Aditya Narayan

Aditya Narayan enjoys decoding tax laws and keeping an eye on what is happening in India's startup ecosystem. He has written over 400 blogs and simplifying complex subjects across income tax, personal finance, governance, and business growth. His interests also bring together finance and creativity - whether that is writing poems, short stories, or looking at the intersect between art, culture, and economics.

Tax-Saving Tips for Small Business Owners in India

Posted on: 12 July 202518 July 2025 by: Aditya Narayanin: Direct TaxLeave a reply

Tax-Saving Tips for Small Business Owners in India

Owning a small business in India can be difficult, and managing taxes is usually one of the most challenging aspects. With good planning, a small business owner can legally reduce tax liabilities to have more money for growth. This article covered actionable tips for reducing taxes meant for Indian entrepreneurs. They are meant to be ways to answer the question of how a small business lowers taxes and be compliant with The Income Tax Act, 1961. Let us now look at some practical tax saving tips for business owners to improve their profits in 2025.

Choose the Right Business Structure

The tax obligations associated with your business will largely depend on the entity’s structure. The sole proprietorship is taxed at the individual’s income tax slabs, which can be as high as 30% plus cess for higher income ranges. Whereas, a Private Limited Company’s tax obligation can opt for a concessional tax rate of 22% in terms of Section 115BAA.

Limited Liability Partnerships (LLP) are taxed at a flat rate of 30%. Your tax obligation and your business’ appearance as a professional business can be greatly enhanced by the choice you make in this regard. You are advised to seek guidance from tax practitioner or professional who can assist in establishing your structure for tax purposes and aligning it with your long-term objectives for your business.

Leverage Section 80C Deductions

Small business owners can claim deductions of up to ₹1.5 lakh per year under Section 80C by investing in the Public Provident Funds, Equity Linked Saving Schemes, or National Savings Certificates. These investments not only reduce your taxable income, but they also allow you to build wealth over time. For instance, ELSS funds generate market-linked returns with a 3-year lock-in, making them appealing to entrepreneurs. If your business is a sole proprietorship, just double-check that the investments are in your name.

Claim Business Expenses

Proper documentation of business expenses is key tax saving strategies for the business. Some business expenses such as your office rent, salaries to employees, and business travel are completely deductible if used solely for a business purpose. If you are operating in a home office, you can also claim a portion of an expense for things like electricity, internet and rent! You should maintain all of your documentation including receipts and invoices to support your business expenses when it is time for your tax audit. Make sure to use a digital payment method for anything over ₹10,000 to ensure the deduction applies to those items, as cash payments may be disallowed in that amount!

Depreciation on assets, such as computers, machinery or vehicles used in a business, can significantly decrease taxable income. For example, under section 35AD, if you are in the manufacturing business you can claim an additional 20% depreciation on new machinery in year one. If you purchased a new embroidery machine for your clothing business, the machine would be eligible for both the regular depreciation(15%) and the additional depreciation(20%). To ensure you receive the full benefit of this depreciation, make sure the asset is used 100% for business purposes and document usage appropriately. Further, because depreciation does not have any cash outflow, this benefit is considerable.

Opt for Presumptive Taxation

Presumptive taxation under Section 44AD is available to small businesses with an annual turnover of less than ₹2 crore. The presumptive taxation scheme allows you to report income as 8% of cash receipts or 6% or digital receipts, without the need for maintenance of detailed records/common bookkeeping or completing a legal tax audit. Professionals such as consultants or designers can report 50% of gross receipts as their income using Section 44ADA. It is a popular scheme for small-scale business owners as it simplifies compliance and minimizes tax compliance costs.

Deduct Tax at Source (TDS)

If you do not deduct TDS from your payments, for example, to pay commissions, rents or professional fees, then that payment could become un-deductible, meaning that your tax implications on that could be increased. For instance, if you paid ₹3 lakh as a commission but did not deduct 10% TDS, then you would have disallowed ₹90,000 which is 30% of your expense. All you needed to do was pay TDS correctly and your tax return would include the deduction. Therefore, ensure TDS is deducted and filed quarterly, stay compliant and able to claim reductions from your taxes as a small business. This is crucial aspect but sometimes overlooked by how a small business reduces taxes.

Employ Family Members

Hiring family members to perform legitimate functions can reduce taxable income to the business. For example, if you paid your spouse or child an annual salary of ₹2.5 lakh (and they had no other income), that salary would be tax-free for them, and claimable as a deduction to your business. It is essential that there is a formal role and documentation of the service and hours worked since tax inspectors may inquire into related-party transactions. However, this strategy allows you to have a free stream of income, reduces your overall tax liability, and tends to spread income.

Claim Input Tax Credit (ITC) Under GST

If your business is GST-registered, claiming Input Tax Credit on purchases made for business will reduce your GST liability. For example, if you purchase raw materials or services and pay GST, you can claim back what you paid in GST and offset it from the GST you have collected from your customers. Make sure you are claiming these expenses as capital expenses, not business expenses, to be eligible for ITC. It’s important to ensure proper invoicing and ensure compliance with GST rules and regulations, to get the maximum benefit under GST.

Invest in Health Insurance

Under Section 80D, premiums paid for health insurance for yourself, your spouse, children, or dependent parents are deductible up to ₹25,000 (or ₹50,000 in the case of senior citizens). It gives you a way to not only secure your family healthwise, but it also saves your taxable income. For example, if you take a family floater policy and the premium is ₹25,000 – only in premium you will pay only ₹25,000 as tax deductible from income. So you get both benefits.

Donate to Charities

Donations to registered charities or registered funds, for example, the Prime Ministers Relief Fund, satisfy the requirement for Section 80G deductions. These donations are not exempt from a maximum of ₹1.5 lakh in deductions per year, which helps you receive a tax deduction and support charitable causes. Just retain your donation receipts, and prepare them for any tax compliance check. This is a straightforward way to reduce your tax.

Maintain Proper Bookkeeping

Keeping a precise account of your income and expenses is important for claiming deductions and eliminating any penalties, giving that you should use accounting software to quickly record your income, expenses, and taxes imposed. Paying municipal taxes or wages electronically means you now have a record of your payment confirmation, regardless if the original receipts from municipal offices is lost. Having regular meetings with a tax consultant are key opportunities to find additional savings and ensure you are complying with ongoing tax laws.

Plan for Retirement

Contributing to retirement plans like the National Pension System (NPS) allows you to claim deductions under Section 80CCD up to a limit of ₹50,000, in addition to the limits under Section 80C. By investing in retirement funds, you are building security for your future and reducing your current tax bill. For example, a small business owner could set up an employer-sponsored retirement plan, like a SEP IRA, to help reduce social security tax deductions for employees, while providing the benefit to both employees and employer, additionally assisting with employee retention.

Using these suggestions, a small business owner in India can legally reduce their tax liabilities while simultaneously helping to grow their future. Regular consultation with tax professionals and an understanding of information and reports available on changes to tax laws are critical in utilizing some of these items and implementing best practices for your business. Take time today to plan to save taxes, keep more of your hard-earned money, and grow your business and the economy in 2025.

How Startups Are Disrupting the FinTech Sector in India

Posted on: 10 July 202511 July 2025 by: Aditya Narayanin: Startup UpdatesLeave a reply

How Startups Are Disrupting the FinTech Sector in India

The FinTech sector in India is undergoing a transformative revolution, driven by innovative startups leveraging cutting-edge technologies. With over 10,000 fintech startups emerging, India has the third largest FinTech ecosystem globally, transforming financial services for millions. From digital payments to neobanking, these startups are dramatically changing accessibility and efficiency as the future of fintech in India goes through unprecedented growth.

The Rise of FinTech Startups in India

India‘s fintech adoption is an astounding 87%, far above the world’s average adoption of 64%. Fintech startups in India such as Paytm, PhonePe, and Razorpay are taking advantage of this trend, where they are offering simple digital payment solutions. With the Indian government trying to push for a cashless economy through campaigns and initiatives such as UPI and India Stack, there is a favourable atmosphere in India for fintech startups to emerge.

India’s FinTech sector is anticipated to reach a market size of $421.48 billion by 2029, growing at a CAGR of 31. There is heavy growth in the FinTech sector due to high smartphone penetration, as well as the large and young tech-savvy population. Startups are filling the gap for unbanked populations, which is contributing to financial inclusion in rural and urban geographies.

Key Innovations Driving Disruption

In India, fintech is associated with innovation at every level. Start-ups leverage technologies such as AI, blockchain, and machine learning to develop specific solutions to really gain traction in the market. New banking models, like Jupiter and Slice, are digital banking only with no physical branch. It is easy, fast, and modern, and a perfect example of how India is integrating its large population’s banking needs with modern technology. Blockchain based platforms are improving the efficiency and transparency of transactions, specifically cross-border payments.

Even small technology based companies would use blockchain to develop a payments infrastructure as we see with the various neobanks like Jupiter and Slice. Credit scoring models powered by AI created by companies such as Cred and ZestMoney are allowing lending to underserved, unbanked segments of the population which covers the $400 billion MSME credit gap. These kinds of innovations are helping to shape the eligible, productive fintech future in India at higher speed and different better price points.

The Role of UPI and Regulatory Support

Unified Payments Interface (UPI) has transformed the landscape of the FinTech ecosystem in India. In October 2024, there were 16.58 billion transactions made using UPI, clearly illustrating UPI‘s absolute monopoly on digital payments and providing an avenue for startups like BharatPe to serve billions of merchants. The National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI) have built a credible regulatory framework which has fostered innovation with boundaries.

The Account Aggregator (AA) framework amassed 1.1 billion eligible bank accounts to securely share customer information, which will increase digital lending. The government also has its FinTech Park in Gift City, Gandhinagar to promote startup growth and this will ensure India‘s position as a global fintech leader.

For insights on leveraging digital tools for business growth, check out GrowthInfy’s guide on digital transformation.

Challenges Facing FinTech Startups

There are many challenges fintech startups face despite their achievement like regulatory compliance and restrictions on fundraising. Despite seeing a 26% drop in fintech funding in H1 2025 during a “funding winter”, a total of $889 million was raised. The new entrants to the fintech industry still have to navigate the regulatory frameworks from RBI, SEBI and IRDAI which can be complex.

Ensuring data privacy and cybersecurity are meaningful concerns—companies must ensure the trust of their consumers. The lack of financial literacy and understanding of the tools in rural areas limits adoption and scaling. They will have to develop strategies for outreach to convince these users and educate them on the process.

The Future of FinTech in India

The prospects for fintech in India are bright, and trends such as ecosystem banking and generative AI are making sure of that. Ecosystem banking involves providing financial services through non-financial platforms and improving the customer experience as a result. Some partnerships, such as Wingsure and Agriculture Insurance Company of India, are improving farmers’ access to insurtech.

Generative AI is being leveraged by banks like HDFC and Axis to conduct customer service processes and risk management too. The digital lending market could hit a whopping $300 billion by 2030, while wealthtech AUM could capture value of $237 billion. Fintech Startups are paving the way for economic development and growth in the market space.

Collaboration and Consolidation

The collaboration of startups and traditional banks for continued growth is an enormous opportunity. Shown through a bank’s need for the agility of fintech with the momentum of an established customer base. An example of this trend towards consolidation was the $150 million acquisition of Fisdom by Groww.

Also, with Jio Financial Services as a perfect example of increasing competition in lending, insurance and broking, Jio is clearly competing with the giants of PhonePe, Zerodha and other startups now that SEBI approved discount broking for Jio Financial Services. Jio has caused PhonePe and Zerodha to consider how to do even better.

Conclusion

In India, the FinTech segment is a lively ecosystem, with young firms leading the conversation around innovation and inclusion. UPI-powered payments, AI-derived lending and financing options, among many others, are transforming the landscape of financial services. While challenges do exist, the future of fintech in India is bright with emerging technologies and supportive regulatory policies.

There will always be regulatory obstacles, but with collaboration, these oganisations will continue to disrupt the financial landscape and make India leader globally in the fintech environment. Companies interested in this growth must partner with innovative companies to remain a step ahead.

Capital Gains Tax: Types, Rates, and Exemptions

Capital Gains Tax in India: Rates & Exemptions

Posted on: 9 July 20259 July 2025 by: Aditya Narayanin: Direct TaxLeave a reply

Capital Gains Tax in India: Types, Rates, Exemptions, and Calculations

In India, capital gains tax is charged on the profits made by selling a capital asset. A capital asset includes property, shares and gold. In order to better prepare for the capital gains tax, it is useful as a taxpayer to know capital gain tax’s concepts and types, rates, exempted assets, exemptions, and methods of calculating capital gains tax so you can better plan financially. This article aims to provide potential investors and taxpayers a guide regarding capital gains tax in India, including information on short-term and long-term capital gains, tax rates, indexed benefit, exempted capital gains and ways to avoid excessive capital gains tax.

What is Capital Gains Tax?

Capital gains tax refers to the taxes imposed on the profit or gain from the transfer of capital assets such as real estate, shares, mutual funds, or jewelry. The taxable gain is realized in the financial year during which the asset transfer takes place. Capital gains tax comes in two flavors: short-term capital gains tax and long-term capital gains tax; the applicable rates and exemptions depend on the asset type and ownership period.

Examples of capital assets include land, buildings, stocks, bonds, or virtual digital assets, such as cryptocurrencies. The capital gains tax is assessed on the difference between the sale price of the asset and the purchase price of the asset, adjusted to account for selling costs and inflation (if applicable). Knowing this allows one to comply with applicable tax regulations and lower potential tax obligations.

Types of Capital Gains Tax

Short-Term Capital Gains Tax

Short-term capital gains tax is levied on gains from assets that have been held for a brief period. The duration of an asset’s holding period can be asset dependent:

For listed equity shares, equity-oriented mutual funds, and business trust units: The period of holding is less than 12 months;
For other assets (project assets, unlisted shares, debt mutual funds): The period of holding is less than 24 months (subject to Budget 2024 current holding period from July 23, 2024).

Short-term capital gains are taxed at an individual’s income tax slab rate except for listed equity shares and equity-oriented mutual funds and are taxed at a flat rate of 20% (after July 23, 2024). For example, if your income fell within the 30% tax bracket you would pay ₹1.5 lakh as capital gains tax if you sold a property held for 18 months for ₹5 lakh.

Long-Term Capital Gains Tax

A long-term capital gains tax applies to any asset owned for the greater of the following periods:

Listed equity shares and equity-oriented mutual funds—more than 12 months;
Other assets (for example, property, gold, debt mutual funds)—more than 24 months.

In general, the long-term capital gains tax percent is 12.5% without indexation for all types of assets, as defined in Budget 2024. However, if the property was acquired before July 23, 2024, taxpayers can choose between 12.5% without indexation, or pay 20% with indexation for a lower tax liability. For listed equity shares with gains of less than ₹1.25 lakh per year, taxpayers can take tax-free treatment under Section 112A.

Capital Gains Tax Rates

Short-Term Capital Gains Tax Rates

Listed equity shares and equity-oriented mutual funds: 20% (was 15% before July 23, 2024).
Other assets (e.g., property, unlisted shares): Taxed at the individual‘s income tax slab rate.
Cryptocurrencies: 30% regardless of holding period and no deductions for expenses or losses.

Long-Term Capital Gains Tax Rates

For listed equity shares and equity-oriented mutual funds, the rate is 12.5% on gains in excess of ₹1.25 lakh (no indexation).
For property and other non-equity assets, the rates are 12.5% without indexation or 20% with indexation (for properties purchased prior to July 23, 2024).
For debt mutual funds, the rate is 12.5% without indexation (in the case of debt mutual funds, following Budget 2024).

The long-term capital gains tax rate for real estate provides flexibility for purchases made before July 2024, as the tax will be minimized if taxpayers elect to take the indexation option if it is available.

Indexation in Capital Gains Tax

Indexation capital gains tax allows for the adjustment of the purchase price of a long-term capital asset for inflation to reduce taxable gains on the sale of the asset. The government uses an annual Cost Inflation Index (CII) (for example, CII equals 363 for FY 2024-25) to compute the indexed cost of acquisition and improvement of an asset. The indexed cost of acquisition can be calculated using the following formula:

Indexed Cost of Acquisition = (Cost of Acquisition × CII of Sale Year) ÷ CII of Purchase Year

For instance, if a property was purchased in 2001 for ₹10 lakh and then sold in 2024 for ₹50 lakh, the taxpayer could take the CII into account and would likely only be taxed on a much lower, adjusted gain in the event of a sale of the property. Nevertheless, post July 23, 2024, indexation benefits will be removed for the majority of assets and eliminated for everyone, even for property owners purchasing before that date, except where the property was acquired by an individual or HUF taxpayer who chooses to pay tax at 20% under the old regime for ‘tax bracket’ type gains with indexation.

For more insights on tax planning, check out Growthinfy’s guide on financial planning.

Capital Gains Tax Calculation

Short-Term Capital Gains Calculation

The formula for capital gains tax calculation for short-term gains is:

STCG = Sale Price – (Cost of Acquisition + Cost of Improvement + Transfer Expenses)

For example, if you sell a property bought for ₹20 lakh after 18 months for ₹25 lakh, incurring ₹50,000 in transfer expenses, the STCG is:

₹25 lakh – (₹20 lakh + ₹50,000) = ₹4.5 lakh, taxed at your slab rate.

Long-Term Capital Gains Calculation

For long-term gains, the formula is:

LTCG = Sale Price – (Indexed Cost of Acquisition + Indexed Cost of Improvement + Transfer Expenses + Exemptions)

For a property bought in 2010 for ₹30 lakh, sold in 2024 for ₹80 lakh, with ₹2 lakh in improvements and ₹1 lakh in transfer expenses, the calculation (assuming CII of 167 for 2010-11 and 363 for 2024-25) is:

Indexed Cost of Acquisition: (₹30 lakh × 363) / 167 = ₹65.21 lakh
Indexed Cost of Improvement: (₹2 lakh × 363) / 167 = ₹4.34 lakh
LTCG = ₹80 lakh – (₹65.21 lakh + ₹4.34 lakh + ₹1 lakh) = ₹9.45 lakh
Tax (at 20% with indexation): ₹9.45 lakh × 20% = ₹1.89 lakh

Alternatively, without indexation, LTCG = ₹80 lakh – (₹30 lakh + ₹2 lakh + ₹1 lakh) = ₹47 lakh, taxed at 12.5% = ₹5.88 lakh. Choose the lower tax liability option if applicable.

Exemptions on Capital Gains Tax

Several exemptions under the Income Tax Act help reduce capital gains tax property liability:

Short-term capital gains have limited exemptions, such as reinvestment in agricultural land under Section 54B for specific cases.

Section 54: Provides exemption for LTCG from the sale of a residential property if it is reinvested in another residential property within the one year preceding the sale or the two years after the sale, or if the property is constructed within three years. The entire gain must be reinvested for the exemption to be available.
Section 54F: Provides exemption for LTCG from the sale of non-residential assets if the gain is reinvested in a residential property. However, it includes various conditions, including that there has to be only one residential property held at the time of sale.
Section 54EC: Provides exemption for up to ₹50 lakh of LTCG if it is invested in specified bonds (e.g. NHAI, REC) within 6 months of the sale.

Capital Gains Account Scheme (CGAS):

If the timelines cannot be met and the gain cannot be reinvested, the tax liability will still be deferred if it is simply parked in a CGAS account.

Short-term capital gains have only a few exemptions from taxes including under Section 54B which allows one to reinvest the sale of agricultural land for it to be exempt from tax but only for the limited circumstances.

For detailed tax-saving strategies on Home loan, visit : Tax Benefits on Home Loans in India

Key Changes in Budget 2024

The Union Budget 2024 introduced significant changes to simplify capital gains tax:

Holding Periods: Standardized to 12 months for listed securities and 24 months for other assets.
Tax Rates: Increased STCG rate for listed equity shares to 20% and LTCG to 12.5%. Removed indexation for most assets, except for pre-July 2024 property sales.
Exemption Limit: Raised to ₹1.25 lakh for LTCG on equity shares and mutual funds.
TDS for NRIs: Buyers must deduct TDS on property sales to NRIs at 20% for LTCG or slab rates for STCG.

These changes aim to streamline tax calculations but may increase tax liability for some due to the removal of indexation benefits.

Strategies to Save on Capital Gains Tax

Reinvest Gains: You may benefit from Sections 54, 54F, or 54EC to reinvest your gains in either residential properties or specified bonds.
Tax Loss Harvesting: If you incur capital losses, you can offset those against your gains in the same financial year and reduce your taxable income.
CGAS: If you are not going to immediately reinvest your gain, deposit the gain in a CGAS account, as long as you comply with the exemption conditions.
Records: Record of all items relating to the purchase, improvement, and sale are important to legitimately deduct expenses.
Optimize Tax Planning: Visiting a tax professional can help you further optimize your tax planning. Consult Growthinfy’s expert tax consultation services for professional advice.

Conclusion

In India, Capital Gains Tax includes short-term capital gains tax and long-term capital gains tax. Careful planning helps you manage taxes (not eliminate). Knowing the rates Banking on, understanding tax rates between long and short-term capital gain tax, keeping in mind the indexation (if eligible), and exempting benefits in sections 54, 54F, and 54EC can significantly reduce taxes. Additionally, Budget 2024 also may be impacting tax. Being informed about the changes, maintaining accurate records, and compliance will all help maximize your savings!

Tax Benefits on Home Loans in India: Save More Today

Posted on: 5 July 20258 July 2025 by: Aditya Narayanin: Direct Tax, Personal Finance1 Comment

Understanding Tax Benefits on Home Loans in India

For many Indians, home ownership is a dream that can be made possible by home loans. In addition to enabling home ownership, home loans can offer substantial tax benefits that can reduce your financial burden. By learning the tax benefits on home loans, you will be able to maximize your savings under the Income Tax Act, 1961. This article will explore the different income tax benefits on home loans available to Indian taxpayers so you can be better informed in your financial decisions.

What Are the Tax Benefits on Home Loans?

Home loans come with two tax benefits, i.e., deduction on principal repayment and deduction on interest paid. The tax benefits will typically be under Sections 80C and24(b) of the Income Tax Act, there is also Section 80EEA which is an additional opportunity. In effect, you can reduce your taxable income in a substantial way using these provisions. Let‘s look at each of them in detail, as well as how to receive the benefits.

Tax Benefits Under Section 80C

You can get a tax deduction under Section 80C for a home loan repayment principal, with a maximum limit of ₹1.5 lakh every financial year, as long as the property is self-occupied or unoccupied. As the deductions under Section 80C also include other investments that qualify for this section, such as PPF, ELSS, life insurance premiums, etc., you should plan your investments carefully, so you do not exceed the limit.

To qualify for exclusions you should own the property under your name and you should not sell or transfer it within five years from the date of possession. If the property is sold within five years of the date of possession any deductions previously claimed are added back to your taxable income. Section 80C can be a great way to reduce your tax liability while repaying your mortgage.

Tax Benefits Under Section 24(b)

Section 24(b) permits you to deduct the amount of interest paid during the year on your home loan. In the case of self-occupied properties, you can claim up to ₹2 lakh in a single financial year. For rented properties, you can claim as much interest as you have received as rent, without any upper limit. If your interest exceeds the rent and you still have not deducted ₹2 lakh, you can carry forward the interest for the next 8 years against rent received.

The only stipulation is that the home loan needs to be taken from a recognised financial institution and the construction or purchase of the property must happen within five years from the end of the previous financial year in which the loan is taken. This is an important benefit for borrowers paying high-interest home loans.

Tax Benefits Under Section 80EEA

Launched to encourage affordable housing, Section 80EEA provides an additional deduction of up to ₹1.5 lakh on interest paid on home loans. This deduction is available for first-time home buyers purchasing a property valued up to ₹45 lakh. The loan has to be sanctioned after April 1, 2019, and before March 31, 2022, and the stamp duty value of the property has to be less than ₹() lakh.

The deduction under Section 80EEA is above and beyond the ₹2 lakh limit in Section 24(b), which means it can be valuable for anyone who qualifies. Be sure to meet the qualifying criteria so you receive the maximum income tax benefit available for home loans.

Tax Benefits for Joint Home Loans

The tax benefits of taking on a home loan will increase when you add a borrower to the title, such as your spouse or parent. Each co-borrower can claim tax rebates on the same deductions – namely Sections 80C (₹1.5 lakh) and 24(b) (₹2 lakh) individually as long as you are co-owners of the property which doubles your tax benefits for the same loan. For example, if you took a loan with your wife or husband as co-borrowers, together you could claim a maximum of ₹3 lakh Section 80C and ₹4 lakh in Section 24(b) tax benefit. So long as the property is co-owned and both married spouses are on the loan and proper documents, you can benefit from this.

Tax Benefits for Under-Construction Properties

The benefits provided by the tax legislation can vary slightly for properties that are under construction. However, you cannot claim any deductions on either the principal or the interest during the construction phase. Once construction is completed, then you can claim the interest paid in respect of the loan taken for the construction in five equal installments in the next five years. Add on to this, you are entitled to a deduction in respect of the normal interest deduction under Section 24(b):

To optimize your tax claim it would be in your best interest to have construction completed within five years of the end of the financial year of which the loan was sanctioned. If five years have passed it may be harder to prove the deductions.

Tax Benefits for Second Home Loans

If you have a second home, the tax advantages/rewards under Section 24(b) are a bit different. For a second property (whether self-occupied or rented) and regardless of whether it’s occupied or rented, you can claim the entire interest (without the ₹2 lakh limit of paid interest actually applicable to self-occupied property). In the case of a second home or property that is self-occupied, it would be treated as a “deemed let-out” property (you may need to declare any notional rental income under the head Income from House Property).

Therefore, the second home loan is quite attractive from an investment point of view because it can be saved against rental income in its entirety. The big tax advantage is to minimize your total tax exposure by claiming the entire interest component of the loan against the rental income. Remember to always consult with a tax professional to ensure compliance with tax updates and timely filings.

Eligibility Criteria for Claiming Tax Benefits

To avail tax benefits on your home loans, you have to fulfill certain conditions:

You have to avail a loan from a registered financial institution, like bank or housing finance company.
The property must be residential and owned by you or a co-applicant.
You have documentation proof, such as loan statements and property documents to support your claims.
For sections 80C and 24(b), the property may be self-occupied or rented, while section 80EEA is only applicable for first time home buyers.

How to Maximize Your Tax Savings

If you want to maximize your income tax benefits from home loan, follow these tips:

Plan your investments: Make sure that your loan principal repayment is counted as part of your total Section 80C deductions, and your current total still falls within the limit of ₹1,50,000.

Choose joint loans: Think about having a co-applicant to get double the tax benefits.

Buy affordable housing: If you can buy affordable housing, make use of Section 80EEA which provides an additional deduction for interest for home loans.
Maintain Documentation: Keep loan statements, interest certificates, and property papers handy for tax filing.

Planning your home loan repayments wisely can help you reduce your tax payments while achieving your goal to become a homeowner.

Common Mistakes to Avoid

Many taxpayers miss out on tax benefits related to the home loan they have taken by making common mistakes:

Fact Check Eligibility: Check that you satisfy the eligibility criteria of the relevant sections before claiming any deduction.
Do not ignore joint ownership: If the property is not registered in both names, you could be missing tax benefits applicable to a joint loan.
Incorrect documentation: Not submitting the appropriate loan certificate or interest certificate when submitting tax returns.
Selling property early: If you sell any property within five years, it can reverse any deduction you have claimed under section 80C.

These mistakes can be easily avoided by getting professional advice from a tax advisor and knowing the relevant taxation laws.

Recent Updates in Tax Laws (2025)

As of July 2025, the tax savings on home loans are largely unchanged under the old regime. However, under the new regime introduced in 2020, no deductions are allowed under Sections 80C, 24(b), or 80EEA. You can relinquish your benefits for lower tax rates under the new regime. Weigh both regimes to determine the one that provides more savings.

All eyes will be on budget announcements, as the government may announce new schemes or tweak existing limits, which will affect homebuyers. Always check with a tax expert or other reliable source for updates.

Conclusion

Tax benefits on home loans in India represent a golden opportunity for tax savings while you repay your loan. By making use of Sections 80C, 24(b) and 80EEA you can reduce some taxable incomes. Whether you are a first-time homebuyer or an investor, understanding these benefits are paramount for financial planning. Always refer to a tax adviser – and make sure that you are compliant and getting the maximum benefit from income tax from the home loan. When done properly, your loan is both a step towards homeownership as well as a tax-saving one.

Understanding the Reverse Charge Mechanism in GST: A Comprehensive Guide

Reverse Charge Mechanism in GST: Key Insights & Rules

Posted on: 4 July 20258 July 2025 by: Aditya Narayanin: Indirect TaxLeave a reply

Understanding the Reverse Charge Mechanism in GST: A Comprehensive Guide

A reverse charge mechanism is a significant element for businesses in India that are handling GST (Goods and Services Tax). Ordinarily, in GST, Supplier collects the tax and pays to the Government. However, when reverse charge applies, the liability for the tax ordinarily performed by Supplier, is instead, the liability (obligation) of the recipient of goods or services. This article will explain what exactly is reverse charge mechanism in GST, when reverse charge applies, the applicable rules, and the examples as mentioned for Indian business owners or GST planning for business. With information and understanding of the reverse charge mechanism, present or future businesses (new start up business, a freelancer, or established company), whoever you are, will need to know the RCM concept to comply with GST.

What is Reverse Charge Mechanism in GST?

The reverse charge mechanism is a provision under the GST law where GST is payable to the Crown by the recipient instead of the supplier. In a normal transaction, the supplier collects GST from the buyer and pays it over to the tax office. With the reverse charge mechanism, the buyer is responsible for paying the tax directly to the tax office.

Reverse charge applies to specified goods, services, or circumstances set out in the GST Act. This is a way of ensuring tax compliance when the supplier is unregistered or the transaction involves specific circumstances, such as imports or services provided by unregistered dealers.

Why Was the Reverse Charge Mechanism Introduced?

The introduction of the reverse charge mechanism in GST serves as an effective way to streamline GST collection and compliance, particularly where collecting tax from the supplier would be difficult. The following list shows three key objectives:

Improve Compliance: The reverse charge mechanism would collect tax where the supplier is completely unregistered or registered outside of India (i.e., Imports).

Broadening the Tax Base: The reverse charge indirectly brings unregistered suppliers into the GST framework, since the recipient is required to bring the tax into account.

Deter Tax Evasion: The reverse charge provides liability to only the recipient, thus decreasing the risk of tax evasion on a transaction-by-transaction basis

For businesses, understanding what reverse charge mechanism is helps avoiding penalties and complying with GST legislation.

When is Reverse Charge Mechanism Applicable?

The reverse charge mechanism in GST applies in specific scenarios as per Sections 9(3) and 9(4) of the CGST Act, 2017. Below are the key cases:

1. Supply of Notified Goods and Services

The government notified certain goods and services for which the reverse charge is obligatory. Examples include:

Goods: Cashew nuts (whether shelled or peeled), Bidi wrapper leaves, Tobacco leaves.
Services: Legal services provided by an advocate, GTA services, Sponsorship services.

2. Supply from Unregistered Suppliers

If a registered person obtains goods or services via a transaction from an unregistered supplier, the receiver must pay the GST associated with that transaction via reverse charge. However, the section (Section 9(4)) must be noted – the section is generally suspended for most registered persons, except in the manner notified by the government.

3. Import of Service

If a registered person obtains services from a supplier located outside India (for example, consultancy services or software services), the receiver is required to pay the GST associated with that transaction via reverse charge since it is considered as import of service.

4. Other specific cases

Certain transactions, like where a registered person rents a motor vehicle to a body corporate or the transaction is for services provided by an insurance agent, are also required to use reverse charge.

How Does Reverse Charge Mechanism Work?

Now that you have an idea of the reverse charge mechanism in GST, you can understand the steps involved in reverse charge mechanism.

Identifying relevant RCM Transactions: The recipient identifies whether the transaction is RCM related (i.e., notified services or supplies from an unregistered dealer)
Making the Payment: The recipient calculates the GST (CGST, SGST, or IGST) amount and directly pays it to the government in the appropriate GST returns (GSTR-3B format).
Purchase of Goods/Service after Payment: If the recipient is eligible to claim Input Tax Credit (ITC) on the GST paid under RCM, as long as the goods or services are used in the furtherance of business.
Invoicing: For RCM payments, the supplier issues an invoice free of GST and the recipient issues a self-invoice for the purpose of RCM.

For example, if a company hires an advocate to provide legal services, the company (the recipient) pays GST under the RCM mechanism and should be entitled to claim Input Tax Credit (if eligible).

Key Rules for Reverse Charge Mechanism Under GST

The Reverse Charge Mechanism under GST has some specific compliance obligations as follows:

1.Self-invoicing:

In the case of supply from unregistered dealers, the recipient must self-invoice for GST purposes.

2.Time of Supply:

The time of supply under RCM rules determines when the tax liability arises. For the supply of goods, the time of supply is the earliest of:

The date of receipt of the goods.
The date of payment.
30 days from the date of the supplier‘s invoice.

3. For the supply of services the time of supply is the earliest of:

The date of payment.
60 days from the date of the supplier‘s invoice.

4. GST Registration:

Any business that is liable to pay tax under RCM must obtain GST registration, even if their turnover is below the threshold.

4. Record Keeping:

The recipient must keep adequate records when dealing with RCM transactions and report that in GSTR-1 and GSTR-3B.

Benefits of Reverse Charge Mechanism

The reverse charge mechanism provides advantages for businesses and government alike:

Better Compliance: Ensures tax is collected where the supplier is unregistered or non-compliant.
Convenience for Small Suppliers: Unregistered suppliers are relieved of GST compliance, providing an incentive for small businesses.
ITC eligibility: Registered businesses can claim ITC for tax they pay under RCM, thereby lowering their tax liability.
Transparency: RCM increases transparency in certain transactions, namely imports and notified services.

Understand Sponsorship Services under GST in our latest insightful blog.

Challenges of Reverse Charge Mechanism

The reverse charge mechanism in GST is, of course, an advantage; however, it does bring some challenges:

Increased compliance burden: The recipient pays GST (after thinking it is GST-exclusive), further adding to the administrative burden.
Cash-flow implications: The business pays GST to the supplier first and claims ITC later, affecting working capital.
Complexity in tracking transactions: It can be complicated to identify the transaction that is subject to RCM, and to keep records, especially for small businesses.

Practical Examples of Reverse Charge Mechanism

Let’s take a look at the reverse charge mechanism in the real world.

Legal Services: Suppose a company engages the services of an advocate to give legal advice. While the advocate does not charge GST, the company pays GST under RCM and files it in GSTR-3B.
Goods Transport Agency (GTA): A business avails the services of a GTA to provide transportation of goods. The GTA issues an invoice without GST, and the business pays GST under RCM.
Import of Services: A startup engages the services of a foreign consultant for marketing services. The startup pays IGST under RCM because of the import of service.

As you can see, RCM can apply to any business, big or small, from a startup to a multinational company.

Recent Updates on Reverse Charge Mechanism (July 2025)

As of July 2025, the government has not taken any significant decisions on RCM provisions, but businesses still need to keep abreast of notification from the government. For example, RCM on supplies from unregistered dealers (Section 9(4)) continues to be suspended, meaning that many business operators are relieved of compliance requirements. However, recently added provisions brought some services, such as renting motor vehicles to corporates under RCM, which had implications for industries such as logistics.

Keep up to date on GST changes by reading this Growthify Blog on GST changes.

Tips for Businesses to Manage RCM Compliance

To manage the requirements of Reverse Charge Mechanism under GST, businesses could consider the following methods:

Make use of Accounting Software: Certified software like Tally or Zoho Books can automate RCM calculations and reporting.
Regular Audits: Have regular GST audits every 3 to 6 months to ensure you account for all RCM transactions.
Stay updated: Keep a watch on CBIC notifications for up-to-date information on goods and services applicable to RCM.
Training: Train your finance department on RCM rules, to be aware of how to avoid mistakes in compliance.

Conclusion

In GST, reverse charge is an essential part of India‘s tax system, to ensure compliance for certain transactions, and ensure a wider tax base. Understanding what a reverse charge mechanism can help businesses comply with its rules, claim ITC, mitigate penalty risk. RCM (reverse charge mechanism) may complicate things but having appropriate systems and knowledge will allow you to comply easily. Organisations must stay alert, take advantage of technology, and visit Growthify‘s content on GST compliance!

If you’re interested in learning more about how to make your startup scalable and tax-compliant, follow Growthify‘s LinkedIn page, and check out our blogs to see how!

How to Get Out of Debt Fast: A Step-by-Step Guide

Posted on: 1 July 20251 July 2025 by: Aditya Narayanin: Personal FinanceLeave a reply

How to Get Out of Debt Fast: A Step-by-Step Guide

Managing debt can feel like an incompatible mountain to climb when bills come rolling in and interest rates rise. Many persons in India feel overwhelmed by loans, credit card dues, or simply unanticipated expenses which keep them in a debt trap. This extensive guide on how to get out of debt quickly gives you specific things that you can do to help get your life back on track and out of debt. It can be difficult to pay expensive EMIs or loans taken at high-interest rates, but these tips should help to recover from the debt trap and financial future.

Understand Your Debt Situation

If you want to get out of debt quickly, the first step is to take note of exactly what you owe. Make a list of all your outstanding debts – credit cards, personal loans, home loans, or EMIs. For each of them, note the principal amount, interest rates, and minimum monthly payments. This information will help you clearly see what debts you need to pay first, since it will allow you to pay off the high-interest debts first, as those will be the debts that are costing you the most.

In India, it is not uncommon for the annual interest rates charged on credit cards to exceed 40%. As a result, these debts should be repaid first. Use a spreadsheet to write out your debts or budgeting apps to keep track of your debts. You need to be aware of your financial obligations if you want to escape the cycle of debt.

Create a Realistic Budget

Sound budgeting is essential to understand how your money is being spent and to pay down debt faster. Track your income and expenses every month until you can find areas to cut down expenses. It may be in the form of eating out less or eliminating subscription services—all of which are freeing money to go toward your debt reduction.

In India, household costs like groceries and utilities take a sizable proportion of available disposable funds, and that’s why you need to make sure you are only spending money on the essentials. Use a portion of your income to pay down debt while directing the rest of your income toward your essential spending. You can use the budgeting tips provided on Growthinfy to establish your own sustainable budget that considers key areas for Indian households.

Choose a Debt Repayment Strategy

To pay off debt quickly, we propose you establish a payment framework. There are two widely accepted strategies for paying off debt: the Snowball Method and Avalanche Method:

Snowball Method: First pay off the smallest debt you can while making minimum payments on everyone else. You will quickly build momentum as you clear your many smaller debts first.
Avalanche Method: This method is focused on placing extra payments on the highest interest debt to save money long-term.

In Indian circumstances, the Avalanche Method is more likely to be the best technique to use because of the high cost of credit card interest. Regardless of which one you choose, you must be able to maintain your motivation. Understanding the potential savings is as easy as referring to an online EMI calculator.

Negotiate with Lenders

Don‘t be afraid to reach out to your lenders to negotiate better terms. In India for example banks like SBI or HDFC may provide lower interest rates or an extended repayment term if you tell them your financial hardship, and also consider a balance transfer on credit cards to avoid high interest costs.

For example, if you’re able to transfer a high interest credit card to a credit card with a zero percent introductory period you can save yourself thousands of rupees. After you’ve taken a careful look at your debt situation, reach out and talk with your bank to explore your options in easing a debt trap.

