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Income Tax Deductions You Might Be Missing in India – Save More Tax

Income Tax Deductions You Might Be Missing (Complete Guide for Taxpayers)

Why Knowing Tax Deductions is Important

Understanding tax deductions can help you:

✔ Reduce taxable income
✔ Save more money legally
✔ Avoid overpaying taxes
✔ Plan investments better

If you are unsure about eligible deductions, consider professional assistance through Digihunter’s Income Tax Return Filing Services to ensure accurate tax planning.

Section 80C – Most Common Yet Underutilized

Section 80C allows deductions up to ₹1.5 lakh per year, but many taxpayers fail to utilize the full limit.

Eligible investments include:

  1. Public Provident Fund (PPF)

  2. Equity Linked Saving Scheme (ELSS)

  3. Employee Provident Fund (EPF)

  4. Life Insurance Premium

  5. National Savings Certificate (NSC)

  6. Children’s Tuition Fees

  7. Principal repayment on home loan

Maximizing this section alone can significantly reduce tax liability.

Section 80D – Health Insurance Deduction

Many taxpayers forget to claim deductions for health insurance premiums.

Deduction limits:

  1. ₹25,000 for self, spouse, and children

  2. ₹25,000 for parents

  3. ₹50,000 if parents are senior citizens

Preventive health check-ups may also qualify for deduction.

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Section 80E – Education Loan Interest

 

If you have taken an education loan for higher studies, the interest paid is fully deductible under Section 80E.

Key points:

  1. No maximum deduction limit

  2. Available for up to 8 years

  3. Applicable for self, spouse, or children’s education loans

Section 80G – Donations to Charity

Donations made to approved charitable institutions qualify for tax deductions under Section 80G.

Depending on the organization, deductions may be:

  1. 50% of donation amount
  2. 100% of donation amount

Always ensure the institution is approved by the Income Tax Department.

Section 24(b) – Home Loan Interest

Homeowners can claim deduction on home loan interest up to ₹2 lakh for self-occupied property.

This deduction is separate from Section 80C principal repayment benefits.

Section 80CCD(1B) – Additional NPS Deduction

Many taxpayers miss this powerful deduction.

Contributions to National Pension System (NPS) qualify for:

  1. ₹50,000 additional deduction beyond 80C limit.

This makes NPS one of the most effective tax saving options.

Standard Deduction for Salaried Employees

Salaried individuals automatically receive a standard deduction which reduces taxable salary without requiring any investments.

Ensure this deduction is correctly applied in your income calculation.

Common Mistakes Taxpayers Make

❌ Ignoring small deductions
❌ Not maintaining proper investment proof
❌ Missing deduction deadlines
❌ Choosing the wrong tax regime

These mistakes can result in paying higher taxes than necessary.

Conclusion

Many taxpayers end up paying more tax simply because they are unaware of available deductions. By understanding the income tax deductions you might be missing, you can significantly reduce your taxable income and improve your financial planning.

Professional guidance ensures that you claim every eligible deduction while remaining fully compliant with tax regulations.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today

Tax Planning Checklist Before March 31 (Complete Guide for FY 2025–26)

As the financial year comes to an end, March 31 becomes the most important deadline for taxpayers in India. Proper tax planning before this date helps individuals and businesses reduce tax liability legally and avoid last-minute stress.

 

Many taxpayers rush to make investments in the final days, often leading to poor financial decisions. Instead, a structured tax planning checklist before March 31 can help maximize deductions and ensure compliance with income tax regulations.

 

In this guide, we will walk you through a step-by-step checklist to complete before the financial year closes.

Why Tax Planning Before March 31 is Important

Planning your taxes before the end of the financial year helps you:

 

✔ Reduce taxable income legally
✔ Avoid penalties and interest
✔ Maximize deductions and exemptions
✔ Improve financial planning for the next year

 

If you are unsure about your tax calculations, consider consulting professionals through Digihunter’s Income Tax Return Filing Services to ensure accurate tax planning.

Review Your Income and Tax Liability

The first step is to calculate your total taxable income for the financial year.

 

Include:

  1. Salary income

  2. Business income

  3. Rental income

  4. Capital gains

  5. Interest from bank deposits

Once you know your total income, you can estimate the tax payable and identify deductions that can reduce it.

