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🧾 Income Tax 13 October 2026 · 15 min read Home › Blogs › Income Tax › Section 87A Rebate for AY 2026–27 Section 87A Rebate for AY 2026–27: Who Gets Zero Tax Up to ₹12 Lakh? Section 87A rebate for AY 2026-27 explained: who gets zero tax up to 12 lakh, the ₹60,000 limit, marginal relief, exclusions and how to claim it. NS CA Nainit Savla Chartered Accountant, Mumbai & Hyderabad • Published 13 Oct 2026 1 ₹12 LAKH Taxable income limit New regime · resident individuals only 2 ₹60,000 Maximum rebate Equals slab tax on ₹12 lakh Old regime: ₹12,500 3 ₹0 TAX Salary up to ₹12.75 lakh After ₹75,000 std deduction Marginal relief to ~₹12.7 lakh AY 2026-27 · FY 2025-26 · Not available on capital gains taxed at special rates Section 87A rebate is a reduction in income tax that the Income Tax Act, 1961 allows to a resident individual whose total income stays within a set limit, and for AY 2026-27 it brings the tax to nil for anyone with taxable income up to ₹12 lakh under the new regime. The rebate is capped at ₹60,000 in the new regime and at ₹12,500 in the old regime, where the income limit is only ₹5 lakh. Because the slab tax on exactly ₹12 lakh is ₹60,000, a resident individual gets zero tax up to 12 lakh of taxable income, and a salaried employee reaches that point at a gross salary of ₹12.75 lakh after the ₹75,000 standard deduction. The benefit has limits that catch many filers: it excludes non-residents, HUFs and companies, and it does not reduce tax on capital gains taxed at special rates. This guide explains who qualifies, how marginal relief works above the limit, and how to claim the rebate correctly in your return. What Is Section 87A Rebate and Who Gets Zero Tax Up to ₹12 Lakh? What is Section 87A rebate? It is a tax rebate that reduces the income tax payable by a resident individual, and it applies after the tax on total income has been worked out at the normal slab rates. A resident individual with taxable income up to ₹12 lakh under the new regime gets zero tax up to 12 lakh, because the rebate of up to ₹60,000 matches the entire slab tax on that income. The arithmetic is simple. In the new regime for AY 2026-27, the first ₹4 lakh of income is taxed at nil, the next ₹4 lakh at 5 per cent and the next ₹4 lakh at 10 per cent. A taxable income of ₹12 lakh therefore produces ₹20,000 plus ₹40,000, which is ₹60,000. The Section 87A rebate cancels exactly that amount, so no tax and no cess remain to pay. This is the 87A rebate for AY 2026-27 in its simplest form. Under the Section 87A rebate in new regime, salaried employees, pensioners, freelancers, small traders and professionals all qualify, provided they are resident individuals and their income is taxed at normal slab rates. Taxpayers who want a second opinion on their slab tax before filing can use our income tax advisory support, and the table below shows who qualifies at a glance. Rebate available Rebate not available ← Scroll to see the full table → Taxpayer or income Rebate position for AY 2026-27 Result Resident individual, new regime, taxable income up to ₹12 lakh Up to ₹60,000 Tax is nil Resident individual, old regime, taxable income up to ₹5 lakh Up to ₹12,500 Tax is nil Non-resident individual (NRI) Not eligible Slab tax applies HUF, firm, LLP, company or trust Not eligible Slab or flat tax applies Capital gains under Sections 111A, 112 and 112A No rebate on this tax Tax payable in full What Is the Section 87A Rebate Limit for AY 2026-27 in the New and Old Regime? The Section 87A rebate limit for AY 2026-27 is ₹60,000 in the new regime for total income up to ₹12 lakh, and ₹12,500 in the old regime for total income up to ₹5 lakh. The 87A rebate for AY 2026-27 applies to income earned in FY 2025-26 and was set by the Finance Act, 2025. New regime Old regime ← Scroll to see the full table → Feature New regime Old regime Total income limit ₹12,00,000 ₹5,00,000 Maximum rebate ₹60,000 ₹12,500 Marginal relief above the limit Yes No Standard deduction for salary ₹75,000 ₹50,000 Zero-tax gross salary ₹12,75,000 ₹5,50,000 The new regime slabs behind the ₹60,000 figure are nil up to ₹4 lakh, 5 per cent from ₹4 lakh to ₹8 lakh, 10 per cent from ₹8 lakh to ₹12 lakh, 15 per cent from ₹12 lakh to ₹16 lakh, 20 per cent from ₹16 lakh to ₹20 lakh, 25 per cent from ₹20 lakh to ₹24 lakh and 30 per cent above ₹24 lakh. The rebate cannot exceed the tax actually payable, so a taxpayer with taxable income of ₹10 lakh and tax of ₹40,000 receives a rebate of ₹40,000, not ₹60,000, which is how the 87A rebate for AY 2026-27 treats mid-income earners. The Section 87A rebate in new regime is the default position, because the new regime applies automatically unless a taxpayer opts out. The Section 87A rebate old regime is far smaller and ends abruptly: at a total income of ₹5,00,001 the rebate disappears and the tax jumps to about ₹13,000 including cess. For a full comparison of the two regimes, read our guide on new regime versus old regime for AY 2026-27. 📋 Note The ₹12 lakh limit is tested on total income after allowed deductions, not on gross salary. For tax years beginning 1 April 2026, the same rebate appears as Section 156 of the Income-tax Act, 2025, but returns for AY 2026-27 are still filed under the 1961 Act and its Section 87A. Who Is Eligible for Section 87A Rebate and Who Is Excluded? Only an individual who is resident in India during the previous year is eligible for Section 87A rebate; non-resident

