Finance and Taxation

Mark Your Calendar: August 2026 Compliance Due Dates for GST, ITR, TDS & MCA

August 2026 Compliance Calendar: Major Income Tax, ITR, TDS, GST & MCA Deadlines

August 2026 is a crucial month for tax compliance, with several important statutory deadlines applicable to taxpayers, businesses, professionals, companies, and tax deductors. After the busy filing season in July, various obligations under the Income-tax Act, GST laws, MCA regulations, and labour legislations become due during August.

Failure to comply with these deadlines may lead to late filing fees, interest liabilities, penalties, delays in processing returns, or even the loss of certain tax benefits.

Below is a detailed compliance calendar highlighting the key due dates for August 2026.

Income Tax Compliance

7 August 2026 – Due Date for Deposit of TDS/TCS

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) deducted or collected during July 2026 should generally be deposited with the Central Government on or before 7 August 2026, unless a different timeline applies under the law.

This requirement generally applies to:

Employers
Companies
Partnership firms
Proprietorship businesses
Government deductors and other entities responsible for TDS/TCS compliance

31 August 2026 – Last Date to File ITR-3 & ITR-4

The revised Income-tax framework prescribes a separate filing deadline for certain non-audit business taxpayers.

Accordingly, 31 August 2026 is the due date for filing:

ITR-3 (for eligible taxpayers not subject to tax audit)
ITR-4 (Sugam)
Eligible working partners covered under the prescribed provisions

Taxpayers should carefully determine the due date applicable to their category rather than assuming that every return was due on 31 July.

Belated Return for ITR-1 & ITR-2

The original due date for filing ITR-1 and ITR-2 was 31 July 2026, and that deadline has already passed.

Those who could not file within the due date may still submit a Belated Return within the time permitted under the Income-tax Act. However, such filing may attract late filing fees, interest, and other statutory consequences wherever applicable.

Before submitting a belated return, taxpayers should reconcile and verify:

Annual Information Statement (AIS)
Form 26AS
Taxpayer Information Summary (TIS)
Any outstanding tax demand
Bank account validation status

Updated Return (ITR-U)

Eligible taxpayers also have the option of filing an Updated Return (ITR-U), provided they satisfy the conditions specified under the Income-tax Act.

The amended provisions now allow updated returns to be filed for a longer period than earlier, subject to payment of the prescribed additional tax and compliance with other statutory requirements.

TDS/TCS Compliance

Quarter 1 TDS/TCS Statements

The due date for filing Quarter 1 TDS/TCS statements for FY 2026-27 was 31 July 2026.

If the statement has not yet been filed, deductors should complete the filing without further delay.

Delayed filing may result in:

Late filing fee under Section 234E
Interest, where applicable
Additional penalties or other legal consequences in eligible cases

Important TRACES Portal Update

The TRACES Portal has introduced revised TDS certificate formats, including Form 131, for Tax Year 2026–27.

Deductors should use the updated portal functionality to download and issue the applicable TDS certificates wherever required.

GST Compliance

For GST-registered businesses, August 2026 is another important month with multiple return filing deadlines that must be monitored carefully.

10 August 2026

Due date for filing:

GSTR-7
GSTR-8

11 August 2026

Last date to file:

Monthly GSTR-1 (for taxpayers filing returns on a monthly basis)

13 August 2026

Due date for:

GSTR-5
GSTR-6

20 August 2026

Due date for filing:

Monthly GSTR-3B
GSTR-5A (where applicable)

GST Update: E-Way Bill System Changes Postponed

GSTN has deferred the implementation of the proposed enhancements to the E-Way Bill system.

As a result, businesses are not required to make immediate changes to their ERP software or existing operational processes. The revised rollout timeline will be communicated separately by GSTN.

MCA (Ministry of Corporate Affairs)

Company Compliance Facilitation Scheme (CCFS) 2026

A significant MCA compliance opportunity continues to be available through the Company Compliance Facilitation Scheme (CCFS), 2026, which remains open until 31 August 2026.

The scheme allows eligible companies to regularize pending ROC filings and obtain the benefits offered under the scheme, subject to the prescribed conditions.

Companies with outstanding ROC compliances should complete the necessary filings before the scheme expires to avoid missing this one-time compliance opportunity.

Regular ROC Compliances

Apart from the special compliance schemes, companies should also ensure that all routine ROC filings are completed within the prescribed timelines under the Companies Act.

Depending on the nature of the transaction, the commonly applicable ROC forms include:

DIR-12
MGT-14
INC-22
SH-7

Companies should review their statutory obligations and file the relevant forms on time to avoid additional fees and regulatory non-compliance.

EPF & ESI Compliance

15 August 2026

Employers covered under the respective labour laws should ensure timely remittance of:

EPF (Employees’ Provident Fund) contributions
ESI (Employees’ State Insurance) contributions

Timely payment helps employers remain compliant and prevents interest and penalty liabilities.

Checklist Before Filing Your Income Tax Return

Whether filing your original Income Tax Return or submitting a belated return, it is advisable to verify the following documents and records before filing:

✅ Annual Information Statement (AIS)
✅ Form 26AS
✅ Taxpayer Information Summary (TIS)
✅ Form 16 or Form 16A (where applicable)
✅ Capital Gains Statement
✅ Interest Certificates
✅ Validated Bank Account Details

Cross-checking these documents helps ensure accurate reporting of income and reduces the chances of receiving tax notices or processing delays.

Important Due Dates – August 2026

Due Date	Compliance
7 August 2026	Deposit of TDS/TCS deducted or collected during July 2026
10 August 2026	Filing of GSTR-7 and GSTR-8
11 August 2026	Monthly GSTR-1 return
13 August 2026	Filing of GSTR-5 and GSTR-6
15 August 2026	Payment of EPF and ESI contributions
20 August 2026	Monthly GSTR-3B and GSTR-5A (where applicable)
31 August 2026	Due date for filing ITR-3 and ITR-4 for eligible non-audit taxpayers
31 August 2026	Last date to avail benefits under the Company Compliance Facilitation Scheme (CCFS) 2026

Conclusion

August 2026 is a significant month for meeting tax, GST, and corporate compliance obligations. Eligible taxpayers should ensure that ITR-3 and ITR-4 are filed by 31 August 2026, while businesses must also comply with GST return filing schedules, TDS/TCS payment requirements, EPF and ESI contributions, and applicable ROC filings.

Companies with pending ROC compliances should make full use of the Company Compliance Facilitation Scheme (CCFS) 2026 before the scheme concludes on 31 August 2026. Completing these compliances within the prescribed timelines can help avoid late fees, interest, penalties, and other legal consequences while ensuring smooth regulatory compliance.

Mrs. Snehal Ubale

Aug, Sun, 2026

Academy Blog Business Careers Easy Smart Shop Events Finance and Taxation GST Internships Social Technology

Complete Inventory Management Software for Retail & Wholesale

Complete Inventory Management Software for Every Business

Inventory is one of the most valuable assets of any business. Whether you own a retail shop, wholesale business, supermarket, medical store, hardware shop, garment showroom, electronics store, mobile shop, or manufacturing company, proper inventory management is essential for business growth and profitability.

Many businesses still rely on manual stock registers or Excel sheets, which often result in stock shortages, duplicate entries, incorrect pricing, billing mistakes, and inventory losses.

Easy Smart Shop Inventory Management Software is designed to eliminate these challenges by providing a complete inventory management solution. From product creation to barcode printing, stock monitoring, HSN management, price list control, inventory reports, and product identity tracking, everything is managed from a single dashboard.

The software provides real-time visibility into your inventory, helping businesses reduce errors, save time, improve stock accuracy, and make better purchasing decisions.

Why Inventory Management is Important?

Proper inventory management helps businesses:

Maintain accurate stock records
Prevent stock shortages
Avoid excess inventory
Improve cash flow
Reduce inventory losses
Speed up billing operations
Improve customer satisfaction
Generate accurate business reports

Easy Smart Shop automates all these processes, allowing business owners to focus on growing their business rather than managing manual stock records.

Powerful Features of Easy Smart Shop Inventory Management Software

1. Item Master – Centralized Product Management

The Item Master is the foundation of the inventory system. It stores complete information about every product in one place.

You can manage:

Item Code
Product Name
HSN/SAC Code
GST Ledger
Product Category
Product Group
Unit of Measurement
Purchase Price
Selling Price
MRP
Purchase Discount
Sales Discount
Opening Stock
Available Stock
Minimum Stock Reminder
CESS Tax
Product Photos
Documents
Product Remarks

Benefits

Easy product creation
Better inventory organization
Faster billing
GST-ready inventory
Centralized product database

2. Store Item Management

Manage Active, Inactive, and All Items from a single screen.

The software allows you to:

Add New Products
Edit Existing Products
Delete Products
View Product Transactions
View Product Identities
Manage Price Lists
Export Item Lists to Excel

This ensures every product remains properly organized and easily searchable.

3. Real-Time Stock Overview

Easy Smart Shop provides a live overview of inventory.

Business owners can instantly view:

Current Stock
Available Quantity
Low Stock Items
Negative Stock
Inventory Value
Order Reminder Quantity
Item-wise Stock
Group-wise Stock
Category-wise Stock

Products running below minimum stock are automatically highlighted, helping businesses reorder inventory before stock-outs occur.

4. Category & Group Wise Inventory

Organize thousands of products into categories and groups for faster management.

Examples:

Electronics

Mobile
Laptop
Accessories

Hardware

Paint
Cement
Electrical
Plumbing

Benefits include better reporting, faster searching, and organized inventory management.

5. Price List Management

Different customers often require different pricing structures.

Easy Smart Shop allows businesses to maintain multiple price lists for:

Retail Customers
Wholesale Customers
Dealers
Distributors
Corporate Clients
Special Offers

This flexibility improves pricing accuracy and customer service.

6. Bulk Price Update

Updating product prices manually is time-consuming.

Easy Smart Shop allows bulk price updates using predefined price lists.

Users can review:

Average Purchase Rate
Selling Price
Purchase Rate
Discount
Available Stock
Last Updated Date
Last Updated By

Thousands of products can be updated within minutes.

7. Barcode Generation & Printing

Generate professional barcode labels for products instantly.

Features include:

Item-wise Barcode
Date-wise Barcode
Default Barcode Templates
Barcode Label Printing
Selling Price on Barcode
Multiple Item Barcode Printing
Lot-wise Barcode Printing

Professional barcode labels improve billing speed and inventory accuracy.

8. Barcode Template Management

Customize barcode labels using adjustable templates.

Supported options include:

Label Height
Label Width
Margins
Horizontal Gap
Vertical Gap
Printer Settings

This allows businesses to print barcode labels according to their preferred sticker sizes.

9. Product Identity Tracking

Track every individual product using:

Barcode Number
Serial Number
IMEI Number
Identity Number
Product Code

Businesses can instantly view complete product history using identity tracking.

Ideal for:

Mobile Shops
Electronics Stores
Medical Stores
Manufacturing Companies

10. HSN & GST Management

Easy Smart Shop simplifies GST compliance by allowing businesses to manage:

HSN Codes
SAC Codes
GST Rates
Product Classification
GST Ledger
CESS Tax

Every product remains GST-ready, reducing tax filing errors.

11. Unit Management

Manage products in multiple measurement units including:

Nos
Kg
Gram
Liter
Feet
Set
Meter
Box
Packet

Each unit can also be linked with GST Units for better tax compliance.

12. Complete Item Transaction History

Every purchase and sale transaction is stored automatically.

Users can check:

Customer Name
Invoice Number
Invoice Date
Quantity Sold
Purchase History
Selling Price
GST Amount
Discount
Total Amount

This provides complete traceability for every product.

13. Inventory Reports

Generate powerful reports including:

Stock Report
Inventory Valuation
Low Stock Report
Negative Stock Report
Category Report
Group Report
Product Transaction Report
Barcode Report
HSN Report
Price List Report

All reports can be exported to Excel.

Industries Using Easy Smart Shop

Retail Stores
Wholesale Businesses
Supermarkets
Medical Stores
Garment Shops
Hardware Shops
Mobile Shops
Electronics Stores
FMCG Distributors
Manufacturing Industries
Automobile Spare Parts
Stationery Shops
Cosmetic Stores

Why Choose Easy Smart Shop?

Easy Smart Shop combines inventory management, stock control, barcode generation, GST compliance, HSN management, product tracking, pricing, and reporting into a single integrated software.

Whether your business manages 100 products or 100,000 products, the software provides speed, accuracy, automation, and complete inventory visibility.

With an easy-to-use interface and powerful reporting tools, it helps businesses save time, reduce operational costs, and make smarter inventory decisions.

Frequently Asked Questions

Is Easy Smart Shop suitable for retail stores?

Yes. It is designed for retail, wholesale, supermarkets, medical stores, hardware shops, garment businesses, electronics stores, and manufacturers.

Can I print barcode labels?

Yes. The software includes barcode generation, customizable barcode templates, and professional label printing.

Does it support GST and HSN codes?

Yes. Easy Smart Shop supports HSN/SAC codes, GST rates, GST ledgers, and CESS tax management.

Can I manage multiple price lists?

Yes. You can create separate price lists for retail, wholesale, dealer, distributor, and corporate customers.

Can I export reports?

Yes. Inventory reports, stock reports, and price lists can be exported to Excel.

Conclusion

Inventory management plays a critical role in business success. Easy Smart Shop Inventory Management Software provides businesses with a comprehensive solution for managing products, stock, pricing, barcode labels, GST compliance, HSN codes, inventory reports, and transaction history.

By automating routine inventory tasks, businesses can reduce errors, improve productivity, maintain accurate stock records, and deliver better customer service.

If you are looking for a reliable, user-friendly, and feature-rich inventory management software, Easy Smart Shop is the right choice.

Get Your Free Demo Today

Take complete control of your inventory with Easy Smart Shop Inventory Management Software.

Why Choose Easy Smart Shop?

✅ Real-Time Stock Management
✅ Barcode Generation & Printing
✅ HSN & GST Ready
✅ Multiple Price Lists
✅ Bulk Price Updates
✅ Product Identity Tracking
✅ Smart Inventory Reports
✅ Low Stock Alerts
✅ Excel Export
✅ Fast & User-Friendly Interface

📞 Call: 8180009888
🌐 Website: www.easysmartshop.com

🎁 Request your FREE Demo today and experience smarter inventory management with Easy Smart Shop.