Use Section 80C Investments

Section 80C allows deductions up to ₹1,50,000 per year.

 

Common tax-saving investments include:

  1. Public Provident Fund (PPF)

  2. Equity Linked Saving Scheme (ELSS)

  3. Life Insurance Premium

  4. Employee Provident Fund (EPF)

  5. 5-Year Tax Saving Fixed Deposit

  6. Children’s Tuition Fees

These investments not only reduce tax but also build long-term financial security.

Claim Health Insurance Deduction (Section 80D)

 

Health insurance provides tax benefits along with financial protection.

 

Deduction limits:

  1. ₹25,000 for self, spouse, and children

  2. ₹25,000 for parents

  3. ₹50,000 if parents are senior citizens

Make sure your insurance premium is paid before March 31 to claim the deduction for the financial year.

Still unsure whether you have utilized all tax deductions?

 

👉 Get expert tax consultation through Digihunter and maximize your tax savings before March 31.

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Check Home Loan Benefits

 

Home loan borrowers can claim tax deductions under two sections:

 

Section 80C – Principal repayment (up to ₹1.5 lakh)
Section 24(b) – Interest deduction (up to ₹2 lakh)

 

Ensure that your loan statements and documents are updated before filing tax returns.

Contribute to National Pension System (NPS)

 

NPS offers an additional tax deduction of ₹50,000 under Section 80CCD(1B) beyond the 80C limit.

 

This is one of the most effective tax saving options for salaried employees and professionals.

Verify Your Tax Regime

 

Before the financial year ends, evaluate whether the Old Tax Regime or New Tax Regime is more beneficial for you.

 

The old regime allows multiple deductions, while the new regime offers lower tax rates with fewer exemptions.

 

Choosing the right regime can significantly affect your tax liability.

Check Capital Gains and Loss Adjustments

 

If you have sold investments or property during the year, review your capital gains and losses.

 

Tax planning options include:

  1. Offsetting capital losses against gains

  2. Reinvesting gains under applicable sections

  3. Using indexation benefits

Proper planning can reduce capital gains tax liability.

Submit Investment Proof to Employer

 

Salaried employees must submit tax-saving investment proofs to their employer before March.

 

These documents may include:

  1. Insurance premium receipts

  2. ELSS investment statements

  3. Housing loan certificate

  4. Tuition fee receipts

Failure to submit proof may result in higher TDS deductions.

Check Advance Tax Payments

 

Businesses, freelancers, and professionals must ensure that advance tax payments are completed to avoid interest under tax provisions.

 

If your total tax liability exceeds a specified threshold, advance tax must be paid in installments during the year.

Common Mistakes to Avoid Before March 31

 

❌ Last-minute investments without financial planning
❌ Ignoring deductions and exemptions
❌ Incorrect tax regime selection
❌ Missing documentation for deductions

 

Avoiding these mistakes ensures smooth tax filing.

Conclusion

Tax planning before March 31 is essential to reduce tax liability, avoid penalties, and improve financial planning.

 

By reviewing income, investing in tax-saving instruments, claiming deductions, and choosing the correct tax regime, taxpayers can significantly optimize their tax position.

 

Professional assistance ensures compliance and helps maximize tax savings.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

How to Reduce Business Tax Legally in India (Complete Guide for Businesses)

How to Save Capital Gains Tax on Property Sale in India

How to Reduce Business Tax Legally in India (Complete Guide for Businesses)

Running a business in India comes with several tax responsibilities. However, many entrepreneurs and small business owners end up paying more tax than required simply because they are unaware of legal tax saving strategies.

 

With proper tax planning, businesses can reduce tax liability, improve cash flow, and stay compliant with tax laws.

 

In this guide, we explain how to reduce business tax legally in India using deductions, exemptions, and smart financial planning.

Why Tax Planning is Important for Businesses

Proper tax planning helps businesses:

  1. Reduce overall tax liability legally

  2. Improve profitability and cash flow

  3. Avoid penalties and notices from the Income Tax Department

  4. Reinvest savings into business growth

Businesses that plan taxes throughout the financial year can maximize deductions and minimize financial stress during tax filing season.

 

For professional support, businesses can explore tax consultation services through Digihunter to ensure accurate compliance.