Increase Your Income

Increasing your income may help you to pay off your debt more quickly. In India, there are freelance platforms like Upwork or Fiverr that allow you to earn extra money online. You could also consider a part-time job, tutoring, and even selling unused items online via OLX or Quikr.

So, for example, if you were able to earn ₹10,000 extra every month, this could go directly toward your high-interest debts. Check out Growthinfy’s side hustle ideas for easy ways to increase your income and get out of debt faster.

Cut Unnecessary Expenses

Cutting discretionary spending is a highly effective method to free up money. For example, in India, switching from ordering food from Swiggy or Zomato to cooking at home can save you hundreds of rupees a week. Cancel subscriptions you aren’t using (by the way, Netflix may be a waste, but how about OTT?) and stop shopping impulsively on the e-commerce app you downloaded.

Record your expenses from the last couple of months and take note of any monthly recurring expenditures that aren’t necessary. Eliminate these expenses and apply your savings to the debt repayment plan you created, to eliminate the debt faster.

Consider Debt Consolidation

Debt consolidation involves combining your debt into one loan with a lower interest rate. Personal loans from banks in India, such as ICICI or Axis Bank, typically only charge 10-15% compared to credit cards, which have higher rates. Debt consolidation simplifies the process of repaying your debt and also makes it cheaper since you will be paying less in interest.

Before consolidating your debts, compare the terms of the loan from the bank. You need to double-check that your new EMI can fit into your budget. Debt consolidation can be a way for someone trapped in debt to escape, but bear in mind that you should not take on any new debt while paying off your existing debts.

Build an Emergency Fund

When you are focused on clearing your debt, it is all too easy to want to apply every single rupee to debt repayment. It’s worth remembering that things can pop up you didn’t anticipate like a medical bill that you have to pay. This is why a small emergency fund of roughly ₹10,000-₹20,000 is a good target to help facilitate the very urgent things that you may have to cover.

Try to keep this money in a liquid mutual fund like a money market fund or savings account as you want to have very quick access to this money. Having some type of emergency fund relieves you and prevents you from being tempted to use your credit card, which will help you to stay more motivated to get out of debt quickly.

Avoid New Debt

To avoid falling back into the debt trap, stop taking on new loans or spending on credit cards. Avoid “buy now, pay later“ options from sites like Flipkart, as they can encourage overspending. Use cash or debit cards for regular purchases.

If you have to borrow money, use the lowest-cost options, such as borrowing against fixed deposits, which are cheaper in India. Discipling yourself will continue your success in repaying debt.

Seek Professional Help

If you feel overwhelmed by your debt, a financial advisor or credit counselor may be of assistance. They can also help you develop a repayment plan or negotiate with your creditors on your behalf.

Be careful of fraudulent debt relief schemes that claim to resolve your debt quickly. Make sure you research trusted professionals who can help navigate your way out of debt.

Stay Motivated and Track Progress

Paying off debt is a marathon, not a sprint, so celebrate small wins (like paying off a credit card) to help stay motivated. Using apps like Cred or Paytm will help you keep track of repayments as you go and also show how far you have progressed from the beginning.

Continue to check up on your budget often, and make changes as needed. Consistent success stories on Growthinfy‘s blog covering all aspects of finance and financial freedom should help motivate you to keep going. With patience and flexibility you will one day be able to no longer be part of the debt trap, and conversely be in a financially peaceful space.

Conclusion

To get out of debt fast it takes discipline and planning and a smart approach. You can take back control of your money by understanding what debts you have, budgeting, and making a repayment strategy like the Avalanche or Snowball methods. For our Indian readers, the use of local resources and negotiations with banks or lenders and taking on side hustles are also available. Start today, be consistent, and create a way to stop the debt roller-coaster to enjoy a better financial future.

Disclaimer:

Information contained in this article is for informational purposes only. Growthinfy and the author do not accept any liability for any financial decisions made on the basis of this information. Consult a certified financial planner before making any investment or savings choice.

How Incubators and Accelerators Are Helping Indian Startups Grow

Posted on: 29 June 202529 June 2025 by: Aditya Narayanin: Startup UpdatesLeave a reply

How Incubators and Accelerators Are Helping Indian Startups Grow

India has a booming startup industry and by 2025, it is expected to be ranked the third largest in the world, with more than 1,40,800 startups. India’s rapidly evolving startup ecosystem will continue to grow with a strong support ecosystem including a wide range of incubators and accelerators that are currently providing real support to early-stage businesses in India. All of these programs have developed blocker funding/investments, mentoring and networking resources to help entrepreneurs convert ideas into viable businesses. This piece will examine how incubators and accelerators in India are shaping the startup ecosystem and supporting innovation.

What Are Incubators and Accelerators?

Incubators and accelerators are organizations that have been developed to support startups, but they have slightly different functions. Incubators focus on early-stage startups that are typically still in the ideation stage. Incubators offer long-term support (6 months up to 2 years) and grant access to resources like offices, mentors, and seed funding. Startup incubators and accelerators support founders to refine their ideas, validate their assumptions, and build a minimum viable product (MVP). Accelerators focus on startups that are ready to scale, and they typically provide Programs for shorter terms (3-6 months) with funding, mentorship, and links to investors.

The main distinction is their emphasis on nurturing versus fast-tracking development, or in other words, incubators nurture while accelerators accelerate rapid growth. Both types of organizations are critical to the startup ecosystem in India. They both deal with common challenges faced by local startups including but not limited to lack of funding or lack of access to opportunities.

The Role of Incubators and Accelerators in India

These resources empower startups to innovate, scale, and compete globally, making top incubators and accelerators indispensable to India’s entrepreneurial ecosystem.

The India ecosystem hosts 979 + incubators and accelerators supporting 6,760 + startups with over $538 billion across 25,343 rounds of investments. All these have helped to bridge the gaps in the entrepreneurial lifecycle by providing:

Funding: Many accelerators (e.g. 500 Startups, GSF Accelerator) will provide seed funding in exchange for equity in the company, while incubators (e.g. iCreate) may offer grants of up to ₹50 lakhs.
Mentoring: Access to experienced entrepreneurs and industry experts who can help startups in understanding how to avoid pitfalls already known to them.
Networking: Programs connect founders with investors, corporates, and potential partners, increasing the chances of short-term success and long-term growth.
Infrastructure: Shared office and lab facilities, as well as access to technology resources, reduce operational costs for startups.

The overall value they provide gives startups the ability to create, scale, and compete in the global market. Given the importance of incubators and accelerators in contributing value to a startup ecosystem, having successful examples in India is critical to the growth of startups in the country.

Top Incubators and Accelerators in India

Several startup incubators and accelerators have emerged as game-changers in India. Here are some of the most prominent ones:

T-Hub (Hyderabad): As the biggest accelerator, T-Hub is helping tech startups get access to funding and mentorship for their global market. It has helped to catalyse over 2,000 startups out there and has focused primarily on AI, health tech, and fintech.
CIIE.CO (IIM Ahmedabad): The incubator is really focused on seed stage startups located in tier-2 and tier-3 cities by providing seed funding of up to ₹10 crores and access to IIM’s alumni network as well.
NSRCEL (IIM Bangalore): With programs like Women Startup Program or Velocity, NSRCEL has supported several tech and social impact startups with guidance and mentorship to help grow their businesses.
Venture Catalysts: As India’s most active seed investment platform, they have invested in over 110 startups since inception in 2016, and have provided funding and support in business development.
iCreate (Ahmedabad): An incubator focused on deep tech, iCreate supports deep tech startups working in areas like biotech, robotics, and green energy by providing grants and R&D facilities.

These top incubators and accelerators cater to diverse sectors, from health tech to clean energy, ensuring startups at different stages find the right support.

How Incubators and Accelerators Drive Startup Success

Incubators and accelerators in India have a critical role in turning ideas into scalable businesses. They provide structured programs that address the following gaps businesses face:

Product Development: Incubators like Social Alpha have high-tech labs for developing prototypes, while accelerators like GSF offer workshops for refining business models.
Market Access: Programs like NASSCOM’s 10,000 Startups have developed platforms to connect startups to corporates and global markets.
Funding: Accelerators like 500 Startups and Prime Venture Partners invest investors ₹1-5 crores that enables start-ups to scale fast.
Skill Development: Mentorship from industry leaders enables founders to develop the skills needed in fundraising, marketing, and operations.

There are many examples of start-ups like Razorpay and Meesho that leveraged accelerator programs like 500 Startups (a global accelerator) to scale their businesses.

Looking to raise funds for your startup? Read our guide on Startup Funding Trends in India 2025 to make informed decisions.

Government Support for Incubators and Accelerators

The Indian government continues to promote the startup ecosystem with schemes such as Startup India and Atal Innovation Mission (AIM) which has resulted in more than 300-500 incubators in the country. State schemes like Gujarat’s Startup Policy and Bihar’s innovation fund offer grants and infrastructure for incubators, whereby the Startup India Seed Fund Scheme (SISFS) provides financial support to incubators to enable them to develop early-stage startups.

Conclusively, the new schemes and programs have democratized access to resources -particularly in tier-2 and tier-3 cities– which will promote inclusive growth and support the startup ecosystem. Programs such as NASSCOM’s 10,000 Startups have added significant value with support for over 11,000 startups.

Discover Why Startups Are Moving to Tier 2 and Tier 3 Cities in India In Our Insightful article.

Challenges and Opportunities

Incubators and accelerators have changed the landscape of startups in India, but challenges still exist. Most of these programs are located in metro and urban cities, so rural startups are left without sufficient support. In addition, potential founders may be turned off by the selection processes of accelerators such as GSF, which can be demanding and overwhelming for early-stage founders.

The good news is that there are opportunities available to address these challenges:

Sector-Specific Programs: Incubators such as HealthStart deal with niche sectors, like healthcare, and there are initiatives that address specific issues in particular industries.
Global Scale: There are programs like India Accelerator that help startups expand to global markets, which can enhance their competitiveness as global players.
Range of Support: Programs such as Social Alpha support social impact rather than looking for financial return, which focuses on startups that solve environmental and economic challenges.

With steps to address the programmatic challenges, incubators and accelerators in India can do even more to build an infrastructure for a supportive ecosystem.

