Assisted Filing vs DIY for Choosing the Right Regime

Assisted filing and DIY filing each offer distinct benefits when it comes to choosing the right income tax regime under the Indian Income Tax Act, 1961. The decision affects overall compliance, accuracy of reporting, and the ability to optimise deductions and exemptions. With evolving rules, adjusted tax slabs, and shortened compliance timelines, selecting between the old and new regimes is not just about saving tax but also about avoiding errors. Platforms like TaxBuddy help simplify this choice by offering both self-filing and expert-assisted options, ensuring taxpayers receive clarity and support tailored to their needs.

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Table of Contents

• Assisted Filing vs DIY: Overview

• Key Factors in Choosing the Filing Method

• Choosing the Right Regime with Assisted Filing

• DIY Filing and Regime Selection

• TaxBuddy’s Role in Simplifying Filing

• Conclusion

• FAQs

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Assisted Filing vs DIY: Overview

When it comes to filing income tax returns, taxpayers can choose between assisted filing and DIY (do-it-yourself) filing. Assisted filing involves engaging tax professionals or using expert-supported platforms where specialists handle documentation, verify compliance, and guide regime selection. This option ensures that the return is filed accurately while considering the latest amendments in the Income Tax Act. DIY filing, on the other hand, is more suitable for individuals with straightforward income structures, such as salaried employees with limited deductions. It involves filing directly on the government portal or using private websites, where the taxpayer is responsible for entering details and choosing the regime. Both approaches have advantages, but the right choice depends on the taxpayer’s income complexity, familiarity with tax rules, and comfort level with compliance.

Key Factors in Choosing the Filing Method

Several important considerations determine whether assisted filing or DIY filing is the right approach for a taxpayer. One of the most significant is the complexity of income and deductions. A salaried individual with a single income source and limited deductions under sections like 80C or 80D may find DIY filing more than sufficient. However, taxpayers with multiple income streams, such as freelance earnings, capital gains from investments, or rental income, often face additional reporting requirements and calculations. In these cases, assisted filing is more suitable because professionals can accurately handle the interplay between income sources, deductions, and the choice of tax regime.

Accuracy and compliance requirements also play a major role. DIY filing places the responsibility entirely on the taxpayer to interpret the rules and apply them correctly. Errors such as misreporting TDS, overlooking interest earned from savings or deposits, or missing exemptions available under the old tax regime are common among those filing on their own. Assisted filing minimizes these risks, as experts stay updated with amendments in the Income Tax Act and ensure that returns are filed correctly in line with the latest guidelines.

Time and effort involved in the filing process is another factor. For DIY filers, gathering all relevant documents, reconciling income details, understanding new tax slabs, and making decisions about regime switching can take considerable time and focus. This may be manageable for individuals who are financially aware and have straightforward tax situations. For those with busier schedules or more complex cases, assisted filing can save a significant amount of time. Professionals take on the responsibility of organizing information, validating data, and ensuring the return is filed smoothly, reducing the overall burden on the taxpayer.

Cost comparison is also a practical consideration. Filing through the official government portal is free of charge, and some private portals offer basic DIY services at a minimal cost. Assisted filing, by contrast, typically comes with higher fees since it includes the involvement of experts. However, the value of assisted filing goes beyond the immediate cost. Professional guidance helps taxpayers claim all eligible deductions, avoid penalties caused by mistakes, and choose the most beneficial regime, which can lead to overall savings that outweigh the fees paid for assistance.

Choosing the Right Regime with Assisted Filing

One of the biggest advantages of assisted filing is professional guidance in selecting between the old and new tax regimes. Experts analyze salary structures, investments, exemptions, and rebates to identify which regime provides the maximum tax benefit. For example, under the old regime, taxpayers can claim deductions such as HRA, Section 80C, and Section 80D, while the new regime offers simplified slabs with fewer deductions. Assisted filing ensures that these calculations are done correctly and updated to reflect the latest Budget amendments. It is particularly helpful for taxpayers with multiple income sources, as regime choice can directly affect overall tax liability.

DIY Filing and Regime Selection

DIY filing works best for salaried individuals with minimal deductions and no additional income streams. The government portal provides pre-filled forms and comparators that allow taxpayers to check the difference between the old and new regimes. However, DIY filing comes with risks. Taxpayers may misreport income, fail to claim deductions they are eligible for, or choose a regime without fully understanding the impact. For example, missing out on reporting bank account interest or not declaring rental income can lead to notices. While DIY filing is cost-efficient, it requires diligence, accuracy, and a thorough understanding of both regimes.

TaxBuddy’s Role in Simplifying Filing

TaxBuddy provides an integrated platform where taxpayers can choose between self-filing and expert-assisted filing. Its AI-driven system helps identify errors, auto-fills key details, and validates TDS information in real time. For taxpayers who start with DIY but later face complexities, TaxBuddy allows seamless switching to assisted filing without losing progress. The platform also provides updated regime comparison tools to ensure accurate decision-making. With the growing importance of compliance and frequent amendments in the tax system, TaxBuddy offers a reliable way to balance cost, convenience, and accuracy.