🧾 Income Tax 12 October 2026 · 15 min read Home › Blogs › Income Tax › ITR Filing for Salaried Employees ITR Filing for Salaried Employees: Complete Step-by-Step Guide for AY 2026-27 Step-by-step ITR filing for salaried employees for AY 2026-27: which ITR form, documents, regime choice, due dates, e-verification and penalties. NS CA Nainit Savla Chartered Accountant, Mumbai • Published 12 Oct 2026 1 DOCUMENTS Form 16 · Form 26AS · AIS Reconcile salary and TDS before you open the return 2 ITR-1 OR ITR-2 Sahaj: income up to ₹50 lakh New regime is the default Std deduction ₹75,000 3 E-VERIFY Within 30 days of upload Unverified = never filed Aadhaar OTP is the fastest route AY 2026-27 · FY 2025-26 · Due date 31 July 2026 · Belated return till 31 December 2026 ITR filing for salaried employees for AY 2026-27 means reporting your financial year 2025-26 salary and other income to the Income Tax Department in the correct ITR form, by 31 July 2026, and e-verifying it within 30 days of upload. Most salaried taxpayers file ITR-1 (Sahaj), which for AY 2026-27 covers a resident individual with total income up to ₹50 lakh from salary or pension, up to two house properties, other sources, and long-term capital gains under section 112A up to ₹1,25,000. Anyone outside those limits files ITR-2. The mechanics of ITR filing for AY 2026-27 changed this year in ways that matter. ITR-1 now accepts two house properties instead of one, the new tax regime is the default unless you opt out, and the Section 87A rebate of ₹60,000 means a salaried employee earning up to ₹12,75,000 can pay no tax at all. Filing is free on the government portal and most of the return arrives pre-filled, so the real work in ITR filing for salaried employees lies in checking what the department already knows against what you actually earned, and our ITR filing services team starts there too. Who Must File an ITR as a Salaried Employee for AY 2026-27? A salaried employee must file an income tax return if gross total income before deductions exceeds the basic exemption limit, which is ₹4,00,000 under the new tax regime and ₹2,50,000 under the old tax regime for taxpayers below 60. The test applies to income before deductions, so an employee whose tax works out to nil after the standard deduction and the Section 87A rebate is still required to file. Filing is also compulsory, regardless of income level, where you hold assets outside India or have signing authority over a foreign account, have deposited more than ₹1 crore in current accounts or ₹50 lakh in savings accounts during the year, spent over ₹2 lakh on foreign travel or ₹1 lakh on electricity, or where TDS and TCS together total ₹25,000 or more, reduced to ₹50,000 for senior citizens. Beyond the legal obligation, there are practical reasons why ITR filing for salaried employees is worth doing even at nil tax. A filed return is the document banks ask for when assessing a home or personal loan, embassies ask for when processing a visa, and insurers ask for on high-value cover. It is also the only way to claim a refund where your employer deducted more TDS than your final liability, which happens routinely when investment proofs reach the payroll team late. Filing nil-tax returns consistently builds a record that is far easier to produce than to reconstruct. Which ITR Form Should a Salaried Employee File for AY 2026-27? Most salaried employees file ITR-1 (Sahaj); those with capital gains beyond a narrow limit, multiple properties or foreign assets file ITR-2. Deciding which ITR form applies is the step people get wrong most often, and the wrong form gets the return treated as defective rather than merely incorrect. ITR-1 eligibility for AY 2026-27 requires that you are a resident individual other than not ordinarily resident, with total income up to ₹50 lakh. Permitted income is salary or pension, income from up to two house properties, income from other sources excluding lottery and racehorse winnings, agricultural income up to ₹5,000, and long-term capital gains under section 112A up to ₹1,25,000 provided you have no capital loss brought forward or carried forward. The move from one house property to two is new this year, notified through an amendment to Rule 12 of the Income-tax Rules, 1962, and it brings a large group of second-home owners back into the simpler form. ITR-1 eligibility ends, whatever your income, if any of the following