Capital Gain: Filing taxes is a financial part of life for a taxpayer. Often people calculate their income. A taxpayer who had earned Rs 8.15 lakh as short-term capital gain from listed shares and had no other income, wanted to know why the income tax portal was imposing 20 per cent tax despite the total income being less than Rs 12 lakh under the new tax regime.

Taxpayer’s question

A taxpayer on ‘Ask Wallet Wise’ website asked, I have earned short-term capital gain of ₹ 8,15,000 by selling listed shares within 8 months. I don’t have any other income. Since my total annual income is much less than the tax-free limit of Rs 12 lakh under the new tax regime, I feel that my tax liability should be zero due to the exemption under Section 87A. However, the Income Tax Portal is calculating tax at a flat rate of Rs.20. Is there something wrong with the portal?

What advice did the expert give?

In fact, under Section 87A of the Income Tax Act, in the new tax regime, tax exemption up to Rs 60,000 is available. If the taxpayer is an Indian citizen and the income taxable at slab rates does not exceed Rs 12 lakh, then under the new tax regime, the exemption under Section 87A is available only on the tax levied on ordinary income. This exemption is not available for those incomes which are taxable at special rates, even if the total income including such special income does not exceed Rs 12 lakh.

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According to the expert, there is no problem with the portal. If you are a taxpayer as a citizen of a country, then the portal is correctly calculating tax on short-term capital gains from listed shares at a flat rate of Rs 20 lakh after the initial exemption limit of Rs 4 lakh. If you are a non-resident (NRI), you will have to pay 20 per cent tax on the entire short-term capital gains, as there is no facility to set off the shortfall in ordinary income against the marginal exemption in case of short-term capital gains.

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Tax Payers: Usually, during the rush to file income tax returns, some mistakes may not only result in your refund being rejected but also lead to the possibility of notices and penalties. If you miss the deadline, you will have to pay late filing charge under Section 234F of the Income Tax Act.

Depending on the income of the taxpayer and delay in filing, this fine can be up to Rs 5000. If the total income is less than Rs 5 lakh, the maximum penalty for late filing is Rs 1000, and if the total income is more than Rs 5 lakh, the maximum penalty is Rs 5000.

Will penalty be imposed despite zero tax liability?

The most important thing is that if a salaried person has to file ITR by July 31, 2026 and he misses the deadline, he can still file ‘billed return’ till December 31, 2026. However, they may have to pay late filing fees. This rule applies even if their tax liability is zero due to exemption or rebate given by the tax department.

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In such a situation, only those people are not required to file ITR whose income is less than the exemption limit. In the old tax system this basic limit is Rs 2.5 lakh, whereas in the new system it is Rs 4 lakh.

For example, a taxpayer earned Rs 9 lakh in the financial year 2025-26 and was required to file returns by July 31, 2026. If he files returns in November 2026, he can still do so, but he will have to pay a late filing fee of Rs 5,000. Apart from the penalty, if any tax remains outstanding after the due date, the taxpayer may also have to pay interest on it.

ITR deadline for FY26

Actually, the Income Tax Department has set different deadlines according to the taxpayer. Salaried people and those filing ITR-1 or ITR-2 will have to file their returns by July 31. Taxpayers who do not require tax audit and file ITR-3 or ITR-4 have time till August 31. Those whose accounts are required to be tax audited will have to file returns by October 31.

The deadline for taxpayers falling under transfer pricing rules has been fixed as 30th November. If a taxpayer is not able to file the return by the prescribed deadline, he can still file a ‘belated return’ till December 31. Generally, the return can also be improved through ‘Revised Return’ till March 31, 2027.

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ITR Refund Update: Have you also filed ITR and have not received your refund yet? If you are thinking of money not coming into your account as some technical fault, then do not make this mistake at all. It is possible that you have not yet linked PAN and Aadhaar, due to which this money is stuck. This is a small mistake which crores of people have made. About which Minister of State for Finance Pankaj Chaudhary has recently told in the Parliament.