Success Stories of Indian Startups

Many Indian startups have reached new heights with the help of some of the best incubators and accelerators:

Razorpay: Supported by 500 Startups, Razorpay became a top fintech unicorn, making it easy for businesses to accept online payments.
Meesho: Funded by Y Combinator, Meesho transformed social commerce with its startup platform that allowed small sellers across India to sell online.
Healthians: Accelerated by HealthStart, Healthians disrupted the diagnostic services space with tech-enabled solutions and services.

These examples show how incubators and accelerators provide the foundation for exponential growth.

Indian startup pitching to investors

Choosing the Right Incubator or Accelerator

Choosing the right program is heavily reliant on the stage of your startup and its goals. If you are an early-stage startup, you should go for incubators, such as iCreate or CIIE.CO, that can give you long-term support. If you are looking to scale rapidly, you should consider accelerators, such as T-Hub or GSF. When selecting a program, investigate their focus areas and funding structure, as well as the stories of successful alumni with the program to determine whether the program aligns with your vision.

Startups should also create a compelling pitch detailing the innovation and scale, as pitches will affect acceptance into the program. Getting in touch with mentors and alumni can help you better understand the application process.

The Future of Incubators and Accelerators in India

India’s incubators and accelerators are entering a new era with new emphases on deep tech, sustainability, and social impact. Programs like Social Alpha and DERBI Foundation have ramped up their efforts to support startups focusing on the many challenges we now face. The rapid growth of India‘s startup ecosystem will see incubators and accelerators like these becoming a vital part of the landscape in support of innovation and global unicorn producers.

Government initiatives and private investment adds a layer of sustainability to these incubators and accelerators, fast-tracking India‘s global destination for entrepreneurs. Indian startups will also ramp up the innovation challenge, thus redefining industries across the globe.

Conclusion

An incubator and accelerator are the crux of the startup ecosystem in India as they provide resources, mentoring, a solid network or both to aid in their success. From funding to skills development, incubators help and enable entrepreneurs to have the access to resources while taking the appropriate steps to scale. With the help of top-rated incubators and accelerators, Indian startups can raise the bar for entrepreneurship by quickly turning ideas into innovative businesses to foster back to economic development.

Please, check-out GrowthInfy’s startup resources to discover more ways to scale your startup and develop growth strategies for your startup.

Conclusion Advance Tax Payment is an essential responsibility for taxpayers who have a tax liability greater than ₹10,000; it supports coercing compliance and financial discipline on the taxpayer's part. The processes involved with determining who should be paying, prompted based on proper calculations, due dates for indicative FY 2025-26, encompassed by the payment of advance tax for their total tax liability, constitute very helpful safeguards against penalties and tax management. The advance tax online payment system also reduces friction for payers by creating a more accessible, less frustrating experience. Think ahead, use reliable processes, and consult with professionals if necessary, so that you can effectively manage your advance tax obligations.

Advance Tax: Who Needs to Pay and How to Calculate It?

Posted on: 28 June 202528 June 2025 by: Aditya Narayanin: Direct Tax1 Comment

Advance Tax: Who Needs to Pay and How to Calculate It?

The concept of advance tax payment is an important component of India’s tax system that is not only reliable for the government, but also allows taxpayers to manage their tax liabilities more efficiently. Also known as a “pay-as-you-earn” tax, advance tax means that taxpayers pay tax on income as they earn it, rather than in one lump sum at the end of the financial year. This article aims to explain who is required to pay advance tax, how to calculate advance tax, and how to make the advance tax online payment, and also includes important due dates for FY 2025-26.

What is Advance Tax Payment?

Advance Tax is income tax that is paid in installments through the financial year based on estimated income. It is important to taxpayers, businesses, and other persons whose total tax liability is likely to exceed ₹10,000 in a financial year as defined in Section 208 of the Income Tax Act, 1961, It helps ensure that taxpayers will not have a large tax burden sustained at the end of the year and that the government will be guaranteed revenue on a consistent basis through the year.
Unlike paying self-assessment tax, which can come after the years end, advance tax is deducted as taxpayer earns income. Advance tax covers income earned from various sources for example business, profession, capital gains, rent, interest, or lottery wins when TDS is not enough to meet tax liability.

Who Needs to Pay Advance Tax?

Advance tax applies to various categories of taxpayers whose estimated tax liability for the financial year exceeds ₹10,000. Below are the key groups liable to pay advance tax:

Salaried Individuals: Most salaried employees have TDS deducted by their employer. However, if they have any additional income in the form of capital gains, rental income, and/or interest from fixed deposits, and their total tax liability is over ₹10,000 after TDS, then they must pay advance tax.
Freelancers and Professionals: Self-employed individuals, for instance: doctors, lawyers, architects, or freelancers, who have a tax liability over ₹10,000 and where TDS is not deducted must pay advance tax.
Businesses and Partnership Firms: Companies, partnership firms, and LLPs with tax liability over ₹10,000 must pay advance tax. Businesses (like in sections 44AD and 44ADA) that follow the presumptive taxation will have to pay 100% of the advance tax by March 15.
Non-resident Indians (NRIs): NRIs earning capital gains, rents, etc. in India exceeding ₹10,000 in terms of tax liability are bound to pay advance tax.
Senior citizens: Resident senior citizens (aged sixty or above) not having any business or professional income are not bound to pay advance tax. However, if you have business income then you have to follow.

How to Calculate Advance Tax?

Calculating advance tax involves estimating your total income for the financial year and determining the tax liability. Follow these steps to calculate it accurately:

Estimate Total Income: Combine all sources of income including salary, business, profession, capital gain, rent, interest and dividends.
Deduct Amounts Eligible: For freelancing or business you can deduct rent and internet bills or depreciation to obtain net income.
Apply Deductions: Consider deduction available under section 80C, 80D or any deductions applicable under the previous regime to arrive at taxable income.
Calculate Tax Liability: Calculate applicable income tax slab rates along with surcharge (if any) and 4% cess.
Reduce TDS/TCS: Reduce the amounts of tax already deducted / Tax Collected at Source (TCS) or expected to be deducted from your tax liability.
Determine Advance Tax: Pay advance tax if total net tax liability is greater than ₹10,000 in the instalments as per due date will

For example, if a freelancer estimates a taxable income of ₹10,00,000 with no deductions, the tax liability (assuming the old regime) would be approximately ₹1,12,500. After subtracting any TDS, the remaining amount is paid as advance tax in installments.

Due Dates for Advance Tax Payment (FY 2025-26)

Advance tax is paid in installments, with due dates and a percentage of the total tax due for each installment. The due dates and advance tax percentages for FY 2025-26 are:

Due Date Amount of Tax Due

June 15, 2025 – 15% of total tax due
September 15, 2025 – 45% of total tax due (less any amount already paid)
December 15, 2025 – 75% of total tax due (less any amount already paid)
March 15, 2026 – 100% of total tax due.

Taxpayers who are subject to presumptive taxation (Sections 44AD and 44ADA) may pay by March 15, 2026, although they are permitted to pay by March 31, 2026.

NOTE: The CBDT Circular No. 676 establishes that if June 15, 2025 is a Sunday, a taxpayer may pay the advance tax on the next day, June 16, 2025 without penalty.

How to Pay Advance Tax Online?

Making an advance tax online payment is simple and convenient through the Income Tax Department’s e-filing portal. Follow these steps:

Go to the e-filing portal and click on “e-Pay Tax” in the “Quick Links.”
Insert your PAN, reinsert the PAN, along with your mobile number. Confirm the process via the OTP received on 6 digit number code.
Select “Income Tax”, and select “Advance Tax (100)” as the payment type, for Assessment Year 2026-27.
Type in your tax amount, select your payment option (net banking, UPI debit card, RTGS/NEFT), and hit “Pay Now”.
On successful payment, you must remember the Challan Identification Number (CIN) and BSR code, which you will need when filing your ITR.

The e-Pay Tax facility supports payments through authorised banks like Axis Bank, HDFC Bank, SBI, and others. Ensure payments are made before the daily cut-off time (1:30 PM IST) to avoid delays.

Penalties for Non-Payment or Late Payment

Failing to pay advance tax or paying less than the required amount attracts penalties under the Income Tax Act:

Section 234B: If 90% of your tax liability is not paid by March 31, interest at a rate of 1% per month will be payable on the amount of shortfall from April 1, until the time the amount is paid.
Section 234C: Interest at a rate of 1% per month is charged for delays in the installment payments assumed to be that percentages planned for payment.

Where you do the right thing on time, you are unlikely to incur such penalties. Ultimately, if you comply with the requirements of the tax act on time, tax management will be easier, and you eliminate your tax liability risk.

Benefits of Paying Advance Tax

Paying advance tax offers several advantages:

Better Cash Flow: Distributing tax payments throughout the year means you do not have to face a bulk installment at the end of the year.
Avoid Recognized Ignorance: Paying on time prevents interest penalties i.e. favorable under Sections 234B and section 234C against interest.
Refunds: For excess advance tax paid is refunded on ITR processing, with refund payments at least reasonably faster now than in processing was slower initially.

Common Mistakes to Avoid

Estimating Income Incorrectly: Underestimating income can result in penalties. You can properly estimate your income by using tools available, like the Advance Tax Calculator from the Income Tax Department.
Missing Due Dates: Payment after the due date will attract interest. You can mark your calendar for June 15, September 15, December 15, and March 15 to avoid this.
Ignoring TDS: Always subtract TDS from your salary when calculating advance tax to avoid overpayment.
Incorrect Challan Details: Ensure that the PAN and assessment year details are accurate to prevent payment issues.

Conclusion

Advance Tax Payment is an essential responsibility for taxpayers who have a tax liability greater than ₹10,000; it supports coercing compliance and financial discipline on the taxpayer’s part. The processes involved with determining who should be paying, prompted based on proper calculations, due dates for indicative FY 2025-26, encompassed by the payment of advance tax for their total tax liability, constitute very helpful safeguards against penalties and tax management. The advance tax online payment system also reduces friction for payers by creating a more accessible, less frustrating experience. Think ahead, use reliable processes, and consult with professionals if necessary, so that you can effectively manage your advance tax obligations.

