.in/documents/d/guest/fn-168

SOURCE:

Form 16 replaced by Form 130 for the financial year 2026-2027

Form 16 replaced with Form 130 for the financial year 2026-2027

Form 16 (Employer Salary TDS Certificate)

Under the new income tax rules 2026, Form 16 was replaced by new Form 130

Form 130 Read Full Information :

http://incometaxindia.gov.in/documents/d/guest/form-130-faqs

SOURCE

Salary Structure is changing in CTC for the financial year 2026-2027

Earlier:

Base component was usually 25 - 40% of CTC (Cost to Company)

WEF: 01.04.2026:

Uniform wage definition will apply
Wages = Base + DA + retaining allowance must be at least 50% of CTC
PF, gratuity, etc. will be calculated on this

How will it affect you ?

Since DA and retaining allowance are rare in private jobs
Base salary will increase to 50% of CTC

SOURCE:

Saturday, July 6, 2019

budget 2019-20: pan and aadhaar interchangeable for it returns

Budget 2019-20 Highlights

Direct Tax

IT returns can now be filed, using either Aadhaar card or Pan card

budget 2019-20: pan and aadhaar interchangeable for it returns

Good News to Indian Tax Payers, They will need to use either Aadhaar card or PAN card to file their income tax returns (ITR) from now onwards.

Union Finance Minister Nirmala Sitharaman announced during Union Budget 2019 that taxpayer who does not have Permanent Account Number (PAN) can use their Aadhaar card to file their Income Tax Return. So, People who do not have PAN, can now file their income tax return, by simply quoting their Aadhaar number.

PAN card and Aadhaar card can be used interchangeably to file income tax returns. This will allow those without PAN to file income tax by using their Aadhaar card numbers.

Aadhaar card for NRIs with Indian passports will be issued after their arrival in India, without waiting for the mandatory 180 days.

If a taxpayer has already linked his Aadhaar with his PAN, he or she has the choice to use Aadhaar instead of PAN under the Income Tax Act.

Monday, April 29, 2019

income tax changes for ay 2018-19, ay 2019-20 and ay 2020-21

Read Also

income tax slab rates for ay 2018-19

Tax Planning Tips for Salaried Employess

Cess on Tax

AY 2018 - 2019 : @ 3%

AY 2019 - 2020 : @ 4%

AY 2020 - 2021 : @ 4%

Standard Deduction for Salary - Section 16

AY 2018 - 2019 : NA

AY 2019 - 2020 : Rs.40,000

AY 2020 - 2021 : Rs.50,000

Deemed Let out Property

AY 2018 - 2019: Only one property allows ed as self-occupied and others are charged notional rent

AY 2019 - 2020: Only one property allows ed as self-occupied and others are charged notional rent

AY 2020 - 2021: Exempt levy of income tax on notional rent on second occupied houses

Stamp Duty valuation - section 50c

AY 2018 - 2019: Change between actual consideration and stamp duty valuation to be considered

AY 2019 - 2020: Change between actual consideration and stamp duty valuation to be considered

AY 2020 - 2021: Consider Stamp Duty Value only if it exceeds 105% of the declared consideration

Exemption under section 54

AY 2018 - 2019: Can avail against the purchase of ONE residential property only

AY 2019 - 2020: Can avail against the purchase of ONE residential property only

AY 2020 - 2021: Can avail against the purchase of TWO residential property if CG < 2 Crore

Holding Period of Investment - Section 54ec

AY 2018 - 2019: 3 Years

AY 2019 - 2020: 5 Years

AY 2020 - 2021: 5 Years

Tax on LTCG (Long Term Capital Gains) Share (Securities transaction tax) STT Paid Cases

AY 2018 - 2019 : Exempt under Section 10(38)

AY 2019 - 2020 : Taxable @10% if CG > Rs.1,00,000

AY 2020 - 2021 : Taxable @10% if CG > Rs.1,00,000

Rebate under section 87a for Resident Individuals

AY 2018 - 2019 : Upto Rs. 2500 if Total Income < Rs.3,50,000

AY 2019 - 2020 : Upto Rs. 2500 if Total Income < Rs.3,50,000

AY 2020 - 2021 : Upto Rs. 12500 if Total Income < Rs.5,00,000

Deduction in respect of interest on deposits in case of senior citizens Section 80ttb

AY 2018 - 2019: NA

AY 2019 - 2020: Rs.50000 (80TTA not available to this category)

AY 2020 - 2021: Rs.50000 (80TTA not available to this category)

Deduction under section 80D

AY 2018 - 2019 :

1. Assessee and family maximum Rs.25,000
2. Parents of Assessee Rs. 25,000
3. The medical expense of Assessee and Family Member only for Very Senior Citizen Rs.30,000
4. The medical expense of Parents only for Very Senior Citizen Rs. 30,000

Total Deduction available in respect of all above is Rs.30,000

AY 2019 - 2020 :