applies: You are a director in a company, or you held unlisted equity shares at any time during the year. You hold an asset outside India, have a financial interest in a foreign entity, have signing authority over a foreign account, or have any income from outside India. You have short-term capital gains, or long-term gains above the ₹1,25,000 section 112A limit. You have business or professional income, or income apportioned under section 5A. Tax was deducted under section 194N, or your tax on ESOPs has been deferred. You have a loss brought forward, or a loss to be carried forward, under any head. A salaried employee who sold listed shares or equity mutual funds during FY 2025-26 should test ITR-1 eligibility against this list carefully. Gains within ₹1,25,000 under section 112A keep you in ITR-1, but a single short-term trade pushes you into ITR-2 return filing. Where the position is unclear, reading the capital gain overview before you start saves a defective-return cycle later. 📋 Note Choosing the wrong ITR form does not simply produce a wrong figure. The Centralised Processing Centre flags the return as defective and issues a notice giving you 15 days to correct it. If you do not respond within that window the return is treated as never having been filed, and the late-filing consequences run from the original due date. What Documents Are Required for ITR Filing for Salaried Employees? The documents required for ITR filing by a salaried employee

🧾 Income Tax 08 October 2026 · 13 min read Home › Blog › Income Tax › New Regime vs Old Regime AY 2026–27 New Regime vs Old Regime for AY 2026–27: Which Saves You More Tax? A guide by CA Nainit Savla, Chartered Accountant — slabs, the section 87A rebate, deductions and break-even figures calculated for AY 2026–27, so you know which tax regime saves you more. NS CA Nainit Savla Chartered Accountant, Mumbai — Direct Tax & Advisory • Published 08 Oct 2026 SECTION 115BAC NEW REGIME 7 slabs · Nil to 30% Tax-free up to ₹12.75 lakh Std deduction ₹75,000 HRA · 80C · 80D · NPS OLD REGIME 4 slabs · Nil to 30% Wins only with big deductions Std deduction ₹50,000 BREAK-EVEN ₹2.5L – ₹8L DEDUCTIONS AY 2026–27 · FY 2025–26 · Rebate ₹60,000 vs ₹12,500 · Cess 4% in both regimes New regime vs old regime is the choice every salaried taxpayer makes each year: pay tax at lower slab rates with almost no deductions, or at higher rates with deductions such as HRA and section 80C. For AY 2026–27, which covers income earned in FY 2025–26, the new regime saves more tax for most salaried employees, and the old regime wins only when yearly deductions beyond the standard deduction cross a break-even figure that rises from about ₹2.5 lakh at an ₹8 lakh salary to ₹8 lakh at a ₹25 lakh salary. This guide settles the new regime vs old regime question with calculated figures, not rules of thumb, and it covers slabs, the section 87A rebate, deductions and the switching process step by step. CA Nainit Savla, a Chartered Accountant in Mumbai, runs this comparison for clients through a tax health check, and the working here follows the same method. Read on to see which regime fits your salary and your deductions. What Is the New Tax Regime and What Is the Old Tax Regime? What is the new tax regime? It is the default system under section 115BAC of the Income-tax Act, 1961, with lower slab rates, a higher standard deduction and a large rebate, but without most exemptions and deductions. What is the old tax regime? It is the earlier system with higher slab rates that lets you claim HRA, section 80C, section 80D, home loan interest and similar items. A salaried employee without business income picks the regime each year while filing the return, so the choice is never permanent. What is the old tax regime worth to you in a given year? That depends on the deductions you can prove. The new regime vs old regime decision therefore needs a fresh calculation every year, using that year’s salary and investments. What Are the New Tax Regime Slabs for AY 2026-27 in the New Regime vs Old Regime Comparison? The new tax regime slabs for AY 2026-27 have seven bands from nil to 30 percent, while the old regime has four bands for individuals below 60. The tax regime comparison below sets the new regime vs old regime slabs side by side, using the rates for FY 2025–26. New regime Old regime ← Scroll to see the full table → New regime slab Rate Old regime slab (below 60) Rate Up to ₹4 lakh Nil Up to ₹2.5 lakh Nil ₹4 lakh to ₹8 lakh 5% ₹2.5 lakh to ₹5 lakh 5% ₹8 lakh to ₹12 lakh 10% ₹5 lakh to ₹10 lakh 20% ₹12 lakh to ₹16 lakh 15% Above ₹10 lakh 30% ₹16 lakh to ₹20 lakh 20% — — ₹20 lakh to ₹24 lakh 25% — — Above ₹24 lakh 30% — — Health and education cess of 4 percent applies on top in both regimes. Above ₹50 lakh, surcharge applies, and the new regime caps it at 25 percent while the old regime goes up to 37 percent, which widens the new regime vs old regime gap for very high earners. How