Choose the Right Business Structure

Your business structure directly affects tax liability.

 

Common structures in India include:

  1. Sole Proprietorship

  2. Partnership Firm

  3. LLP (Limited Liability Partnership)

  4. Private Limited Company

Each structure has different tax rates, compliance requirements, and deduction opportunities.

For example:

  1. Proprietorship income is taxed as personal income.

  2. Companies may benefit from lower corporate tax rates.

Selecting the right structure can significantly reduce taxes in the long term.

Claim All Business Expense Deductions

Businesses can claim deductions for expenses incurred while running operations.

Common deductible expenses include:

  1. Office rent

  2. Employee salaries

  3. Internet and electricity bills

  4. Professional services

  5. Marketing and advertising costs

  6. Travel and business meetings

Maintaining proper records and invoices is essential to claim these deductions.

Depreciation on Business Assets

Businesses can claim depreciation on assets used for business purposes.

Examples include:

  1. Computers and laptops

  2. Office furniture

  3. Machinery and equipment

  4. Vehicles used for business

Depreciation reduces taxable income by spreading asset cost over several years.

Confused about which deductions your business can claim?

👉 Get expert tax consultation through Digihunter and optimize your business tax legally.

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Use Section 80C and Other Tax Deductions

Business owners can still claim personal deductions under income tax sections like:

  1. Section 80C (PPF, ELSS, life insurance)

  2. Section 80D (health insurance)

  3. Section 80CCD (NPS contributions)

These deductions reduce overall taxable income.

Invest in Business Growth

Certain investments can provide tax advantages while expanding business operations.

Examples include:

  1. Purchasing machinery

  2. Investing in research and development

  3. Technology upgrades

These investments often qualify for deductions or depreciation benefits.

Take Advantage of Startup Tax Benefits

Startups recognized under the Startup India initiative can claim tax benefits such as:

  1. 3-year tax holiday under Section 80-IAC

  2. Exemptions on certain investments

  3. Access to government schemes

These incentives encourage innovation and entrepreneurship.

Maintain Proper Accounting and Compliance

One of the biggest mistakes businesses make is poor bookkeeping.

Proper accounting helps in:

  1. Accurate tax calculation

  2. Identifying eligible deductions

  3. Avoiding compliance issues

Using professional accounting or tax services ensures businesses remain compliant with regulations.

Common Mistakes Businesses Should Avoid

  1. Not claiming eligible deductions

  2. Mixing personal and business expenses

  3. Filing tax returns late

  4. Poor financial documentation

Avoiding these mistakes helps businesses reduce unnecessary tax burdens.

Conclusion

Reducing business tax legally requires strategic planning, proper documentation, and awareness of tax benefits available under Indian law.

 

By selecting the right business structure, claiming deductions, and maintaining compliance, businesses can significantly reduce tax liability while staying fully compliant with tax regulations.

 

Professional guidance can further optimize tax savings and prevent costly errors.

How to Save Income Tax in India (2026 Complete Guide)

Best Tax Saving Options for Salaried Employees in India (FY 2025-26)

 

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

How to Save Capital Gains Tax on Property Sale in India

What is Capital Gains Tax on Property?

Capital Gains Tax on Property is the tax levied on profit earned from selling a residential or commercial property. The tax depends on how long you held the property before selling.

If you sell property at a price higher than your purchase cost, the profit is called Capital Gain, and it is taxable under the Income Tax Act.

Types of Capital Gains on Property

Short-Term Capital Gain (STCG)

If property is sold within 24 months of purchase:

  1. Profit is treated as Short-Term Capital Gain

  2. Taxed as per your income tax slab

Long-Term Capital Gain (LTCG)

If property is sold after 24 months:

  1. Profit is treated as Long-Term Capital Gain

  2. Taxed at 20% with indexation benefit

 

Indexation helps reduce taxable gain by adjusting purchase price with inflation.

How to Calculate Capital Gains on Property

Capital Gain = Sale Price – (Indexed Cost of Purchase + Improvement Cost + Transfer Expenses)

Example:

  1. Purchase Price: ₹40,00,000

  2. Sale Price: ₹70,00,000

  3. Indexed Cost: ₹55,00,000

Taxable Gain = ₹15,00,000

LTCG Tax @20% = ₹3,00,000 (approx.)

