Has the penal interest increased from 1% to 3% on advance tax payment in the new income tax bill 2025? Here’s what CAs say

The Income Tax Bill 2025 initially contained a drafting error regarding interest calculation for advance tax payment shortfalls. The Lok Sabha Select Committee proposed a correction, setting a 3% interest rate for the first three installments and 1% for the final one. CAs clarify that this change primarily alters the calculation method, without increasing the actual interest burden. So essentially there is no change in law.

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Commuted pension from pension funds to get full tax deduction clarifies new version of Income Tax Bill, 2025

The Income Tax Bill 2025 brings good news for pensioners. It allows tax deductions on the full amount of commuted pension. This applies to those receiving pensions from specified funds like LIC Pension Fund. The bill addresses previous gaps in tax treatment for different recipients. Non-employees, including private-sector individuals with independent pension investments, will benefit.

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No income tax rebate under Section 87A even if income is less than Rs 7 Lakh under new tax regime in this situation, point out CAs

Chartered Accountants have raised concerns about the denial of Section 87A tax rebates to eligible taxpayers with special rate incomes like STCG under the new tax regime. While a Budget 2025 amendment restricts this rebate on special incomes from FY 2025-26, the ITR utility is already denying it for FY 2024-25, causing confusion and additional tax burdens. Read more.

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Can I get indexation benefit on renovation cost of my home without bill to save capital gain?

I plan to sell my 48-year-old house and have obtained a valuation, as of 1 April 2001, for long-term capital gain (LTCG) calculation. Over the years, I’ve spent a significant amount on repairs and renovations, but have no receipts or payment proof. While filing ITR after the sale, can I add and index these major expenses, along with the valuation-based cost?

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Did these errors in New Income Tax Bill, 2025 force withdrawal of the Bill today? Updated version to be introduced on Monday August 11, 2025

The Central government withdrew the Income-Tax Bill, 2025, on August 8, 2025, which was initially introduced to replace the Income-Tax Act, 1961. A revised version, incorporating recommendations from the Select Committee led by Shri Baijayant Panda, is scheduled for introduction on August 11, 2025. Read more about new tax bill 2025.

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No more higher tax on vacant property as recommended in New Income Tax Bill 2025 due to suggestions by select committee

The Lok Sabha's Select Committee identified drafting issues in Clause 21 of the Income Tax Bill 2025, concerning the annual value of residential properties. Their key suggestions, including deleting "in normal course" and explicitly comparing actual rent with "deeming rent," prevent a higher tax liability for vacant house property owners. Read more.

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Filed ITR will become invalid unless verified within 30 days from this date

ITR filing: Taxpayers must e-verify their returns within 30 days of filing to avoid penalties, utilizing various online methods or submitting ITR-V to the Bengaluru processing center.

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ITR filing deadline: What is the last date for filing returns for taxpayers not requiring an audit?

ITR deadline for non-audit taxpayers: The process of filing ITR for FY 2024-2025 has become more complex due to changes in the capital gains tax laws and income tax slabs established under the new tax regime.

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Want to avoid tax on gifts? Know the 50k rule, eligible relatives

Gifting assets, such as money, property or valuables, is governed by the Income Tax Act. Gifts above a certain threshold value are taxed in the hands of the recipient unless exempted under specific conditions.

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GST portal won't work on August 2 and 3 during these times due to scheduled drill

Attention GST taxpayers, the GST Common Portal will be unavailable on August 2nd and 3rd, 2025. This is due to a scheduled disaster recovery drill. Several services like registration, payments, and refund tracking will be affected. Businesses should plan accordingly. The GSTR-1 deadline remains the 11th of the subsequent month. The GSTR-9 deadline is December 31st, 2025.

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How to file ITR-1 online: A step-by-step guide for salaried taxpayers also having income from house property, LTCG and other source under new tax regime

Salaried taxpayers with income from house property, LTCG, and other sources can file ITR-1 online following a step-by-step guide. The Income Tax Department extended the ITR filing deadline to September 15, 2025, for FY 2024-25. Taxpayers can now report LTCG up to Rs 1.25 lakh using ITR-1, simplifying the filing process under the new tax regime.

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Online ITR filing charges across six tax filing websites compared for AY 2025-26

For the assessment year 2025-26, individuals must file their income tax returns by September 15, 2025. While the tax department offers free filing, many taxpayers seek assistance from chartered accountants or third-party websites like ClearTax and TaxBuddy. These platforms offer varied plans, including self-filing, assisted filing, and consultations with CAs, with costs differing based on income type and complexity.

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ITR filing 2025: Who can file ITR-2, who cannot file it for FY 2024-25 (AY 2025-26)?

For the assessment year 2025-2026, taxpayers using ITR-2 must understand eligibility and new reporting requirements, including capital gains calculations and asset disclosures. Individuals and HUFs with income exceeding Rs 50 lakh, or those with specific income sources like capital gains or foreign assets, may need to file ITR-2.

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