Do the Section 87A Rebate and the Standard Deduction in New Tax Regime Work? The rebate in the new regime is up to ₹60,000 under section 87A, which makes tax nil where taxable income is up to ₹12 lakh. The standard deduction in new tax regime is ₹75,000 for salaried employees, against ₹50,000 in the old regime. Together they make salary up to ₹12.75 lakh tax-free under the new regime. In the new regime vs old regime contest, this rebate is the single biggest difference. The old regime’s rebate is only ₹12,500, available where taxable income is up to ₹5 lakh. Neither rebate applies to income taxed at special rates, such as capital gains on listed shares, which is why capital gains tax is computed separately in both regimes. Just above ₹12 lakh, marginal relief ensures the new regime tax never exceeds the income above that figure. What Are the Old Tax Regime Deductions That Still Matter? The old tax regime deductions that matter most are HRA, section 80C, section 80D, NPS under section 80CCD(1B) and home loan interest. In the new regime vs old regime trade-off, almost all of them disappear, except the standard deduction and the employer NPS contribution. ← Scroll to see the full table → Deduction or exemption Old regime limit Allowed in new regime? Standard deduction ₹50,000 Yes, ₹75,000 HRA exemption Least of three tests No Section 80C (PPF, EPF, ELSS, life insurance) ₹1.5 lakh No Section 80D (health insurance) ₹25,000 for family, ₹25,000 more for parents; ₹50,000 each if senior No NPS under section 80CCD(1B) ₹50,000 No Home loan interest, self-occupied (section 24(b)) ₹2 lakh No Employer NPS contribution (section 80CCD(2)) 10% of basic and DA (14% in new regime) Yes This employer-side NPS benefit is the one planning lever that works in both regimes, so it does not belong in the break-even figures below. Treat it as part of salary structuring, not as a reason to prefer the old regime. New Regime vs Old Regime: Which Tax Regime Is Better for You? Which tax regime

🌐 IFRS / Financial Reporting 08 September 2026 · 14 min read Home › Blog › IFRS › IFRS vs US GAAP IFRS vs US GAAP: Key Differences Every Business and Finance Professional Must Know A guide by CA Nainit Savla, Chartered Accountant — the practical, side-by-side differences between IFRS and US GAAP across inventory, leases, development costs, impairment, investment property, and more. NS CA Nainit Savla Chartered Accountant — IFRS & Financial Reporting Advisory • Published 08 Sep 2026 140+ COUNTRIES IFRS Principles-based · IASB EU, UK, India (Ind AS), most of Asia & beyond US LISTED & PRIVATE US GAAP Rules-based · FASB Mandatory for all US-listed companies 12 AREAS OF MATERIAL DIFFERENCE Norwalk Agreement 2002 · Converged on Revenue (2014) & Leases (2019) · Key Gaps Remain IFRS vs US GAAP represents one of the most consequential divides in global finance and accounting. IFRS — issued by the International Accounting Standards Board (IASB) — is used by companies in more than 140 countries, including the EU, UK, Australia, Canada, India (through Ind AS), and most of Asia. US GAAP — governed by the Financial Accounting Standards Board (FASB) — is required for all US-listed public companies and widely used by US private companies. Despite decades of convergence efforts by the IASB and FASB, significant differences remain between the two frameworks — differences that directly affect reported revenue, profits, assets, liabilities, and equity. For business owners operating across borders, finance professionals moving between jurisdictions, investors comparing companies across markets, and accounting practitioners advising multinational clients, understanding these differences is not optional. A company that prepares financial statements under IFRS can report a materially different financial position from the same company restating those financials under US GAAP — and the differences follow specific, well-defined rules that this article explains clearly and practically. What Are the Key Differences Between IFRS and US GAAP at a Glance? The table below provides a side-by-side comparison across twelve major accounting areas. Refer back to it as you read through the detailed explanations that follow. IFRS treatment US GAAP treatment ← Scroll to see the full table → Area IFRS US GAAP Significance Framework Nature Principles-based; relies on professional judgment Rules-based; detailed prescriptive guidance IFRS allows more flexibility; GAAP reduces ambiguity Inventory Valuation LIFO not permitted; FIFO or weighted average only LIFO, FIFO, or weighted average all permitted LIFO prohibition under IFRS can raise taxable income Inventory Write-Down Reversal permitted if value recovers Reversal not permitted once recorded IFRS gives a more current picture; GAAP is permanent Revenue Recognition IFRS 15 (5-step model) — converged with ASC 606 ASC 606 — substantially converged with IFRS 15 Broadly aligned post-2018; differences in