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Under Section 40A(3) of the Income Tax Act, expenses paid in cash over a specific limit are not deductible, which supports the promotion of digital transactions and helps curb tax evasion. But what if a business initially fails to comply with this rule? Here, Section 40A(3A) provides a crucial remedial avenue, allowing businesses to correct such oversights. This provision permits companies to reclaim their initially disallowed deductions by converting cash transactions into n

Mutual funds are among the most popular investment choices because they enable you to reach your financial objectives. Additionally, mutual funds are tax-efficient investments. Because interest is added to your taxable income and taxed at your income tax slab rate, investing in fixed deposits is very disadvantageous, especially if you are in the highest income tax bracket. Mutual funds perform better in this area. Investing in a mutual fund offers you the advantages of tax-ef

The income tax reporting framework in India is undergoing a structured update starting April 1, 2026, in line with the implementation of the Income Tax Act 2025. One of the most important aspects of this transition is the introduction of updated income tax forms designed to simplify reporting and improve clarity in compliance. Over time, multiple forms were introduced for different purposes such as income reporting, declarations, deductions, and tax credits. This led to dupli

Freelancers earning from professions like consulting, design, writing, law, or medicine can streamline their tax process under Section 44ADA of the Income Tax Act. This provision offers a simplified compliance route, where up to ₹50 lakh in gross receipts (or ₹75 lakh with minimal cash turnover) can be declared at a flat 50% presumptive income. No detailed bookkeeping, no complex calculations. Just declare, pay advance tax if applicable, and file the return. However, even thi

Filing an Income Tax Return (ITR) can often be a complicated process, particularly when it involves capital gains from mutual funds. Many taxpayers are unaware of the correct way to report their mutual fund investments, leading to errors in their returns and potential delays in processing. Mutual fund investments can generate different types of income, including short-term and long-term capital gains, and each has its own tax treatment. Understanding how to correctly file the

Filing income tax returns is a mandatory task for millions of Indians, but for many first-time and casual taxpayers, the process often seems complex, intimidating, and costly. Recognizing this challenge, TaxBuddy, a pioneering AI-powered tax filing platform, has partnered with Jio Finance to launch an affordable and user-friendly ITR filing service for the financial year 2024-25. Starting as low as ₹24 for self-filing and with expert-assisted plans from ₹999, this new service

From April 1, 2026, India’s tax system is set to undergo a structural shift with the implementation of the Income Tax Act 2025. While the basic tax rates remain largely unchanged, several important updates will affect how income is reported, how deductions are claimed, and how different types of financial transactions are taxed. The focus of these changes is not on increasing the tax burden but on simplifying the overall framework. A unified “Tax Year” system will replace the

From April 1, 2026, India’s withholding tax system undergoes a major restructuring under the Income Tax Act 2025. The changes impact both Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), affecting how businesses deduct, collect, and report taxes. The new framework is not just a rate update. It involves structural changes such as renumbering of TDS sections, revised compliance forms, updated reporting formats, and stricter alignment with digital systems. Certain

Form 130 is designed to provide a complete view of an individual’s salary income, tax deductions, and related details in a standardised format. It also introduces a more detailed structure with multiple sections and annexures, making it easier to understand how income is calculated and how tax has been deducted throughout the year. Another key change is that Form 130 will be generated only through the TRACES portal in an electronic format. This ensures uniformity across emplo

A salary is a type of fixed remuneration that an employee receives for working for a certain amount of time. However, the term "salary" as used in income tax also refers to several additional payments made to employees by their employers. The Income Tax Act's Section 17 contains specifics about the advantages that employers offer to their staff. Salary is the primary income head that is taken into account when submitting an income tax return. The explanation of salary is cove