The Income Tax Act 1961 allows taxpayers to claim a deduction against the donations made to political parties without any limit under Section 80GGC i.e., the entire donation can be claimed as a deduction. However, the deduction is allowed only under the old tax regime and is not allowed under the new tax regime.What is Section 80GGC?Section 80GGC provides for tax deductions with respect to donations made by taxpayers towards political parties or any electoral trusts. Section 80GGC of the Income Tax Act was introduced to bring about transparency in electoral funding and free it from corruption. It also encourages individuals to financially support the political system and claim tax deductions against such donations to lower their tax liability.Who Can Avail 80GGC Deduction? Any person other than:Companies,Local authorities, andArtificial juridical person which is wholly or partly funded by the Government.Thus, any individual, Hindu Undivided Family (HUF), an AOP or BOI, a firm, and an artificial juridical person which is not wholly or partly funded by the government are eligible to claim deduction under Section 80GGC.It is also necessary to keep in mind the taxpayer must pay the taxes under the old tax regime to claim the benefit under section 80GGC.Section 80GGC Deduction LimitsThere is a certain limitation for deduction under Section 80GGC of the income tax. Here is the list of the 80GGC exemption limit:100% of a taxpayer’s donation to a registered electoral trust or political party can be claimed as deduction.

When the income of an individual taxpayer is below the basic exemption limit in a financial year, the tax liability is zero; thus, such individuals do not have to file any income tax return as per provision of Section 139(1) under the Income-tax Act, 1961. But if they file ITRs even when their income is below the basic exemption limit, it is termed ‘Nil Return’. What is a Nil Return?A nil income tax return is filed to show the Income Tax Department that you fall below the taxable income and therefore did not pay taxes during the year. Nil returns can be filed only when the income is below the exemption limit. As per the Income Tax Act, it is not mandatory for individuals earning less than the basic exemption limit to file an ITR. Thus, individuals filing nil returns file it in their interest.When Should I File a Nil Return?To show income tax return as proof of incomeThere are several instances where income tax serves as proof, say when you are applying for a visa or while getting your passport made.This is to continue maintaining a record and also preventative measures in the event of scrutiny from the Income Tax Department.To claim a refundYour total income without taking deductions into account could be above the taxable limit, but deductions might be below the minimum exemption limit. If you paid more in taxes than you needed to in the form of TDS, you must file an income tax return to claim a refund.How to File a Nil Return Online?Filing a nil return is no different from filing a regular income tax return.Enter your income details and deductions.

Post Office investment-savings schemes in India offer risk-free returns through various schemes like Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Monthly Income Scheme (MIS). They also offer tax benefits up to Rs.1.5 lakh under Section 80C of the Income Tax Act.Post Office Savings Schemes - Interest Rates and Tax BenefitsIndian Post Office offers various types of savings schemes with different applicable interest rates. The invested amount and interest earned on such savings schemes are also eligible for multiple tax deduction benefits under the Income Tax Act 1961. The following table summarizes types of post office savings schemes and updated interest rates for FY 2026-27.Post Office Types of Saving SchemeRate of interest w.e.f 01.01.2026 to 31.03.2026 Tax Benefit Under Income Tax Act  Investment Deduction u/s 80CInterest Deduction u/s 80TTB (in case of senior citizen)Post Office Savings Account​​4%No Benefit AvailableAvailable upto Rs.50,0001 Year Time Deposit6.90%No Benefit AvailableAvailable upto Rs.50,0002 Year Time Deposit​​7.00%No Benefit AvailableAvailable upto Rs.50,0003 Year Time Deposit​​7.10%No Benefit AvailableAvailable upto Rs.50,0005 Year Time Deposit7.50%Available up to Rs.1.5 LacsAvailable upto Rs.50,0005 Year Recurring Deposit Scheme​​6.70%No Benefit AvailableNo Benefit AvailableSenior Citizen Savings Scheme​​ (SCSS)8.20%Available up to Rs.1.5 LacsAvailable upto Rs.50,000Monthly Savings Scheme Account (POMIS)/Monthly Income Account​​7.40%No Benefit AvailableNo Benefit AvailableNational Savings Certificate (NSC) (VIII Issue) 7.70%Available up to Rs.1.5 LacsNo Benefit AvailablePublic Provident Fund Scheme​​ (PPF)7.10%Available up to Rs.1.5 LacsNo Benefit AvailableKisan Vikas Patra​​ (KVP)7.50%No Benefit AvailableNo Benefit AvailableMahila Samman Savings Certificate​​7.50%No Benefit AvailableNo Benefit AvailableSukanya Samriddhi Account Scheme​​ (SSA)8.2​%Available up to Rs.1.5 LacsNo Benefit AvailablePost Office Savings Schemes in IndiaPost Office Savings AccountPost Office Savings Account Can be opened individually or jointly.This account offers cheque book, ATM, mobile and e-banking services on request.If it has been inactive for three financial years, it becomes dormant; it can be revived with KYC and a passbook.5-Year Post Office Recurring Deposit (RD)In post office RD, Interest is compounded quarterly.Loan up to 50% of the balance available after 12 regular deposits.Can be closed prematurely after 3 years; if closed early, a lower interest rate applies.Post Office Time Deposit (TD)Post Office Time Deposit can be pledged as security to banks and financial institutions.Early closure allowed after 6 months; interest rate drops if closed before 1 year.Premature closure needs a form and a passbook submission.Post Office Monthly Income Scheme (MIS)POMIS pays monthly interest throughout the tenure.Premature closure is allowed only after 1 year and attracts a 1–2% penalty, depending on when it is closed.In case of death, the nominee can claim the amount with interest up to the previous month.Senior Citizen Savings Scheme (SCSS)SCSS account Can be opened by individuals aged 60+ or jointly with a spouse.It offers regular income and tax benefits under Section 80C.15-Year Public Provident Fund (PPF)Public Provident Fund Provides tax benefits under Section 80C (up to ₹1.5 lakh/year).The account can be extended in 5-year blocks after maturity.Interest is credited annually; a minimum deposit of ₹500/year is required to keep the account active.National Savings Certificates (NSC)National Savings Certificate has a fixed 5-year tenure with guaranteed returns.Investment in NSC is eligible for tax deduction under Section 80C.It can be pledged as collateral with banks or housing finance companies.Kisan Vikas Patra (KVP)Kisan Vikas Patra doubles investment over a fixed tenure (depends on the prevailing interest rate).It can be pledged as security with banks.Sukanya Samriddhi Account (SSA)Sukanya Samriddhi Account can be opened for female children under 10 years, operated by parents/guardians.It offers tax benefits and a high interest rate.It cannot be closed 1 month before or 3 months after the child’s marriage. Post Office Savings Scheme Tax BenefitsFor many post office schemes, the principal amount invested can be claimed as a deduction under section 80C, and the interest amount earned can be deducted under section 80TTA and 80TTB.Please note that these benefits are available only under the old tax regime.List of schemes in which principal amount can be claimed as a deduction under section 80C:Post Office Savings 5 Year Time DepositSenior Citizen Savings Scheme​​ (SCSS)National Savings Certificate (NSC) (VIII Issue)Public Provident Fund Scheme​​ (PPF)Sukanya Samriddhi Account Scheme​​ (SSA)List of schemes in which the interest income can be claimed as a deduction under section 80TTB:Post Office Savings Account​​Senior Citizen Savings Scheme​​ (SCSS)Interest earned from post office savings scheme account can be claimed as a deduction under section 80TTA and 80TTB, both.Documents Required to Open Post Office Savings SchemeMake sure you have the following documents ready while opening a post office savings scheme:Account Opening FormKYC Form (For new customers or modification in KYC details)PAN CardAadhaar card, if Aadhaar is not made available, the following document may be submitted.PassportDriving licenseVoter’s ID cardJob card issued by MNREGA signed by the state government officerLetter issued by the National Population Register containing details of name and address.Proof of date of birth/birth certificate in case of a minor account.How to Open a Post Office Saving Schemes Account?You can open a post office savings scheme account online through Internet banking, mobile app or by downloading the account opening form.By Downloading the Application FormDownload and print the relevant application form from the post office’s official website. Attach all the necessary documents. Visit your home branch of the post office and submit the documentation to the relevant personnel. Pay the minimum amount required to open the account/scheme. The post office officials will verify your application, open your account and also give the passbook for the account.Through Internet BankingInternet Banking can be activated online by existing account holders in post office. It can be done by visiting the nearest post office branch, filling the necessary application form or follow the below mentioned steps. Visit the Department of Posts (DOP) Internet Banking website. Click the 'New User Activation' button. Enter the 'Customer ID' and 'Account ID' and click the 'Continue' button.