Meghana Badmore

Jul, Sat, 2026

Latest Tax & Financial Changes from 1st July 2026 | Income Tax and GST Updates

With the commencement of July 2026, a number of significant regulatory and financial changes have become effective across India. These updates are expected to affect individual taxpayers, businesses, professionals, and the general public. Whether you are filing your Income Tax Return, managing GST compliance, dealing with TDS/TCS provisions, or using services related to Aadhaar, PAN, or passports, it is essential to stay informed about these latest developments.

1. Passport Fees Revised from 1 July 2026

One of the key changes effective from 1 July 2026 relates to passport services.

The Passport Seva system has introduced a revised fee structure for passport applications.

Some of the important revisions include:

The application fee for a fresh 36-page passport has increased from ₹1,500 to ₹2,500.
Charges for passport renewal, Tatkal applications, and replacement of lost or damaged passports have also been updated.

Individuals planning to apply for a new passport or renew an existing one should review the latest fee schedule before submitting their application.

2. Quarter-1 TDS and TCS Returns Due by 31 July 2026

With the completion of the first quarter of Tax Year 2026–27 (April to June 2026), the due date for filing quarterly TDS and TCS statements has arrived.

Due Date: 31 July 2026

Tax deductors and collectors are required to submit both TDS and TCS returns by this date. While returns may be filed earlier, 31 July 2026 is the final deadline for Quarter-1 compliance.

3. New TDS/TCS Return Forms and Updated Filing Utility

The Income Tax Department has introduced updated TDS/TCS return forms in line with the new Income-tax framework.

To facilitate return filing for Tax Year 2026–27 onwards, a new Return Preparation Utility (RPU) and Validation Utility have also been released.

Tax deductors should ensure they are using:

Latest RPU Version 1.0
Updated Validation Utility
Revised quarterly TDS/TCS return forms

Utilities applicable to FY 2025–26 should not be used for returns relating to Tax Year 2026–27. Businesses and professionals managing payroll or TDS compliance should update their software without delay.

4. Income Tax Return Filing Due Date for ITR-1 and ITR-2

July continues to be a crucial month for individual Income Tax Return filing.

For taxpayers filing ITR-1 and ITR-2, the due date remains:

31 July 2026

Before submitting the return, taxpayers should carefully verify the following information:

Annual Information Statement (AIS)
Form 26AS
Pre-filled return details
Bank account information

Checking these records on the Income Tax e-filing portal helps minimize errors and reduces the chances of receiving notices later.

5. Extended Due Date for ITR-3 and ITR-4 (Non-Audit Cases)

Business taxpayers have received additional time to file their Income Tax Returns.

For taxpayers filing ITR-3 or ITR-4 where a tax audit is not applicable, the due date has been extended to:

31 August 2026

This extension is particularly beneficial for taxpayers such as:

Futures & Options (F&O) traders
Intraday traders
Small business owners
Professionals

Considering the extended deadline, tax professionals may focus first on completing ITR-1 and ITR-2 filings during July.

6. Deadline Extended for Filing Appeals Before GSTAT

Taxpayers have also received relief regarding appeals before the GST Appellate Tribunal (GSTAT).

The deadline for filing appeals under Section 112 of the CGST Act has been extended to:

31 July 2026

The extension applies to eligible orders covered under the prescribed conditions, providing taxpayers with additional time to submit pending appeals before the Tribunal.

7. E-Way Bill Enhancements Postponed

GSTN had earlier announced two new features for the E-Way Bill system to improve reporting and compliance.

(a) E-Way Bill Closure Option

A new functionality will allow taxpayers to close an E-Way Bill after the transportation of goods is completed or if the movement does not take place.

(b) Mandatory “Ship To GSTIN”

For Bill-to Ship-to transactions, entering the GSTIN of the actual recipient (Ship To party) will become mandatory wherever applicable.

These enhancements have not yet been implemented. Their rollout has been postponed and is now expected to take effect from 1 August 2026. Until then, taxpayers need not be concerned if these options are unavailable on the E-Way Bill portal.

8. Updated TDS Return Forms Available on the Income Tax Portal

The Income Tax Department has enabled the revised quarterly TDS return forms for Tax Year 2026–27 on the e-filing portal.

Forms introduced under the updated Income-tax framework—including Forms 138, 140, 143, and 144, wherever applicable—are now available for filing.

As the new law has introduced revised section references and reporting codes, taxpayers and deductors should ensure that returns are prepared using the latest prescribed forms and utilities.

9. GST Quarterly Compliance Schedule Begins

With the April–June quarter now completed, several important GST return filings become due during July.

Key due dates include:

GSTR-3B

Monthly taxpayers – 20 July
QRMP taxpayers – 22 July or 24 July, depending on the State

GSTR-1

Monthly filers – 11 July
Quarterly filers – 13 July

Other GST returns due during the month include:

GSTR-5
GSTR-6
GSTR-7
GSTR-8

Taxpayers are also advised to reconcile purchase data through the Invoice Management System (IMS) Dashboard, which helps match invoices with GSTR-2B and improves the accuracy of GST reporting.

10. Aadhaar Email ID Update Now Free Through the Mobile App

UIDAI has introduced a welcome concession for Aadhaar users.

From 1 July 2026, updating an email ID through the Aadhaar Mobile App is free of cost.

Previously, a fee of ₹75 was charged for this service.

The waiver will remain available for six months. However, it applies only to updates made through the mobile application and not through the online portal.

11. PAN Application Procedure Revised

The process for applying for a Permanent Account Number (PAN) has also been updated under the revised Income-tax framework.

Applicants should keep the following changes in mind:

Aadhaar alone may not satisfy all identity or verification requirements.
Where proof of date of birth is required, documents such as a Matriculation Certificate or any other approved document may need to be submitted.
Applications should be filed using the revised PAN forms notified under the new Income-tax provisions.

Anyone planning to obtain a new PAN should carefully review the latest documentation requirements before submitting the application.

Quick Overview

Update	Applicable Date
Passport application fees revised	1 July 2026
Quarter-1 TDS/TCS return due date	31 July 2026
New TDS/TCS forms and filing utilities	Now Available
ITR-1 & ITR-2 filing due date	31 July 2026
ITR-3 & ITR-4 (Non-Audit) due date	31 August 2026
GSTAT appeal filing deadline	31 July 2026
New E-Way Bill features	Expected from 1 August 2026
GST quarterly return filings	July 2026
Aadhaar email update through App	Free from 1 July 2026
Revised PAN application process	Currently Effective

Conclusion

July 2026 is a crucial month for tax and regulatory compliance. A number of significant changes—including revised passport fees, updated TDS/TCS return procedures, Income Tax Return deadlines, GSTAT appeal relief, GST filing obligations, Aadhaar service updates, and changes to the PAN application process—have come into effect or are scheduled for implementation.

Whether you are an individual taxpayer, business owner, GST-registered entity, accountant, or tax professional, staying informed about these developments is essential. Timely compliance with the latest rules can help you avoid interest, penalties, and unnecessary notices while ensuring that you benefit from the relief measures and new facilities introduced from 1 July 2026.

