Tax Ready Reckoner

Applicable to: All taxpayers (Individuals, HUFs, Companies, etc.) This section provides tax benefits for donations made to approved charitable funds and institutions, encouraging philanthropy. Key Features (AY 2025-26) 1.   Types of Donations & Deduction Rates DONATION TO DEDUCTION CONDITIONS 100% Deduction (No Limit) • National Defence Fund 100% No upper limit • PM’s National Relief Fund 100% No […]

Applicable to: Salaried (without HRA) & Self-Employed Individuals This section provides tax relief for rent payments made by taxpayers who do not receive House Rent Allowance (HRA) from their employer. Key Features (AY 2025-26) 1.   Eligibility Criteria Must NOT receive HRAfrom employer at any time during the year. Must NOT own a housein the city of employment: If you own

Applicable to: All taxpayers (Individuals, HUFs, Firms, etc.) This section provides 100% deduction for donations made to approved scientific research, rural development, and social welfare programs, even if you don’t itemize deductions. Key Features (AY 2025-26) 1.   Eligible Donations CATEGORY ELIGIBLE DONEES DEDUCTION Scientific Research Approved institutions (ICAR, CSIR, etc.) 100% of donation Rural Development NGOs/Trusts approved under

Applicable to: Indian Companies This section provides 100% tax deduction for contributions made by Indian companies to registered political parties or electoral trusts, promoting transparent political funding. Key Features (AY 2025-26) 1.   Eligible Donors Only Indian companies(registered under the Companies Act). Excluded entities: Government companies Companies operational for <3 years. 2.  Eligible Donees Political partiesregistered under Section 29A of the

Applicable to: Individuals, HUFs, Firms, AOPs, BOIs, and others (except companies) This section provides a 100% tax deduction for contributions made to registered political parties or electoral trusts, promoting transparency in political funding. Key Features (AY 2025-26) 1.   Eligible Donors Individuals(including NRIs) HUFs Firms AOPs/BOIs Others(except companies, which use Section 80GGB) 2.  Eligible Donees Political partiesregistered under Section 29A of

Applicable to: Enterprises engaged in infrastructure, power, telecom, SEZs, etc. This section provides 100% tax exemption on profits from eligible businesses for a fixed period (5-10 years), boosting private investment in critical sectors. Key Features (AY 2025-26) 1.   Eligible Businesses CATEGORY INITIAL YEARS DEDUCTION PERIOD Infrastructure (Roads, Ports, Airports) 2005-2020 10 consecutive years Power Generation/Distribution 1993-2021 10 years

Applicable to: DPIIT-recognized startups (Private Companies/LLPs) This section provides a 100% tax deduction on profits for eligible startups for 3 consecutive years within their first 10 years of incorporation, fostering innovation and economic growth . Key Features (AY 2025-26) 1.   Eligibility Criteria Entity Type:Private Limited Company or LLP . Incorporation Period:Between 1 April 2016 – 31 March 2030 (extended in Budget 2025). Annual Turnover:Must not exceed

Applicable to: Manufacturing, SMEs, and select service providers This section provides partial to full tax exemptions (25%–100%) for eligible businesses, targeting job creation and regional development. Key Features (AY 2025-26) 1.   Eligible Categories & Deduction Rates BUSINESS TYPE DEDUCTION PERIOD SPECIAL CONDITIONS Small-Scale Industries (Turnover ≤ ₹50Cr) 25% of profits 10Y Must employ ≥20 workers Himalayan States/Northeast Units

Applicable to: Developers of Affordable Housing Projects This section provides a 100% tax exemption on profits from eligible affordable housing projects, boosting the government’s “Housing for All” mission. Key Features (AY 2025-26) 1.   Eligibility Criteria ✅ Project Approval: Must be approved by regulatory authorities (like RERA) between 1 June 2016 to 31 March 2022 ✅ Unit Specifications: Carpet Area: ≤ 90 sqm (Metros:

Applicable to: Businesses engaged in collecting/processing biodegradable waste This section provides a 100% tax deduction on profits from recycling agricultural/animal waste, promoting sustainable waste management. Key Features (AY 2025-26) 1.  Eligible Activities ✅ Agricultural Waste: Processing sugarcane trash, paddy straw, coconut husks Converting crop residue into biofuel/manure ✅ Animal Waste: Processing slaughterhouse waste Converting livestock dung into biogas ✅ Municipal Waste: