COVID-19 is a contagious disease caused by the coronavirus SARS-CoV-2. In January 2020, the disease spread worldwide, resulting in the COVID-19 pandemic.
The symptoms of COVID‑19 can vary but often include fever,[7] fatigue, cough, breathing difficulties, loss of smell, and loss of taste.[8][9][10] Symptoms may begin one to fourteen days after exposure to the virus. At least a third of people who are infected do not develop noticeable symptoms.[11][12] Of those who develop symptoms noticeable enough to be classified as patients, most (81%) develop mild to moderate symptoms (up to mild pneumonia), while 14% develop severe symptoms (dyspnea, hypoxia, or more than 50% lung involvement on imaging), and 5% develop critical symptoms (respiratory failure, shock, or multiorgan dysfunction).[13] Older people have a higher risk of developing severe symptoms. Some complications result in death. Some people continue to experience a range of effects (long COVID) for months or years after infection, and damage to organs has been observed.[14] Multi-year studies on the long-term effects are ongoing.[15]
COVID‑19 transmission occurs when infectious particles are breathed in or come into contact with the eyes, nose, or mouth. The risk is highest when people are in close proximity, but small airborne particles containing the virus can remain suspended in the air and travel over longer distances, particularly indoors. Transmission can also occur when people touch their eyes, nose, or mouth after touching surfaces or objects that have been contaminated by the virus. People remain contagious for up to 20 days and can spread the virus even if they do not develop symptoms.[16]
Testing methods for COVID-19 to detect the virus’s nucleic acid include real-time reverse transcription polymerase chain reaction (RT‑PCR),[17][18] transcription-mediated amplification,[17][18][19] and reverse transcription loop-mediated isothermal amplification (RT‑LAMP)[17][18] from a nasopharyngeal swab.[20]
Several COVID-19 vaccines have been approved and distributed in various countries, many of which have initiated mass vaccination campaigns. Other preventive measures include physical or social distancing, quarantining, ventilation of indoor spaces, use of face masks or coverings in public, covering coughs and sneezes, hand washing, and keeping unwashed hands away from the face. While drugs have been developed to inhibit the virus, the primary treatment is still symptomatic, managing the disease through supportive care, isolation, and experimental measures.
Real estate is one of India’s largest economic sectors, involving significant transactions between developers, contractors, businesses and homebuyers. Goods and Services Tax (GST) plays an important role in the taxation of construction-related supplies and services.
The GST framework for real estate has evolved over time. The GST rate rationalisation introduced in 2025, often referred to as GST 2.0, changed the rates applicable to several construction inputs and certain services. However, the special GST rates applicable to under-construction residential apartments remain relevant.
For developers and buyers, understanding the applicable rate, Input Tax Credit (ITC) rules, reverse charge provisions and e-invoicing requirements is essential for proper compliance.
GST’s Impact on Real Estate
GST generally applies to the construction of a property when the supply takes place before completion or first occupation, subject to the applicable provisions. A sale of a completed property, where the entire consideration is received after the completion certificate is issued or after first occupation, whichever is earlier, is generally outside the scope of GST.
For residential apartments, the applicable GST rate depends on whether the property qualifies as affordable housing.
Under the prevailing framework:
Affordable residential apartments: 1% GST without ITC, subject to the applicable conditions.
Other qualifying under-construction residential apartments: 5% GST without ITC.
Ready-to-move-in properties: Generally no GST where the transaction falls within the applicable exemption after completion certificate or first occupation.
Commercial property: The applicable rate depends on the nature of the supply and the applicable GST notification. Commercial construction and works-contract supplies should not be treated as automatically falling under the residential 1% or 5% scheme.
The 1% and 5% residential rates were introduced with effect from 1 April 2019 and are subject to specific conditions.
What Qualifies as Affordable Housing?
The concessional 1% GST rate is available only when the property satisfies the applicable definition of an affordable residential apartment.
Broadly, the GST framework uses both carpet-area and value criteria. The carpet-area limit is up to 60 square metres in metropolitan cities and up to 90 square metres in non-metropolitan cities, while the value limit is ₹45 lakh, subject to the applicable rules and definitions.
Delhi NCR, including specified areas such as Gurgaon/Gurugram, falls within the metropolitan-city definition for this purpose.