Mrs. Snehal Ubale

Jun, Tue, 2026

Academy Blog Business Careers Easy Smart Shop Events Finance and Taxation GST Internships Social Technology

Easy Smart Shop Purchase Management: Simplify Your Business Purchase Process

Managing purchases efficiently is one of the most important parts of running a successful business. Manual purchase entries, supplier records, invoice tracking, and stock updates can take valuable time and may lead to errors.

Easy Smart Shop Purchase Management Software by SwaNirmit Technologies helps businesses manage their complete purchase process in a simple, organized, and efficient way.

What is Purchase Management in Easy Smart Shop?

Purchase Management in Easy Smart Shop is a smart solution designed to manage all purchase-related activities from a single platform.

It helps businesses maintain supplier details, record purchase invoices, update stock automatically, and keep complete purchase transaction history.

With this system, businesses can easily control purchasing activities and improve overall efficiency.

Key Features of Easy Smart Shop Purchase Management

1. Easy Purchase Entry

Create and manage purchase entries quickly with complete details.

The Purchase Entry module allows you to record:

Purchase Date
Supplier Name
Invoice Number
Item Details
Quantity
Purchase Rate
Discount
GST Details
Total Purchase Amount

This helps maintain accurate purchase records.

2. Supplier Management

Manage complete supplier information in one place.

You can maintain:

Supplier Name
Address
Contact Number
Email Details
GST Number
Purchase History

This makes supplier communication and tracking easier.

3. GST Purchase Management

Easy Smart Shop supports GST-based purchase transactions.

It manages:

HSN Code
GST Rate
CGST
SGST
IGST
Taxable Amount
Total Invoice Amount

Businesses can maintain proper GST purchase records easily.

4. Automatic Stock Update

Whenever a purchase entry is created, stock quantity gets updated automatically.

Benefits:

✔ Real-time Stock Availability
✔ Better Inventory Control
✔ Avoid Stock Shortage
✔ Easy Product Tracking

5. Purchase Invoice Management

Maintain all purchase invoices digitally.

You can track:

Invoice Details
Purchase Amount
Supplier Balance
Payment Status

This helps businesses manage their accounts more effectively.

6. Purchase Reports & Tracking

Easy Smart Shop helps generate useful purchase information for better decision-making.

Track:

Purchase History
Supplier Transactions
Item Purchase Details
Payment Records

Benefits of Easy Smart Shop Purchase Management

✔ Reduces Manual Work
✔ Saves Business Time
✔ Improves Purchase Accuracy
✔ Maintains Complete Records
✔ Helps Manage Suppliers Easily
✔ Provides Better Business Control

Why Businesses Choose Easy Smart Shop

Easy Smart Shop is designed for retailers, wholesalers, traders, and enterprises who want a simple yet powerful solution to manage their daily business operations.

With advanced purchase management features, businesses can improve productivity and focus on growth.

SwaNirmit Technologies – Smart Business Solutions

SwaNirmit Technologies provides reliable software solutions that help businesses move towards digital transformation.

Our goal is to provide easy, efficient, and smart technology solutions for every business.

📍 SwaNirmit Technologies
Chhatrapati Sambhaji Nagar, Maharashtra, India

📞 +91 81 8000 9888
📧 sales@swanirmit.com
🌐 www.swanirmit.com

Easy Smart Shop – Smart Management for Every Shop & Enterprise

Meghana Badmore

Jun, Mon, 2026

Academy Blog Business Careers Easy Smart Shop Events Finance and Taxation GST Internships Social Technology

Credit Note Module – EASY Smart Shop ERP Complete Guide What is a Credit Note?

Credit Note Module – EASY Smart Shop ERP Complete Guide
What is a Credit Note?

A Credit Note is a document issued to a customer when the company needs to reduce the invoice amount due to reasons like:

Sales Return
Post Sale Discount
Invoice Correction
Service Issue
Other adjustments

In EASY Smart Shop ERP, the Credit Note module helps manage customer returns, discounts, and invoice adjustments easily.

1) How to Open Credit Note Module?

Go to:

Sales → Credit Note

The Credit Note Entry screen will open.

2) Credit Note Entry Screen Details
A) Select Customer / Supplier

At the top:

Select Customer or Supplier

Select the required customer.

After selecting customer, you can check details using:

Customer Details Button

3) Customer Details Window

Customer information can be entered:

Name

Enter Customer Name

Address

Enter Customer Address

Enter Customer Email ID

Contact

Enter Mobile Number

GST No.

Enter Customer GST Number

State

Select Customer State

Example:

27 – Maharashtra

Click:

to save details.

4) Credit Note Date

Credit Note Date

Shows the date on which Credit Note is created.

Example:

23-Jun-2026

5) Credit Note Number

Enter or generate Credit Note Number.

It is used for tracking and reporting purposes.

6) Credit Note Type

There are two options:

1) Sales Return

Used when customer returns purchased items.

Example:

Customer purchased a printer and returned it.

2) Discount

Used when discount is provided after sales.

Example:

Giving ₹500 discount after invoice generation.

7) GST Reason Selection

Select the reason for creating Credit Note.

Available options:

01 – Sales Return

For returned goods.

02 – Post Sale Discount

For discount provided after sale.

03 – Deficiency in Services

For service-related issues.

04 – Correction in Invoice

To correct invoice mistakes.

05 – Change in POS

For change in Place of Supply.

06 – Finalization of Provisional Assessment
07 – Others

For other reasons.

8) Reference Invoice Selection

If Credit Note is created against an old invoice:

Click:

Select Reference Invoice

Select the invoice.

The system will fetch invoice details automatically.

9) Invoice Number & Invoice Date

After selecting reference invoice:

Invoice Number
Invoice Date

will be displayed automatically.

10) Remark / Reason

Enter the reason for Credit Note.

Examples:

“Material Returned Due To Damage”

“Discount Given As Per Customer Request”

11) Item Selection

Select items from:

Select Items

Example:

Printer
CCTV Camera
Cable
Software
12) Item Details

After selecting an item, details will appear:

Unit

PCS / Nos / Box

Description

Item Name

GST Rate %

GST Percentage

HSN

HSN Code

CGST Rate

Central GST Rate

SGST Rate

State GST Rate

IGST Rate

Integrated GST Rate

Item Type

Item Category

13) Quantity & Rate Details

Enter:

Return Quantity

Quantity returned by customer

Rate

Item selling rate

Discount %

Discount percentage (if applicable)

Amount

Total item amount

14) Add Item

After entering item details:

Click:

Add Item

The item will be added to the Credit Note list.

15) Credit Note Calculation

The system calculates:

Taxable Amount

Amount before GST

CGST

Central GST amount

SGST

State GST amount

IGST

Integrated GST amount

Tax Amount

Total GST

Total Amount

Final Credit Note value

Round Up

Rounding adjustment

Credit Note Amount

Final credit amount given to customer

16) Save Credit Note

After checking all details:

Click:

Save (F5)

Credit Note will be generated.