Imagine you walk into a luxury car showroom, ready to buy your dream car worth more than ₹10 lakh. As you finalize the payment, you notice an extra tax amount added to your bill. Meanwhile, you receive a payment from one of your corporate clients—only to find that a certain percentage has been deducted before the money even reaches your account.What just happened?As a car buyer, you have been associated with Tax Collected at Source (TCS). You are the source of income for the car dealer and tax is collected from you in the first situation.  As a consultant, you were associated with Tax Deducted at Source (TDS). Your source of Income - your client, has deducted TDS from you so that only net amount is settled.TDS and TCS are one of the most familiar forms of direct tax levying mechanism by the Indian Government. TDS represents the tax deducted by the payer from payments made when the amount exceeds a set limit. Conversely, TCS refers to the tax collected by the sellers during transactions with buyers.However, taxpayers often mix up these terms and use them interchangeably.

Income from other sources covers all taxable income not classified under salary, house property, business/profession, or capital gains. This is the residual head including bank interest, dividends, gifts, and winnings,ensuring no income escapes taxation.Budget 2026 HighlightsFor dividends and income from units of mutual fund, 20% deduction on interest expense will not be allowed from the upcoming tax year.What is Income from Other Sources?Income from Other Sources, as per section 56 of the Income Tax Act, is a residual head of income, which covers all taxable income that does not fall under the other four heads: Salary, House Property, Profits and Gains from Business or Profession, and Capital Gains. It ensures that every form of income earned by a taxpayer is taxed appropriately, even if it does not clearly belong to a specific category.Income included under Income from Other SourcesThe following types of income are usually taxed under this head:Bank interestInterest on securities and investmentsFamily pensionLottery winnings , crossword puzzles, card games, races including horse races, and gambling of any formDividendsAny sum an employer receives from his employees towards contribution in EPF, Superannuation fund or ELSI, which is not taxable under the head, Profit and gains from business and profession, and not deposited in the relevant fund.Plant and machinery owned by the taxpayer is let out for rental purposes, if it does not fall under the head of income from business and profession.Rental income from the composite unit of plant, machinery and furniture with the building that is not separable and is not taxable under the head, Profits and Gains from business and profession.Amount received under the Keyman insurance policy (including bonuses) which is not taxable under the head, Profits and Gains from business and profession.Interest received on compensation or enhanced compensation.Any compensation received by the person due to the termination of employment.Savings Bank Account – Interest IncomeInterest that gets accumulated in your savings bank account must be declared in your tax return under income from other sources.Note that the bank does not deduct TDS from bank interest. Deduction on Interest Income Under Section 80TTAFor a residential individual (age of 60 years or less) or HUF, interest earned up to Rs.10,000 in a financial year can be claimed as a deduction. The deduction is allowed on interest income earned from savings account with a bank, co-operative banking society or post office.Senior citizens are not entitled to benefits under section 80TTA.Tax On Fixed Deposits InterestInterest earned from fixed deposits is taxable at applicable slab rates.Senior citizens can claim up to Rs.50,000 