Tax FAQs: Income Tax, GST, TDS & Compliance

The new regime (the default) has lower rates and zero tax up to ₹12 lakh of taxable income — ₹12.75 lakh of salary — but allows very few deductions. The old regime can still work out cheaper if you claim large deductions such as HRA, 80C, 80D and home-loan interest. Compare both with your actual numbers in our income tax calculator. Salaried people can choose every year; people with business income can switch back to the new regime only once after leaving it.

Under the new regime from FY 2025-26, yes for most people: the rebate of up to ₹60,000 (s.87A→s.156) makes tax nil if taxable income is ₹12 lakh or less, and marginal relief softens the jump just above it. Income taxed at special rates — such as capital gains on shares — does not get this rebate.

Up to ₹4 lakh: nil; ₹4–8 lakh: 5%; ₹8–12 lakh: 10%; ₹12–16 lakh: 15%; ₹16–20 lakh: 20%; ₹20–24 lakh: 25%; above ₹24 lakh: 30%. Budget 2026 did not change them. Cess of 4% applies on top, and surcharge above ₹50 lakh.

31 July 2026 for individuals without business income; 31 August 2026 for non-audit business and professional cases; and 21 November 2026 for audit cases after the CBDT extension (30 November for transfer-pricing cases).

Yes. A belated return can be filed until 31 December 2026 with a late fee of ₹5,000 (₹1,000 if total income is up to ₹5 lakh) and 1% a month interest on unpaid tax. Some losses cannot be carried forward from a belated return. After 31 December, only an updated return (ITR-U) is possible, and only to pay more tax.

Not always, but it is compulsory if, for example, you deposited over ₹1 crore in current accounts, spent over ₹2 lakh on foreign travel or over ₹1 lakh on electricity, had TDS/TCS of ₹25,000 or more (₹50,000 for senior citizens), savings deposits of ₹50 lakh or more, business turnover above ₹60 lakh or professional receipts above ₹10 lakh — or if you hold foreign assets. Filing is also the only way to claim a refund and is useful for loans and visas.

The Annual Information Statement on the e-filing portal lists what banks, employers, brokers, registrars and others have reported about you — interest, dividends, share and property deals, high-value spending. Most notices start from a mismatch between AIS and the return, so check it before filing and give feedback on wrong entries.

Under the old regime, yes, if the conditions are met — for example, you live on rent in one city and own a house in another, or the house you bought is not yet ready. The new regime allows neither HRA exemption nor interest on a self-occupied house.

Agricultural income is exempt, but if you also have other income above the basic exemption it is added for working out the rate (partial integration), which can increase tax on the other income. Sale of rural agricultural land is not taxed as capital gains; urban agricultural land is. See our agricultural income guide.

It replaced the Income-tax Act, 1961 from 1 April 2026. The language is simpler and almost every section has a new number, but rates, slabs and most rules carried over. Use our Section Finder to translate old numbers to new.

No. Income of FY 2025-26 (AY 2026-27) is governed by the 1961 Act, and its return and any notice for that year use the old section numbers. The new Act applies to income from 1 April 2026 (Tax Year 2026-27).

For salary paid from April 2026 the certificate is Form 130. The Form 16 for FY 2025-26 (issued by 15 June 2026) keeps the old name. See the Form Finder for other new numbers.

No. The slabs, the ₹12 lakh rebate and the ₹75,000 standard deduction continue for Tax Year 2026-27; Budget 2026 did not change them.

Yes. The repeal clause saves proceedings for earlier years, so notices, assessments and appeals for AY 2026-27 and before continue under the 1961 Act.

In Haryana and other normal-category states, once turnover exceeds ₹40 lakh for suppliers of only goods or ₹20 lakh for services. Some cases need registration regardless of turnover — for example inter-state supply of goods, many e-commerce sellers, casual taxable persons and anyone liable under reverse charge.

From 22 September 2025, most goods moved to two slabs — 5% and 18% — with 40% for luxury and sin goods; many daily-use items, medicines, insurance and small cars got cheaper. Tobacco and pan masala moved to 40% from 1 February 2026. Check items in our GST Rate Finder.

It can suit small B2C traders: turnover up to ₹1.5 crore (₹50 lakh for most service providers), tax at a low flat rate on turnover, and a quarterly CMP-08 with one annual return. But you cannot claim input tax credit, cannot charge GST on invoices, and goods suppliers cannot sell inter-state.

The Quarterly Return Monthly Payment scheme for taxpayers with turnover up to ₹5 crore: GSTR-1 and GSTR-3B are filed quarterly, while tax is paid monthly through PMT-06 by the 25th. B2B invoices can be uploaded monthly through IFF so buyers get credit.