17) Print & Email Options

Available options:

Print (F6)

Print Credit Note

Print Preview (F7)

Check preview before printing

E-Mail Invoice (F8)

Send Credit Note through email

18) Credit Note Management

To view previous Credit Notes:

Open:

Credit Note Management

Select:

From Date
To Date
Customer

Click:

View

The list shows:

Credit Note ID
Invoice Date
Customer Name
Credit Note Number
Total Amount
Invoice Number
Updated By
19) Additional Options
New Credit Note

Create new Credit Note

Edit Credit Note

Modify existing Credit Note

Export Excel

Export Credit Note report into Excel

Print report

Benefits of Credit Note Module in EASY Smart Shop ERP

✅ Manage Sales Returns easily
✅ GST compliant Credit Notes
✅ Invoice correction facility
✅ Customer balance adjustment
✅ Automatic GST calculation
✅ Easy reporting
✅ Excel export facility

EASY Smart Shop ERP Credit Note Module makes Sales Return, Discount Management, and Invoice Adjustments simple, accurate, and faster.

Meghana Badmore

Jun, Wed, 2026

Finance and Taxation

Income Tax Scrutiny Notices Under Section 143(2) Issued in June 2026: What Taxpayers Should Know

Why Are Taxpayers Receiving Section 143(2) Notices Across India?

In recent days, a large number of taxpayers have reported receiving notices under Section 143(2) of the Income-tax Act from the Income Tax Department.

For many, receiving any communication from the department immediately creates anxiety. Reports and discussions on social media have further fuelled concerns, with claims that scrutiny notices are being issued to a significant number of taxpayers.

This has left many wondering:

“I filed my Income Tax Return several months ago. Why have I received a notice only now?”

It is one of the most common questions taxpayers are asking.

The reason is linked to a specific statutory time limit prescribed under the Income-tax Act for issuing scrutiny notices—a provision that many taxpayers are unaware of.

Before assuming the worst, it is important to understand why these notices are being issued, what they actually mean, and whether you need to take any immediate action.

Why Are So Many Section 143(2) Notices Being Issued?

Many taxpayers are unaware that the Income Tax Department has a legally prescribed time limit for issuing scrutiny notices. Such notices cannot be sent at any time after a return is filed.

For Assessment Year (AY) 2025-26, the last date for issuing a notice under Section 143(2) is:

30 June 2026

This deadline plays a significant role in the recent increase in scrutiny notices.

If the Department decides to examine a return filed for AY 2025-26, the notice must be issued on or before this date. As the deadline approaches, the Department completes its risk assessment and selects eligible cases for detailed verification, resulting in a higher number of notices being issued during June 2026.

What Is a Notice Under Section 143(2)?

A notice under Section 143(2) is issued when the Income Tax Department chooses an Income Tax Return for a detailed review.

The purpose of the scrutiny is to verify whether:

Income has been reported correctly.
Deductions claimed are eligible.
Exemptions have been claimed as per law.
Capital gains have been computed accurately.
The information reported in the return matches the data available with the Department.

Receiving such a notice does not mean that the taxpayer has concealed income or committed tax evasion. It simply indicates that the Department requires additional information or supporting documents before completing the assessment.

Why Has Your Return Been Selected for Scrutiny?

Many taxpayers believe that once their return is processed, the matter is closed. However, the Income Tax Department now relies on advanced technology, including data analytics and AI-based risk assessment, to identify cases requiring further verification.

Information from multiple sources is compared before a return is selected for scrutiny.

1. Differences Between AIS, Form 26AS and ITR

One of the most common reasons for scrutiny is inconsistency between:

Annual Information Statement (AIS)
Form 26AS
Income Tax Return (ITR)

Even minor mismatches may trigger further examination.

2. High-Value Financial Transactions

The Department receives information relating to various significant transactions, such as:

Large cash deposits
Purchase or sale of immovable property
High-value investments
Significant credit card payments
Foreign remittances

If these transactions are not consistent with the income reported, the return may be selected for scrutiny.

3. Incorrect Reporting of Capital Gains

Taxpayers who have sold assets such as:

Land
Residential property
Commercial property
Shares
Mutual funds

may receive scrutiny notices if capital gains have not been disclosed or calculated correctly.

4. Large Refund Claims or Questionable Deductions

Returns claiming substantial tax refunds or unusually high deductions and exemptions are often subjected to additional verification before refunds are processed.

5. Business Losses or Unusual Profit Patterns

Businesses reporting:

Heavy losses
Exceptionally low profits
Large expense claims
Significant deductions

may attract closer examination by the Department.

6. Foreign Income and Overseas Assets

The Department has strengthened monitoring of taxpayers having:

Foreign bank accounts
Overseas investments
Foreign income
International financial transactions

Incomplete or incorrect reporting of such information may result in scrutiny.

Does a Section 143(2) Notice Mean You Have Violated Tax Laws?

No.

Receiving a scrutiny notice should not be interpreted as evidence of tax evasion or wrongdoing.

It simply means that the Income Tax Department wishes to verify certain details mentioned in your return.

Every year, many honest taxpayers receive scrutiny notices and complete the assessment successfully by submitting the required documents and explanations.

What Should You Do After Receiving a Notice?

Most scrutiny assessments are now conducted online through the Faceless Assessment system.

The general process includes:

Step 1: Log in to the Income Tax e-Filing Portal.

Step 2: Read the notice carefully along with any questionnaire issued.

Step 3: Gather all relevant documents and records.

Step 4: Upload your response through the e-Proceedings facility.

Step 5: Ensure that the response is submitted before the due date mentioned in the notice.

In most cases, the entire communication takes place electronically.

Documents That May Be Required

Depending on the issues involved, the Department may request documents such as:

Bank account statements
Property purchase agreements
Sale deeds
Capital gains calculations
Books of account
GST records
Loan confirmations
Investment proofs
Details of foreign assets
Income-related supporting documents

The exact list of documents varies according to the facts of each case.

Can You Ignore a Section 143(2) Notice?

No.

Ignoring a scrutiny notice can have serious consequences, including:

Best Judgment Assessment
Addition of income
Additional tax demand
Interest liability
Penalty proceedings

It is therefore essential to review the notice carefully and submit an appropriate response within the prescribed time.

Important Deadline

Particulars	Details
Financial Year	2024-25
Assessment Year	2025-26
Last Date for Issue of Notice under Section 143(2)	30 June 2026

This statutory deadline is the primary reason for the noticeable increase in scrutiny notices during June 2026.

Key Takeaway

If you have received a notice under Section 143(2), there is no need to panic.

A scrutiny notice does not automatically indicate tax evasion or any irregularity. In many cases, it is issued simply because the Department requires additional verification before completing the assessment.

The recent surge in notices is mainly due to the statutory deadline of 30 June 2026 for issuing scrutiny notices for AY 2025-26.

Read the notice carefully, collect the necessary documents, respond accurately within the prescribed timeline, and seek professional assistance if required. Prompt compliance and proper documentation are the best way to ensure a smooth scrutiny process.

Frequently Asked Questions (FAQs)

Is a notice under Section 143(2) a cause for concern?

It should be taken seriously, but receiving the notice does not automatically mean that you have violated any tax provisions.

Why are many taxpayers receiving these notices in June 2026?

The Income Tax Department must issue scrutiny notices for AY 2025-26 on or before 30 June 2026, which explains the increase in notices during this period.

Are scrutiny assessments conducted online?

Yes. Most scrutiny proceedings are handled electronically through the Faceless Assessment system.

Can I appoint a Chartered Accountant to handle my case?