For accurate calculation, consult tax experts before filing.

👉 Get professional help through Digihunter’s Income Tax Consultation Services and save maximum tax legally.
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Exemptions to Save Capital Gains Tax

Section 54F – Invest Sale Proceeds

Applicable when selling assets other than residential property and investing in a new residential house.

Section 54EC – Invest in Capital Gain Bonds

You can invest up to ₹50 lakhs in specified bonds (NHAI / REC bonds) within 6 months to save tax.

Capital Gains Account Scheme (CGAS)

If you cannot invest before ITR filing due date, you must deposit funds in CGAS to claim exemption.

Tax Notice

Best Tax Saving Options for Salaried Employees in India (FY 2025-26)

Important Points to Remember

 

✔ Property holding period = 24 months
✔ Indexation reduces tax burden
✔ Exemptions must meet strict timelines
✔ TDS @1% applicable on property sale above ₹50 lakhs
✔ Proper documentation is mandatory

Common Mistakes to Avoid

 

  1. Not considering stamp duty value

  2. Missing exemption deadlines

  3. Incorrect indexation calculation

  4. Not depositing under CGAS

Professional guidance prevents tax notices.

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

Frequently Asked Questions

What is the capital gains tax rate on property in India?

LTCG is taxed at 20% with indexation. STCG is taxed as per income slab.

How can I avoid capital gains tax on property?

You can claim exemption under Sections 54, 54F, or invest in 54EC bonds.

What is the holding period for LTCG on property?

More than 24 months.

Is TDS applicable on property sale?

Yes, 1% TDS applies if sale value exceeds ₹50 lakh.

What is indexation benefit?

Indexation adjusts purchase price for inflation, reducing taxable gains.

Best Tax Saving Options for Salaried Employees in India (FY 2025-26)

Paying income tax is mandatory, but paying more than required is not. If you are a salaried employee, proper tax planning can legally reduce your tax liability and increase your take-home salary.

 

In this guide, we will explain the best tax saving options for salaried employees in India, along with smart strategies to maximize deductions under the Income Tax Act.

Why Tax Planning is Important for Salaried Employees?

Many salaried individuals start tax planning in February or March, which often leads to rushed investments. Instead, tax planning should begin at the start of the financial year to:

 

  1. Reduce taxable income legally

  2. Avoid last-minute investment mistakes

  3. Improve financial discipline

  4. Build long-term wealth

If you need professional assistance, you can consult experts through our

👉 https://digihunter.in/business-tax-filing/

👉 https://digihunter.in/personal-tax-filing/

Section 80C – Save Up to ₹1.5 Lakhs

 

Section 80C is the most popular tax-saving section for salaried employees. You can claim deductions up to ₹1,50,000 per financial year.

Best Investment Options Under 80C:

  1. Employee Provident Fund (EPF)

  2. Public Provident Fund (PPF)

  3. Equity Linked Saving Scheme (ELSS)

  4. Life Insurance Premium

  5. 5-Year Tax Saving Fixed Deposit

  6. Principal Repayment of Home Loan

  7. Children’s Tuition Fees

💡 Pro Tip: ELSS funds offer higher return potential with only a 3-year lock-in period.

Section 80D – Health Insurance Deduction

Medical expenses can affect your savings. Section 80D helps you save tax while securing your health.

  1. ₹25,000 deduction for self, spouse & children

  2. Additional ₹25,000 for parents (₹50,000 if senior citizens)

This is one of the smartest tax-saving options as it provides both financial protection and tax benefits.

House Rent Allowance (HRA)

If you are living in rented accommodation, you can claim HRA exemption. The exemption depends on:

  1. Actual HRA received

  2. 50% of salary (metro cities) / 40% (non-metro)

  3. Rent paid minus 10% of salary

Proper calculation ensures you maximize your exemption.

Confused about Old Tax Regime vs New Tax Regime?

Choosing the right regime can significantly reduce your tax liability.

👉 Get Expert Tax Consultation Today through Digihunter and save more legally.

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Section 24(b) – Home Loan Interest

If you have taken a home loan, you can claim:

  1. Up to ₹2,00,000 deduction on home loan interest (self-occupied property)

  2. Full interest deduction for rented property (with conditions)

This is highly beneficial for salaried employees owning a home.

