Tax Deduction Eligibility

Most salaried professionals lose money every year because they skip one simple form. It is called Form 10E. If you ever receive arrears of salary, bonus, family pension, gratuity, or even advance salary, you might be paying more tax than you should. The Income Tax Act already knows this is unfair, which is why Section 89 relief exists. But you only get that relief if you file Form 10E. So many employees think “my employer adjusted TDS, so I am done.” The truth is, if you do not file this form on the portal before your ITR, your claim is automatically disallowed. No exceptions. And yes, the department can send you a notice if you missed it. 📌 Mini checklist before filing: - Compute the arrears portion separately. - Log in to the income tax portal. - Fill and submit Form 10E online (no offline option exists). - File ITR only after submitting Form 10E. - Keep computation proofs and salary slips safe. Every month, I see young professionals say, “I wish someone guided me earlier.” Tax reliefs do not happen magically. You need to know the rules, apply them, and keep showing up with the right compliance. If you are salaried, make Form 10E your habit whenever arrears or bonuses come in. One small form, years of relief.

Exciting news for #probate practitioners and #tax professionals engaged in completing #Inheritance Tax forms and calculating the #IHT due for deceased estates. New tax year, new IHT rules… and (eventually) a shiny new form IHT form to add as a schedule to the #IHT400. There have been many excellent articles on this platform (and others) tracking the changes to #agricultural and #business property relief. I will not repeat the detail here. Like it or not (and most of you don't like it) you all know that changes are now in place to both reliefs. In short: new substantive limits on relief ➝ new compliance step ➝ new form. HM Revenue & Customs has now released Form #IHT437 fashionably late (a mere two days after the rest of the IHT forms were updated for the 6 April). Form IHT437 is the new schedule that is required to claim the transfer of any unused 100% relief allowance for #APR / #BPR from a pre‑deceased spouse (or civil partner) to the deceased’s estate, reflecting the post‑Budget restriction and recalibration of relief allowances. Anyone dealing with APR / BPR planning or estate administration involving spousal transfers will now need to factor IHT437 into the IHT400 ecosystem. Details can be found in #HMRC's Inheritance Tax Manual: IHTM25533 - IHTM25536. You can access the new form here: https://lnkd.in/eJ-mQVvh Because no tax year really starts until there’s another new form to add to the equation.

Powerful strategy for solopreneurs: - Start an LLC - Grow and Become an S Corporation: This can provide significant tax advantages by allowing you to split your income between salary and distributions, potentially reducing your overall tax liability. But make sure to optimize the qualified business income deduction - Pay Yourself a Reasonable Salary: As an S Corp owner, pay yourself a reasonable salary that reflects the market rate for your role. This salary is subject to payroll taxes, but any additional profits can be taken as distributions, which are not subject to self-employment tax. - Add a Solo 401(k) and Max It Out: Establish a Solo 401(k) plan to take advantage of tax-deferred retirement savings. As both the employer and employee, you can contribute up to the maximum allowable limit, significantly boosting your retirement savings while reducing your taxable income. But make sure your salary is not too low, it will impact what can go in here - Employ Your Spouse: If your spouse can perform meaningful work for your business, employ them and pay a fair salary. - Max Out Solo 401(k) for Spouse: By employing your spouse, you can also contribute to their Solo 401(k) plan, further increasing your family's retirement savings and reducing your taxable income - Backdoor Roth IRA for Each: Utilize the backdoor Roth IRA strategy for both you and your spouse. This involves making non-deductible contributions to a traditional IRA and then converting those funds to a Roth IRA, allowing for tax-free growth and withdrawals in retirement - Maximize Qualified Business Income Deduction (QBID): Take full advantage of the Qualified Business Income Deduction (QBID), which allows eligible S Corp owners to deduct up to 20% of their qualified business income (or lesser of that and 50% of w2 wages). This can significantly reduce your taxable income and increase your overall tax savings. - If salary is too low to max solo 401(k), then do mega backdoor Roth 401(K) to the $69,000 limit Implementing these strategies can help solopreneurs optimize their financial planning, reduce tax liabilities, and build substantial retirement savings

I took a trip, and the Income Tax Department paid for a part of it. Sounds unbelievable but it it's true. And if you're a salaried employee, you might be able to do the same. Take a look at your salary structure. You may find something called Leave Travel Allowance (LTA). LTA is an allowance that employers include in many salary packages to help cover the cost of domestic travel. If you meet the prescribed conditions, you can claim a tax exemption on your eligible travel fare. Most people either don't notice it's part of their CTC or don't know they can claim it. So, here's how it broadly works: You can claim LTA for 2 journeys in a block of 4 calendar years. The exemption is available only for travel within India and generally covers the actual travel fare(air, rail or public transport). It doesn't cover your hotel stay, food, cabs or sightseeing expenses. So before you book your next vacation, don't just compare flight prices. Check your salary structure. You may already have a tax benefit waiting for you. Share this with a friend who loves to travel. #ITR #CA #LTA