Credit is available only for invoices that appear in your GSTR-2B — that is, invoices your supplier reported in GSTR-1/IFF. Credit can also be reversed if you do not pay the supplier within 180 days or if the supplier does not pay the tax. Reconcile 2B with your purchase register every month.

A late fee of ₹50 a day (₹20 for nil returns) up to a cap, and 18% interest on tax paid late. If returns are pending for two periods, e-way bill generation can be blocked, and continued non-filing can lead to cancellation of registration.

Commercial rent is taxable at 18%. If the landlord is unregistered and the tenant is registered, the tenant pays under reverse charge (composition dealers are exempt from this). Renting a residential house to a registered business also attracts 18% under reverse charge; renting a house to an individual for living is exempt.

Apply for cancellation in Form REG-16 on the GST portal, settle any dues, and file the final return GSTR-10 within three months of the cancellation order.

Yes, except where an individual deducts tax on buying property, paying rent above ₹50,000 a month, paying contractors or professionals as an individual, or buying crypto — those use PAN and a challan-cum-statement (Form 141 from Tax Year 2026-27).

If you are an individual or HUF not liable to audit, deduct 2% TDS from the rent and deposit it with a challan-cum-statement (old Form 26QC, now Form 141) within 30 days from the end of the month of deduction, then issue the certificate to the landlord.

1% of the consideration if it is ₹50 lakh or more (or the stamp value, if higher), deposited by the buyer through Form 141 (old 26QB) within 30 days from the end of the month. If the seller is a non-resident, much higher TDS applies and the buyer needs a TAN.

If your total income is below the taxable limit, give the bank the self-declaration (old Forms 15G/15H, now Form 121). Senior citizens have a higher threshold of ₹1 lakh interest a year per bank before TDS applies.

Interest of 1% a month for late deduction and 1.5% a month for late payment, a late fee of ₹200 a day for late statements (capped at the TDS amount), and disallowance of 30% of the expense in your own return.

It depends on liability, funding plans, number of owners and compliance budget. A proprietorship is simplest but carries unlimited liability; an LLP limits liability with moderate compliance; a private limited company suits outside investment but has the heaviest compliance. We walk through the trade-offs before you register.

Yes — there is no government fee on the official Udyam portal. Avoid websites that charge for 'registration'; a consultant's fee, if you use one, is only for doing the work for you.

Board meetings and an AGM, audited financial statements, AOC-4 and MGT-7/MGT-7A with the ROC, the income-tax return with tax audit where applicable, DPT-3, MSME-1 where relevant, and DIR-3 KYC for directors — now once every three years by 30 June.

Usually the last three years' financial statements and returns, twelve months of bank statements and GST returns, KYC, quotations for machinery or estimates for construction, and a project report with CMA data and projections. See the loan checklist.

No. Haryana does not levy professional tax, so businesses and employees in Haryana have no professional-tax registration, deduction or return.

Don't ignore it and don't panic. Note the section, the year and the reply deadline, collect the documents it asks for, and respond on the e-filing portal before the date — or ask for more time. Send us a photo of the notice and we will tell you what it means.

It is the result of computer processing of your return — it may confirm the return, show a refund, or raise a demand because of an adjustment. If an adjustment is wrong, respond online or file a rectification.

Every notice from the department carries a Document Identification Number (DIN). Verify it through 'Authenticate notice/order' on the e-filing portal. The department never asks for OTPs, passwords or card details by phone or message.

Generally up to three years from the end of the assessment year, and up to five years where the income that escaped assessment is ₹50 lakh or more, subject to the procedure for issuing a reassessment notice.

Common reasons are a bank account that is not pre-validated or not linked with PAN, a mismatch with AIS or Form 26AS, an outstanding demand from an earlier year being adjusted, or the return not being e-verified. Check the refund status on the portal.

VJ & Associates (Vinay Jaglan & Associates) is led by founder Vinay Jaglan, Taxation Lawyer & Legal Consultant, and backed by Chartered Accountants, Company Secretaries and Tax Advocates. Audits and CA certifications are signed by our Chartered Accountants, company-law and secretarial work is handled by our Company Secretaries, and tribunal and court matters by our Tax Advocates.

Yes. The office is in Jind, Haryana, and most work is done online over WhatsApp and email for clients across India, including NRIs.

It depends on the work — a simple salary return is very different from a business return with GST. You get a clear quote after we understand the work, and there is no charge for the first discussion about what your notice or situation means.

Clear photos or PDFs on WhatsApp or email are enough. We never ask for your portal passwords; access is through OTP or authorised arrangements, and your documents are used only for your work.

Monday to Saturday, 9:30 AM to 7:00 PM. WhatsApp messages sent outside these hours are answered the next working day.