National Pension System (NPS) – Extra ₹50,000 Deduction

Under Section 80CCD(1B), you can claim an additional deduction of ₹50,000 over and above 80C.

 

NPS helps in:

  1. Reducing current tax

  2. Building retirement corpus

  3. Long-term disciplined investment

Standard Deduction

All salaried employees automatically get a standard deduction (as per current budget provisions). This reduces taxable salary without requiring any investment.

Leave Travel Allowance (LTA)

You can claim LTA for travel expenses within India for yourself and family (as per rules). This is available twice in a block of four years.

Old Tax Regime vs New Tax Regime – Which is Better?

The right choice depends on:

 

  1. Your total income

  2. Eligible deductions

  3. Investment planning

  4. Home loan & insurance commitments

Most salaried employees with home loans and 80C investments benefit from the old regime, but calculation is essential before deciding.

 

👉 For accurate comparison and filing, check our ITR Filing Services for Salaried Employees on Digihunter.

Smart Tax Planning Tips for Salaried Employees

✔ Start tax planning in April
✔ Don’t invest only for tax saving — align with goals
✔ Maintain proper documentation
✔ Review salary structure with employer
✔ Take professional guidance

Conclusion

Tax saving is not about avoiding tax — it’s about smart financial planning. By using Sections 80C, 80D, 24(b), NPS, and HRA effectively, salaried employees can significantly reduce tax liability while building long-term wealth.

Professional advice ensures:

  1. Correct regime selection

  2. Maximum deductions

  3. Error-free ITR filing

  4. Avoidance of notices

Need expert tax planning assistance? Connect with verified professionals via Digihunter today.

FAQ Section

What are the best tax saving options for salaried employees in India?

The best options include Section 80C investments (EPF, PPF, ELSS), 80D health insurance, HRA exemption, NPS contributions, and home loan interest deduction under Section 24(b).

How can salaried employees reduce taxable income?

They can invest in tax-saving instruments, claim deductions, choose the correct tax regime, and plan investments at the beginning of the financial year.

Is the new tax regime better for salaried employees?

The new regime offers lower slab rates but removes most deductions. Employees with high deductions usually benefit more from the old regime.

Can I claim 80C and NPS together?

Yes. NPS offers an additional ₹50,000 deduction under Section 80CCD(1B) beyond the ₹1.5 lakh 80C limit.

When should salaried employees start tax planning?

Ideally in April, at the start of the financial year, to maximize savings and avoid last-minute tax-saving investments.

How to Save Income Tax in India (2026 Complete Guide)

Saving income tax legally is one of the smartest financial decisions you can make in 2026. With changing tax slabs, deductions, and investment options, proper tax planning can help you reduce liability while building long-term wealth.

 

In this complete guide, we will explain how to save income tax in India in 2026 using smart deductions, investment strategies, and regime selection.

Understanding Income Tax in India (2026)

Before planning tax savings, you must understand:

  1. Your income slab

  2. Old vs New Tax Regime

  3. Eligible deductions

  4. Investment-linked exemptions

Every financial year, taxpayers can reduce taxable income using approved deductions under the Income Tax Act.

If you are unsure about your eligibility, connecting with verified experts through Digihunter can simplify the process.

1️⃣ Choose Between Old vs New Tax Regime (2026)

One of the biggest decisions in tax planning is selecting the right regime.

Old Tax Regime

✔ Allows deductions under 80C, 80D, HRA, home loan, etc.
✔ Best for people with investments and high deductions

 

New Tax Regime

✔ Lower tax rates
✔ Minimal deductions
✔ Simpler structure

Choosing the wrong regime can increase your tax liability. Proper comparison is essential.

2️⃣ Maximize Section 80C (Up to ₹1.5 Lakhs)

Section 80C remains one of the most powerful tools to save income tax.

Eligible investments include:

  1. Public Provident Fund (PPF)

  2. Employee Provident Fund (EPF)

  3. ELSS Mutual Funds

  4. Life Insurance Premium

  5. Home Loan Principal Repayment

  6. Tax Saving Fixed Deposits

Investing ₹1.5 lakh under 80C can significantly reduce taxable income.