Yes. A Chartered Accountant or any authorised representative can assist you in preparing and submitting responses during the scrutiny proceedings.

What should I do immediately after receiving the notice?

Log in to the Income Tax e-Filing Portal, review the notice carefully, collect all relevant supporting documents, and submit your response within the specified deadline.

Mrs. Snehal Ubale

Jun, Mon, 2026

Key Compliance Due Dates in June 2026 – GST, Income Tax, PF, ESI, MCA & Other Filings

June 2026 Compliance Calendar: Key GST, Income Tax, PF, ESI, MCA & Statutory Deadlines

June 2026 is a crucial month for businesses, professionals, LLPs, companies, and taxpayers, as several important statutory compliances fall due during the month. Timely completion of GST filings, TDS/TCS payments, PF and ESI deposits, and other regulatory obligations is necessary to avoid penalties, interest charges, and compliance-related notices.

Presented below is a detailed compliance calendar for June 2026 covering significant due dates under GST, Income Tax, PF, ESI, MCA, and other applicable laws.

7 June 2026 (Sunday)

Income Tax

✅ Deposit of TDS/TCS deducted or collected during May 2026.

Applicable to all taxpayers responsible for deducting or collecting tax at source, subject to prescribed exceptions under the Income-tax provisions.

10 June 2026

GST

✅ GSTR-7 for May 2026
Return to be filed by taxpayers required to deduct TDS under GST.

✅ GSTR-8 for May 2026
Return to be filed by e-commerce operators liable to collect TCS under GST.

11 June 2026

GST

✅ GSTR-1 (Monthly) for May 2026
Filing of details relating to outward supplies by monthly GST return filers.

13 June 2026

GST

✅ GSTR-6
Return applicable to Input Service Distributors (ISD).

✅ GSTR-5
Return applicable to Non-Resident Taxable Persons (NRTP), wherever required.

15 June 2026

Income Tax

✅ First Advance Tax Installment for FY 2026-27

Taxpayers liable to pay advance tax should ensure payment of at least 15% of their estimated annual tax liability by this date.

PF & ESI

✅ Deposit of EPF contributions for May 2026.

✅ Deposit of ESI contributions for May 2026.

Applicable to establishments covered under the respective labour laws.

20 June 2026

GST

✅ GSTR-3B for May 2026

Monthly summary return and tax payment for regular GST taxpayers.

25 June 2026

GST

✅ GST PMT-06 Payment

Tax payment under the QRMP Scheme for May 2026 through Form GST PMT-06.

30 June 2026

Income Tax

✅ Submission of Challan-cum-Statements for tax deducted during May 2026 under:

• Section 194-IA – Purchase of Immovable Property (Form 26QB)

• Section 194-IB – Rent Paid by Individual/HUF (Form 26QC)

• Section 194M – Specified Payments by Individual/HUF (Form 26QD)

• Section 194S – Transfer of Virtual Digital Assets, where applicable (Form 26QE)

Additional Compliance Activities

✅ Review and update books of accounts for the first quarter of FY 2026-27.

✅ Reconcile GST liabilities, Input Tax Credit (ITC), and E-Way Bill records.

✅ Verify vendor GST compliance to safeguard ITC eligibility.

✅ Complete TDS reconciliation before filing quarterly TDS returns.

Compliance Tip

Businesses and professionals should avoid postponing compliance activities until the due date. Regular reconciliation of GST returns, accounting records, TDS transactions, and employee-related statutory payments helps minimize compliance risks and prevents avoidable notices, late fees, and interest liabilities. Maintaining a structured monthly compliance calendar can greatly improve regulatory adherence and support smooth business operations throughout the financial year.

The above due dates have been compiled after reviewing GST, Income Tax, and professional compliance calendars available from official and industry-recognized sources.

Mrs. Snehal Ubale

May, Sun, 2026

Academy Blog Business Careers Easy Smart Shop Events Finance and Taxation GST Internships Social Technology

Why Quotation Management is Important for Every Business

In today’s competitive business world, sending a professional quotation is the first step toward winning a customer’s trust and closing more deals. A quotation helps businesses clearly explain product pricing, taxes, discounts, delivery details, and terms before the final order confirmation.

Without a proper quotation system, businesses face:

Manual calculation errors
Delayed customer response
Unprofessional document formats
Poor follow-up management
Difficult sales tracking

That’s why EASY SMART SHOP provides a complete and advanced Quotation Management System designed to simplify your sales process and improve business productivity.

EASY SMART SHOP – Advanced Quotation Management System

Smart Dashboard for Fast Operations

https://images.openai.com/static-rsc-4/om9vy4T4iR-6RO6FEP37l99yiXJVbRmnQ8rW7H4rxgPpCkvn3rgIQX_s098fHX0X0TNQm7s4z2WbqRPmU3bQtQTG2HHdTJc-e8sw4BsH_e2Te5Wpndm1kQRsP4Ev-gzj2ufodJHhFuvNKPQFP2q3YB4YAy2bSDlz3ZyUSydeq8hivnbNMSBzNhZbpusqwIXK?purpose=fullsize

The EASY SMART SHOP dashboard gives users quick access to all important quotation and sales features from a single screen.

Dashboard Features:

New Quotation Creation
Sales Order Management
Invoice Generation
Purchase Management
Customer Management
Inventory Tracking
Job Management
Notification Alerts
Reports & Accounts

The software is designed with a simple and user-friendly interface so businesses can work faster and more efficiently.

Complete Quotation Management Panel

The Quotation Management screen helps businesses manage all quotations in one place.

Features Available:

Pending Quotation Tracking
Rejected Quotation Records
Final Quotation Management
Customer-wise Quotation Filter
Follow-Up Date Management
Closing Date Tracking
Sales ID & Invoice Linking

Businesses can easily track quotation status and follow up with customers at the right time.

Professional Quotation Creation Window

EASY SMART SHOP allows users to create detailed and professional quotations within seconds.

Powerful Features:

Item-wise quotation entry
GST tax calculation
Discount management
HSN code support
Quantity & stock tracking
Automatic amount calculation
CGST / SGST / IGST support
Subject & customer requirement notes

The software automatically calculates totals, taxes, discounts, and final invoice amounts, reducing manual errors.

Customer Detail Management

The Customer Details section helps businesses maintain professional customer records.

Information Managed:

Customer Name
Address
Contact Number
Email Address
GST Number
State Selection
Reference Details
Designation Information

This helps businesses maintain organized customer communication and accurate documentation.

Advanced Features in EASY SMART SHOP

The software includes multiple advanced features that make business operations faster and smarter.

Proforma Invoice System

Businesses can instantly convert quotations into professional Proforma Invoices.

Benefits:

Professional invoice format
GST-ready documents
Faster customer approval
Easy printing & sharing
Sales process automation

E-Mail Proforma Invoice

The software allows direct emailing of Proforma Invoices to customers.

Advantages:

Instant customer communication
PDF attachment support
Faster deal confirmation
Paperless workflow
Professional business impression

E-Mail Quotation Feature

Users can directly send quotations through email from the software.

Benefits:

One-click quotation sharing
Fast customer response
Better follow-up process
Improved sales conversion

Create Delivery Challan

EASY SMART SHOP also provides Delivery Challan creation for product dispatch management.

