Zeal Consultancy - Blog #form 26ASZeal Consultancy - Blog #form 26AShttps://www.zealconsultancy.co.in/blogs/tag/form-26asWed, 22 Apr 2026 17:49:41 +0530http://zoho.com/sites/<![CDATA[Why Many Taxpayers Still Find the Old Tax Regime Attractive: 8 Compelling Reasons]]>https://www.zealconsultancy.co.in/blogs/post/why-many-taxpayers-still-find-the-old-tax-regime-attractive-8-compelling-reasonsWhen determining how to calculate your taxes, the choice between the old and new tax regimes can significantly impact your financial outcome.]]>

Exploring Tax Options: Old vs. New Regime

When determining how to calculate your taxes, the choice between the old and new tax regimes can significantly impact your financial outcome. While the new tax regime boasts lower income tax rates, the old tax regime offers a plethora of avenues for claiming higher income tax exemptions and deductions. Let's delve into why the old tax regime remains a compelling choice for many taxpayers in specific income brackets.

1. Higher Deductions and Exemptions

Under the old tax regime, taxpayers can benefit from various deductions and exemptions, substantially reducing their taxable income. This is particularly advantageous for individuals eligible for specific deductions.

2. Tax Saving and Investment Opportunities

The old tax regime provides a dual advantage of tax savings and investment incentives. Encouraging regular investments, this regime rewards taxpayers through tax-saving instruments such as PPF or ELSS, offering deductions of up to Rs 1.5 lakh under Section 80C.

3. Affordable Financial Protection

Paying premiums for insurance policies can lead to significant deductions under the old tax regime. Taxpayers can claim deductions of up to Rs 1.5 lakh for life insurance premiums under Section 80C, along with additional deductions for health insurance premiums.

4. Retirement Planning Benefits

Investing in the National Pension System (NPS) through your employer can substantially lower your taxable income. The old tax regime presents broader opportunities for tax savings through NPS contributions.

5. Tax Benefits on Allowances

Those receiving House Rent Allowance (HRA) or Leave Travel Allowance (LTA) can benefit from substantial tax savings under the old tax regime. HRA can reduce taxable income significantly, especially in metro areas, while LTA offers exemptions for travel expenses.

6. Cost-Effective Asset Acquisition

For individuals acquiring assets such as homes through loans, the old tax regime provides deductions on interest payments. Home loan borrowers can claim up to Rs 2 lakh deduction under Section 24(b) for interest payments.

7. Various Other Deductions

The old tax regime includes deductions under various sections, such as 80G for donations, 80TTA for interest on savings accounts, and specific exemptions for senior citizens.

8. Building Wealth Through Tax Savings

Maximizing tax savings can contribute significantly to wealth creation. Eligible taxpayers, with multiple deductions and exemptions, can benefit greatly from the old tax regime, resulting in substantial tax savings.

Conclusion

For individuals with considerable deductions under various sections of the Income Tax Act, sticking to the old tax regime often leads to higher tax savings. However, if your circumstances do not allow for significant deductions, the new tax regime might offer a simpler and more beneficial option. It's crucial to carefully evaluate your specific financial situation before making a decision.

Considerations

Take caution when considering changing tax regimes frequently, as there are restrictions on how often you can switch. While those without income from business or profession can choose between regimes each financial year, taxpayers with business or professional income have limited options.

Understanding the benefits and drawbacks of both tax regimes is essential for making an informed decision that aligns with your financial goals and circumstances.

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]]>Tue, 09 Apr 2024 14:17:22 +0000<![CDATA[Essential Steps for Starting Your Income Tax Return Filing Process: Verify Form 26AS and Annual Information Statement]]>https://www.zealconsultancy.co.in/blogs/post/essential-steps-for-starting-your-income-tax-return-filing-process-verify-form-26as-and-annual-inforPreparing to file your income tax return (ITR)? The first crucial step is verifying your Form 26AS and Annual Information Statement (AIS). Let’s walk through the process.]]>

Preparing to file your income tax return (ITR)? The first crucial step is verifying your Form 26AS and Annual Information Statement (AIS). Let’s walk through the process.

Deadline Reminder

With the deadline for filing ITR (for assessment year 2024-25) approaching on July 31, it's time for individual taxpayers to get organized. But before diving into filling out your ITR form, it's essential to ensure the accuracy of your Form 26AS and AIS.

Verify Tax Details

Start by gathering key documents: Form-16, Form 26AS, AIS, and bank/capital gains statements. You can download both Form 26AS and AIS from the Income Tax portal (incometax.gov.in) after logging in. The AIS offers more comprehensive data compared to Form 26AS.

What's in Form 26AS?

Form 26AS serves as your tax credit statement, detailing tax deductions such as TDS, TCS, advance tax, and self-assessment tax paid. It provides a summary of interest income, property transactions with TDS, and more. Checking this form ensures you claim credits accurately against the tax payable.

Specified Financial Transactions

Form 26AS now includes Specified Financial Transactions (SFT) like cash deposits, stock transactions, property deals exceeding set thresholds. For instance, cash deposits over Rs 10 lakh or property purchases over Rs 30 lakh are reported here.

The Role of AIS

Introduced recently, the AIS offers a detailed view of your financial activities. It includes pending/completed assessments, tax demands, special transactions in stocks/mutual funds, property deals, interest/dividend, and foreign remittances. This statement provides a clearer picture compared to Form 26AS.


You can check out Zeal's service of Income Tax Filing

Addressing Discrepancies

Comparing your Form-16, income statements, and bank certificates helps spot discrepancies. Any mismatch between your ITR and Form 26AS could lead to queries from the tax department. To rectify Form 26AS errors, contact the tax deductor/collector promptly.

How to Rectify AIS Errors

AIS comes with a built-in grievance redressal mechanism. Log into the income tax e-filing portal, access AIS, and click on the erroneous information to submit feedback. Choose your feedback type (e.g., incorrect information, duplicate details) and submit. The modified values will reflect in your AIS.

Smooth ITR Filing

Ensuring accuracy in Form 26AS and AIS streamlines your ITR filing. Don’t wait until the last minute; start the process early to allow time for verification and corrections.

By verifying your Form 26AS and AIS, you lay a solid foundation for a hassle-free and efficient income tax return filing experience. If you want to learn more or understand anything, schedule a consultancy by clicking on the below button.

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