3️⃣ Claim Section 80D (Health Insurance Deduction)

You can claim deductions for health insurance premiums:

  1. ₹25,000 for self and family

  2. Additional ₹25,000 for parents

  3. ₹50,000 if parents are senior citizens

This not only saves tax but protects your financial stability.

4️⃣ Use Home Loan Benefits (Section 24b + 80C)

If you have a home loan:

  1. ₹2 lakh deduction on interest (Section 24b)

  2. ₹1.5 lakh on principal (80C)

This is one of the biggest tax-saving benefits available in India.

5️⃣ Claim HRA (House Rent Allowance)

If you live in rented accommodation and receive HRA, you can claim exemption based on:

  1. Salary

  2. Rent paid

  3. City of residence

Many salaried individuals miss out on proper HRA calculation, leading to higher tax.

6️⃣ Capital Gains Tax Planning

If you sold property, shares, or mutual funds in 2026, capital gains tax applies.

 

You can save tax by:

  1. Reinvesting in residential property

  2. Investing in capital gain bonds

  3. Using indexation benefits (for long term assets)

Proper planning is crucial to avoid heavy capital gains tax liability.

7️⃣ National Pension System (NPS – Extra ₹50,000 Deduction)

Under Section 80CCD(1B), you can claim an additional ₹50,000 deduction over and above 80C by investing in NPS.

 

This makes NPS one of the most tax-efficient retirement tools.

8️⃣ Standard Deduction for Salaried Employees

Salaried individuals are eligible for standard deduction under applicable tax rules, which directly reduces taxable income.

9️⃣ Tax Planning for Business Owners (2026)

If you are self-employed or run a business:

  1. Claim business expense deductions

  2. Optimize GST compliance

  3. Plan depreciation benefits

  4. Structure salary vs dividend smartly

Professional tax planning is essential for business owners to avoid penalties and overpayment.

🔟 Start Planning Before March 31

Last-minute tax saving decisions often lead to poor investment choices.

 

Smart taxpayers start planning at the beginning of the financial year.

Common Mistakes to Avoid

❌ Investing randomly in March
❌ Ignoring regime comparison
❌ Not claiming eligible deductions
❌ Poor capital gains planning
❌ Filing ITR without review

Why Professional Tax Planning Matters in 2026

Tax laws are constantly evolving. A small mistake can cost thousands.

 

Digihunter focuses specifically on tax planning and financial services — connecting you with verified experts suited to your requirement.

 

Digihunter is a financial services facilitation platform operated by
FourV Technologies Pvt Ltd, helping individuals and businesses access structured tax consultation across India.

How to Save Income Tax in India (2026)

To summarize:
 
✔ Choose the correct tax regime
✔ Maximize 80C and 80D
✔ Use home loan and HRA benefits
✔ Plan capital gains carefully
✔ Consider NPS for additional deduction
✔ Avoid last-minute investments

 

The right tax strategy can help you legally reduce liability and grow wealth smarter.

Need Expert Tax Planning Assistance?

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Tax Notice

Who is Liable to Deduct Tax Under Income Tax Act 2025

Under the new Income-tax Act, 2025, the government has streamlined the rules regarding who must deduct Tax Deducted at Source (TDS). While Companies and Partnership Firms are almost always required to deduct TDS, the rules for Individuals and Hindu Undivided Families (HUFs) depend entirely on their Turnover or Gross Receipts in the preceding year.

Here is a complete breakdown of the turnover limits that trigger TDS liability under the new law.

 

1. The General Rule: “Specified Persons” (Business & Profession)

 

For most standard business payments—such as paying contractors, commission agents, brokers, or rent for business premises—an Individual or HUF is only liable to deduct TDS if they are classified as a “Specified Person”.

 

You become a “Specified Person” if your turnover in the immediately preceding tax year exceeded the following limits:

 

  1. For Business Owners: If total sales, turnover, or gross receipts exceeded ₹ 1 Crore.
  2. For Professionals: If gross receipts from the profession exceeded ₹ 50 Lakh.

Impact: If you cross these limits, you must deduct TDS under Section 393 for payments like:

 

  1. Contractors: For work or labor supply [Table Sl. No. 6].
  2. Professionals: Fees for technical/professional services [Table Sl. No. 6].
  3. Commission/Brokerage: [Table Sl. No. 1].
  4. Rent (Business Use): For machinery, plant, or building [Table Sl. No. 2].