Therefore, a property cannot qualify for the 1% rate merely because its carpet area is within the prescribed limit. The applicable conditions must be considered together.
GST on Under-Construction Residential Property
For qualifying under-construction residential apartments sold by a promoter, the effective GST rates are generally:
Property Type
GST Rate
ITC
Key Condition
Affordable residential apartment
1%
Not available
Must satisfy applicable affordable-housing conditions
The 1% and 5% rates are effective rates after the prescribed treatment of the land component and are subject to the conditions of the relevant notification.
GST on Ready-to-Move-In Property
A common question among homebuyers is whether GST is payable when purchasing a completed flat.
Generally, where the entire consideration is received after issuance of the completion certificate, where required, or after first occupation, whichever is earlier, the transaction is outside the GST levy applicable to construction services.
However, buyers should distinguish GST from stamp duty and registration charges, which are state-level levies and continue to apply according to the applicable state laws.
The timing of payment and the status of the project can therefore be important when determining GST liability.
GST 2.0 and the Real Estate Sector
The GST rate rationalisation announced in 2025 affected several goods and services used in construction.
For example, the GST rate on cement was reduced to 18%, which can reduce the tax component of an important construction input. The GST Council’s 56th-meeting reforms were aimed at rationalising rates and simplifying the wider GST structure.
However, lower GST on construction inputs does not automatically mean that the GST charged to a homebuyer on an under-construction residential apartment has fallen. The residential 1% and 5% rates operate under a specific no-ITC framework.
The actual impact on project costs and property prices may therefore vary depending on the developer’s procurement structure, project stage and other costs.
Input Tax Credit for Real Estate Developers
Input Tax Credit (ITC) is an important part of GST compliance.
Under the concessional residential construction scheme, developers generally cannot claim ITC on inputs and input services used for the construction of apartments covered by the 1% or 5% scheme.
This is an important difference from certain other taxable construction and commercial supplies where ITC may be available, subject to the conditions of the GST law.
Developers should therefore maintain accurate records and determine ITC eligibility separately for different projects and supplies rather than applying one rule across their entire business.
GST Reverse Charge in Real Estate
Reverse Charge Mechanism (RCM) shifts the responsibility for paying GST from the supplier to the recipient for specified supplies.
Real estate businesses may encounter RCM in situations specifically notified under GST law. For example, the GST framework contains provisions relating to certain purchases from unregistered suppliers and specific construction-related supplies.
The rules should not be simplified to say that all architect fees, small jobs or purchases from unregistered suppliers automatically attract RCM. The exact nature of the supply, supplier status and applicable notification must be examined.
The GST Council has also introduced changes concerning the reverse-charge treatment of certain commercial-property rentals. Taxpayers should check the applicable notification and their registration status before determining who is responsible for GST.
E-Invoicing for Real Estate Businesses
E-invoicing is an important part of GST compliance for eligible businesses.
The e-invoicing mandate has been extended to taxpayers with aggregate annual turnover of ₹5 crore or more, subject to the applicable conditions and exemptions. The requirement applies from 1 August 2023 for the notified category.
Under the e-invoicing system, eligible invoices are reported to the Invoice Registration Portal (IRP), which generates an Invoice Reference Number (IRN) and QR code.
For real estate businesses, proper integration between accounting software and GST systems can help reduce errors in invoice reporting and reconciliation.
GST Compliance Checklist for Builders and Developers
Developers can strengthen their GST compliance by following a systematic process:
Maintain accurate project-wise accounting records.
Reconcile purchase invoices and eligible ITC regularly.
Verify supplier GST details and invoices.
Determine whether the project falls under the 1%/5% residential scheme or another applicable rate.
Monitor RCM obligations separately.
Generate e-invoices where applicable.
Reconcile GST returns with accounting records.
Maintain proper documentation for construction-related expenses.
File GST returns within the applicable deadlines.
Review changes in GST notifications and circulars regularly.
Digital accounting and GST tools can make reconciliation easier, but businesses remain responsible for ensuring that their returns and supporting records are accurate.
Benefits for Buyers
For homebuyers, understanding GST can help avoid confusion while comparing properties.
Before purchasing an under-construction property, buyers should check:
Whether the property is affordable housing under the GST definition.
Whether the quoted price includes GST.
Whether the property is under construction or has received the required completion/occupation certificate.