licences, variable consideration Leases IFRS 16: nearly all leases on balance sheet ASC 842: operating leases retain different P&L pattern IFRS 16 eliminates off-balance-sheet; ASC 842 retains two-model approach Development Costs Capitalised when feasibility criteria met (IAS 38) Expensed as incurred (except software — ASC 350) IFRS can show higher assets for R&D-heavy companies Impairment of Assets One-step: compare carrying to recoverable amount Two-step: recoverability then fair value measurement IFRS test is simpler; GAAP can delay recognition Impairment Reversal Reversal permitted for assets other than goodwill Reversal not permitted (except FVOCI) IFRS financials can reflect recovery; GAAP cannot Goodwill Impairment-only (no amortisation) — IAS 36 Impairment-only (no amortisation) — ASC 350; PCAOB option for private cos Broadly aligned for public companies post-2002 Financial Instruments IFRS 9: expected credit loss (ECL) model from day 1 ASC 326: CECL model — similar but US-specific timeline Both moved to forward-looking ECL; implementation details differ Investment Property Fair value model permitted (IAS 40) — P&L impact No fair value model; cost less depreciation only IFRS can produce significant P&L volatility for property holders Extraordinary Items Not used under IFRS Eliminated by ASU 2015-01; no longer used Now aligned — neither framework uses extraordinary items What Is the Fundamental Philosophical Difference Between IFRS and US GAAP? The most foundational distinction is one of philosophy rather than any specific accounting rule. IFRS is principles-based: it sets out broad objectives and principles and trusts preparers and auditors to apply professional judgment to achieve those objectives in the specific context of their business. US GAAP is rules-based: it provides extensive, detailed guidance for a very wide range of transactions, industries, and specific fact patterns, leaving less room for interpretation. This difference has real practical consequences. Under IFRS, two companies facing economically identical situations but with different business contexts may account for them differently — and both treatments may be correct, provided they can be justified against the principles. Under US GAAP, the same two companies would be expected to apply the same treatment because the specific rule exists for their fact pattern. IFRS therefore requires more disclosure about the judgments made; GAAP requires more compliance tracking to ensure the right rule has been applied. Neither approach is strictly superior. The principles-based approach of IFRS is more adaptable to novel transactions and international diversity; the rules-based approach of US GAAP provides more comparability within the US market and reduces the scope for earnings manipulation through judgment. Finance professionals working across both frameworks need to be comfortable with the different mindset each requires. 📋 Note India’s Ind AS framework is substantially converged with IFRS — but it is not identical. Ind AS incorporates several carve-outs from IFRS to address India-specific regulatory, legal, and economic realities. For instance, Ind AS 101 (First-Time Adoption) includes India-specific optional exemptions. Companies reporting under Ind AS should not assume their financials are directly comparable to IFRS financials without reviewing applicable carve-outs. How Do IFRS and US GAAP Differ on Inventory Accounting? Inventory is one of the most practically significant areas of difference between IFRS and US GAAP, particularly for manufacturing, retail, and trading companies. There are two key sub-differences: permitted cost flow methods, and the treatment of write-downs. Cost Flow Methods: LIFO Prohibition Under IFRS Under IAS 2 (IFRS), only the First-In, First-Out (FIFO) and weighted average

Earnings Per Share (EPS): How to Calculate Basic and Diluted EPS Under Ind AS 33 | CA Nainit Savla 📊 Accounting Standards 01 September 2026 · 11 min read Home › Blog › Accounting Standards › EPS Under Ind AS 33 Earnings Per Share (EPS): How to Calculate Basic and Diluted EPS Under Ind AS 33 A guide by CA Nainit Savla, Chartered Accountant, Mumbai — how to calculate basic and diluted EPS under Ind AS 33, with formulas, worked examples, and step-by-step guidance for Indian companies. NS CA Nainit Savla Chartered Accountant — Andheri East, Mumbai • Published 01 Sep 2026 BUCKET 1 Basic EPS Profit ÷ Shares Uses shares outstanding today BUCKET 2 Diluted EPS Assumes conversion Adds convertibles, options & warrants DISCLOSED ON FACE OF THE P&L STATEMENT Ind AS 33 · Weighted Average Shares · Treasury Stock Method · Sequential Dilution Testing Earnings per share is the financial metric that tells investors how much net profit a company generates for each ordinary share outstanding — and under Ind AS 33 (Earnings Per Share), every listed company in India must calculate and disclose both basic EPS and diluted EPS