Relief under Section 89(1) of the Income Tax Act, 1961, is designed to protect taxpayers from paying higher taxes due to the timing of salary payments. This provision is particularly helpful when salary, pension, gratuity, or other income is received in arrears or advance, resulting in a spike in taxable income in one year, potentially …
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For Indian residents earning foreign income, avoiding double taxation is crucial. The Indian Income Tax Act, 1961, provides mechanisms under Sections 90, 90A, and 91 to claim a Foreign Tax Credit (FTC) and reduce the burden of being taxed in both the foreign country and India. Here is a detailed step-by-step guide to help you …
Continue reading “How to Claim Foreign Tax Credit in ITR: Complete Guide for AY 2025–26”
In an increasingly globalised world, it is common for Indian residents to earn income from foreign sources—whether through employment abroad, investments, royalties, or business dealings. However, such cross-border income often attracts tax both in the foreign country and in India. To mitigate this burden of double taxation, the Income Tax Act, 1961, provides relief through …
In recent years, a growing number of Indian citizens have opted to surrender their Indian citizenship in favour of acquiring citizenship in other countries like the United States, Canada, the United Kingdom, Australia, and several Gulf nations. This shift, while often driven by better career opportunities, lifestyle preferences, or long-term settlement plans, brings with it …
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For Assessment Year (AY) 2025-26 corresponding to Financial Year (FY) 2024-25, the Income Tax Department has released the Income Tax Return (ITR) forms, ITR-1 and ITR-4. However, it is important to understand that these two forms are meant exclusively for resident individuals and cannot be used by Non-Resident Indians (NRIs) or Resident but Not Ordinarily …
The Income Tax Department has released the much-anticipated Income Tax Return Form ITR 1 (Sahaj) for the Assessment Year (AY) 2025–26, applicable for income earned during Financial Year (FY) 2024–25. While the ITR 1 form remains the simplest among the available ITRs, this year it demands a significant level of additional information, particularly related to …
An Employee Stock Ownership Plan (ESOP) in India is a scheme that allows employees to acquire shares of their employer’s company at a predetermined price, often as a reward or incentive to align their interests with the company’s growth. ESOPs are widely used by startups and established companies to attract and retain talent. The taxability …
Section 10(10D) of the Income Tax Act, 1961, is a crucial provision that allows for tax exemption on the proceeds received from a life insurance policy. This includes not only the maturity amount but also any bonuses accrued during the policy term. However, the exemption is subject to certain conditions regarding the premium paid, the …
Introduction The Income Tax landscape in India has undergone a significant transformation with the introduction of the New Tax Regime under Section 115BAC. For the Financial Year 2024–25 (Assessment Year 2025–26), taxpayers can choose between the old and new regimes, but this flexibility has also led to confusion. Which regime will help you save more? …
If you are a Non-Resident Indian (NRI) and you plan to sell a property in India, it is important to understand the taxes involved. Selling property in India can bring in a good amount of money, but it also comes with tax responsibilities, especially when it comes to capital gains tax and Tax Deducted at …
