Tax Ready Reckoner

Applicable to: All businesses (except freelancers)* This section provides 30-60% additional wage cost deduction for creating new regular employment, incentivizing job creation in the formal sector. Key Features (AY 2025-26) 1.  Eligibility Criteria ✅ New Employees Hired: Must work ≥240 days in year (150 days for apparel manufacturing) Salary ≤ ₹25,000/month First-time employment(not rehired former employees) ✅ Business Requirements: Must […]

Applicable to: Banks/Financial Institutions operating in IFSCs (e.g., GIFT City) This section provides 100% tax exemption for 10 years on specified incomes to promote India’s financial hubs. Key Features (AY 2025-26) 1.   Eligible Entities ✅ Offshore Banking Units (OBUs) of Indian/foreign banks ✅ IFSC Units in GIFT City (Insurance, FinTech, Fund Mgmt.) 2.  Deduction Details INCOME TYPE DEDUCTION PERIOD Eligible Business Income

Applicable to: Registered Cooperative Societies This section provides full or partial tax exemptions to encourage cooperative movements in agriculture, banking, and rural development. Key Features (AY 2025-26) 1.   Eligible Societies & Deductions CATEGORY DEDUCTION CONDITIONS Credit Societies 100% income exempt Must provide credit to members Agricultural Societies 100% exempt Income from farming/marketing Consumer Societies 100% exempt Sales to

Applicable to: *Farmer Producer Companies (FPCs) registered under Companies Act, 1956/2013* This section provides 100% tax exemption on profits from specific agricultural activities, empowering farmer collectives. Key Features (AY 2025-26) 1.   Eligible Activities ✅ Primary Produce Handling: Harvesting Grading Pooling Processing Marketing of members’ agricultural produce ✅ Support Services: Technical consultancy Training Insurance Credit facilities 2.  Deduction Details 100% profit

Applicable to: Individual authors/researchers (Indian residents) This section provides tax relief on royalty income from books (excluding textbooks), encouraging literary work in Indian languages. Key Features (AY 2025-26) 1.   Eligible Income ✅ Royalties from published books: Novels Poetry Plays Scientific works ❌Excludes: Textbooks Guides/help books Translations 2.  Deduction Details PARAMETER LIMIT Maximum Deduction ₹3 lakh/year Eligible Languages All Indian +

Applicable to: Indian Resident Individuals (Inventors/Patent Holders) This section provides tax relief on royalty income from patented inventions, encouraging innovation and R&D in India. Key Features (AY 2025-26) 1.   Eligible Income ✅ Royalties from patents: Registered with Indian Patent Office For inventions in science/technology ❌Excludes: Copyright income (covered under 80QQB) Lump-sum sale of patents 2.  Deduction Details PARAMETER LIMIT Maximum Deduction

Applicable to: Individuals & HUFs (Non-Senior Citizens) This section provides tax relief on interest income from savings accounts, reducing taxable income for small depositors. Key Features (AY 2025-26) 1.   Eligible Income ✅ Interest from: Savings accounts (banks/post offices) Cooperative society savings accounts ❌ Excludes: Fixed deposit (FD) interest Recurring deposit (RD) interest Senior citizen savings (covered under 80TTB) 2. 

Applicable to: *Individuals aged 60+ years (including NRIs)* This section provides higher tax relief on interest income from deposits, recognizing the financial needs of senior citizens. Key Features (AY 2025-26) 1.   Eligible Income Sources ✅ Interest from: Fixed Deposits (FDs) Recurring Deposits (RDs) Savings Accounts Post Office Schemes (SCSS, MIS, TD) Bank Deposits ❌ Excludes: Interest from bonds/debentures Dividend income

Applicable to: *Resident Individuals with 40%+ Disability* This section provides fixed tax deductions to support differently-abled taxpayers, acknowledging their additional financial needs. Key Features (AY 2024-25) Eligibility Criteria ✅ Disability Certificate Required from: Government hospital (Medical Board) Neurologist/Psychiatrist (for mental disabilities) ✅ Minimum Disability: 40% (as per RPWD Act 2016) Deduction Amount DISABILITY LEVEL DEDUCTION 40-79% Disability ₹75,000/year 80%+ Disability (Severe) ₹1,25,000/year