Whether GST is being charged at the applicable rate.
Whether stamp duty and registration charges are included separately.
Whether the builder’s invoice clearly identifies the applicable tax.
Buyers should also retain agreements, invoices and payment records as part of their property documentation.
GST and Property Rentals
GST treatment also differs between residential and commercial rentals.
Certain residential renting arrangements can be exempt or subject to specific rules, while renting of commercial or other immovable property to a registered person may attract GST under the applicable provisions, including reverse-charge rules in specified circumstances.
Therefore, landlords and tenants should not assume that every rental transaction has the same GST treatment. The type of property, nature of the tenant and registration status should be examined before determining the applicable tax.
Conclusion
GST has an important role in India’s real estate and construction sector, but the tax treatment depends heavily on the type of property, stage of construction, nature of the supply and applicable GST notifications.
Under the current framework, qualifying under-construction residential apartments generally fall under the 1% or 5% concessional rates without ITC, while completed-property transactions meeting the prescribed conditions are generally outside GST.
GST 2.0 has also changed the tax treatment of several construction inputs, including cement, which can affect project costs. At the same time, developers must continue to comply with requirements relating to invoicing, ITC, reverse charge, reconciliation and e-invoicing.
For buyers and developers alike, understanding the applicable rules before entering into a transaction can help prevent tax errors and unexpected liabilities.
How TaxAcumen Can Help
GST compliance in the real estate sector can become complicated because different rates and conditions may apply to residential projects, commercial properties, construction services, rentals and other transactions.
The professionals at TaxAcumen can help businesses and property stakeholders understand applicable GST provisions, review compliance requirements, assess tax treatment and maintain appropriate documentation.
Contact TaxAcumen for professional assistance with GST, real estate taxation and compliance requirements.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
Receiving a notice from the Income Tax Department can be stressful, but it does not necessarily mean that something is wrong with your tax return. Notices may be issued for routine processing, verification, discrepancies in reported information, or requests for additional details.
However, an income tax notice should never be ignored. Understanding the reason for the notice, gathering the relevant documents and submitting an appropriate response within the prescribed time can help prevent unnecessary complications, additional demands or further proceedings.
Why Notices Are Issued and Common Types
The Income Tax Department may issue a notice even after you have filed your return and paid your taxes. Common reasons include discrepancies in tax-credit information, differences between the income reported in your ITR and information available with the department, errors in the return, high-value transactions, or the need for additional information or verification.
Some commonly encountered notices and communications include:
Intimation under Section 143(1): This is issued after the department processes your return. It may show adjustments arising from apparent errors, incorrect claims or discrepancies identified during processing. It can result in a refund, a tax demand or no additional tax liability.
Notice under Section 143(2): This indicates that the return has been selected for scrutiny. The taxpayer may be required to provide information, explanations or supporting documents relating to the return.
Notice under Section 139(9): This is issued when the Income Tax Department considers a return to be defective. The taxpayer is generally required to rectify the defect within the time specified in the notice. The prescribed response period should therefore be checked carefully rather than assuming a fixed period.
Notice under Section 142(1): The department may issue this notice to seek additional information, documents or clarification during assessment proceedings. The notice will specify what information is required and the applicable response deadline.
Notice under Section 156: This is a notice of demand issued when tax, interest, penalty or another amount is payable. The applicable demand should be examined carefully, and payment or an appropriate response should be made within the specified period.
Notice under Section 148: Under the applicable reassessment provisions, a notice under Section 148 may be issued when the Assessing Officer proposes to reassess income that is believed to have escaped assessment, subject to the conditions and procedures prescribed under the law.
Notice under Section 245: This provision relates to adjustment of a refund against outstanding tax demands, subject to the applicable procedure. If you receive such a communication, verify the outstanding demand and respond appropriately if you disagree with it.
How to Respond to an Income Tax Notice
The first step is to read the notice carefully and identify the assessment year, section under which it has been issued, issue involved, information requested and response deadline.
Taxpayers should also verify the authenticity of the communication and check the notice or proceeding through the official Income Tax e-filing portal.
For notices requiring an online response, log in to the Income Tax e-filing portal and access the relevant proceedings under the applicable section, such as Pending Actions / e-Proceedings, depending on the type of notice and the portal workflow currently applicable.
Select the relevant proceeding and follow the instructions provided for submitting your response.
