Tax deducted at source or normally referred to as TDS is basically a part of income tax. It has to be deducted by a person making such payments. TDS is a means through which the government collects tax on certain incomes as and when they are earned. One of the main objectives of TDS is to help the government keep track of incomes earned by the assessee during the year and ascertain an estimate of the total income and tax liability of the assessee. The provisions of TDS are specified under relevant sections of the Income Tax Act, 1961.However, not all incomes are subject to TDS.

Under the Income Tax Act, 1961, certain transactions mandate the payer to deduct TDS (Tax Deducted at Source). One such transaction is income generated from investments in a securitization trust. In this article, we will learn about TDS on income from investment in a securitization trust.What is Section 194LBC?Section 194LBC provides that TDS must be deducted when the securitization trust distributes income to its unit holders. It states that when a securitization trust distributes income—such as interest or any other returns—among its unit holders, the trust must deduct TDS at the prescribed rate before making the payment. What is a Securitization Trust?A securitization trust is a special purpose vehicle (SPV) that pools financial assets, such as loans or receivables, and converts them into marketable securities. These securities are sold to investors, and the income generated from the assets is distributed to them.Applicability of Section 194LBCThe TDS under section 194LBC applies when a securitization trust distributes income to its unit holders.

The Income tax department with a view to encourage savings and investments amongst the taxpayers has provided various deductions from the taxable income under Chapter VI-A. Section 80C being the most famous, there are other deductions which are beneficial for the taxpayers to reduce their tax liability. Let us understand these deductions in detail:  Latest UpdateDeductions under Chapter VI-A are covered under Chapter VIII of the new Income Tax Bill, 2025. If the bill is passed and becomes an act, it would be applicable from 1st April, 2026.Section 80 Deduction List .hover-scale:hover { transition: 0.5s; transform: scale(1.03); } Section 80C Investments Section 80CCC Insurance Premium Section 80CCD Pension Contribution Section 80TTA Interest on Savings Account Section 80GG House Rent Paid Section 80E Interest on Education Loan Section 80EE Interest on Home Loan Section 80D Medical Insurance Section 80DD Disabled Dependent Section 80DDB Medical Expenditure Section 80U Physical Disability Section 80G Donations Section 80GGB Company Contribution Section 80GGC Contribution to Political Parties Section 80RRB Royalty of a Patent Section 80TTB Interest Income Frequently Asked Questions Section 80C – Deductions on InvestmentsSection 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. Who can claim Section 80C deduction: Section 80C deduction can be claimed by Individuals and HUFsMaximum deduction allowed under section 80C: Up to Rs.150,000 can be claimed as a deduction every year from the Gross total income. This deduction is only for individuals and HUFs.Companies, partnership firms, and LLPs cannot avail the benefit of this deduction. Deduction Limits Under Section 80C, 80CCC, 80CCD(1), 80CCE, 80CCD(1B)Section 80CCC and Section 80CCD provide deductions for the investments in the pension scheme either by yourself or by way of the employer’s contribution.The maximum deduction under Section 80C, 80CCC and 80CCD(1) put together is Rs 1.5 lakhs. However, you may claim an additional deduction of Rs 50,000 allowed u/s 80CCD(1B) for contributions made to NPS(National Pension Scheme).

Everyone has come across the word CTC on a daily basis, listening to peers, relatives, or someone else frequently mention it. But what is CTC? Cost To Company, or CTC, is the total cost that an organisation spends on its employees for their services. This includes salary, benefits, bonuses, and any other related expenses. Understanding CTC is important so that an employee can assess his/her compensation structure. What Is CTC In Salary?The Cost to Company or CTC is the total cost that an employer incurs to hire and retain an employee for a particular year. This includes salary, benefits, allowances, bonuses, contributions to the provident fund, and other contributions.

Many taxpayers are confused between the Financial Year (FY) and the Assessment Year (AY). They often tend to treat them as the same, which leads to making mistakes when they file their income tax returns. In this article, we will learn about the difference between the FY and AY.Latest UpdateThe Income Tax Bill 2025 proposes the introduction of the 'tax year' concept to eliminate any confusion between the financial year and the assessment year.What is a Financial Year?A Financial Year (FY) is the 12-month period between 1 April and 31 March – the accounting year in which you earn an income.What is the Assessment Year?The assessment year (AY) is the year that comes after the FY. This is the time in which the income earned during FY is assessed and taxed. Both FY and AY start on 1 April and end on 31 March.