What did Minister of State for Finance Pankaj Chaudhary say?
In fact, recently in a session of Parliament, Minister of State for Finance Pankaj Chaudhary has informed that crores of rupees of lakhs of tax payers of the country are stuck due to this one small mistake. He told that people have not linked PAN card with Aadhaar, due to which refund of 1,30,638 taxpayers has been stopped. This refund is of total Rs 340.30 crore. So if you have also made this mistake, there is still time to correct it. Let us tell you how.

You can still link PAN to Aadhaar
If you have not yet linked your PAN card with Aadhaar, then you do not need to worry at all. Because you can still do this but you will have to pay a fine for it. This service was free till 31 December 2025, but now the government has imposed a fine on it. Now to link PAN-Aadhaar you will have to pay one thousand rupees. This is being charged as late or penalty fee.

Here in just a few steps we tell you how you can link your PAN card with Aadhaar.

• For this, first go to the portal and login to incometax.gov.in.
• Now click on Link Aadhaar in the Quick Links section on the homepage.
• After coming here, a window will open where you will have to fill your PAN and Aadhaar number.
• After this, pay the late fee of Rs 1,000 through e-Pay Tax.
• After this, an OTP will come on the mobile number linked to Aadhaar, write it on the option in the window here and proceed.
• With this easy process you can link your PAN and Aadhaar.

After following these steps, when PAN and Aadhaar are linked, it will automatically appear from inoperative to operative in the system of the department. After this your refund will also be deposited in your account within 7 days to 30 days.

ITR-2 Online Filing: It has now become possible to file an ITR-2 online for FY 2024-25. The Income Tax Department has given its approval. That is, if a taxpayer can file a return from the e-Falling portal using an offline Excel version. Many people consider the online option to be much faster, because some details automatically come in it.

On the social media post X on behalf of the Income Tax Department, it was said that the income tax return form of ITR-2 for online mode has been activated on the e-filing portal.

It is worth noting that on July 11 this month, Excel forms were released for ITR-2 and ITR-3, which people can download and fill it offline and then upload it on the portal.

For whom is ITR-2

Actually, ITR-2 is for those who have income from salary, pension, more than one house, capital income or other sources of income. This is not for those who are businessmen or they earn professionally. Hindu undivided families can also fill this form, if they are coming under the purview of this rule.

ITR Filing 2025: As the season of filing income tax returns (ITR) is coming close, a question is arising again and again in the minds of people, whether I should file ITR? If my annual income is less than the tax limit, should I file an ITR? Let us understand the answer to this question in easy language.

When is it necessary to file ITR?

According to Indian tax laws, if your annual income is more than the fixed basic exhalation limit, then it becomes mandatory for you to file ITR. This limit depends on whether you choose the old tax regimen or the new tax regim.

Exemption limit under old tax regimen

The age of 60 years- 2.5 lakhs

60 to 80 years (Senior Citizen)- 3 lakhs

Over 80 years (Super Senior Citizen)- 5 lakhs

Exemption limit under new tax regimen

For all persons- 3 lakhs

However, in the budget of FY 2025, this limit has been increased to 4 lakhs.

When is it necessary to file ITR even if there is low income?

There are many situations when it becomes necessary to file ITR even if your income is less than the tax limit.

If you have deposited more than 50 lakhs in a year in your savings account.

If more than 1 crore has been deposited in the current account

If the annual turnover of the business is more than 60 lakhs

Professional income over 10 lakhs

The annual electricity bill is more than 1 lakh

If you have 25,000 or more TDS (50,000 for senior citizens) cut on you

If you have a stake in foreign property, account or any foreign financial account

If you have made more than 2 lakh foreign trips for yourself or someone else

Benefits of filing ITR

Filing ITR is not only a legal need, but also has many benefits-

To get refund of tax deduction (TDS)

Carrie to carry Capital Loss for next year

Bank loan, credit card or visa as income proof at the time of application

To maintain financial transparency and reliability

ITR is both understanding and security

If your income is less than the tax exemption limit, even if it is not necessary to file ITR law, this step becomes very important in terms of financial understanding. With this, not only do you move forward according to the rules of the government, but also create a strong financial foundation for the future. Filing ITR is not just to fill the form, but is the first step towards becoming a responsible citizen and smart investor.

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