Depending on the nature of the notice, you may need to:
Provide a written explanation addressing the specific issue raised.
Upload supporting documents such as bank statements, Form 16, tax-payment challans, investment documents or other relevant records.
Accept or disagree with an observation or proposed adjustment, where the proceeding provides those options.
For a tax demand, review the demand carefully and select the appropriate response option if you believe the demand is incorrect or only partly correct.
Provide documentary evidence supporting your explanation wherever required.
Responding to High-Value Transaction Queries
If the department seeks an explanation regarding a high-value transaction, the taxpayer should identify the actual source of the funds and provide appropriate supporting evidence.
For example, if a transaction was funded through accumulated savings, a loan, a gift or another legitimate source, relevant documentation should be maintained and submitted where required.
The explanation should be consistent with the taxpayer’s bank records, income disclosures and other financial information. Avoid providing unsupported explanations simply to close the proceeding.
Keep Records of Your Response
After submitting the response, retain the acknowledgement, reference number, submitted explanation and copies of all documents uploaded.
Where the particular proceeding requires verification or authentication, complete the applicable verification process using the method available on the e-filing portal.
Maintaining a complete record can be valuable if the department raises a further query or if you need to refer to the response in future proceedings.
What to Do If You Disagree With the Notice
You do not necessarily have to accept every observation or demand made by the Income Tax Department.
If you believe the notice is based on incorrect information, a tax-credit mismatch or an error in the department’s records, review the relevant documents and provide a clear explanation with supporting evidence.
For example, compare your ITR with your Form 26AS, AIS, TIS, Form 16, bank statements and tax-payment records, as applicable.
If the matter involves a substantial tax demand, scrutiny proceedings, reassessment or a complex legal issue, obtaining professional tax advice before responding can help ensure that your position is presented accurately.
Conclusion
Receiving an income tax notice is not necessarily a cause for panic, but it does require careful and timely action. Start by identifying the type of notice, understanding the issue raised and checking the prescribed response deadline.
Gather the relevant documents, prepare a clear response and submit it through the appropriate channel specified in the notice. Keeping complete records of the communication and your response can also help with any future proceedings.
Most importantly, do not assume that every notice has the same response period or procedure. Always follow the specific instructions and deadline stated in the notice.
How TaxAcumen Can Help
Dealing with an income tax notice can be complicated, particularly when it involves discrepancies, scrutiny, reassessment or a significant tax demand.
The professionals at TaxAcumen can assist you in reviewing the notice, understanding the issue, gathering relevant supporting documents and preparing an appropriate response through the Income Tax e-filing portal.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
Fixed Deposits (FDs) and Systematic Investment Plans (SIPs) are two popular ways of investing in India, but they serve very different financial needs. While FDs focus on stability and predictable returns, SIPs provide a disciplined way to invest in mutual funds and participate in market-linked growth.
The right choice depends on your financial goals, risk tolerance, investment horizon and liquidity requirements. In many cases, investors may benefit from using both options for different purposes.
Understanding FDs and SIPs
A Fixed Deposit (FD) is a traditional savings and investment product in which you deposit a lump sum with a bank for a predetermined tenure. The bank pays interest at a specified rate according to the terms of the deposit.
FDs are generally preferred by conservative investors who value predictable returns and want to avoid direct exposure to market volatility. However, an FD is not completely risk-free. Deposit insurance through the Deposit Insurance and Credit Guarantee Corporation (DICGC) is available subject to the applicable conditions and limits, including the ₹5 lakh insurance limit per depositor per bank.
FD interest rates vary across banks, tenures and customer categories, so investors should check the prevailing rate before investing rather than relying on a fixed market-wide range.
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals, usually monthly, into a mutual fund scheme. SIP itself is not a separate investment product; the risk and return depend on the mutual fund selected.
Equity-oriented mutual fund SIPs can provide significant long-term growth potential, but their returns are market-linked and not guaranteed. Short-term market fluctuations can result in losses, particularly during periods of market volatility.
Key Differences to Consider
Returns
FDs: The interest rate is generally predetermined, allowing investors to estimate their returns over the selected tenure.
SIPs: Returns depend on the performance of the underlying mutual fund. Equity-oriented funds may offer higher growth potential over long periods, but there is no guaranteed return.
