Income Tax FAQs
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 do not always match what was actually deducted. Here is how we answer them. For a full walkthrough of filing deadlines, mandatory conditions, and advance tax, see our ITR Filing Essentials guide.
Filing & Disclosure Basics
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. If you changed jobs during the year, submitting Form 122 to your new employer at the time of joining prevents this mismatch from arising in the first place.
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 the future. Note that from FY 2023-24 (AY 2024-25) onwards, the Income Tax Department has progressively introduced additional disclosures required - these are covered year-wise in the section below.
Additional Disclosures in Income Tax Returns
Over recent years, the Income Tax Department has introduced additional disclosures when claiming certain exemptions and deductions. The tables below are organised by the financial year from which each requirement took effect.
A) Required from FY 2023-24 (AY 2024-25)
| Disclosure Item | Details to be Furnished |
|---|---|
| Section 80DDB & 80U | Disability certificate required; Form 10-IA must be filed. |
B) Required from FY 2024-25 (AY 2025-26)
| Disclosure Item | Details to be Furnished |
|---|---|
| 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 required. |
| 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. |
C) Required from FY 2025-26 (AY 2026-27)
| Disclosure Item | Details to be Furnished |
|---|---|
| Secondary contact details | Taxpayers are required to provide a secondary address, phone number, and email ID. |
| F&O, intraday, commodity and currency trading | Taxpayers engaged in trading activities are now required to disclose futures and options (F&O), intraday equity trading, commodity trading, and currency trading separately. |
| Buyback losses | The ITR form now includes a separate reporting field for losses arising from share buyback transactions. Previously, amounts received on account of a share buyback were treated as deemed dividend income and taxed accordingly; they are now exempt. |
| Donations to political parties | Transaction reference number and the IFSC code of the bank through which the payment was made. Disclosure of PAN, name of the political party, and address was already required. |
Income Tax Slabs Under Old Tax Regime for FY 2025-26 (AY 2026-27)
The slabs below apply under the Old Tax Regime for individuals, HUF, AOP and BOI assessees. New Tax Regime rates - which apply uniformly regardless of age or residential status - are detailed separately in our New Tax Regime vs Old comparison.
| 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% |
Rebate Under Section 87A - Old Tax Regime
Available to resident individuals with net total income up to ₹5,00,000 under the Old Tax Regime. The rebate is the lower of:
- 100% of tax payable, or
- ₹12,500
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% |
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 ₹6 lakh. Here the full ₹7 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 requirements apply to your return this year, it is worth gathering the required information before you sit down to file - it avoids a second pass. For due dates, advance tax schedules, and the full range of filing options including belated, revised, and updated returns, see our guide on Essentials for Filing Income Tax Returns. If you earn interest on fixed deposits or savings accounts, our article on Income Tax on FD & Savings Interest covers TDS thresholds and how that income feeds into your returns.