tax deduction on the interest earned from savings bank accounts, fixed deposits, recurring deposits with banks, post offices, etc., under Section 80TTB.TDS is deducted on fixed deposits when the interest crosses the applicable threshold limit.Family PensionIf you are collecting a pension on behalf of someone who is deceased, then you must show this income under income from other sources. This will be added to the taxpayer’s income and tax must be paid at the tax rate that is applicable. There is a deduction of Rs.15000 ( Rs. 25000 under new tax regime)  or one-third of the family pension received, whichever is lower. Taxation Of Winnings From Lottery, Game Shows, Puzzles - Casual IncomeIf you receive money from winning the lottery, online/TV game shows, races including horse races, card games and other games, gambling betting, etc., it will be taxable under the head Income from other Sources. The income will be taxable at flat rate of 30%, which after adding cess, will amount to 31.2%.No deductions can be claimed related to these incomes. Dividend IncomeDividends received from investments such as stocks, are taxed under “income from other sources”. Taxpayers can claim interest expense up to 20% of the dividend income. Also, if the total dividend amount exceeds Rs.5,000 (Rs. 10,000 for FY 2025-26), the company deducts TDS at 10% while paying the dividend.Income From GiftsTaxation on gifts is covered by section 56 (2)(vi) of the Income Tax Act.Any gifts received in cash exceeding Rs.50,000 shall be chargeable to tax.Any gifts received in kind (without any consideration) and the fair market value of such gift is more than Rs.50,000 then the aggregate value will be taxable in the hands of such individual.Interest On Income Tax RefundThe assessee is entitled to a refund of the excess tax paid when they have paid more than is required.To receive an income tax refund, individuals must wait a few days after filing their income tax return. Interest on the refund for this time period will be paid to the taxpayer.Interest on income tax refund is taxable and can be found in section 143(1) intimation on of the preceding assessment year.Expenses Allowed to be Deducted from Certain Income SourcesSimilar to business income, taxpayers earning Income from Other Sources are also eligible to claim certain deductions. These deductions ensure that only the net taxable income is subject to taxation.

Under section 194-IA, a buyer buying any immovable property like house, apartment, building, land (except agricultural land) must deduct Tax Deducted at Source (TDS) on the payments made to the seller of the property. The amount of TDS deducted is 1% of the sales consideration or the stamp duty value, whichever is higher.Budget 2026 UpdatesBuyer of immovable property from a non-resident do not have to apply for a TAN for this transaction. TDS deduction and payment can be completed using the PAN-based facility provided in the income tax portal.What is Section 194IA?Section 194IA provides for TDS on sale of immovable property. The person who is buying the property should deduct TDS and pay the remaining amount to the seller. 1% of the selling price is deducted under this section. Please note that TDS here is not deducted on the capital gains, but on the entire selling price.

Section 115BAC of the Income Tax Act or the new tax regime, offers relaxed tax slab rates ensuring tax savings for the taxpayers. However, new tax regime does not allow various deductions & exemptions compared to the old tax regime. For FY 2025-26, the new tax regime is the default tax regime but taxpayers can still opt for old tax regime while filing ITR. Key Highlights of the New Tax RegimeIndividuals and HUFs are eligible for the New Tax Regime.  New Tax Regime offers a basic exemption of Rs. 4 lakh and a tax rebate of up to Rs.