Features:

Delivery document generation
Dispatch tracking
Customer delivery records
Professional challan format

Quotation Follow-up & Updates –
Easily track quotation follow-ups and make quick updates based on customer requirements.
Quotation History Management –
Maintain a complete history of all quotations, making it easy to access previous records anytime.
Document Management –
Store and manage all quotation-related documents, PDFs, bills, and attachments in one secure place for better organization and faster access.

Terms & Conditions Management

The software allows users to add custom Terms & Conditions in quotations.

Features:

Add custom terms
Edit existing terms
Save templates
Reuse quotation formats
Print-ready documentation

This makes every quotation more professional and legally clear.

Why Businesses Prefer EASY SMART SHOP

✔ Professional Quotation System
✔ GST Billing Support
✔ Proforma Invoice Feature
✔ Email Quotation Sending
✔ Delivery Challan Management
✔ Customer Database Management
✔ Smart Tax Calculation
✔ Inventory Integration
✔ User-Friendly Interface
✔ Faster Business Workflow

Perfect Solution For

Retail Shops
Wholesale Businesses
Electronics Shops
Mobile Shops
Service Centers
Hardware Stores
Manufacturing Businesses
Computer Shops
Distributors

Grow Your Business with EASY SMART SHOP

EASY SMART SHOP helps businesses manage quotations, invoices, customers, and sales operations professionally from one software platform.

With advanced quotation features, automated calculations, email integration, and delivery management, businesses can save time, reduce manual work, and improve customer satisfaction.

EASY SMART SHOP

“FOR EVERY SHOP & EVERYONE IN THE SHOP”

Meghana Badmore

May, Thu, 2026

Finance and Taxation

Major Benefits for Senior Citizens Effective from 1 April 2026

Effective from 1 April 2026, it becomes important for senior citizens to clearly understand the applicable income tax provisions in order to manage their finances efficiently and stay compliant with legal requirements. Most senior citizens depend on income sources such as pension, interest, rent, or investments. Having proper knowledge of tax rules helps in minimizing tax liability and avoiding unnecessary notices or scrutiny.

👴 Who qualifies as a Senior Citizen?

Category	Age Criteria
Normal Individual	Below 60 years
Senior Citizen	60 – 79 years
Super Senior Citizen	80 years and above

👉 Important Note:
These benefits are available only to resident individuals. Non-resident individuals (NRIs) are not eligible for these specific benefits.

Under the new tax regime, which continues as the default option, the basic exemption limit is ₹4 lakh.

💰 Tax Slabs – New Tax Regime (Default)

Income Range	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

In addition, a rebate under section 87A (read with section 156 provisions) ensures that if the total income does not exceed ₹12 lakh, the tax liability on normal income can effectively become zero.

However, this rebate does not apply to income taxed at special rates, such as short-term capital gains under section 111A, long-term capital gains, lottery winnings, or income from virtual digital assets.

Under the old tax regime, senior citizens benefit from a higher basic exemption limit of ₹3 lakh, while super senior citizens enjoy an exemption limit of ₹5 lakh.

The tax structure under the old regime is:

5% on income above the exemption limit up to ₹5 lakh
20% on income between ₹5 lakh and ₹10 lakh
30% on income above ₹10 lakh

A rebate under section 87A is also available for income up to ₹5 lakh. Additionally, deductions under sections such as 80C and 80D are available, which may make the old regime beneficial in certain cases.

Although individuals with income below the exemption limit are generally not required to file an Income Tax Return (ITR), there are certain situations where filing becomes mandatory regardless of income level.

📄 When is ITR Filing Mandatory?

Even if income is below the exemption limit, filing is compulsory in the following cases:

High TDS or TCS has been deducted
Savings account deposits exceed ₹50 lakh
Current account transactions exceed ₹1 crore
Business turnover exceeds ₹60 lakh
Professional receipts exceed ₹10 lakh
Foreign travel expenses exceed ₹2 lakh
Electricity expenses exceed ₹1 lakh
Ownership of foreign assets or earning foreign income

One of the key reliefs available to senior citizens is exemption from payment of advance tax. Individuals aged 60 years or above, who do not have income from business or profession, are not required to pay advance tax. However, if they do have such income and their tax liability exceeds ₹10,000, advance tax provisions will apply.

With regard to interest income, senior citizens benefit from a higher threshold for TDS, generally up to ₹1 lakh per financial year. However, it is important to note that non-deduction of TDS does not mean the income is tax-free. Such income must still be disclosed in the ITR and is taxable as per slab rates.

A major compliance update is the introduction of Form 121, which replaces the earlier Forms 15G and 15H. This form allows taxpayers to declare that their income is below the taxable limit, thereby avoiding unnecessary TDS deductions. This facility is applicable only when the actual tax liability is nil.

There is also a special provision for individuals aged 75 years and above. If their income consists only of pension and interest, and both are received in a single specified bank account, they may be exempt from filing an ITR. In such cases, the bank calculates total income, applies eligible deductions and rebates, deducts the tax, and issues a certificate. This benefit is subject to strict conditions, including having no other source of income.

Another important concept is marginal relief, which ensures that if income slightly exceeds the rebate threshold (for example, ₹12 lakh under the new regime), the additional tax payable does not exceed the additional income earned. This prevents an excessive increase in tax burden due to minor income changes.

In terms of house property, taxpayers are now allowed to treat up to two properties as self-occupied without paying tax on notional rent. This is beneficial for individuals who own multiple houses that are not rented out.

For rental income, if the monthly rent does not exceed ₹50,000 (₹6 lakh annually), tenants are not required to deduct TDS, which simplifies compliance.

Recent procedural changes include an extension of the ITR filing due date for non-audit cases to 31 August, while revised returns can be filed up to 31 March of the assessment year, subject to applicable late fees.

Taxpayers can also file an updated return (ITR-U) within four years from the end of the relevant assessment year, although this involves payment of additional tax ranging from 25% to 70% depending on the delay.

In cases involving the purchase of immovable property from non-residents, compliance has been simplified by removing the requirement to obtain a TAN. Tax can now be deducted using PAN, reducing procedural burden.

Overall, the income tax system has become increasingly digital and data-driven. Financial transactions, income details, and tax deductions are tracked through systems such as the Annual Information Statement (AIS) and matched with ITR filings. Therefore, it is crucial for taxpayers to maintain consistency in their financial records and declarations.

Conclusion:
While the tax framework offers several benefits and relaxations for senior citizens, it also demands transparency and accurate reporting. By staying informed, maintaining proper documentation, and complying with deadlines, senior citizens can efficiently manage their tax responsibilities and avoid complications with tax authorities.

Mrs. Snehal Ubale

Apr, Wed, 2026

Finance and Taxation

A Complete Guide to Income Tax: Meaning, Rules, Slabs & Types for FY 2025-26

What is Income Tax? Meaning, Rules & Overview for FY 2025–26

Income tax is a mandatory levy imposed by the government on the earnings of individuals and businesses during a financial year. In India, it is regulated by the Income Tax Act and calculated based on applicable slab rates, along with deductions and exemptions available to taxpayers.

Key Highlights of Income Tax for FY 2025–26 (AY 2026–27)

The new tax regime is set as the default option for individuals and HUFs.
Income up to ₹12 lakh is effectively tax-free under the new regime.
Most income is taxed according to slab rates, while certain incomes like capital gains are taxed at special rates.
Any excess tax deducted at source (TDS) can be claimed as a refund while filing the Income Tax Return (ITR).

What is Income Tax?

Income tax is charged on the total income earned by a taxpayer in a financial year. It is classified as a direct tax, meaning the liability falls directly on the taxpayer and cannot be transferred to another person.

India follows a progressive taxation system, where tax rates increase as income levels rise. The amount of tax payable depends on several factors such as the taxpayer’s category, age, residential status, and the nature of income earned.

Who is Required to Pay Income Tax?

As per the Income Tax Act, any person earning taxable income in India is required to file an Income Tax Return (ITR). The person whose income is assessed for tax purposes is known as an assessee.

Taxpayers are classified into different categories, each governed by specific tax rules:

Individuals
Hindu Undivided Family (HUF)
Firms
Companies
Association of Persons (AOP)
Body of Individuals (BOI)
Local Authorities
Artificial Judicial Persons

Certain taxpayers are required to file ITR mandatorily if they meet specified conditions, even if their income is below the taxable limit.

What is the Income Tax Act?

The Constitution of India provides that taxes can only be imposed through a valid law. In India, the levy and collection of income tax are governed by the Income Tax Act, 1961.

Key points about the Act:

Income tax falls under the Union List, meaning it is controlled by the Central Government.
Only Parliament has the authority to legislate income tax laws.
Amendments are introduced each year through the Finance Bill presented during the Union Budget.
Once approved, these changes become part of the Income Tax Act.

Apart from the Act, income tax laws are also supported by rules, circulars, notifications, and judicial decisions, which guide implementation and interpretation.

The upcoming Income Tax Act 2025 is expected to come into force from 1st April 2026, bringing structural changes to the existing framework.

Deductions Under the Income Tax Act

Taxpayers can reduce their taxable income by making certain investments or incurring eligible expenses. These reductions are known as deductions, meaning only the net income (after deductions) is subject to tax.

Additionally, in some cases, deductions are allowed directly on specific types of income based on their nature or source.

Popular Deductions

Section 80C: Deduction up to ₹1.5 lakh on specified investments and expenses
Section 80CCD(1B): Additional deduction of ₹50,000 for NPS contributions
Section 80CCD(2): Employer’s contribution to NPS is also eligible for deduction
Section 80D: Deduction for health insurance premiums and medical expenses
Section 80E: Deduction on interest paid on education loans
Section 24: Deduction on interest paid on home loans
Section 80TTA & 80TTB: Deduction on savings interest (80TTB applies to senior citizens)

Calculation of Income Tax

1. Tax Slabs

Income tax is calculated based on slab rates, where the tax rate increases as income rises—similar to a staircase structure.

For individuals and HUFs, tax is calculated using slab rates, while entities like companies and trusts are generally taxed at a flat rate.

2. New Tax Regime (FY 2025–26)

The new tax regime aims to simplify taxation by reducing deductions while offering lower tax rates. It is now the default regime.

Tax Slabs:

Up to ₹4 lakh – Nil
₹4 lakh to ₹8 lakh – 5%
₹8 lakh to ₹12 lakh – 10%
₹12 lakh to ₹16 lakh – 15%
₹16 lakh to ₹20 lakh – 20%
₹20 lakh to ₹24 lakh – 25%
Above ₹24 lakh – 30%

3. Old Tax Regime

For individuals below 60 years:

Up to ₹2.5 lakh – Nil
₹2.5 lakh to ₹5 lakh – 5%
₹5 lakh to ₹10 lakh – 20%
Above ₹10 lakh – 30%

Separate slab benefits apply to senior citizens (60+) and super senior citizens (80+).

Illustration of Slab-Based Tax

A common misconception is that the highest tax rate applies to the entire income.

For example, if someone earns ₹12 lakh, they are not taxed entirely at 30%. Instead, tax is calculated slab-wise, resulting in a lower overall tax liability (e.g., ₹1,72,500 approx.).

4. Special Tax Rates

Not all income is taxed using slab rates. Certain incomes are taxed at fixed rates:

Short-Term Capital Gains (STCG): 20%
Long-Term Capital Gains (LTCG): 12.5%

These rates typically apply to listed shares and equity-oriented mutual funds, depending on the holding period.

5. Rebate (Section 87A) and Cess

Tax rebates help reduce overall tax liability for eligible individuals
Available if total income is within specified limits:
- ₹12 lakh (new regime)
- ₹7 lakh (old regime)
Rebate amounts:
- ₹60,000 (new regime)
- ₹12,500 (old regime)

Cess is added to the final tax payable as per applicable rates.

Filing Your Income Tax Return (ITR)

1. What is ITR?

An Income Tax Return (ITR) is a form used to report income and taxes to the Income Tax Department. Taxpayers must file returns annually using the prescribed ITR forms.

2. Documents Required

Form 16
Form 26AS
Annual Information Statement (AIS)
Taxpayer Information Statement (TIS)
Form 16A
Proof of deductions/investments
Bank account details

Additional documents may be required based on income sources.

3. Who is Not Required to File ITR?

Certain exceptions include:

Individuals aged 75+ with only pension and interest income (subject to conditions)
Individuals with income below the basic exemption limit

Basic Exemption Limits:

Old regime:
- ₹2.5 lakh (<60 years)
- ₹3 lakh (60–80 years)
- ₹5 lakh (>80 years)
New regime:
- ₹3 lakh (general)
- ₹4 lakh (for FY 2025–26 as updated)

Due Date for Filing ITR

For most taxpayers (non-audit cases), the due date is 31st July of the following financial year, unless extended by the government.

E-Filing of ITR

Tax returns must be filed online through the Income Tax Department portal. Taxpayers need to register, log in, and submit their returns electronically.

Computation of Income (Overview)

Taxable income is calculated after considering:

Income from salary
Income from house property
Business/profession income
Capital gains
Other sources

After adjusting losses and claiming deductions, the final taxable income is computed, and tax is calculated accordingly.

Payment of Income Tax

Taxes are collected in multiple ways:

1. Tax Deducted at Source (TDS)

Tax is deducted at the time of payment and deposited with the government on behalf of the taxpayer.

2. Advance Tax

Payable if total tax liability exceeds ₹10,000 in a year, in instalments as per due dates.

3. Self-Assessment Tax

The remaining tax payable after adjusting TDS and advance tax.

4. Online Tax Payment

Taxes can be paid through the official e-filing portal.

Tax Refund

A refund arises when the total tax paid exceeds the actual tax liability. The excess amount is credited to the taxpayer’s bank account.

Important Terms

Financial Year (FY)

The period from 1st April to 31st March used for earning income.
Example: FY 2025–26.

Assessment Year (AY)

The year following the financial year in which income is assessed.
Example: AY 2026–27 for FY 2025–26.

PAN (Permanent Account Number)

A unique 10-digit alphanumeric number issued to taxpayers for identification.

TAN (Tax Deduction and Collection Account Number)

A unique number required for entities responsible for deducting or collecting tax at source.

Final Note

Tax rules, slabs, and benefits are updated regularly through the Union Budget. Staying informed helps in better tax planning and compliance.

Mrs. Snehal Ubale

Apr, Mon, 2026