1. Assessee and family maximum Rs.25,000
2. Parents of Assessee Rs. 25,000
3. The medical expense of Assessee and Family Member only for Senior Citizen Rs.30,000
4. The medical expense of Parents only for Senior Citizen Rs. 30,000

Total Deduction available in respect of all above is Rs. 50,000

AY 2020 - 2021 :

1. Assessee and family maximum Rs.25,000

2. Parents of Assessee Rs. 25,000

3. The medical expense of Assessee and Family Member only for Senior Citizen Rs.30,000

4. The medical expense of Parents only for Senior Citizen Rs. 30,000

Total Deduction available in respect of all above is Rs. 50,000

Deduction under section 80ddb (Medical Treatment for specified disease)

AY 2018 - 2019 :

1. Normal Citizen-Rs. 40,000
2. Senior Citizen-Rs. 60,000
3. Very Senior Citizen-Rs. 80,000

AY 2019 - 2020 :

1. Normal Citizen-Rs. 40,000
2. Senior Citizen- Rs. 1,00,000

AY 2020 - 2021 :

1. Normal Citizen-Rs. 40,000
2. Senior Citizen- Rs. 1,00,000

TDS Limit under section 194a

AY 2018 - 2019 :

Rs.5000 in the case of Non-Bank and Rs.10,000 in the case of Bank and P O.

AY 2019 - 2020 :

Rs. 5000 in the case of Non-Bank
Rs. 10,000 in the case of Bank and P .O. for Normal Citizens and Rs.50,000 for Senior Citizen

AY 2020 - 2021 :

Rs. 5000 in the case of Non-Bank
Rs. 40,000 in the case of Bank and P .O. for Normal Citizens and Rs.50,000 for Senior Citizen

TDS (tax deduction at source) Limit under section 194i

AY 2018 - 2019 : Rs.1,80,000

AY 2019 - 2020 : Rs.1,80,000

AY 2020 - 2021 : Rs.2,40,000

Thanking you

Credit to

Sree Rajarajeswari

Read Also

income tax slab rates for ay 2018-19

Tax Planning Tips for Salaried Employess

Wednesday, February 13, 2019

income tax slab rates for fy 2018-19

Income tax slab rates for A.Y: 2019-20/ F.Y: 2018-19 for

Individual

Senior Citizen

Super Senior Citizen and

Surcharge

Health and Education Cess

General Person earning INR. 2.5 lakh annually has been exempted from paying taxes, while those having income up to INR. 5 lakh will be charged income tax at 5 %

Senior Citizen (60 - 79 years) earning INR.3 lakh annually has been exempted from paying taxes.

Super Senior (80 years above) earning INR.5 lakh annually has been exempted from paying taxes.

Normal Rates of Income Tax for F.Y: 2018-19

Income Tax Slab Rates for Senior Citizen for F.Y: 2018-19

Income Tax Slab Rates for Super Senior Citizen for F.Y: 2018-19

Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Act, shall be increased by a surcharge for the purpose of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act,-

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten percent of such income-tax and

(b) having a total income exceeding one crore rupees, at the rate of fifteen percent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding;-

(a) Fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Health and Education Cess

Education Cess on income-tax and Secondary and Higher Education Cess on income-tax shall be discontinued. However, a new cess, by the name “Health and Education Cess” shall be levied at the rate of four percent of income tax including surcharge wherever applicable, No marginal relief shall be available in respect of such cess.

Wednesday, October 10, 2018

date for filing itr ay 2018-19

new date for filing audited balance sheet 31.10.2018

On consideration of representations from various stakeholder for further extension of due date is 30th September, 2018 for purpose of filing return of income as well as various reports of audit pertaining to Assessment Year 2018--19 for assessees covered under clause (a) of Explanation 2 of section 139 (1) of the income tax Act, 1961 (Act), the Board, in partial modification of its order dated 24.09.2018 in file of even number, hereby, further extends the due date for filing of return of income and reports of audit pertaining to Assessment Year 2018-19 from 15th, Oct 2018 to 31st October 2018. However as specified in earlier order dated 24.09.2018, assessees filing their return of income within the extended due date shall be liable for levy of interest as per provisions of section 234A of the Act.

New Due Date for filing IT Returns FY: 2017-18

Wednesday, July 18, 2018

itr forms for ay 2018-19

ITR 1

For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh

ITR 2

For Individuals and HUFs not having income from profits and gains of business or profession

ITR 3

For individuals and HUFs having income from profits and gains of business or profession

ITR 4

For presumptive income from Business & Profession

ITR 5

For persons other than:-
(i) Individual,
(ii) HUF,
(iii) Company and
(iv) Person filing Form ITR-7

ITR 6

For Companies other than companies claiming exemption under section 11

ITR 7

For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

download ITR New Validation Rules
https://www.incometaxindiaefiling.gov.in/downloads/schema

download ITR New Excel Utility and Java Utility
https://www.incometaxindiaefiling.gov.in/downloads/offlineUtilities

New Post

TCS on Overseas Tour Package

Earlier:

Below 7Lakhs: 5%Above 7Lakhs: 20%

WEF: 01.04.2026:

TCS full form and definition in Taxation.