Compliance Form: You must file Form No. 140 (Quarterly TDS Return) for these deductions.

 

2. The “Big Buyer” Rule: TDS on Purchase of Goods

 

There is a special, higher turnover threshold for deducting TDS specifically on the purchase of goods (previously Section 194Q, now under Section 393).

 

  1. Turnover Limit: You are liable to deduct TDS only if your total sales, gross receipts, or turnover from business exceeded ₹ 10 Crore in the immediately preceding tax year.
  2. Transaction Threshold: If you meet the ₹10 Cr criteria, you must deduct 0.1% TDS when buying goods worth more than ₹ 50 Lakh from a resident seller.

 

3. The “No Turnover” Rule: High-Value Personal Payments

 

The new Act continues to catch high-value transactions by Individuals and HUFs even if they do not have a business or do not meet the audit turnover limits mentioned above.

 

In these specific cases, Turnover is Irrelevant. You must deduct TDS regardless of your business size:

 

  1. Rent for Residence: If you pay rent exceeding ₹ 50,000 per month for your residence. You must deduct 2% TDS.
  2. Buying Property: If you buy immovable property (house/land) valued over ₹ 50 Lakh. You must deduct 1% TDS.
  3. Personal Contractors/Professionals: If you pay more than ₹ 50 Lakh in a year to a contractor or professional for personal purposes.

Compliance Form: For these “No Turnover” cases, you do not need a TAN. You simply file Form No. 141 (Challan-cum-statement) using your PAN.

 

4. Summary Table: Do You Need to Deduct TDS?

 

Your StatusNature of PaymentTurnover Limit (Preceding Year)TDS Form
Individual / HUFContractors, Rent (Biz), Commission> ₹ 1 Crore (Business)> ₹ 50 Lakh (Profession)Form 140
Any BuyerPurchase of Goods (>₹50L value)> ₹ 10 CroreForm 140
Individual / HUFRent for Residence (>₹50k/pm)No Limit (Mandatory)Form 141
Individual / HUFBuying House (>₹50L value)No Limit (Mandatory)Form 141
Company / FirmAll Standard PaymentsNo Limit (Always Liable)Form 140

 

Conclusion

 

If you are a freelancer, small business owner, or salaried individual, check your receipts from the last financial year.

 

  1. Did you cross ₹ 50 Lakh (Profession) or ₹ 1 Crore (Business)? If yes, get a TAN and start deducting TDS on your business expenses.
  2. If not, you are safe from most TDS compliances, unless you are paying high rent (>₹50k/month) or buying a property.

MSME Registration online

MSME Registration Online in India – Complete Guide & Benefits

MSME registration (now known as Udyam Registration) is the process by which a business is officially recognised as a micro, small or medium enterprise by the Government of India. Upon completion:

  • You get a Udyam Registration Number and an online certificate with a QR code.

  • You don’t need to renew the registration.

  • The process is paperless and based on self-declaration.

  • It helps your business access government schemes, easier loans, subsidies, priority sector benefits, and more.

🧑‍💻 Who Can Apply?

You can apply if you are:

  • A sole proprietor, partnership firm, LLP, Company, Cooperative, Society, Trust etc.

  • Engaged in manufacturing, services, or both.

  • Meeting the MSME investment and turnover criteria (as defined in the guidelines).

✅ Documents/Details Usually Required

You’ll need:

  1. Aadhaar Number (of proprietor/partner/director)

  2. PAN (linked to business)

  3. GSTIN (if applicable based on turnover)

  4. Basic business details (name, address, activities, investment, turnover)

  5. Mobile number & email (to receive OTP and certificate)

✅Step-by-Step Guide to Register Online

  1. Visit the official Udyam Registration portal (link above).

  2. Click “New Registration”.

  3. Enter Aadhaar number and verify via OTP.

  4. Enter your PAN, GSTIN (if any), business name, address, activity type, etc.

  5. Self-declare your investment and turnover details.

  6. Submit the form.

  7. After verification, you’ll get your Udyam Registration Certificate online.

Goods and Services Tax (GST) Services in India

Private Limited Company

Startup Registration

Home

🔗 Official MSME / Udyam Registration Portal

👉 https://www.udyamregistration.gov.in/ 

This is the only authorised government portal for MSME registration; do not pay anyone for online registration — it’s free.

