Good News for Salaried Taxpayers: Finance Act 2025 Significantly Increases Limits for Two Tax-Free Perquisites

by Jobuza Team | Aug 28, 2025 | BLOG, Trending News

Good News for Salaried Taxpayers: Finance Act 2025 Increases Tax-Free Perquisite Limits Significantly

Salaried Taxpayers: On August 18, 2025, the Central Board of Direct Taxes (CBDT) issued a notification that increased the income threshold limits for calculating tax-free perquisites in salary income. These changes were introduced through the Finance Act, 2025 and published in the India e-Gazette. The new rules will come into effect from April 1, 2025 and will apply for Assessment Year 2026-27.

Under the revised rules, the tax-free perquisite limits have been substantially increased:

• Specified Employees: Limit raised from ₹50,000 to ₹4 lakh

• Overseas Medical Treatment: Limit increased from ₹2 lakh to ₹8 lakh

These changes were implemented by inserting Rules 3C and 3D into the Income Tax Rules, 1962.

What Are Tax-Free Perquisites?

Perquisites are additional benefits or amenities provided by an employer apart from salary. Some of these are taxable, but certain perquisites can be tax-free if your income is below a specific threshold.

For example, benefits like:

• Use of a company car

• Services of a sweeper, gardener, or personal attendant

• Supply of gas, water, or electricity

• Free educational facilities

• Company-provided transportation

Earlier, these were taxable for employees earning more than ₹50,000. But now, with the limit increased to ₹4 lakh, many employees will enjoy tax-free benefits.

New Limits for Specified Employees

The term “specified employee” is defined under Rule 3 of the Income Tax Rules. It includes:

1. Company directors

2. Employees holding 20% or more voting power in the company

3. Employees earning more than ₹4 lakh annually (excluding non-monetary perquisites)

Key Change:

• If your salary income is up to ₹4 lakh, certain non-monetary benefits — such as company car, personal attendants, educational facilities, and transport — will not be taxed.

• If your salary exceeds ₹4 lakh, these perquisites will be taxable.

• For company directors and employees with substantial interest, these benefits remain taxable regardless of income.

Overseas Medical Treatment: Limit Increased to ₹8 Lakh

Another major change benefits employees who require overseas medical treatment:

• If your gross total income is up to ₹8 lakh, the employer-paid medical treatment costs abroad will not be taxed.

• If your income exceeds ₹8 lakh, these costs will be considered a taxable perquisite.

• This also includes the travel expenses of the patient and one accompanying attendant, provided the treatment and travel are approved under RBI’s guidelines.

Earlier, this exemption was available only if your gross total income was below ₹2 lakh, but now the limit has been raised to ₹8 lakh to benefit more employees.

Impact of the New Tax-Free Perquisite Rules

These changes bring significant relief for salaried taxpayers, especially those in the middle-income group.

Example:

• If your salary is ₹3.9 lakh and your employer provides free educational facilities for your children, you will not have to pay any tax on this benefit.

• Earlier, the same benefit would have been taxable if your income exceeded ₹50,000.

Conditions for Claiming Tax-Free Overseas Medical Benefits

To avail of the ₹8 lakh exemption for overseas medical treatment, certain conditions apply:

• The treatment must be for the employee or an immediate family member.

• Travel and stay expenses are allowed for the patient and one attendant only.

• All expenses must comply with the RBI’s approval limit, currently set at USD 250,000 per year.

Why These Changes Were Introduced

Tax experts explain that the earlier limits of ₹50,000 and ₹2 lakh were fixed decades ago and had not been revised despite rising inflation and living costs.

• ₹50,000 threshold was fixed in 2001.

• ₹2 lakh limit for overseas medical treatment was introduced in 1993.

The Finance Act, 2025 aims to align tax rules with current economic realities and provide relief to a larger number of salaried employees.

Key Takeaways

• New rules effective from April 1, 2025 (AY 2026-27).

• Tax-free perquisite limit for specified employees increased to ₹4 lakh.

• Overseas medical treatment tax-free limit raised to ₹8 lakh.

• These changes benefit employees earning below ₹4 lakh (for perks) and below ₹8 lakh (for medical expenses abroad).

• Directors and employees with substantial interest are not exempt, irrespective of income.

