The Government of India’s Startup India initiative offers a powerful financial incentive under Section 80-IAC of the Income Tax Act—a 100% income tax deduction on profits for eligible startups. This exemption applies for three consecutive financial years within the first ten years of incorporation, significantly easing the tax burden on young ventures and boosting their…
After more than six decades, India bids farewell to the Income-tax Act, 1961. On August 11, 2025, the Lok Sabha passed the Income-Tax (No. 2) Bill, 2025, marking the most sweeping tax reform in generations. The Bill—shaped by 285 recommendations from the Parliamentary Select Committee led by MP Baijayant Panda—promises **S.I.M.P.L.E.** compliance: *Streamlined, Integrated, Minimized…
The Government of India has formally withdrawn the Income-Tax Bill, 2025, which was introduced in the Lok Sabha on February 13, 2025, to replace the six-decade-old Income-Tax Act, 1961. A revised draft, incorporating the recommendations of the Select Committee chaired by BJP MP Baijayant Panda, is scheduled to be presented in the House on August…
For the FY 2020-21, Salaried individuals, who have no business income, have the option to choose between the old (existing) and new tax regimes u/s 115BAC as per their convenience. There are different types of income allowed as deduction while computing the income chargeable under the old rule. There are different Sections of the Income…
IntroductionEstate planning involves the strategic organization and management of an individual’s assets to ensure an orderly transfer upon their incapacitation or death. The primary objectives of estate planning include preserving wealth, minimizing tax liabilities for beneficiaries, and facilitating the seamless distribution of assets. Key tax considerations in estate planning include capital gains tax and income…
Introduction The Indian income tax system follows a progressive slab-based structure, applicable to both individuals and non-individual entities. Under this framework, taxpayers are categorized into income brackets or “slabs,” with each slab attracting a specified tax rate. Higher income levels are taxed at proportionately higher rates to ensure equity in the tax burden. This article…
Introduction The Finance Act, 2023 introduced pivotal amendments to Section 115BAC of the Income Tax Act, 1961, effective from Assessment Year (AY) 2024–25. As a result of these changes, the new tax regime has been made the default taxation system for certain categories of taxpayers, including Individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs)…
Overview: The Finance Act, 2023, introduced significant amendments to Section 115BAC of the Income Tax Act, effective from the Assessment Year (AY) 2024–25. These changes designate the new tax regime as the default regime for certain categories of taxpayers, including individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs) (excluding co-operative societies), Bodies of Individuals…
Updated: As per the amended finance act 2020 Any gain arising on the transfer (by sale or exchange) of the capital asset is known as a capital gain. Capital gains are calculated on the cost of acquisition and cost of improvement expenses of a capital nature incurred in making any additions or alterations to the…
IntroductionUnder Section 14 of the Income Tax Act, 1961, the total income of an individual is classified under five distinct heads. This classification facilitates proper computation of taxable income and ensures compliance with tax laws. The five heads of income are: 1. Income from Salaries Income under this head is reported in Schedule S of…