GSTR-7 Filing Mandatory for NIL Returns also as per Notification No. 17/2024

(Last Updated On: December 5, 2024)

Advisory on mandatory Sequential Filing of GSTR-7 Returns as per Notification No. 17/2024

Dec 4th, 2024.

 

Multiple tickets have been received regarding sequential filing of return in Form GSTR-7. Taxpayers are referencing FAQs for the same, wherein “it is not mandatory” is mentioned.

 

To clarify, It is to inform that following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards.

Sequential Filing of GSTR-7:

As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from the 01.11.2024, GSTR-7 filing has been made sequential from the October tax period. Hence, GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction have been made, deductors need to file NiL return for the same month.

 

For any further assistance, taxpayers may contact the GST helpdesk.

 

Thanking You,
Team GSTN

High Risk Transaction (Pan and Non-PAN) cases AY 2023-24 new Guidelines

Directorate of Income Tax (Systems),
ARA Centre, Ground Floor, E-2 Jhandewalan Extension,
New Delhi-110055

Insight Instruction No. 74 Date. 19.01.2024

No. DGIT(S)-ADG(S)-2l

High Risk Transaction (Pan and Non-PAN) cases/2023-24

To,
All Principal Chief Commissioner(s) of Income Tax/ CCsIT
All Principal Director Generals(s) of Income Tax / DGsIT
All Principal Commissioner(s) of Income Tax/ CsIT/ CsIT (Admin & TPS)/ CsIT (TDS)
All Principal Director (s) of Income Tax / DsIT

 

Sir / Madam,

Sub: Dissemination of High-Risk transaction and High-Risk Non-PAN Transaction cases on the Verification module of Insight portal — reg.

Kindly refer to the above.

  1. The Board approved Risk Management Strategy (Cycle-3) has been executed for the identification of potential cases for action u/s. 148/148A of the Income Tax Act, 1961.
  2. In this regard, potential cases pertaining to AY 2017-18 to AY 2020-21 identified on the basis of risk assessment of verification reports uploaded in the STR module, have been disseminated to field formations with below mentioned case types on the Verification module of the Insight portal.
S. No.Case typeCase assigned to
a)High-Risk TransactionJAG
b)High-Risk Transaction (Non-PAN)Pr. CCIT(CCA)
  1. Navigation path for accessing these cases is Insight Portal >> Verification Module >> Verification stage >> “Case type” (Under verification).
  2. For the case type “High Risk Transaction”, users can initiate proceedings u/s 148/148A from the activity panel on the case detail screen to create a worklist pendency of cases u/s 148/148A on the Assessment module of ITBA. Subsequent proceedings/activities can be performed on the ITBA portal in the usual manner. [For Non-PAN Cases proceedings may be initiated as per instruction no. F.No.225/40/2021/ITA-II Dated 26.03.2021]
  3. Underlying Information related to the case, mentioned in para 5 above, has been made visible in the Profile View of Insight Portal. Navigation path for accessing the underlying information is Insight Portal >> Taxpayer Profile View >> Taxpayer Annual Summary (TAS) » Information >> Uploads.
  4. For the case type “High Risk Transaction (Non-PAN)”, the underlying Information and documents related to these cases can be viewed by clicking on the hyperlink under `Non-PAN Entity Id’.
  5. In this regard, appropriate action may be initiated in accordance with the relevant provisions u/s 148/148A of the Income-tax Act, 1961 and directions issued by the Board in this regard.
  6. In case of technical difficulty, users may contact:

(i) Helpdesk number — 1800-103-4216 or

(ii) Write to helpdesk@insight.gov.in.

Yours faithfully,

 

(Manish Mishra)


Addl. Director General (Systems)-2

 

Copy to:

 

  1. PPS to Chairman, Member (IT &Rev), Member (S&FS), Member (L), Member (TPS), Member (A&J), Member (Admn.) CBDT and DGIT (Systems)-2, New Delhi for information.
  2. Nodal Officer of irsofficersonline.gov.in, DG systems corner, ITBA, Insight i-Library.