Form 12BB is an investment declaration that needs to be submitted by the employee at the beginning of every financial year. It applies to all salaried individuals. Deductions like House Rent Allowance, Leave Travel Allowance, Interest paid on home loans, and other deductions need to be declared in Form 12BB at the beginning of the financial year. What is Form 12BB?Form 12BB is a statement of claims by an employee for deduction of tax which has to be submitted at the beginning of the financial year. Form 12BB applies to all salaried taxpayers. It is a documentary evidence of these investments and expenses can be provided at the end of the financial year as well.Form 12BB PDF Download Form 12BBThings to be Done Before Filling Form 12BBThe following are the things to be done before filling the Form 12BB:Make sure that HRA and LTA are part of your package by studying your CTC structureThese can be claimed as an exemption if these allowances are a part of your CTC structureObtain interest certificate and loan repayment schedule from the bank.Collect the receipts for all the expenses and investments that can be claimed as a deduction, such as tuition fees, Life Insurance premium receipts, receipts for rent, donations, etc.How to Fill Form 12BB?Filling out Form 12BB isn't as difficult as it seems.

NPS (National Pension Scheme) is a well-known retirement benefit system in India. If you start investing in NPS during your early career, you will need proper investment planning as you have to contribute a minimum amount regularly. If you do not meet the minimum requirements or submit the wrong documents, your NPS account can be frozen indefinitely. How to Unfreeze an NPS Account Online?Opting to unfreeze the NPS account online is probably the simplest way. Digital platforms are a convenient way to carry out things hassle-free. Follow the below mentioned steps and learn how to activate a frozen NPS account online:Step 1: Visit the eNPS portal and enter valid credentials to log in to your NPS account.Step 2: Click on the ‘Contribution’ option located on the top menu.Step 3: Enter all mandatory details such as PRAN details, type of NPS subscriber and date of birth.Step 4: Initiate the minimum contribution of Rs. 1000 on the following page.Step 5: You will receive an OTP.

When withdrawing your Provident Fund (PF) balance Form 15H is crucial for avoiding unnecessary TDS (Tax Deducted at Source) deductions. These forms are essential for individuals whose income is below the taxable limit, and submitting them correctly can help you get your PF withdrawal processed without any tax deductions.Budget 2026 UpdateIt is proposed that depositories collect Forms 15G and 15H from investors holding multiple securities and forward them to the relevant companies.What is Form 15G for EPF Withdrawal?Form 15G or EPF Form 15G is available for resident individuals (below 60 years of age) and HUFs, to submit a self-declaration form to prevent the deduction of TDS. This form can also be submitted to prevent TDS deduction on withdrawal of EPF balance if the employees estimated income for the relevant financial year is less than the basic exemption limit (Rs. 2,50,000 under the Old Tax Regime and Rs. 4,00,000 for the New Tax Regime).Recently, the EPFO Unified portal launched a facility to submit EPF Form 15G for PF, which allows EPF members to withdraw PF online.Form 15G is commonly used to prevent TDS deduction on interest income from banks, withdrawal of NSE, dividends, insurance commission, maturity of insurance policy, etc.Form 15G has to be submitted quarterly to the person or entity responsible for deducting TDS, either electronically or in physical paper form.Where to Download Form 15G?Form 15G is available for download on the following platforms:EPFO Portal: A direct download link is available on the EPFO website.Income Tax Department Website: Available for free download.Major Banks: Most Indian banks offer the option to download the form on their websites.Direct Download Links For Form 15GDownload Form 15G from EPFO Here’s a sample Form 15G. Is Form 15G Mandatory for PF Withdrawal?Form 15G is not mandatory for PF withdrawal; however, it is required if you wish to avoid TDS deduction.As per Section 192A of the Finance Act, 2015, TDS at 10% is deducted if the PF withdrawal amount exceeds Rs.50,000 and your service is less than 5 years.PF Withdrawal TDS Rules10% TDS – If you submit your PAN but not Form 15G.20% TDS – If you fail to submit both PAN and Form 15G.No TDS – If you submit Form 15G. (subject to eligibility conditions).Note: TDS is not applicable if:Your total income (including PF withdrawal) is below the taxable limit, orWithdrawal is made after 5 years of continuous service.How to Submit Form 15G Online for PF Withdrawal?You can easily submit Form 15G online through the EPFO portal.