Sponsorship Services Under GST: A Comprehensive Guide

Posted on: 27 June 202527 June 2025 by: Aditya Narayanin: Indirect Tax2 Comments

Sponsorship Services Under GST: A Comprehensive Guide

Sponsorship services are an important part of promoting brands, events, and products within India. With the introduction of Goods and Services Tax (GST), the tax treatment of these services has significantly changed. This article discusses sponsorship services under GST by looking into the provisions surrounding these services, tax rates, exemption and compliance. Regardless of if you are the sponsor, or the recipient, it is important to be aware of GST on sponsorship services for uninterrupted tax management and compliance.

What Are Sponsorship Services?

Sponsorship services are based on a contract where a sponsor provides financial or material support to an event, individual, or organization, in exchange for promotional rights and reciprocal benefits as a result. The promotional rights and reciprocal benefits can include naming rights, logo visibility, or guaranteed booking. Under GST, sponsorship is considered a taxable supply of service and is not the same as donations and gifts under GST, because there are no reciprocal benefits that are considered as part of that supply.

To reach the right GST classification, the Service Accounting Code (SAC) for sponsorship services under GST is 998397, for classification purposes and reporting purposes in GST.

All businesses that provide sponsorship services and those that receive sponsorship services must understand the constraints imposed by the GST regulations for their tax and advisory worth, as well as to receive all of the appropriate input tax credit (ITC) benefits.

GST Applicability on Sponsorship Services

Sponsorship services are usually taxed at 18% GST and are taxable services. The supplier/recipient’s relationship and method used to send the payment to the sponsor determines the tax liability as either Reverse Charge Mechanism (RCM) or Forward Charge Mechanism (FCM). The new verbiage by the GST Council has now made the supplier responsibilities clearer as of January 16, 2025.

Reverse Charge Mechanism (RCM)

Forward Charge Mechanism (FCM)

Through recent amendments made by Notification No. 07/2025 – Central Tax (Rate), sponsorship services supplied by one body corporate to another body corporate or partnership firm have been brought within the FCM. The implication of this is that the supplier (body corporate) is required to charge and remit GST, which reduces the compliance burden for corporate sponsors－easier for them. The change is effective from January 16, 2025 and is accordingly the streamlining of recipients’ compliance obligations.

GST Rates for Sponsorship Services

The GST consumption tax on sponsorship services is generally 18%. This applies to most events, including sporting events, corporate events or commercial events. However, a reduced GST rate of 12% may apply for sponsorships for cultural or artistic events, such as music concerts, and an exhibition of art, but will depend on the situation involved. Businesses must verify which GST rate is applicable based on the event type for enrolled consumers who may apply the tax.

Some sponsorships, specifically sponsorship for the events above, and other events listed in Notification No. 12/2017-Central Tax (Rate) will be exempt from the GST consumption tax. To be more oblique, these GST exempt sponsorships include events organized by national sports federations, and the Indian Olympic Association, and potentially include events that are organized under the auspices of programmes such as the Panchayat Yuva Kreeda Aur Khel Abhiyaan.

If you want to dive deeper and become more acquainted with GST compliance, review this blog about GST registration. It can provide insight into the registration process for sponsors, businesses that are involved in sponsorship for compliance.

Input Tax Credit (ITC) on Sponsorship Services

Business can avails ITC on GST liable under RCM for sponsorship services if the said service is allowed to be an output supply for business purposes or toward taxable supply, per Section 16 of the CGST Act, 2017. Tax invoices or debit notes, along with proper documentation are very important to avail ITC. If a supplier is unregistered, the recipient must self-invoice so that they can avail ITC.
There is also the aspect of ITC reversal for sponsorship services supporting exempt supplies. In the example of sponsoring an exempt sporting event, there would have to be ITC reversal for the sponsorship expenses as this may have an impact on tax liability when considering the entire tax landscape.

Exemptions and Special Cases

Some sponsorships for activities or events may not attract GST. For instance, sponsorships for sporting events held by recognized bodies like the Association of Indian Universities or Paralympic Committee of India, exempt from GST. Similarly, contributions, donations, or gifts to charitable institutions without specific promotional benefits are not covered under GST as per CBIC Circular No. 116/35/2019-GST.
For example, if an acknowledgement of the donation (e.g., “Donated by Mr. Sharma”) does not result in a commercial element, then it is not taxable. However, if the acknowledgement provides a commercial benefit (e.g., “Sponsored by Sharma Enterprises”), then it is a sponsorship service and subject to GST.

Compliance Requirements for Sponsorship Services

Businesses dealing with GST on sponsorship services must adhere to strict compliance guidelines:

GST Registration: If a business exceeds the turnover threshold (₹40 lakh for goods, ₹20 lakh for services or lower in special category states), it is required to register under GST. Voluntary registration is also acceptable if they want to claim ITC.
Invoicing: Suppliers registered under FCM must issue a GST compliant invoice. Recipients registered under RCM have to prepare a self-invoice if the supplier is unregistered.
GST Return Filing: The obligation to report accurately in GSTR-1, GSTR-3B, and to reconcile with GSTR-2A/2B. Annual returns (GSTR-9) will capture all sponsorship transactions.
TDS Compliance: Under section 194C of the Income Tax Act, any amount paid by the purchaser sponsor to the supplier for sponsorship services may be liable for a deduction of TDS @ 10% if the purchase/sponsor exceeds the specified limit.

To streamline your GST filing process, check out this guide on GST return filing for practical tips.

Recent GST Council Amendments

The 55th GST Council Meeting (December 21, 2024) introduced key changes to sponsorship services under GST. The shift to FCM for body corporates simplifies tax collection but increases compliance responsibilities for suppliers, such as event organizers. Recipients must ensure GST is correctly paid and reflected in GSTR-2B to claim ITC. These changes aim to align India’s sponsorship tax regime with international standards and reduce compliance complexities.

Key changes relating to sponsorship services under GST were discussed and approved at the 55th GST Council Meeting (December 21, 2024). The transition to the FCM in cases where body corporates receive sponsorship services makes tax collection more straightforward but complicates compliance obligations for suppliers, i.e., event organizers. Recipients must also make sure GST is paid correctly and the amount is reflected in GSTR-2B before claiming input tax credit (ITC). These changes are designed to align India’s sponsorship tax regime with those of comparable countries and to reduce compliance requirements for stakeholders.

Practical Tips for Businesses

Stay Informed: Keep informed of GST Council announcements and CBIC notifications for all updates to sponsorship taxability.

Examine Contracts: Make sure that your sponsorship contracts differentiate between sponsorship and advertisement to avoid potential misapplication.
Leverage Technology: Use GST-compliant accounting programs to streamline the process of calculating and filing taxes.
Complete Impact Assessment: Determine the impact that any changes to RCM/FCM will have on your finances and pricing.

Conclusion

Understanding what is involved in administering sponsorship services under GST can be challenging due to the complexity of RCM, FCM obligations, tax rate and exemptions, compliance obligations, etc. With the recent changes to allow FCM for body corporates as well as exemptions for unique occasions, it would be prudent for businesses to be proactive and plan their activities to ensure compliance and/or maximise their ITC benefits. Sponsors and recipients can better deal with their tax duties by keeping proper records, using software solutions for ease and more integrated reporting, and keeping up to date with GST updates and revisions.
If you would like to learn more about GST compliance and growing your business, head over to GrowthInfy for expert resources and guides.

Top Tax-Saving Investment Options Under Section 80C Top Tax-Saving Investment Options Under Section 80C Top Tax-Saving Investment Options Under Section 80C Top Tax-Saving Investment Options Under Section 80C

Top Tax-Saving Investments Under Section 80C

Posted on: 26 June 202526 June 2025 by: Aditya Narayanin: Direct Tax, Personal Finance1 Comment

Top Tax-Saving Investment Options Under Section 80C

Section 80C of the Income Tax Act, 1961 is a popular provision for Indian taxpayers which provides the benefit of deductions of ₹1.5 lakhs in each financial year when an individual makes some eligible investments or incurs eligible expenditure. By making some clever investment in tax-saving options, individuals or Hindu Undivided Families (HUFs) can reduce their taxable income while creating wealth. This article identifies this list of top tax-saving investment options under Section 80C, specifically written for the Indian audience, so you can plan accordingly for FY 2024-25 (AY 2025-26).

Why Invest Under Section 80C?

Section 80C promotes long-term savings by providing tax deductions for investments in specified instruments. This facility is possible only under the old tax regime, and it will help tax-payers reduce their tax liability while also fulfilling their financial objectives like retirement, education or wealth creation. Choosing the correct option will depend on your risk appetite, time to invest, and liquidity needs.

Top Tax-Saving Investment Options Under Section 80C

1. Equity Linked Savings Scheme (ELSS)

ELSS mutual funds are equity-oriented schemes that come with a 3-year lock-in period, the shortest of all Section 80C options. They present opportunity for high returns (historically after-tax returns have been in the 10-15% range annually). However, due to their equities orientation, these funds also face market risks. ELSS funds are suitable for young investors with a high risk appetite who are looking to invest (SIP) from as few as ₹500.

Tax Benefit: ₹1.5 lakh deduction.
Return: Market linked, no tax long-term capital gains of up to ₹1.25 Lakhs annually to the investor.
Best Suited For: Wealth creation along with tax saving

2. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a government-backed risk-free investment option that comes with a lock-in period of 15 years, which can be extended in blocks of 5 years thereafter. It provides tax-free interest (7.1% for FY 2024-25) and maturity proceeds, making it EEE (Exempt-Exempt-Exempt). PPF is a good investment option for risk-averse investors who are looking to save in the long term.

Tax Benefit: Deduction on contributions up to ₹1.5 lakh.
Returns: Fixed interest rate with no tax applicable.
Best for: Long term savings and retirement planning.

If you want to dive into how you can make safe investments, check out our blog on Low-Risk Investment Options in India.