on the face of the statement of profit and loss. Basic EPS divides the profit attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. Diluted EPS adjusts both the numerator and the denominator to reflect the impact of all dilutive potential ordinary shares — convertible bonds, convertible preference shares, stock options, and warrants — as if they had been converted into ordinary shares at the beginning of the period. The difference between basic and diluted EPS reveals how much an investor’s earnings per share would decrease if every dilutive instrument were exercised, making it one of the most scrutinised disclosures in financial statements. CA Nainit Savla, a practicing Chartered Accountant based in Mumbai, provides financial reporting services that include accurate EPS computation, dilutive instrument analysis, and Ind AS 33 compliance review for listed and unlisted companies. What Is Earnings Per Share and How Is It Defined Under Ind AS 33? Earnings per share, as defined by Ind AS 33, is the amount of profit or loss attributable to each ordinary share of the reporting entity. Ind AS 33 prescribes the principles for the determination and presentation of EPS to improve comparability of performance between entities in the same reporting period and between different reporting periods for the same entity. The standard applies to entities whose ordinary shares or potential ordinary shares are traded in a public market, and to entities that file or are in the process of filing financial statements with a securities commission or regulator for the purpose of issuing ordinary shares in a public market. The significance of earnings per share lies in its role as the bridge between aggregate company profitability and individual shareholder value. A company reporting a net profit of ₹500 crore sounds profitable, but that figure means different things depending on whether the company has 10 crore shares outstanding or 100 crore shares outstanding — the EPS is ₹50 in the first case and ₹5 in the second. Investors use EPS as the denominator in the price-earnings (P/E) ratio — the share price divided by EPS — which is the most widely used valuation metric in equity markets. A change in EPS directly moves the P/E ratio and influences stock prices, analyst ratings, and institutional investment decisions. For EPS for Indian companies listed on BSE or NSE, accurate computation under Ind AS 33 is not optional — it is a regulated disclosure that SEBI, analysts, and investors rely on for decision-making. Ind AS 33 requires two distinct EPS figures to be disclosed: basic EPS and diluted EPS. Both must be presented on the face of the statement of profit and loss — not buried in the notes. Both must be presented for profit or loss from continuing operations and for total profit or loss attributable to ordinary equity holders of the parent entity. If the entity reports discontinued operations, EPS for discontinued operations must also be disclosed, either on the face of the statement of profit and loss or in the notes. This dual disclosure — basic EPS vs diluted EPS — gives investors the full picture: what they earned per share today, and what they would earn if all potential shares were issued. How Do You Calculate Basic Earnings Per Share Under Ind AS 33? Basic EPS Formula: Basic EPS = Profit attributable to ordinary equity holders ÷ Weighted average number of ordinary shares outstanding during the period. This formula has two components, each with specific rules under Ind AS 33. The Numerator — Profit Attributable to Ordinary Equity Holders The starting point is the net profit after tax as reported in the statement of profit and loss. From this, deduct any profit attributable to non-controlling interests (in consolidated financial statements) to arrive at profit attributable to equity holders of the parent. Then deduct preference dividends to arrive at profit attributable to ordinary equity holders. For cumulative preference shares, deduct the preference dividend for the period — whether declared or not — because the dividend obligation accrues regardless of declaration. For non-cumulative preference shares, deduct only the preference dividend that has been declared for the period. If the entity has issued preference shares at a premium that is amortised to retained earnings, the amortisation amount reduces the profit available to ordinary shareholders. The numerator must also reflect any adjustments required by other Ind AS standards — for example, share of profit from associates under Ind AS 28 affects the numerator in consolidated EPS. The Denominator — Weighted Average Number of Ordinary Shares The weighted average number of shares is not simply the shares outstanding at year-end. It is the number of shares outstanding at the beginning of the period, adjusted for shares issued or bought back during the period, weighted by the fraction of the period for which they were outstanding.