Therefore, comparing an FD’s interest rate directly with an SIP’s return can be misleading because the two investments have different risk profiles.
Risk
FDs generally involve lower market risk than equity mutual funds. However, investors should still consider factors such as the financial institution, deposit terms and applicable deposit-insurance limits.
SIPs carry the risk associated with the underlying mutual fund. Equity funds can experience substantial short-term fluctuations, while debt-oriented funds generally have different levels and types of risk.
Liquidity
FDs can generally be withdrawn before maturity, subject to the bank’s terms. Premature withdrawal may result in a reduced interest rate or penalty.
Mutual fund units can generally be redeemed when required, subject to the scheme’s terms. Certain funds may have an exit load, while some investment products may have a lock-in period.
Investment Approach
FDs generally require a lump-sum deposit.
SIPs allow investors to invest smaller amounts at regular intervals. This can encourage financial discipline and reduce the need to invest a large amount at a single point in time.
Regular investing also means that investors purchase mutual fund units at different market levels. However, SIPs do not guarantee profits or eliminate investment risk.
Taxation
FDs: Interest earned on an FD is generally taxable and is added to the investor’s taxable income according to the applicable tax rules.
Equity mutual funds: Tax treatment depends on the type of fund, holding period and applicable tax laws. For equity-oriented mutual funds, long-term capital gains are currently taxed at 12.5% on aggregate eligible gains exceeding ₹1.25 lakh in a financial year, subject to the applicable conditions. Short-term capital gains on specified equity-oriented investments are currently taxed at 20%, subject to applicable rules.
Investors should consider post-tax returns, rather than comparing only the headline FD interest rate with mutual fund returns.
Which One Should You Pick?
There is no single answer that works for every investor.
An FD may be suitable if you:
Prioritise capital stability and predictable returns.
Have a short- or medium-term financial goal.
Need greater certainty about the maturity amount.
Are uncomfortable with market fluctuations.
Want to keep a portion of your portfolio in relatively stable investments.
An equity SIP may be suitable if you:
Have a long-term investment horizon.
Are comfortable with market volatility.
Want to build wealth over the long term.
Prefer investing regularly rather than making a large lump-sum investment.
Can remain invested through periods of market fluctuations.
For example, someone saving for a financial requirement within a few years may prefer an FD for the relevant portion of their savings, while someone building a retirement corpus over several decades may consider equity mutual fund SIPs for long-term growth potential.
Why Some Investors Use Both
Choosing between an FD and an SIP does not always have to be an either-or decision.
An investor may use FDs for short-term requirements, planned expenses or stability, while using SIPs in suitable mutual funds for long-term wealth creation.
For example, an emergency fund or money required for a near-term financial goal may be kept in relatively stable and accessible instruments, while investments intended for long-term goals can have greater exposure to growth-oriented assets depending on the investor’s risk profile.
The right allocation depends on individual circumstances rather than a fixed formula.
Don’t Choose Based Only on Returns
One of the biggest mistakes investors make is choosing an investment solely because it has delivered higher returns historically.
FDs offer greater predictability, whereas mutual funds involve market risk. A mutual fund may outperform an FD over a particular period, but it can also decline in value.
Your decision should therefore consider:
Investment horizon
Risk tolerance
Financial goals
Liquidity requirements
Tax implications
Existing investments
Need for capital stability
Conclusion
Both SIPs and Fixed Deposits can play an important role in a well-structured financial plan.
FDs are generally better suited to investors who prioritise stability and predictable returns, while SIPs—particularly equity mutual fund SIPs—can be suitable for investors seeking long-term growth and who are comfortable accepting market risk.
Rather than choosing one option solely because of its potential return, evaluate how each investment fits your overall financial goals and risk profile. In many cases, combining appropriate investments can provide a better balance between stability, liquidity and long-term growth.
Contact TaxAcumen today to discuss your investment and tax-planning requirements and build a more efficient financial strategy.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
For Indian taxpayers who continue to opt for the old tax regime, Section 80C of the Income Tax Act remains an important tax-saving provision. It allows eligible taxpayers to claim deductions of up to ₹1.5 lakh in a financial year on specified investments and expenses.
Although the new tax regime has reduced the relevance of Section 80C for many taxpayers, the provision continues to be valuable for those who choose the old regime. However, tax-saving investments should be selected based on your financial objectives, risk appetite and liquidity requirements—not solely to reduce your tax liability.
