FAQs in Income Tax
Common questions our clients ask about return filing, disclosures, TDS mismatches, and current slab rates - answered the way we'd explain them across the table.
Most of these questions come up every filing season - what to attach, what to disclose, and why the numbers on Form 26AS don't always match what was actually deducted. Here is how we answer them.
Filing & Disclosure Basics
No. There is no requirement to enclose any supporting documents with the return of income. However, you should retain them carefully, as they may need to be produced before a competent authority if called for in future.
Yes. Income from every source - including income that is fully exempt - must be disclosed in the return. Exemption affects whether it is taxed, not whether it needs to be reported.
Yes. Where TDS/TCS has been deducted in excess, or where eligible exemptions and deductions were not factored in at the time of deduction, the excess is refundable by claiming it through your income tax return.
This mismatch is usually caused by incorrect information filed in the deductor's TDS/TCS return. The fix has to come from their end - approach your employer or deductor and ask them to file a revised TDS/TCS return to correct the entry.
Income Tax Slabs for FY 2025-26
Rates under the New Tax Regime are detailed separately - see our New Tax Regime vs Old comparison. The slabs below apply for individuals, HUF, AOP and BOI assessees.
| Income Tax Slab | Income Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Tax Slab | Income Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Tax Slab | Income Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Surcharge Rates Under the Two Tax Regimes
| Net Total Income | Old Tax Regime | New Tax Regime |
|---|---|---|
| ₹50 Lakh - ₹1 Crore | 10% | 10% |
| ₹1 Crore - ₹2 Crore | 15% | 15% |
| ₹2 Crore - ₹5 Crore | 25% | 25% |
| Above ₹5 Crore | 37% | 25% |
Rebate Under Section 87A
Available to resident individuals with net total income up to ₹5,00,000. The rebate is the lower of:
- 100% of tax payable, or
- ₹12,500
Additional Disclosures You'll Need This Year
From FY 2024-25 (AY 2025-26), the return asks for more granular backup when claiming certain exemptions and deductions:
| Exemption / Deduction | Additional Disclosure Required from FY 2024-25 (AY 2025-26) |
|---|---|
| Home Loan, Education Loan, Electric Vehicle Loan | Bank name, loan account number, sanction date, loan amount (interest/principal break-up), and outstanding balance as on 31.03.2025. For an EV loan, the vehicle registration number is also needed. |
| HRA - House Rent Allowance | Place of work, basic salary, actual HRA received, and rent paid. |
| Investments, PF, NPS, Tuition Fees | Policy number or document identification number. |
| Insurance | Name of the insurance company and policy number. |
| Treatment of Specified Diseases | Name of the specified disease. |
Carried Over From FY 2023-24 (AY 2024-25)
| Deduction | Additional Disclosure |
|---|---|
| Section 80DDB & 80U | Disability certificate required; Form 10-IA must be filed. |
Is Agricultural Income Taxable?
Agricultural income is exempt from tax under Section 10(1). However, it is still factored into the tax computation - and a rebate on agricultural income applies - when all of the following conditions are met:
- The assessee is an Individual, HUF, AOP, or BOI
- Agricultural income exceeds ₹5,000
- Non-agricultural income exceeds the basic exemption limit
- Mr. A has only agricultural income of ₹1 crore. The entire ₹1 crore is exempt from tax.
- Mr. B has agricultural income of ₹1 lakh and other taxable income of ₹2.5 lakh. The full ₹1 lakh agricultural income is exempt.
- Mr. C has agricultural income of ₹1 lakh and other taxable income of ₹5 lakh. Here the full ₹6 lakh becomes relevant for computation, and the agricultural income rebate applies.
- Mr. D has agricultural income of ₹5,000 and other taxable income of ₹6 lakh. Only the ₹6 lakh is taxable, since agricultural income up to ₹5,000 is exempt outright.
If any of these disclosure requirements apply to your return this year, it's worth gathering the loan statements, policy numbers, and certificates before you sit down to file - it avoids a second pass. Our Taxation team is happy to check your specific situation against the current rules. You may also find our guide on Essentials for Filing Income Tax Returns useful before you begin.
