Learn all about Tax
What's the difference between VAT and GST?
18 July 2025 | 6 mins read
India had a complicated, multi-layered indirect taxation system before introducing the Goods and Services Tax (GST) on July 1, 2017. Value Added Tax (VAT), excise taxes, service taxes, entry taxes, and octroi were a few of the taxes levied on businesses and consumers.
The Tax Implications of Indian Equity Investments
24 June 2025 | 5 mins read
Many investors just focus on selecting the right stocks or timing their trades but overlook the tax consequences that follow. If you invest in the Indian equity market, then it is important for you to understand how your earnings from investments are taxed.
Key Difference between Direct Tax and Indirect Tax
23 June 2025 | 6 mins read
In India's tax structure, taxes are generally classified as direct and indirect taxes. Familiarity with the difference between the two is fundamental for successful financial planning and compliance. Direct taxes are directly imposed on individuals or entities according to their income or wealth, whereas indirect taxes are taxed on goods and services, eventually falling upon the final consumer. This article delves into the definitions, types, advantages, disadvantages, and examples of both tax categories, providing a comprehensive overview to enhance your understanding of India's tax structure.
How Capital Gains Tax Differs from Income Tax
23 June 2025 | 7 mins read
India's tax system includes different kinds of levies, two of which are income tax and capital gains tax. Income tax is levied on incomes like salaries, business profits, and rent, according to a slab system that is progressive. In contrast, capital gains tax is levied on gains made on the sale of capital assets like property, stocks, or mutual funds. These two taxes not only vary in the source of their income but also in calculation and rates applicable to them.
What is Direct Tax?
23 June 2025 | 8 mins read
Direct tax refers to taxes that are levied directly on individuals, corporations, or entities based on their income, profits, or wealth. Unlike indirect taxes, which are passed on to consumers, the burden of direct taxes cannot be shifted. These taxes are collected directly by the government from the taxpayer. In India, direct taxes are part of the overall revenue mechanism of the nation as well as part of its economic planning. They are governed by the Income Tax Act 1961 and are controlled by the Central Board of Direct Taxes (CBDT). The primary objective of direct taxes is to ensure that individuals and entities contribute to the national exchequer in proportion to their financial capacity, promoting equity and fairness in the taxation system.
What is Service Tax?
23 June 2025 | 6 mins read
Service tax was an indirect tax imposed by the Government of India on specified services supplied or to be supplied, other than those falling under the negative list. It came into being in 1994 through the Finance Act with the objective of generating a revenue stream from the growing services sector, which was a considerable chunk of the country's GDP. The tax was collected by the service provider from the consumer and paid to the government. The tax was payable throughout India except in Jammu and Kashmir and specified areas of the Continental Shelf and Exclusive Economic Zone of India.
Income Tax Penalty: A Beginner’s Guide to Avoiding Common Mistakes
23 June 2025 | 8 mins read
Filing income tax returns correctly and on time is a basic duty of all taxpayers in India. Failure to comply can result in penalties, interest, and possible legal repercussions. Familiarity with the details of income tax penalties is critical to stay clear of such mistakes. This handbook provides information about common errors that draw penalties and presents recent changes from Budget 2025.
Section 80D Explained: Save Tax with Health Insurance Premiums
20 June 2025 | 8 mins read
Health insurance premiums offer more than just financial coverage during medical emergencies. They can also provide an opportunity to reduce your taxable income. Individuals and Hindu Undivided Families (HUFs) are eligible to deduct premiums paid for health insurance policies under the Income Tax Act. These deductions fall under Section 80D, a provision designed to encourage citizens to secure their health while also planning their finances. The deduction applies not only to policies covering yourself but also to those covering family members, including parents. Knowing the conditions and eligible payments under this section can help you file your returns more accurately.
What is Form 16 and its Eligibility and Benefits?
23 May 2025 | 5 mins read
Filing an Income Tax Return (ITR) in India often requires multiple documents, and one of the most crucial among them for salaried employees is Form 16. This article explains the meaning, eligibility, key components and benefits of Form 16.
Income Tax Refund: How to Get Your Refund Faster & When to Expect It?
15 May 2025 | 6 mins read
Navigating the income tax refund process can be complicated, especially with evolving tax regulations and changes in guidelines, like the ones introduced in the Union Budget 2025. Therefore, understanding the intricacies of refunds is crucial for taxpayers aiming for timely reimbursements. This guide delves into the essentials of income tax refunds in India, offering insights into expediting the process and setting realistic expectations.
Section 80CCD: How to Reduce Taxes & Grow Your Retirement Savings
15 May 2025 | 6 mins read
Planning for retirement is essential to ensure financial security in later years. The National Pension System (NPS) is a popular retirement savings scheme in India, and contributions to it are eligible for tax deductions under Section 80CCD of the Income Tax Act. By effectively leveraging this income tax deduction, you can reduce your tax liability while ensuring long-term wealth accumulation for a comfortable retirement.
4 Smart Tax-Saving Tips for Salaries Above ₹12 Lakh Post Union Budget 2025
16 May 2025 | 5 mins read
The Union Budget 2025 introduced significant changes to the income tax structure, offering much-related relief to the middle class and stimulate economic growth. One of the notable adjustments was raising the tax exemption limit (in the new tax regime) from ₹ 7 Lakh to ₹ 12 Lakh annually, allowing individuals earning up to this amount to be exempt from income tax.
Section 80E of Income Tax: How to Claim Education Loan Tax Deductions?
15 May 2025 | 6 mins read
Higher education can be expensive, and many students rely on education loans to pay for their studies. To give financial relief, the government allows tax deductions on the interest paid on such loans under Section 80E of the Income Tax Act, 1961. This provision reduces the overall tax burden for individuals repaying an education loan.
Tax Implications of Pension Fund Withdrawals
8 May 2025 | 4 mins read
Planning for retirement is crucial, but understanding the tax on pension fund withdrawals is equally important. Many individuals assume their pension income is fully tax-free, only to face unexpected deductions. Whether you're withdrawing from the National Pension System (NPS), Employee Provident Fund (EPF), or Public Provident Fund (PPF), each has distinct pension fund taxation rules. Knowing these rules can help maximize your post-retirement savings and minimize tax liabilities.
Capital Gains Tax vs Income Tax: Key Differences Every Investor Should Know
25 April 2025 | 12 mins read
The Government of India levies taxes on various types of income, whether it is your salary, business earnings or profits from different investments. However, not all these incomes are taxed the same way. Different rules may apply depending on the source of income. For example, income tax and capital gains tax are two distinct types of taxes, each with its own set of regulations, rates, and implications. Understanding the difference between capital gains tax and income tax can help you plan and manage your finances better. Let’s explore these two taxes in detail in this article.