Frequently Asked Questions

Not always mandatory, but often a good idea. You're required to file if your gross income exceeds the basic exemption limit, if you meet certain conditions (foreign travel spend, large deposits, etc.), or if you want to claim a TDS refund. Filing even when not mandatory also helps with loan and visa applications later.

If you're salaried with no business income, yes — you can pick a different regime each financial year when filing. If you have business or professional income, switching back to the Old Regime after choosing New has restrictions, so check with a CA.

Yes. Gains from selling shares or equity mutual funds are taxed as capital gains — short-term (≤12 months) at a flat 20%, long-term (>12 months) at 12.5% above a ₹1,25,000 exemption per year. Use our Capital Gains Tax Calculator to estimate this.

TDS (Tax Deducted at Source) is tax collected in advance by whoever pays you — your employer, bank, or client — and deposited with the government on your behalf. Income tax is your actual total tax liability for the year. When you file your return, TDS already paid is adjusted against your final tax bill; you pay the difference or get a refund.

No. HRA exemption is only available under the Old Regime. If you pay significant rent, this is one of the biggest reasons the Old Regime might work out cheaper for you — use our HRA Calculator and compare with our Income Tax Calculator.

It's a rebate that reduces your tax to nil if your taxable income is below a threshold — ₹12,00,000 under the New Regime, ₹5,00,000 under the Old Regime. It's not the same as a tax-free "exemption limit" — it's applied after calculating tax, effectively cancelling it out below the threshold.

You can still file a belated return (usually by 31 December of the assessment year), but you may face a late fee under Section 234F (up to ₹5,000), interest on any unpaid tax, and restrictions on carrying forward certain losses. See our Tax Filing Calendar for exact dates.

NRIs are taxed only on income earned or accrued in India — such as rent from Indian property, capital gains on Indian assets, or interest from Indian bank accounts. Foreign income is generally not taxable in India for NRIs. Residency status and DTAA (tax treaty) rules can affect this significantly — consult a CA familiar with NRI taxation.

Form 16 is a certificate issued by your employer showing your salary details and the TDS deducted through the year. It's the primary document used to file your ITR if you're a salaried employee, and employers must issue it by 15 June each year.

Usually no — your employer's TDS typically covers your full liability. But if you have significant additional income (freelance work, capital gains, rental income, high interest income) that pushes your remaining tax liability above ₹10,000 after TDS, you'll need to pay advance tax in installments. See our Advance Tax Calculator.