Choosing the Right ITR Form for FY 2024-25: A Quick Guide

by Jobuza Team | Aug 14, 2025 | BLOG, Trending News

Income Tax Return Filing FY 2024-25: Last Date, ITR Form Guide & Common Mistakes to Avoid

The Income Tax Department has extended the deadline for filing Income Tax Returns (ITR) for the Financial Year 2024-25. Taxpayers now have time until 15th September 2025, instead of the earlier due date of 31st July 2025. This extension gives individuals and businesses additional time to gather and file their income details without rushing.

As of early August, more than 2.51 crore ITRs have already been filed, out of which 2.43 crore have been verified and 1.13 crore processed. With only a few weeks remaining, it’s crucial to choose the correct ITR form and file your return on time to avoid penalties or delays in refunds.

Which ITR Form Should You Use?

Selecting the right ITR form depends on your income source and category (individual, HUF, firm, etc.). Filing the wrong form can lead to rejection or delay in processing. Here’s a simple breakdown:

ITR-1 (Sahaj)

• For resident individuals with total income up to ₹50 lakh.

• Income from salary, one house property, and other sources like interest.

• Not applicable for capital gains, lottery income, or foreign assets.

ITR-2

• For individuals and Hindu Undivided Families (HUFs) not having income from business or profession.

• Covers capital gains, multiple house properties, and foreign assets.

ITR-3

• For individuals and HUFs with income from business or profession.

• Also includes partners in firms and freelancers/consultants not under presumptive taxation.

ITR-4 (Sugam)

• For resident individuals, HUFs, and firms (excluding LLPs) with income up to ₹50 lakh.

• Applies to those under the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE.

ITR-5

• For partnership firms, LLPs, AOPs, BOIs, societies, and trusts.

• Includes reporting for MSMEs, startups, and digital assets like cryptocurrency.

ITR-6

• For companies (except those claiming exemption as charitable or religious trusts under section 11).

ITR-7

• For entities such as charitable/religious trusts, political parties, research associations, etc., required to file under section 139(4A) to 139(4F).

Step-by-Step: How to File ITR Online for FY 2024-25

1. Log in to the official Income Tax e-filing portal using your PAN and password.

2. Choose the correct ITR form based on your income and profile.

3. Fill in or import details via the Excel or JSON utility.

4. Validate and preview all fields to ensure accuracy.

5. E-verify your return using Aadhaar OTP, net banking, or other methods.

   Note: E-verification is mandatory. Without it, your return will be considered incomplete.

Documents to Check Before Filing

• Form 26AS

• Annual Information Statement (AIS)

• Bank statements

• TDS certificates

• Investment proofs

• Details of exempt income like PPF, agriculture income, etc.

Common Mistakes That Can Delay Refunds or Invite Notices

Avoid these frequent errors:

• Incorrect bank account details.

• Mismatch in TDS data or income declared.

• Not reporting exempt income like interest from PPF or agricultural earnings.

• Ignoring discrepancies in Form 26AS and AIS.

• Missing the e-verification step after filing.

Final Tips for Hassle-Free Filing

• Use the latest version of the ITR utilities.

• Reconcile all income and TDS data.

• Consider professional help if your income sources are complex.

• File early to avoid last-minute server issues or mistakes.

• Keep acknowledgment and e-verification confirmation for records.

Stay informed, stay compliant. Filing the correct ITR form not only helps avoid penalties but also ensures faster processing of your refund. Always cross-check financial data and documents before submission.

For more personal finance insights and tax updates, stay connected.

Disclaimer: This article is for general informational purposes only. Please consult a qualified tax professional or refer to the official Income Tax Department website for personalized advice before filing your return.

ITR Filing 2025: Is September 15 the Deadline? Key Difference Between Due Date & Last Date Explained

by Jobuza Team | Aug 8, 2025 | BLOG, Trending News

ITR Filing Last Date 2025: Is September 15 the Final Deadline? Understand the Due Date vs Last Date

As the ITR filing season for FY 2024-25 (AY 2025-26) heats up, the Income Tax Department has extended the due date for filing ITR from July 31, 2025 to September 15, 2025 for certain categories of taxpayers.

If you’re still wondering whether September 15 is your last chance to file the return or if you can file later, here’s a simple breakdown of all key dates, rules, and penalties.

Who Needs to File by September 15, 2025?

The new due date of September 15, 2025, applies to:

• Individual taxpayers

• Hindu Undivided Families (HUFs)

• Taxpayers not required to get their accounts audited

This extension was announced by the Central Board of Direct Taxes (CBDT) due to significant updates made in the ITR forms and the additional time required to update the online filing systems and utilities.