Understanding Section 80C and Its Relevance
Section 80C allows eligible individuals and Hindu Undivided Families (HUFs) to claim deductions for specified investments, savings and expenses. The combined deduction available under Section 80C, along with certain related provisions such as Sections 80CCC and 80CCD(1), is subject to an overall limit of ₹1.5 lakh in a financial year.
The benefit is generally available under the old tax regime, subject to the applicable conditions. Taxpayers should therefore compare their tax liability under both regimes before making investments specifically for tax-saving purposes.
Top 10 Tax-Saving Instruments Under Section 80C
Here are ten popular options that can help eligible taxpayers utilise their Section 80C limit:
1. Employees’ Provident Fund (EPF)
EPF is a retirement savings scheme primarily applicable to salaried employees. The employee’s eligible contribution to EPF qualifies for deduction under Section 80C, subject to the overall limit.
EPF provides retirement-oriented savings and is generally considered a relatively low-risk investment option. Since EPF contributions may already consume part of your ₹1.5 lakh limit, check your annual contribution before making additional investments.
2. Public Provident Fund (PPF)
PPF is a government-backed long-term savings scheme with a 15-year maturity period, subject to the applicable withdrawal and extension rules.
It is suitable for investors looking for long-term, relatively low-risk savings. PPF also offers favourable tax treatment, with eligible contributions qualifying under Section 80C and interest generally being exempt from tax, subject to prevailing rules.
3. Equity Linked Savings Scheme (ELSS)
ELSS mutual funds invest primarily in equities and have a three-year lock-in period, making them one of the shortest lock-in options among Section 80C investments.
They can be suitable for investors seeking long-term capital growth and who are comfortable with market-related risks. Unlike fixed-income tax-saving options, ELSS returns are not guaranteed.
4. National Savings Certificate (NSC)
NSC is a government-backed fixed-income savings instrument with a five-year maturity period.
It can be suitable for conservative investors who prefer a relatively predictable fixed-income investment. Interest is taxable, although the interest that qualifies for reinvestment may receive Section 80C treatment subject to the applicable conditions.
5. Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is designed specifically for the long-term financial needs of an eligible girl child.
It can be useful for parents or guardians planning for future education and other major financial requirements of their daughter. Eligible contributions qualify for Section 80C deductions, subject to the scheme’s rules.
6. Life Insurance Premiums
Premiums paid towards eligible life insurance policies can qualify for a Section 80C deduction, subject to applicable conditions and limits.
However, life insurance should primarily be purchased to provide financial protection to your family. Tax savings should be considered an additional benefit rather than the main reason for buying a policy.
7. Home Loan Principal Repayment
Eligible repayment of the principal component of a housing loan can qualify for deduction under Section 80C, subject to the prescribed conditions.
This can be particularly useful for taxpayers who are already repaying a home loan because the same payment can contribute towards debt repayment as well as tax planning.
8. Tuition Fees for Children
Certain tuition fees paid for the full-time education of up to two children can qualify for deduction under Section 80C, subject to the conditions prescribed under the Income Tax Act.
The payment must generally be towards eligible tuition fees of an educational institution in India. Other charges, such as development fees or donations, may not qualify.
9. Tax-Saving Fixed Deposits
Tax-saving fixed deposits offered by eligible banks provide a familiar fixed-income investment option. They generally have a five-year lock-in period.
The investment can qualify for Section 80C deduction, subject to the overall limit. However, the interest earned on the FD is taxable, so investors should consider their post-tax returns rather than looking only at the advertised interest rate.
10. Voluntary Provident Fund (VPF)
VPF allows eligible salaried employees to voluntarily contribute more to their provident fund beyond their mandatory EPF contribution.
Eligible employee contributions can qualify for Section 80C, subject to the overall ₹1.5 lakh limit and applicable rules. VPF can be useful for employees seeking to increase their retirement savings without choosing a separate investment product.
Choosing the Right Section 80C Strategy
There is no single investment strategy that works for every taxpayer. The right combination depends on your income, existing investments, financial goals, risk tolerance and liquidity needs.