Other Comprehensive Income (OCI): What It Is and Why It Matters | CA Nainit Savla 📊 Accounting & Finance 25 August 2026 · 10 min read Home › Blog › Accounting & Finance › Other Comprehensive Income (OCI) Other Comprehensive Income (OCI): What It Is and Why It Matters A 2026 guide by CA Nainit Savla, Chartered Accountants, Mumbai & Hyderabad — what OCI covers under Ind AS, how it differs from net income, and why it matters for Indian companies. NS CA Nainit Savla Chartered Accountants — Mumbai & Hyderabad • Published 25 Aug 2026 BUCKET 1 Net Income Profit or Loss Drives retained earnings & EPS BUCKET 2 Other Comprehensive Income Bypasses P&L, moves into equity TOTAL COMPREHENSIVE INCOME Ind AS 1 · Statement of Profit & Loss · Other Equity · Statement of Changes in Equity Other comprehensive income is the section of a company’s financial statements that records specified gains and losses that Ind AS keeps separate from profit or loss, even though they still change total equity. Understanding other comprehensive income India rules matters because, under the Indian Accounting Standards notified by the Ministry of Corporate Affairs under the Companies Act, 2013, every company that prepares Ind AS financial statements presents other comprehensive income as a distinct section within the Statement of Profit and Loss, right after the profit or loss for the year. Items such as revaluation surplus on property, actuarial gains and losses on retirement benefit obligations, fair value gains on certain financial instruments, and foreign currency translation differences all flow through other comprehensive income rather than the regular profit and loss account. For finance teams, auditors, and business owners, understanding other comprehensive income matters because it changes how the true financial position of a company should be read — a business can report a modest net profit while still carrying meaningful OCI movements that affect net worth, loan covenants, and how investors judge financial strength. What Is Other Comprehensive Income and How Is It Different From Net Income? Other comprehensive income is the set of gains and losses that Ind AS specifically requires to bypass the profit and loss account and instead move directly into equity, while net income reflects the operating and non-operating results a company earns through its ordinary business activities during the year. This is the central point in any comparison of OCI vs net income: net income (also called profit for the year) is what flows into retained earnings and drives earnings per share, while other comprehensive income sits in a separate reserve within other equity until it is either reclassified or permanently retained there. A simple way to think about what is OCI in accounting is to picture two buckets under total comprehensive income — one bucket for realised, operating results, and a second bucket for specified unrealised or non-operating movements that accounting standards do not want distorting the reported profit figure. Both buckets matter to a complete financial picture, but only the first bucket, net income, is used for profitability ratios such as return on equity based on profit, or for dividend distributable profits under the Companies Act, 2013. For example, if a manufacturing company revalues its factory building upward under the revaluation model in Ind AS 16, the resulting gain does not appear as profit. Instead, it is recognised in other comprehensive income and accumulated in a revaluation reserve, because the gain has not been realised through an actual sale. What Items Are Included in Other Comprehensive Income Under Ind AS? The items included in other comprehensive income under Ind AS are specifically listed within the applicable standards rather than left to management discretion, and each item is tied to a particular Ind AS. Revaluation surplus on property, plant and equipment recognised under the revaluation model permitted by Ind AS 16, arising when an asset’s fair value exceeds its carrying amount. Actuarial gains and losses on defined benefit plans such as gratuity, required to be remeasured and recognised in OCI under Ind AS 19, rather than smoothed through profit or loss. Fair value changes on equity instruments designated at FVTOCI under Ind AS 109, an irrevocable election available for non-trading equity investments. Fair value changes on debt instruments held under a FVTOCI business model under Ind AS 109, where both collecting contractual cash flows and selling the asset are part of the business objective. Gains and losses on effective cash flow hedges, recognised in OCI until the hedged transaction affects profit or loss. Foreign currency translation differences on foreign operations, arising when a parent consolidates a subsidiary whose functional currency differs from the group’s presentation currency, governed by Ind AS 21, and accumulated in a foreign currency translation reserve. Changes in the fair value of a financial liability attributable to changes in the entity’s own credit risk, where that liability is designated at fair value through profit or loss under Ind AS 109. 📋 Note Every item in other comprehensive income is prescribed by a specific Ind AS — companies cannot choose to route an unrelated gain or loss through OCI simply because it looks unusual or non-recurring. How Is a Statement of Other Comprehensive Income Prepared? A statement of other comprehensive income is prepared as the second section of the Statement of Profit and Loss under Ind AS 1, presented either as a single continuous statement or as two linked statements, and it separates items into those that will later be reclassified to profit or loss and those that will not. Under the single-statement approach, which most Indian companies preparing Ind AS other comprehensive income disclosures follow, the statement starts with revenue and expenses to arrive at profit or loss for the period, and then continues into an “Other Comprehensive Income” heading. Within that heading, Ind AS 1 requires two clearly labelled groups: items that will not be reclassified to profit or loss (such as revaluation surplus and actuarial gains) and items that may be reclassified subsequently (such as foreign currency translation differences