3. National Pension System (NPS)

NPS is a voluntary pension scheme that invests in a mixture of equity, corporate bonds and government securities. NPS is beneficial for retirement planning as it qualifies for tax deduction under Section 80C and additionally ₹50,000 deduction under Section 80CCD(1B). It is a useful retirement planning financial product, as NPS has a lock-in till 60 years of age, so until that time, pension funds cannot be withdrawn but under a few specific exemptions partial withdrawals can be made.

Tax Benefits: ₹1.5 lakh under Section 80 C and ₹50,000 under Section 80CCD (1B).
Returns: Market linked returns as well as 8-12% historic average.
Best Suited For: Retirement corpus building.

4. Employee Provident Fund (EPF)

EPF is a mandatory savings plan for salaried workers which is funded by both employers and employees at the rate of 12% of the employee’s basic salary plus dearness allowance. Contributions by the employee to EPF are eligible for a deduction under Section 80C. The interest on the account (currently 8.15%) is also tax exempt if withdrawn after completion of five years of continuous service.

Tax Benefit: Employee Contributions capped at ₹1.5 lakh deductible.
Returns: Fixed interest rate, tax free.
Best For: Salaried earners that want to save for early retirement.

5. Sukanya Samriddhi Yojana (SSY)

SSY is a government scheme specially made for a girl child. It offers the parent / legal guardian tax-free interest (currently 8.2%) and tax-free maturity proceeds. Parents or legal guardians can open an account for a girl child under 10 years of age, which is a lock-in till she reaches 21 years of age, or marries after the age of 18. The ideal investment is for education or marriage.

Tax Benefit: Investment up to ₹1.5 Lakh is deductible
Returns: High tax-free interest
Best For: Saving for a daughter long-term.

6. National Savings Certificate (NSC)

NSC is available from post offices and offers a five-year lock-in as a fixed-income scheme. NSC provides guaranteed returns (currently at 7.7%) while falling in the EEE category for tax benefits. The interest is reinvested and is eligible for Section 80C deductions.

Tax Benefit: investments up to ₹1.5 lakh is deductible.
Returns: Fixed, tax-free interest.
Best For: Conservative investors who are investing for short-term savings.

7.Tax-Saving Fixed Deposits (FDs)

Tax-saving fixed deposit(s) (FDs) available from banks and post offices are subject to a 5-year lock-in and offer guaranteed returns (5.5-7%, depending on the bank). While the principal qualifies for deductions under Section 80C of the Income Tax Act, interest on the FDs are taxed. These investments are suitable for risk-averse investors who want predictable returns.

Tax Benefit: Investments of up to ₹1.5 lakh deductible.
Returns: Fixed, taxable interest.
Best For: Safe and short-term tax savings.

8. Life Insurance Premiums

Premiums paid for life insurance (for you, your spouse, or children) qualify for the Section 80C exemption! Common types of insurance policies which will qualify for this exemption are purchased through IRDAI approved insurance companies. There are numerous options, i.e. term plans, endowment plans, ULIPs etc. When considering the life insurance policies, it would make sense that any maturity proceeds from those policies will be tax-free under Section 10(10D) for you, the insured, only if the total premiums paid for the policy in any year does not exceed 10% of the total sum assured.

Tax Benefit: Up to ₹1.5 lakh deductible on the premiums paid.
Returns: Returns depend on what kind of policy you have purchased; ULIPs provide you with returns linked to the market.

Best For: Insurance and tax saver.

9. Unit Linked Insurance Plans (ULIPs)

ULIPs (Unit Linked Insurance Plans) are unique in that they offer insurance coverage along with the option of investing in equity or debt funds. The premiums paid on ULIPs qualify for deductions under Section 80C of the Income Tax Act and pay-outs from the maturity of the ULIPs are tax exempted under Section 10(10D) for the ULIPs taken prior to 1 February 2021. ULIPs have a 5-year lock-in period and will work for investors that want to have the best of both worlds.

Tax Benefit: Premium paid would be deductible up to ₹1.5 L.
Returns: Market-linked returns have historically been around 8-12%.
Best For:Long-term wealth creation along with life insurance.

10.Home Loan Principal Repayment

Payments towards the principal of a home loan and stamp duty and registration costs, receive the Section 80C deduction. This is only available in the year they are paid so it will be valuable for eligible homebuyers.

Tax Benefit: Principal repayments are deductible up to ₹1.5 lakh.
Return: No direct return – decreases loan liability.
Best For: Homeowners looking for tax assistance.

11.Tuition Fees

The tuition fee paid for the full-time education of up to two children (schools, colleges or universities) in India can qualify for Section 80C deductions. These are the tuition fees exclusively (not donations, development fees or any other non-tuition fees), which is a practical option for parents.

Tax Benefit: Fees are deductible up to ₹1.5 lakh.
Returns: No monetary returns but it supports education.
Best For: Parents with children in school.

Key Considerations for Section 80C Investments

Old Tax Regime v/s New Tax Regime: Deductions under Section 80C are only available under the old tax regime. To be safe, compare both the regimes with an Income Tax Calculator before making a decision.

Lock-in periods: Different options have different lock-in periods, such as ELSS (3 years) and PPF (15 years), which will affect the liquidity.
Risk-vs-return: Consider high return options such as ELSS and NPS in conjunction with low return, low-risk options like PPF and NSC based on your risk appetite.
Plan Early: It is always advisable to investment your amount early in the financial year to avoid a last-minute rush.

Comparison of Section 80C Investment Options

Investment	Lock-in Period	Returns	Risk Level	Tax Benefit
ELSS	3 years	10-15%	High	₹1.5 lakh
PPF	15 years	7.1%	Low	₹1.5 lakh
NPS	Till 60	8-12%	Moderate	₹1.5 lakh + ₹50,000
EPF	Till retirement	8.15%	Low	₹1.5 lakh
SSY	Till 21	8.2%	Low	₹1.5 lakh
NSC	5 years	7.7%	Low	₹1.5 lakh
Tax-Saving FD	5 years	5.5-7%	Low	₹1.5 lakh
Life Insurance	Varies	Varies	Low-Moderate	₹1.5 lakh
ULIP	5 years	8-12%	Moderate	₹1.5 lakh
Home Loan	None	None	None	₹1.5 lakh
Tuition Fees	None	None	None	₹1.5 lakh

Maximising Section 80C Benefits

Maximizing Section 80C:

Create a Portfolio: Create a mix of low-risk investments (like the PPF and the NSC) and high return investments (like an ELSS and an NPS).
Review Your Investments Annually: Modify your investments as your financial position, goals, and market conditions determine.
Claim it at the ITR Filing Stage: If you didn’t submit proof of investment to your employer, claim the deductions while you file your ITR by July 31, 2025.
Seek Expert Help: Get personalized suggestions from financial planners.

Conclusion

Section 80C of the Income Tax Act provides tax-saving investment options that spans all kinds of life circumstances – from ELSS and NPS for wealth creation, to PPF and SSY for safer savings. Get to know the features of each of these options, their lock-in periods, their returns etc. So that you can make informed investments to strategically align your investments with your financial goals and save ₹ 1.5 lakh on taxes. It’s never too early to start thinking for FY 2024-25 tax savings and planning to optimise your tax savings as much as possible for your future.

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Tax-Saving Tips for Small Business Owners in India

Choose the Right Business Structure

Leverage Section 80C Deductions

Claim Business Expenses

Opt for Presumptive Taxation

Deduct Tax at Source (TDS)

Employ Family Members

Claim Input Tax Credit (ITC) Under GST

Invest in Health Insurance

Donate to Charities

Maintain Proper Bookkeeping

Plan for Retirement

How Startups Are Disrupting the FinTech Sector in India

The Rise of FinTech Startups in India

Key Innovations Driving Disruption

The Role of UPI and Regulatory Support

Challenges Facing FinTech Startups

The Future of FinTech in India

Collaboration and Consolidation

Conclusion

Capital Gains Tax in India: Types, Rates, Exemptions, and Calculations

What is Capital Gains Tax?

Types of Capital Gains Tax

Short-Term Capital Gains Tax

Long-Term Capital Gains Tax

Capital Gains Tax Rates

Short-Term Capital Gains Tax Rates

Long-Term Capital Gains Tax Rates

Indexation in Capital Gains Tax

Capital Gains Tax Calculation

Short-Term Capital Gains Calculation

Long-Term Capital Gains Calculation

Exemptions on Capital Gains Tax

Capital Gains Account Scheme (CGAS):

Key Changes in Budget 2024

Strategies to Save on Capital Gains Tax

Conclusion

Understanding Tax Benefits on Home Loans in India

What Are the Tax Benefits on Home Loans?

Tax Benefits Under Section 80C

Tax Benefits Under Section 24(b)

Tax Benefits Under Section 80EEA

Tax Benefits for Joint Home Loans

Tax Benefits for Under-Construction Properties

Tax Benefits for Second Home Loans

Eligibility Criteria for Claiming Tax Benefits

How to Maximize Your Tax Savings

Common Mistakes to Avoid

Recent Updates in Tax Laws (2025)

Conclusion

Understanding the Reverse Charge Mechanism in GST: A Comprehensive Guide

What is Reverse Charge Mechanism in GST?

Why Was the Reverse Charge Mechanism Introduced?

When is Reverse Charge Mechanism Applicable?

2. Supply from Unregistered Suppliers

3. Import of Service

4. Other specific cases

How Does Reverse Charge Mechanism Work?

Key Rules for Reverse Charge Mechanism Under GST

1.Self-invoicing:

2.Time of Supply:

3. For the supply of services the time of supply is the earliest of:

4. GST Registration:

4. Record Keeping:

Benefits of Reverse Charge Mechanism

Challenges of Reverse Charge Mechanism

Practical Examples of Reverse Charge Mechanism

Recent Updates on Reverse Charge Mechanism (July 2025)

Tips for Businesses to Manage RCM Compliance

Conclusion

How to Get Out of Debt Fast: A Step-by-Step Guide

Understand Your Debt Situation

Create a Realistic Budget

Choose a Debt Repayment Strategy

Negotiate with Lenders

Increase Your Income

Cut Unnecessary Expenses