FINANCE

CBDT has raised the limits for tax-free perquisites perks: ✅Office perks → up to ₹4L ✅Overseas medical → up to ₹8L Here’s what it means for all the employees👇🧵 [1] What Counts as "Perquisites"? 🔸Perquisites = non-cash benefits from employers. 🔸Like company cars, utilities, education, domestic staff, etc. ⚠️Taxable only for specified employees (as per Sec 17(2)(iii) ITA + Rule 3) 👉 Normally taxed as part of salary [2] Who are Specified Employees? Perquisite taxation mainly applies to “specified employees”: ➡️Directors of the company ➡️Employees holding >20% equity in employer company ➡️Employees with salary income >₹50,000 (now revised upwards) [3] Office Perks Tax-Free Up to ₹4L 🔹Earlier: limit was just ₹50K 🔸Now: raised to ₹4 lakhs Tax-free perks include: ✅Company cab / transport ✅Utilities (gas, water, electricity) ✅Education benefits ✅Domestic staff provided by employer ✅Others [4] Overseas Medical Tax-Free Up to ₹8L 🔹Earlier: exemption capped at ₹2 lakhs 🔸N...

Two important changes affect perquisites under Section 17(2) of the IT Act: 🔹 Rule 3C – Salary Threshold for Perqs ✅ Earlier: Relief applied only if salary ≤ ₹50,000 p.a. (an archaic limit, almost no one benefited). ✅ Now: Raised to ₹4,00,000 p.a. ✅ Employees with salary ≤ ₹4L can enjoy exemption on perquisites like: • Rent-free or concessional accommodation • Motor car facility • Domestic help (sweeper, watchman, gardener, attendant) • Gas, electricity, water supplied by employer • Educational & medical facilities • Free meals, concessional travel, gifts & vouchers, credit card bills etc. 🔹 Rule 3D – Gross Total Income Ceiling ✅ Applies to proviso (vi) of Section 17(2). ✅ Now, exemption on specified securities / sweat equity shares allotted free or at concessional rate will be available only if GTI ≤ ₹8,00,000. Note: Earlier, relief was meaningless due to the ₹50k cap. Now, exemptions are real for junior staff, entry-level employees & middle-income taxpayers.

1.Promotion and Recognition of e-sports e-sports are recognised as a legitimate form of competitive sport in India. Ministry of Sports will frame guidelines and standards for conducting e-sports events. Steps will be taken for the establishment of training academies, research centres, and technology platforms for e-sports advancement. Awareness campaigns and policies will promote the integration of e-sports into broader sports  initiatives. 2.Promotion of Social and Educational Games The central government is empowered to recognise, categorise, and register online social games. Platforms for safe, age-appropriate social and educational games will be facilitated. Campaigns to promote the positive role of social games in recreation, skill development, and digital literacy. Support for gaming content aligned with Indian cultural and educational values. 3.Prohibition of Harmful Online Money Games Strict measures against operating or promoting online money gaming (betting, gambling), re...

ఇన్‌కమ్ టాక్స్ (నం 2) బిల్లు, 1961లో రూపొందించిన ఇన్‌కమ్ టాక్స్ చట్టాన్ని భద్రపరచాలని లక్ష్యంగా, ఇటీవల లోక్ సభలో ఘన విజయంతో పాస్ అయ్యింది. ఈ కొత్త బిల్లు టాక్స్ చట్టాలను సరళతరం చేయడాన్ని లక్ష్యంగా ఉంచి రూపొందించబడింది, మరియు ఆర్థిక మంత్రి నిర్మలా సీతారామన్ ఈ బిల్లు ప్రవేశపెట్టినప్పుడు దాని మార్గదర్శక సూత్రాల కోసం "S.I.M.P.L.E" అనే సంక్షిప్త ర్యాక్నం ఉపయోగించారు. ఈ సూత్రాలు చట్టం యొక్క నిర్మాణాన్ని సరళతరం చేయడం, దానిని సమగ్రంగా మరియు సంక్షిప్తంగా చేయడం, వాదనల్ని తగ్గించడం, నిజాయితీ మరియు పారదర్శకత ఉండడం, నేర్చుకోవడం మరియు అనుకూలంగా ఉండడం మరియు సమర్ధమైన టాక్స్ సంస్కరణలను ఆమోదించడం అన్నీ కలిగి ఉంటాయి. ఈ బిల్లు టాక్స payerల కోసం వివరణలను అందించడం, ముఖ్యంగా వ్యక్తిగతులు మరియు MSMEsకి, మరియు అనవసరమైన వాదనల నుంచి తప్పించడానికి రూపొందించబడింది. 1961 యొక్క ఇన్‌కమ్ టాక్స్ చట్టం 4,000కు పైగా సవరణలు మరియు అయిదు లక్షల పదాలతో పెరిగింది, దీని కారణంగా అది అనవసరంగా సంక్లిష్టంగా మారింది. కొత్త బిల్లు ఈ సంక్లిష్టతను సుమారు 50 శాతానికి తగ్గిస్తుంది. కొత్త టాక్స్ బిల్లులో ముఖ్యమైన లక్షణాలు: సరళమై...

India’s biggest tax law overhaul in decades is getting a rewrite and the changes could save you money, simplify compliance, and protect your assets.  Here’s what’s new in the Revised Income Tax Bill 2025 🧵 The government has withdrawn the original Income Tax Bill, 2025 and will present a revised version in Parliament on August 11, after incorporating key suggestions from the Select Committee chaired by MP Baijayant Jay Panda. The Select Committee submitted its report on July 21, with 285 recommendations to simplify, clarify, and align the bill with existing tax provisions. Companies get relief too: the revised bill will include Section 80M deduction for inter-corporate dividends under Section 115BAA, which was missing in the earlier draft. The bill will also allow taxpayers to obtain a NIL TDS certificate, offering flexibility in cash flow management. To protect property owners, Clause 21 will be amended to prevent unintended higher taxation on vacant residential prop...

Default Regime is New Regime for ITR Filing Form 10IEA Filing Requirements  ITR 1 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 2 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 3 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subsequent Year  (if opted old regime for one year and then opted for new regime in subsequent year then not eligible to opt old regime again means one time Switching option is there (Need to file Form 10IEA maximum 2 times only, First when you opt for old regime and Second when you opt for new regime in subsequent year and leaving old regime) (If Form 10IEA already filed for old regime for particular year then cant opt new regime in such year and vice-versa) ITR 4 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Reg...

👤 Client: “Sir, I’ve suffered a loss while playing online rummy. But the platform still deducted TDS on my withdrawal. How can I show this loss in my Income Tax Return under casual income?” 🃏Rummy winnings are taxed under Section 115BB as ‘Income from Other Sources’ — specifically under Casual Income (e.g. lotteries, betting, card games). 💡 Key Points: Tax is @ 30% flat + cess, regardless of profit/loss overall. TDS is deducted on withdrawals (as per Sec 194B or 194BA). Losses from rummy (or similar games) cannot be claimed, carried forward, or set off. ❌ No deduction for losses allowed under Section 58(4). 📥 In ITR, You Should 1.✅ Report gross winnings (if any) under: → Schedule OS → Casual Income 2.✅ Report the TDS deducted under: → Schedule TDS (Form 26AS/AIS) 3.❌ Do not claim or show any loss from rummy in ITR.