What Is Form 67 for Foreign Tax Credit? | CA Nainit Savla 📋 Tax Compliance 17 August 2026 · 9 min read What Is Form 67 for Foreign Tax Credit? Deadline, Filing Steps and the New Form 44 Explained A 2026 guide by CA Nainit Savla, Chartered Accountants, Mumbai & Hyderabad — claiming Foreign Tax Credit under DTAA, the 31 March deadline, documents, filing steps, and the switch to Form 44. NS CA Nainit Savla Chartered Accountants — Mumbai & Hyderabad • Published 17 Aug 2026 67 TILL AY 2026-27 44 FROM TY 2026-27 DEADLINE 31 MAR 2027 Foreign Tax Credit · Rule 128 · Schedule FSI & TR · DTAA relief Form 67 is the online statement a resident Indian files on the income tax portal to claim Foreign Tax Credit — the credit for tax already paid or deducted abroad on income that India also taxes. Skip it, and the same dollar of US dividend, foreign salary, or overseas freelance income gets taxed twice, because the return-processing system will not grant the credit claimed in the return without the form on record. The subject matters right now for two reasons. Returns for AY 2026-27 are being filed this season, and the form works best when it goes in before the return, with a final legal window running to 31 March 2027. And the framework itself is changing: for income earned from 1 April 2026, the same filing operates as Form 44 under the new Income Tax Act, 2025, with a proposed Chartered Accountant certification for larger claims. This guide from CA Nainit Savla, Chartered Accountants in Mumbai and Hyderabad, explains who must file, the deadline, the credit computation, the documents, and the transition. What Is Form 67 and Why Is It Needed for Foreign Tax Credit? Form 67 is the statement prescribed by Rule 128 of the Income-tax Rules for claiming foreign tax credit in India, the relief that prevents double taxation of the same income. The right to the credit comes from Section 90 or 90A where India has a Double Taxation Avoidance Agreement (DTAA) with the other country, and from Section 91 as unilateral relief where no treaty exists; the form is the procedural bridge that carries that right into the return. The reason it cannot be skipped is mechanical. The credit is claimed inside the return in Schedule TR, with the underlying foreign income disclosed in Schedule FSI, and the Centralised Processing Centre matches those schedules against the form filed on the portal. No form means no match, and the processing intimation simply drops the credit and raises a demand, however genuine the foreign tax was. Who Should File Form 67 in India? Any ordinarily resident taxpayer with foreign income that suffered tax abroad is in the frame. The foreign income of resident Indians is taxable in India on a global basis, which makes these the typical filers: 📈 Investors in US stocks and funds — the 25% withholding on US dividends is the single most common credit claimed, and the US tax reporting trail in Form 1042-S feeds straight into the form. 💼 Employees with RSUs, ESPPs, or foreign payroll — tax withheld abroad on equity vesting or on salary for a stint outside India is creditable, routine work in expatriate taxation. 🌐 Freelancers and consultants with foreign clients — withholding deducted by overseas payers on professional fees qualifies, subject to the treaty article for the income. 🏠 Returning NRIs who have become ordinarily resident — once RNOR protection ends, foreign pensions, rentals, and investment income enter the return, and every returning Indian with taxed foreign income needs the credit. 🏢 Companies and firms with overseas income — branch profits, foreign royalties, and service income taxed abroad carry the same credit, including against MAT. What Is the Deadline for Filing Form 67? The legal deadline is the end of the relevant assessment year: for AY 2026-27, income of FY 2025-26, the form can go in up to 31 March 2027, provided the return itself was filed within the time allowed by Section 139(1) or Section 139(4). This relaxed window has applied since the CBDT’s 2022 amendment; before that, the form had to precede the original return due date. The working rule is stricter than the legal one: file the form before the return. When the form is already on the portal at the time the return is processed, the credit matches automatically; when it follows the return, disallowance in the intimation is common and must then be unwound through rectification. For an updated return, the sequence is mandatory, with the form filed before the updated return is furnished. Tribunal decisions have repeatedly treated the timing requirement as procedural, refusing to let a genuine treaty credit lapse for a late form, but that protection is a litigation remedy, not a filing strategy. How Much Foreign Tax Credit Can You Claim Through Form 67? The credit equals the lower of the foreign tax paid and the Indian tax payable on that same income, computed separately for each source of income from each country and then aggregated. Foreign figures convert to rupees at the TTBR exchange rate, the State Bank of India’s Telegraphic Transfer Buying Rate on the last day of the month before the month in which the tax was paid or deducted. Four boundaries shape the number. The credit sets off against tax, surcharge, and cess, but never against interest, fees, or penalties. Foreign tax that is under dispute abroad is not creditable until the dispute settles and evidence is furnished. Credit is available even where the Indian liability arises under MAT. And treaty rates apply only when the treaty applies, which is also why Indian investors give a tax residency certificate to foreign payers to get the correct withholding at source, keeping the eventual double taxation relief clean at both ends. What Changes From 2026? Form 67 Becomes Form 44 For income earned from 1 April 2026, Tax Year 2026-27 under the Income-tax