House Rent Allowance (HRA) is one of the crucial element in the salary package of the individual. It's a significant benefit provided by employers to cover a portion of an employee's rental expenses for their residence. In this article we will understand the significance and extent of the deduction permissible for HRA.What is HRA (House Rent Allowance)?House Rent Allowance (HRA) is an allowance (part of CTC) given by your employer to help you cover the cost of living in a rented accommodation. Is HRA Always Exempt?Not all the HRA you received is always exempt from income tax. HRA is a part of your salary income and therefore, it is initially considered as your taxable income.However, you can claim a tax exemption either – partially or wholly under Section 10(13A) of the Income Tax Act. This is popularly known as HRA exemption. If you live in your own property(not living in rentals), this allowance is fully taxable.Please note that the tax exemption of house rent allowance is not available in case you choose the new tax regime. Who can Claim HRA Tax Benefits?It is usually perceived that only salaried class can enjoy the tax benefits related to HRA.

Every company, firm or individual who is required to deduct TDS (Tax deducted at source) or TCS (Tax Collected at Source) on transactions is required to have a TAN number. TAN (Tax Deduction and Collection Account Number) can be obtained by filling out the application Form 49B online.  Similar to PAN, TAN is a 10-digit alphanumeric number assigned to the deductor or collector by the tax authority. This number is required to be quoted on every TDS/TCS return. This article will guide you on how to apply for TAN. How to Apply for TAN?You can apply for TAN by submitting Form 49B.

Having a TAN is compulsory for every person who is liable to deduct/collect tax at source. An application for TAN can be done online. Once the application is submitted, the status of the TAN application can be checked by using the Acknowledgement Number, Customer Care Number or SMS.This article will explain the steps on how to check TAN application status.How to Check TAN Application Status by Acknowledgement NumberFollow the below steps to check your TAN Application Status using Acknowledgement Number:Step 1: Visit the Protean eGov Portal.Step 2: You will find a drop-down menu against Application Type. Select “TAN - New/Change Request”Step 3: Select the option “Acknowledgement Number” and enter your Acknowledgement Number in the space providedStep 4:  Enter the displayed captcha code in the space provided and click “Submit”Step 5: Once you click on submit, your TAN Application Status will be displayed on the screen.How To Check TAN Application Status via Customer Care NumberTAN Application Status can also be checked by calling the customer care number. The applicant can call 020-27218080 and provide the details asked by the call centre executive.

Salaried employees form the major chunk of the overall taxpayers in the country and the contribution they make to the tax collection is quite significant. Income tax deductions offer a gamut of opportunities for saving tax for the salaried class. With the help of these deductions and exemptions, one could reduce their tax substantially. In this article, we try to list some of the major deductions and allowances available to the salaried persons, using which one can reduce their income tax liability.Exemption of AllowancesHouse Rent AllowanceA salaried individual having a rented accommodation can get the benefit of HRA (House Rent Allowance). This could be totally or partially exempted from income tax.  However, it will be taxable if you don’t live in any rented accommodation and continue receiving HRA. If you couldn’t submit rent receipts to your employer as proof to claim HRA, you can still claim the exemption while filing your income tax return.

Income tax is a direct tax which follows a progressive slab system, where tax rates increase with higher income. The taxpayers can choose between the old regime, which offers deductions and exemptions, and the new regime, which offers lower tax rates but without deductions and exemptions. In this article, we will explore the different slabs under both the old and new regimes and help you understand which one is more beneficial for you.The new tax regime under section 115BAC, is dealt under section 202 of the New Income Tax Bill, 2025. The bill, when passed, will become the new Income Tax Act, which is applicable from 01st April 2026.Income Tax Slabs for FY 2025-26 (AY 2026-27)Under the Budget 2025, individuals with income up to Rs. 12,00,000 will have zero tax liability for FY 2025-26 (AY 2026-27) under the new tax regime.