Earlier:

Two confusing terms:Previous Year (you earn) + Assessment Year (you file)

WEF: 01.04.2026:

Tax Year=the year you earn income and file taxes

How will it affect you?:

Tax Year 2026 =income earned Apr 2025-Mar2026. Simpler, cleaner, less confusing for everyone.source:

Form 26AS/AIS (Summary of all taxes linked to PAN)

Form 168 Read Full Information:

Form 16 replaced with Form 130 for the financial year 2026-2027

Form 16 (Employer Salary TDS Certificate)

Form 130 Read Full Information :

Budget 2019-20 Highlights

Direct Tax

Cess on Tax

AY 2018 - 2019 : @ 3%

AY 2019 - 2020 : @ 4%

AY 2020 - 2021 : @ 4%

Standard Deduction for Salary - Section 16

AY 2018 - 2019 : NA

AY 2019 - 2020 : Rs.40,000

AY 2020 - 2021 : Rs.50,000

Deemed Let out Property

AY 2018 - 2019: Only one property allows ed as self-occupied and others are charged notional rent

AY 2019 - 2020: Only one property allows ed as self-occupied and others are charged notional rent

AY 2020 - 2021: Exempt levy of income tax on notional rent on second occupied houses

Stamp Duty valuation - section 50c

AY 2018 - 2019: Change between actual consideration and stamp duty valuation to be considered

AY 2019 - 2020: Change between actual consideration and stamp duty valuation to be considered

AY 2020 - 2021: Consider Stamp Duty Value only if it exceeds 105% of the declared consideration

Exemption under section 54

AY 2018 - 2019: Can avail against the purchase of ONE residential property only

AY 2019 - 2020: Can avail against the purchase of ONE residential property only

AY 2020 - 2021: Can avail against the purchase of TWO residential property if CG < 2 Crore

Holding Period of Investment - Section 54ec

AY 2018 - 2019: 3 Years

AY 2019 - 2020: 5 Years

AY 2020 - 2021: 5 Years

Tax on LTCG (Long Term Capital Gains) Share (Securities transaction tax) STT Paid Cases

AY 2018 - 2019 : Exempt under Section 10(38)

AY 2019 - 2020 : Taxable @10% if CG > Rs.1,00,000

AY 2020 - 2021 : Taxable @10% if CG > Rs.1,00,000

Rebate under section 87a for Resident Individuals

AY 2018 - 2019 : Upto Rs. 2500 if Total Income < Rs.3,50,000

AY 2019 - 2020 : Upto Rs. 2500 if Total Income < Rs.3,50,000

AY 2020 - 2021 : Upto Rs. 12500 if Total Income < Rs.5,00,000

Deduction in respect of interest on deposits in case of senior citizens Section 80ttb

AY 2018 - 2019: NA

AY 2019 - 2020: Rs.50000 (80TTA not available to this category)

AY 2020 - 2021: Rs.50000 (80TTA not available to this category)

Deduction under section 80D

AY 2018 - 2019 :

AY 2019 - 2020 :

AY 2020 - 2021 :

1. Assessee and family maximum Rs.25,000 2. Parents of Assessee Rs. 25,000 3. The medical expense of Assessee and Family Member only for Senior Citizen Rs.30,000 4. The medical expense of Parents only for Senior Citizen Rs. 30,000

Deduction under section 80ddb (Medical Treatment for specified disease)

AY 2018 - 2019 :

AY 2019 - 2020 :

AY 2020 - 2021 :

TDS Limit under section 194a

AY 2018 - 2019 :

AY 2019 - 2020 :

AY 2020 - 2021 :

TDS (tax deduction at source) Limit under section 194i

AY 2018 - 2019 : Rs.1,80,000

AY 2019 - 2020 : Rs.1,80,000

AY 2020 - 2021 : Rs.2,40,000

Normal Rates of Income Tax for F.Y: 2018-19

Income Tax Slab Rates for Senior Citizen for F.Y: 2018-19

Income Tax Slab Rates for Super Senior Citizen for F.Y: 2018-19

Surcharge on Income tax:

Health and Education Cess

ITR 1

ITR 2

ITR 3

Below 7Lakhs: 5%
Above 7Lakhs: 20%

Two confusing terms:
Previous Year (you earn) + Assessment Year (you file)

Tax Year 2026 =income earned Apr 2025-Mar2026. Simpler, cleaner, less confusing for everyone.
source:

1. Assessee and family maximum Rs.25,000

2. Parents of Assessee Rs. 25,000

3. The medical expense of Assessee and Family Member only for Senior Citizen Rs.30,000

4. The medical expense of Parents only for Senior Citizen Rs. 30,000