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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

Income tax in India is a direct tax charged on the income earned by individuals, businesses, and other entities during a financial year. It is one of the primary sources of revenue for the government and plays a key role in funding public services, infrastructure development, and economic growth. The tax is calculated based on predefined slab rates, which vary depending on the level of income and the tax regime selected. The income tax system in India is governed by the provi

Section 393 of the Income Tax Act 2025 introduces a unified framework for Tax Deducted at Source (TDS) in India. It will come into effect from April 1, 2026 and will apply from the Tax Year 2026–27 onward. The new provision replaces multiple TDS sections that were earlier spread across different parts of the Income Tax Act, 1961. Under the earlier law, TDS rules were divided across various sections based on the nature of payment, such as rent, professional fees, interest, and

India’s direct tax system is set to undergo a significant transition with the introduction of the Direct Tax Code (DTC) 2025, which is expected to replace the Income Tax Act, 1961, from April 2026. The new framework is designed to simplify tax laws, improve transparency, and align the system with current economic and digital practices. Over the years, the existing tax law has become complex due to multiple amendments, overlapping provisions, and detailed cross-referencing. Th

The Income Tax Act 2025 introduces a new approach to defining tax periods in India by replacing the earlier system of Financial Year and Assessment Year with a single concept known as the Tax Year. This change will come into effect from April 1, 2026, and will apply to income earned from that date onward. Under the earlier framework, taxpayers were required to understand two separate timelines. The Financial Year referred to the period in which income was earned, while the As

The income tax reporting framework in India is undergoing a structural change with the introduction of updated forms under the new regulatory system, effective from April 1, 2026. These changes are aligned with the broader shift to the updated tax law framework, which aims to simplify compliance and improve clarity in reporting requirements. The revised forms replace the existing set of documents that were previously governed by older rules and formats. One of the key aspects

Income tax slabs define the rate at which an individual’s income is taxed in India. For the financial year 2025-26, taxpayers have the option to choose between two tax regimes: the new tax regime and the old tax regime. Each regime follows a different approach to taxation, which directly affects the final tax payable. The new tax regime continues as the default system. It offers lower tax rates across income levels but removes most exemptions and deductions that were traditio

The Income Tax Act 2025 introduces a revised framework for direct taxation in India, replacing the earlier Income Tax Act, 1961, from April 1, 2026. The new law focuses on simplifying the structure of tax provisions, improving clarity, and making the overall system easier to understand for taxpayers and professionals. Over time, the earlier law became complex due to multiple amendments and scattered provisions. Many sections were difficult to interpret, and similar rules were

The New Income Tax Act 2025 introduces a revised framework for direct taxation in India, replacing the earlier law from April 1, 2026. The objective of the new legislation is to simplify the existing tax structure, improve clarity, and make compliance easier for taxpayers and businesses. Over time, the earlier tax framework became complex due to multiple amendments, detailed provisions, and technical language. This made it difficult for taxpayers to interpret rules correctly