Income Tax Act 2025: Key FAQs on Proposed Tax Exemption for FIIs Investing in G-Secs

The Government has issued FAQs explaining the proposed tax exemption for Foreign Institutional Investors (FIIs) under the Income Tax Act 2025 on investments in Government Securities (G-Secs). The proposal aims to exempt both interest income and capital gains earned by FIIs from eligible government bonds, making India’s debt market more attractive to foreign investors. Currently, FIIs are taxed at 20% on income from securities, with capital gains taxed at higher rates depending on holding period. The new framework under Section 210 is expected to significantly reduce tax burdens, encourage foreign inflows, improve liquidity in government bonds, and strengthen India’s position in global bond indices.

25 Jun 2026 Views: 8

ITR-3 availbale for AY 2026-27: Now Taxpayers Can File ITR-1, 2, 3, 4

The Income Tax Department has released the ITR-3 utility for AY 2026-27, allowing taxpayers with business and professional income to file their returns online or offline. Earlier, only ITR-1, ITR-2, and ITR-4 were available. With this update, proprietors, freelancers, traders, and professionals can now complete their return filing process. Taxpayers are advised to carefully verify AIS, TIS, and Form 26AS before filing and complete mandatory e-verification after submission to ensure the return is valid.

25 Jun 2026 Views: 11

Income Tax Department Enables Online Challan Correction Facility

The Income Tax Department has launched an Online Challan Correction Request facility on the e-Filing portal, allowing taxpayers to correct common mistakes in tax payments such as wrong Assessment Year, Tax Year, Major Head, or Minor Head. The facility is available for eligible unconsumed challans from AY 2020-21 onwards and must be used within specified timelines. It helps reduce errors in tax records, prevents issues in Form 26AS and AIS, and simplifies income tax compliance through a fully digital process.

25 Jun 2026 Views: 17

How to Choose the Correct ITR Form for AY 2026-27

The Income Tax Return (ITR) filing season for AY 2026-27 has started with important updates in eligibility rules and reporting limits. Taxpayers must carefully choose the correct ITR form to avoid defective returns and notices from the Income Tax Department. This guide explains all major forms—ITR-1 to ITR-7—including who can file them based on income type such as salary, business, capital gains, or presumptive taxation. It also highlights key changes like revised due dates and relaxed rules for reporting up to two house properties in ITR-1 and ITR-4. Selecting the correct form ensures smooth processing, faster refunds, and full compliance with tax laws.

25 Jun 2026 Views: 8

2 Most Important Documents for ITR Filing in 2026: Don’t Ignore

Filing an Income Tax Return in 2026 is no longer just about entering salary details, as the Income Tax Department now cross-verifies taxpayer data using advanced systems. Two critical documents—Form 26AS and the Annual Information Statement (AIS)—play a key role in ensuring accurate tax filing. Form 26AS provides a consolidated view of tax deducted and paid against your PAN, while AIS offers a detailed record of financial transactions such as salary, interest income, investments, and property dealings. Ignoring these documents can lead to mismatches, refund delays, defective returns, or even tax notices. Therefore, proper reconciliation of AIS and 26AS before filing ITR is essential for safe and error-free tax compliance in AY 2026-27.

25 Jun 2026 Views: 0

New TDS Rates Chart – FY 2026–27

The New TDS Rates Chart for FY 2026-27 provides a detailed comparison between the old Income Tax Act provisions and the corresponding sections under the Income Tax Act 2025. The chart covers TDS rates, threshold limits, and applicable sections for salary, interest income, dividends, rent, contractor payments, professional fees, property transactions, non-resident payments, virtual digital assets, cash withdrawals, and special transactions. It also explains the revised section codes under the new tax law and highlights the provisions of Section 397 applicable when PAN is not furnished. This comprehensive guide serves as a quick reference for taxpayers, businesses, professionals, and tax practitioners for FY 2026-27 compliance.

25 Jun 2026 Views: 8