Are Family Offices Prepared to Adjust Before the Tax Rules Change Again? The latest tax proposal from the House includes several important changes. These updates favor direct real estate ownership and long-term planning for Family Offices! Some of the benefits include: ➤ Return of 100 Percent Bonus Depreciation Tax Code Reference: IRC Section 168(k) What Changed: The proposal brings back full bonus depreciation for qualifying real estate and equipment. This applies from 2025 through 2029. What It Means: You can fully deduct the cost of new improvements or property purchases in the year they are placed in service. This can significantly reduce taxable income. What Family Offices Should Do: • Focus on industrial, multifamily, and medical office properties, which are already preferred for stability. • Plan capital improvements or acquisitions now to be ready by the 2025 start date. • Work with tax and legal advisors to ensure the timing and structure meet eligibility requirements. ➤ Section 199A Deduction Increase from 20 Percent to 23 Percent Tax Code Reference: IRC Section 199A What Changed: The deduction for Qualified Business Income (QBI) from pass-through entities may increase to 23 percent. What It Means: More income from LLCs, partnerships, and S corporations will be shielded from tax. Family Offices Should: • Review all operating entities to confirm QBI eligibility. • Adjust ownership models if needed to increase tax efficiency. • Update tax projections for each major holding. ➤ Possible Expansion of Opportunity Zones Tax Code Reference: IRC Sections 1400Z-1 & 1400Z-2 What Changed: The bill suggests the creation of new Opportunity Zones. What It Means: Family Offices may have a second chance to invest gains in tax-advantaged projects. Holding qualified OZ assets for 10 years may lead to tax-free growth. Family Offices Should: • Track new zone OZ designations. • Consider how new investments can align with estate and legacy planning. • Reassess earlier OZ investments that may not have met timing or structure goals. ➤ The Larger Message What Changed: The policy direction supports long-term real asset investment, cash flow, and stability. What It Means: This is not just technical tax reform. It is a signal that well-structured real estate plays will continue to be a core tool for wealth preservation. Family Offices Should: • Revisit entity structures and estate planning strategies. • Align legal, investment, and tax teams to ensure the portfolio is optimized. • Avoid the trap of waiting. The advantage lies in acting before changes are fully implemented. What does it all mean? This is the moment for Family Offices and other real estate investors to revisit their portfolios, assess their structure, and make decisions that can protect and grow wealth for the next decade. This is how I see the opportunity. Are there other benefits you’re seeing? Smart tax strategy is proactive. And right now, the window is open.

New salary and tax rules just kicked in this month, and most salaried professionals have no idea what actually changed or why. Here's what actually changed from April 2026 and what it means for your pocket: ✔️ Your basic salary is now minimum 50% of your CTC: Earlier, companies kept it at 30–40%. Now it's mandatory at 50%. Your PF contribution goes up, so take-home feels slightly lower. But your retirement corpus is quietly growing. You're not losing money, it's being saved for you. ✔️ Full & Final settlement in 2 working days not 2 months: If you resign, your company must now clear all dues within 2 working days. Last salary, leave encashment, bonuses: all of it. No more chasing HR for weeks on end. ✔️ "Assessment Year" is officially gone: The year you earn = the year your tax is calculated. It's now simply called "Tax Year." The Income Tax Act is finally speaking in plain language. ✔️ Your allowances just got a serious upgrade: Education allowance jumped from ₹100 to ₹3,000/month. Meal coupons from ₹50 to ₹200/meal. Tax-free gift vouchers now go up to ₹15,000/year. These directly reduce your taxable income and most people aren't using them. ✔️ HRA claims need proper disclosure now: If your annual rent crosses ₹1 lakh, you must declare your relationship with the landlord to your employer. This targets fake HRA claims, especially rent paid to family without documentation. Be accurate here to avoid issues. ✔️ Sending money abroad for education? TCS is now just 2%: Down from significantly higher rates earlier. Less cash blocked upfront for families supporting students studying abroad. ✔️ Sovereign Gold Bonds bought from the secondary market? You'll now pay tax: Returns on maturity are no longer tax-free. You'll pay 12.5% tax on gains. If you bought SGBs directly during issuance, you're unaffected. But if you picked them up from the open market, factor this in before your next investment decision. Remember: These aren't random tweaks. They're structural shifts in how you earn, save, and get taxed. Understanding them puts you ahead of 90% of salaried professionals. Save this. Share it with someone who needs it. 👇 #salarychanges #taxrules2026 #personalfinance #careergrowth #knowyourrights