For example:
Retirement-focused investors: EPF, VPF and PPF
Growth-oriented investors: ELSS
Conservative investors: PPF, NSC and tax-saving FDs
Homeowners with an eligible housing loan: Home-loan principal repayment
Parents: Eligible children’s tuition fees
Family protection: Eligible life insurance premiums
It is also important to remember that your ₹1.5 lakh limit may already be partly utilised through EPF, home-loan principal repayment, insurance premiums or children’s tuition fees. Before making a fresh investment, calculate how much of the limit is actually available.
Conclusion
Section 80C remains a useful tax-planning provision for taxpayers who choose the old tax regime. Its range of eligible investments and expenses allows taxpayers to combine tax planning with objectives such as retirement savings, children’s education, debt repayment and long-term wealth creation.
However, tax saving should not be the only reason to invest. A product with a tax benefit may not necessarily be the right investment for your financial situation. Assess your goals, investment horizon, risk tolerance and liquidity requirements before choosing an instrument.
Planning early can help you make better investment decisions, utilise available deductions efficiently and avoid last-minute investments made solely to reduce your tax liability.
How TaxAcumen Can Help
Choosing the right tax-saving strategy can be challenging, particularly when you need to balance tax efficiency with liquidity, risk and long-term financial goals.
The professionals at TaxAcumen can help you evaluate your tax position, compare the old and new tax regimes, identify eligible deductions and develop a tax-saving strategy aligned with your financial objectives.
Contact TaxAcumen to schedule a consultation and plan your tax-saving investments well in advance.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
There is much more to your credit score than just a three-digit figure. Your entire financial journey can be shaped by it. Lenders use it to assess your financial stability for everything from loan approval to determining interest rates. While a low score can make borrowing costly or practically impossible, a high score can open the door to better financial opportunities. Understanding how this system works can help you make wise financial choices.
What Is a Credit Score?
A credit score is a number that reflects your creditworthiness. In India, it typically ranges from 300 to 900. When your score is high, lenders view you as a responsible borrower. Major credit bureaus such as CIBIL, Experian, CRIF High Mark, and Equifax track your credit history to calculate your score. Banks and other lenders check your credit score before deciding whether to approve your loan or credit card application, and it may also influence the interest rate they offer.
A score of 750 or higher is generally considered strong. Borrowers in this range may have better chances of getting faster approvals, lower interest rates, and higher credit limits. Meanwhile, a score below 650 may result in rejection or less favourable borrowing terms.
Why Your Credit Score Matters
Your credit score influences far more than just loan approvals. It can affect several key areas of your financial life:
Loan and Credit Card Approvals: Banks and other lenders review your credit score before approving many credit products. A strong score can improve your chances of approval.
Interest Rates: A strong credit score may help you qualify for lower interest rates, reducing the total cost of borrowing over the loan term.
Credit Limit: Credit card issuers may offer higher spending limits to customers with a strong credit history.
Processing Time: Lenders may process applications more quickly when applicants have a strong credit profile, as they may represent a lower lending risk.
Pre-approved Offers: Banks and financial institutions may offer pre-approved loans or credit cards to customers with strong credit profiles.
Negotiating Power: A healthy credit record may give you greater leverage when negotiating lending terms.
How Is a Credit Score Calculated?
Credit bureaus use information from your credit report to calculate your credit score. While each bureau uses its own proprietary scoring model, several key factors generally influence your score:
Payment History: This is one of the most important factors. It reflects whether you pay your EMIs and credit card bills on time. Missed or late payments can negatively affect your credit profile.
Credit Utilisation: This measures how much of your available credit you are using. Keeping your credit utilisation low is generally considered beneficial for your credit profile.
Credit Mix: Having a mix of secured and unsecured credit can demonstrate your ability to manage different types of credit responsibly.
Length of Credit History: A longer credit history can work in your favour because it provides lenders with more information about your credit-management behaviour.
New Credit Enquiries: Applying for multiple loans or credit cards within a short period can result in multiple hard enquiries, which may negatively affect your credit score.
How to Improve Your Credit Score
If your score needs improvement, don’t panic. You can work towards building a stronger credit profile through consistent and disciplined financial habits:
Pay every bill and EMI on time.
Keep your credit card balances low.
Space out new loan and credit card applications.
Maintain a healthy mix of credit accounts.
Review your credit report regularly to identify and dispute any errors.