Who Has More Time?

If your accounts are subject to audit—like in the case of companies, business owners, and partners in firms—then the deadlines are as follows:

• Audit Report Submission: September 30, 2025

• ITR Filing Due Date: October 31, 2025

As of now, there is no extension announced for audit-related filings. So, if you’re a business or a working partner, it’s crucial to plan accordingly and avoid last-minute rush.

Can You File ITR After the Due Date?

Yes, filing after the due date is still possible, but it comes with a catch. If you miss the September 15, 2025 deadline (for non-audit cases), you can still file your belated ITR until December 31, 2025.

However, late filing may result in:

• A penalty of up to ₹5,000 under Section 234F

• Loss of certain tax benefits, such as carry-forward of losses

• Possible interest on late payment of tax dues

So, even though the last date is December 31, it’s advisable to file as early as possible.

Income Tax Department Issues Scam Alert

Amid the ITR filing rush, the Income Tax Department has also alerted taxpayers about a rising phishing scam.

Fraudsters are sending fake emails claiming tax calculation errors and offering false refund links. These emails often come from donotreply@incometaxindiafilling.gov.in, which closely resembles the official domain to mislead users.

The department has confirmed:

• It never asks for passwords, OTPs, or bank details via email, SMS, or phone

• Taxpayers must verify communications from the official domain @incometax.gov.in

• Any suspicious messages should be reported immediately to webmanager@incometax.gov.in

Final Words

Filing your ITR on time helps avoid penalties, ensures faster processing, and keeps your financial records clean. With the extended due date of September 15, 2025, for non-audit cases and October 31, 2025, for audit cases, taxpayers have more time—but not forever.

Make sure you don’t confuse the due date with the last date. The due date is when you’re expected to file without penalty, while the last date is your absolute deadline to avoid harsher consequences.

Stay updated, file smart, and beware of scams.

Protect Your Gmail: Turn On Two-Factor Authentication Today

by Jobuza Team | Aug 6, 2025 | BLOG, Trending News

How to Protect Your Gmail Account with Two-Factor Authentication (2FA)

Protect Your Gmail: With cyberattacks becoming more common every day, securing your Gmail account is more important than ever. Passwords alone are no longer enough to keep hackers out. That’s where Google’s Two-Factor Authentication (2FA) comes in — adding an extra layer of protection to your email and personal data.

In this guide, you’ll learn what two-factor authentication is, how it works, why it’s essential, and how to set it up quickly.

What is Two-Factor Authentication?

Two-Factor Authentication (2FA) is a security process that adds a second step to your login. Instead of just entering your password, you’ll also need to confirm your identity through your mobile device. This could be a prompt, a code sent via SMS, or a notification from the Google app.

Even if someone manages to steal your password, they won’t be able to access your Gmail without this second form of verification.

How Does Gmail Two-Factor Authentication Work?

Here’s what happens when 2FA is enabled:

1. You enter your Gmail password on a new or unrecognized device.

2. Google sends a notification or code to your registered phone or app.

3. You approve the login request or enter the code.

4. Access is granted only after this extra verification.

Once you verify a device, future logins on that same device usually won’t require the second step, unless you log out or reset your security settings.

Why You Should Use Two-Factor Authentication for Gmail

Enabling 2FA significantly reduces the risk of your Gmail account being hacked. Even if a cybercriminal knows your password, they won’t be able to get in without access to your phone or verification device.

This added protection:

• Prevents unauthorized logins

• Secures sensitive emails and personal data

• Helps protect linked accounts like Google Drive, Docs, and Photos

In short, it gives you peace of mind knowing your digital life is safer.

How to Enable Two-Factor Authentication for Gmail

Setting up 2FA for Gmail is simple and only takes a few minutes. Here’s how to do it:

1. Open Gmail and click on your profile photo in the top right corner.

2. Select Manage your Google Account.

3. Go to the Security tab.

4. Scroll down to How you sign in to Google.

5. Click on 2-Step Verification.

6. Follow the on-screen steps and tap Turn On.

Google will guide you through verifying your phone number or setting up the Google Authenticator app for added security.

Final Thoughts

Two-factor authentication is one of the easiest and most effective ways to protect your Gmail account. In a world full of cyber threats, taking this small step can make a big difference.

Enable it today and take control of your account’s security.