If you're a freelancer, consultant, or small business owner, the Qualified Business Income (QBI) Deduction is your friend. It's one of the most powerful tax breaks in the US, but most people don't use it right- or don't know they qualify! What is QBI? (Section 199A): - The QBI Deduction allows eligible owners of non-corporate businesses (called "pass-through entities") to deduct up to 20% of their net business income. Who Qualifies? - Sole Proprietorships (Schedule C) - Partnerships - S Corporations - LLCs taxed as any of the above. - If your business income is taxed on your personal return (Form 1040), you are likely eligible. What is QBI? - Essentially, your net profit from the qualified business activity. - It generally excludes W-2 wages, capital gains/losses, and guaranteed payments to partners. Why does it exist? - It was created to give small businesses a comparable tax break when the corporate tax rate was significantly lowered. The Big Catch: Income Limits - While the deduction is simple at low incomes, it becomes complicated (or disappears) if your total Taxable Income (business + all other income) goes over certain thresholds. Below the Threshold: You generally get the full 20% QBI deduction with no limitations, regardless of your business type. Above the Threshold: - Specified Service Trades/Businesses (SSTBs): Your deduction is phased out and eventually eliminated (SSTBs include fields like health, law, accounting, consulting, and financial services). - All Other Businesses: The deduction becomes limited based on the W-2 wages paid by your business or the cost of business property (like equipment and real estate). Key Takeaway - If you are self-employed, the QBI deduction is not an optional write-off; it is a critical tax reduction. If your income is high, strategies like paying W-2 wages or buying business property might be needed to keep the deduction alive. Follow @thetaxsaaab on Instagram for more simple US tax breakdowns!

Tax-Smart Investment Structures for ₹1Cr+ Earners If you're earning ₹1 crore+ annually, taxes aren’t just a cost — they’re your largest expense category after lifestyle. Most high earners get caught up in 80C, 80D, HRA… and stop there. But if you're earning at that level, your tax strategy needs to be as sophisticated as your income stream. Here are some structures and approaches that top professionals and business owners are exploring in 2025: ✅ HUFs (Hindu Undivided Family): Still one of the most underutilized legal entities. Can be used to separate taxable income streams, create legacy plans, and make tax-efficient gifts to family. ✅ Gifting Strategy & Clubbing Provisions: Strategic use of gifting (to non-earning parents, adult children, or HUFs) helps reduce taxable income when done with compliance in mind. ✅ LRS (Liberalised Remittance Scheme) + Global Diversification: NRIs and global aspirants use this for dollar diversification — now also becoming a mainstream play for high-earning resident Indians who want exposure to global markets. ✅ Trust Structures for Wealth Preservation: For those with multiple assets or future business succession needs, private trusts can be a game-changer—both legally and from a tax planning lens. Earning ₹1Cr+ is the start. Structuring that income smartly is where real wealth begins.

Big changes are coming to your salary slip from 1st April🚨 The new financial year brings the Income Tax Act 2025 & if you are a salaried professional, these 5 updates are game-changers for your tax planning. Here is everything you need to know: 1️⃣ Children’s Education & Hostel: The limits that were stuck at ₹100 & ₹300 for decades have finally skyrocketed. You can now claim ₹3,000/month for education and ₹9,000/month for hostel per child. For two kids in a hostel, that’s a massive ₹2.88 Lakh annual exemption. 2️⃣ Interest-Free Loans: Need a small loan from your boss? The tax-free limit for interest savings on employer loans has jumped from ₹20,000 to ₹2 Lakh. No more "perquisite tax" on these smaller amounts. 3️⃣ HRA Exemption: Living in Pune, Bengaluru, Hyderabad or Ahmedabad? You are now officially in the 50% HRA bracket! However, there's a catch: you must now disclose your relationship with your landlord in Form 124 to claim this. 4️⃣ Meal Vouchers: Your Sodexo/Pluxee cards just got a 4x boost. The limit is up from ₹50 to ₹200 per meal. If you're in the 30% tax bracket, this can save you over ₹31,000 in taxes annually. 5️⃣ Gifts: Employer rewards and festival vouchers are now tax-free up to ₹15,000 per year (up from ₹5,000). Pro Tip: Talk to your HR today! To benefit from these, you may need to restructure your CTC before the new financial year begins.

Let’s be clear. This isn’t just another tax tweak. This is a full-blown shakeup of how high earners build wealth. But here’s the unfiltered version: It’s a tax overhaul that could quietly reshape how you earn, save, and invest for years. QBI Deduction: Made permanent at  20% . A win for business owners if you know how to qualify. SALT Cap: Up from $10K to $40K. But don’t celebrate too fast. If you make over $500K, it phases right back down. New Tax Brackets: Some income thresholds are moving higher. Some are compressing. Estate & Gift Tax Exemption Increased to $15 million per individual and $30 million per married couple. A significant opportunity to transfer more wealth tax-free if you plan ahead. Permanent 100% Bonus Depreciation Eligible business property acquired after January 19, 2025, qualifies for 100% immediate expensing. This is a major tax planning lever for businesses investing in equipment, improvements, or qualified assets. Clean Energy Credits Gone. The $7,500 EV credit and solar incentives vanish after 2025. Overtime & Tip Exclusions Temporary tax breaks for tips and overtime. What’s the real takeaway? The rules of the game just changed. And most people won’t realize it until they file in 2026 and see a bigger bill. If you’re serious about staying ahead, now is the time to ask: Does your current plan align with this new reality? Are you optimizing deductions before they expire or phase out? Are you using 100% bonus depreciation to reduce taxable income? Do you know how these changes impact your income stacking, estate strategy, entity structure, and investments? The difference between proactive and reactive tax planning is the difference between keeping more and overpaying again.