Conclusion
If you want to borrow money without putting unnecessary pressure on your budget, maintaining a good credit score is important. It demonstrates responsible credit management and can help build trust with lenders. Understanding how credit scores work and actively maintaining a healthy credit profile can help you access better financial opportunities. Every timely payment contributes to a stronger credit history, so start paying attention to your borrowing and spending habits today.
How TaxAcumen Can Help
Monitoring your credit report and building a strong financial profile doesn’t have to be a guessing game. At TaxAcumen, our experts can help you review your credit health, identify and address reporting errors, and align your credit strategy with your long-term financing goals. Contact TaxAcumen today to strengthen and protect your financial position.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
The majority taxpayers believe that the procedure is completed after they submit their ITR through the portal. However, the return is only considered valid if it is e-verified within 30 days of the filing date. However, if you neglect or postpone verification, your return may be considered invalid, and you might face fines, delayed refunds, or even a notice from the Income Tax Department. You can stay out of trouble by being aware of the 30-day rule and its consequences.
Why E-Verification Is Required and How It Works
E-verification confirms that the information you submitted in your income tax return (ITR) is valid and that you have given your approval to it. If this step is not completed, the Income Tax Department may reject your return as legally filed. The department provides several options for carrying out the verification:
Aadhaar OTP: The most popular approach is Aadhaar OTP. An OTP is sent to your registered phone number if your PAN is connected to Aadhaar.
Internet Banking EVC: You can generate an Electronic Verification Code through your bank’s net banking page.
Digital Signature Certificate (DSC): Companies, professionals, and taxpayers who already possess a Digital Signature Certificate (DSC) are the most common users.
Demat Account EVC: To verify if your Demat account is linked, use CDSL or NSDL.
ITR-V by Post: If online methods are unsuccessful, you have 30 days to send a signed physical copy of the ITR-V to the Centralised Processing Center (CPC) in Bengaluru.
The window has been reduced from 120 days to just 30 days for taxpayers to verify. This change increases the importance of timely verification.
What Happens If You Verify After 30 Days?
The filing date has been changed, but the return is still accepted if you verify your ITR after the 30-day period. The department uses the verification date as your actual filing date rather than the original submission date. This change may lead to a number of common issues:
Late Filing Fee: You may be required to pay a late fee under Section 234F if your initial filing was made prior to the July 31 deadline but verification takes place after 30 days. If your income is less than ₹5 lakh, the cost is ₹1,000; if it exceeds, it is ₹5,000.
Interest on Unpaid Tax: Section 234A adds interest from the due date until the verification date if you are owing tax and failed to pay it by the initial due date.
Delayed Refunds: The refund processing will start only after verification. Your refund will be delayed, possibly by months, if the verification is delayed.
Loss of Carry-Forward Benefits: You lose the option to carry forward business or capital losses (except from house property losses) if verification is made after the belated deadline of December 31.
For instance, the department will use September 5, 2026, as your filing date if you filed your ITR on July 28, 2026, but confirmed it on September 5, 2026. You lose the advantage of timely filing if this date is after July 31.
What Happens If You Completely Forget Verification?
Your ITR will be considered invalid if you do not verify it at all. You seem to have never filed. Penalties, interest on unpaid taxes, and notices for non-filing could arise from this. Under the Income Tax Act of 2025, the department may even start scrutiny or demand proceedings in certain circumstances.
Conclusion
E-verification is an important step. It is the last and required step in filing an ITR. A timely filed return may turn into a late one and incur fees, interest, and delays if the verification is not completed within 30 days. After filing your ITR, always check it right away. For quick validation, use Aadhaar OTP or Net Banking EVC. Send the ITR-V via speed post and save the tracking receipt if you face technical issues.You can avoid major problems later by taking a little step today.
How TaxAcumen Can Help
Navigating e-verification timelines and compliance rules under the Income Tax Act, 2025, doesn’t have to be overwhelming. At TaxAcumen, our experts ensure your returns are correctly filed, verified, and aligned with current regulations. Get in touch today to secure your financial standing.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute tax, legal, financial, investment, accounting, or other professional advice. Laws, regulations, tax provisions, and financial information are subject to change and may vary based on individual circumstances. While every effort has been made to provide accurate and up-to-date information, readers should verify the applicable provisions and consult a qualified professional before making any decision or taking any action based on this content. TaxAcumen is not responsible for any loss or consequence arising from reliance on the information provided.