Conclusion

The decision between assisted filing and DIY depends largely on complexity, confidence, and risk appetite. For simple salary-based income, DIY is convenient and economical. For more complex returns, assisted filing offers expertise, reduces the chance of errors, and helps optimize regime selection. Platforms like TaxBuddy make this process flexible by allowing both filing methods on a single platform, ensuring accuracy and peace of mind. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides taxpayers with the flexibility to choose between self-filing and expert-assisted plans. In the self-filing mode, users can upload documents such asForm 16, bank statements, and TDS certificates, and the platform’s AI-powered system automatically fills in the relevant fields, performs real-time checks, and validates TDS entries. For those who have more complex returns involving multiple income sources, capital gains, or regime-related decisions, the expert-assisted plan ensures that professional tax specialists review every detail. This dual offering caters to both individuals comfortable with managing their own filing and those who prefer professional support.

Q2. Which is the best site to file ITR? The Income Tax Department portal is the official site to file ITR, but private platforms offer additional convenience and guidance. Among them, TaxBuddy stands out because of its AI-driven automation, in-built error detection, and expert support for regime selection. Unlike many platforms that only provide self-filing, TaxBuddy gives users the choice of assisted filing with tax professionals, ensuring a higher level of accuracy. Its tools for regime comparison, TDS validation, and auto-filling make the process efficient while minimizing risks of errors or omissions.

Q3. Where to file an income tax return? An income tax return can be filed either on the government’s official portal (incometax.gov.in) or through reliable third-party platforms. While the official portal is free and suitable for those confident about their knowledge of tax rules, platforms like TaxBuddy simplify the process by offering AI assistance, automatic error checks, and professional support. Filing through such platforms is particularly beneficial for those who want peace of mind, convenience, and expert guidance on regime choice and deductions.

Q4. Can I switch from DIY to assisted filing mid-way? Yes, platforms like TaxBuddy allow seamless switching between filing modes. A taxpayer can begin the process in DIY mode, upload documents, and explore the platform’s automated features. If the case turns out to be more complex than expected—such as identifying regime benefits, reporting capital gains, or reconciling bank interest—the user can upgrade to assisted filing at any stage. The platform retains the data already entered, meaning there is no need to start from scratch. This flexibility ensures that taxpayers are not locked into one mode and can adapt according to their filing needs.

Q5. What’s the main risk of choosing DIY? DIY filing works well for individuals with straightforward salary income and limited deductions, but the risks increase as complexity grows. The main concerns include misreporting income (such as interest from savings accounts or multiple bank deposits), missing eligible deductions, and misunderstanding the differences between old and new regimes. Since tax laws change frequently, DIY filers may not be aware of the latest amendments. These errors can lead to delayed refunds, notices from the Income Tax Department, or even penalties.

Q6. How do assisted filing experts help with regime choice? Choosing between the old and new tax regimes is one of the most critical steps in filing. Assisted filing experts analyze salary structures, deductions, investments, and applicable exemptions to recommend the regime that minimizes tax liability. For instance, a taxpayer with high deductions under Section 80C, HRA, and medical insurance might benefit more from the old regime, whereas someone with fewer deductions may find the new regime advantageous. Assisted experts ensure these calculations are accurate, updated with the latest Budget changes, and tailored to the taxpayer’s specific situation.

Q7. What documents must DIY filers prepare before regime selection? DIY filers should organize all necessary documents before beginning the filing process. These include Form 16 (for salaried employees), Form 26AS and AIS (for verifying income and TDS reported to the Income Tax Department), bank statements (to capture interest income), and investment proofs for deductions under sections like 80C (PPF, ELSS, LIC) and 80D (medical insurance). For those with rental or freelance income, records of receipts, expenses, and loan interest certificates are also essential. Having these documents ready reduces the risk of missing income or deductions when choosing between regimes.

Q8. What’s the cost difference between DIY and assisted filing? DIY filing through the Income Tax Department’s portal is free of charge. Some private platforms offer basic self-filing services for as low as ₹200–300, depending on the features included. Assisted filing, however, comes at a higher cost, typically ranging between ₹1,000 and ₹2,000 depending on the complexity of the return and the platform. Although it involves additional expense, assisted filing helps avoid costly mistakes, ensures correct regime selection, and minimizes the risk of penalties or notices, often saving more money in the long run.

Q9. How do assisted filing platforms prevent errors? Platforms like TaxBuddy combine AI-driven automation with expert oversight to minimize filing mistakes. The system auto-validates TDS data, checks consistency between AIS, Form 26AS, and reported figures, and highlights discrepancies that need correction. Expert-assisted plans go further, with professionals reviewing entries, ensuring deductions are correctly applied, and validating regime choice. This dual approach significantly reduces the likelihood of errors such as misreporting income, overlooking exemptions, or entering incorrect amounts.

Q10. Is DIY filing suitable for business owners and freelancers? DIY filing can be risky for business owners or freelancers due to the variety of income streams and deductions involved. Freelancers often need to account for professional expenses, GST compliance, and Section 44ADA benefits, while business owners must reconcile sales, purchases, and depreciation. In such cases, assisted filing is more appropriate as experts can handle the intricacies, ensure accurate reporting, and guide the selection between regimes. DIY filing may only be suitable for business owners with very simple and limited income sources.

Q11. Can taxpayers change regimes after filing? Once an income tax return is filed and verified, the regime chosen for that financial year cannot be changed. For individuals with salary income, regime choice can be changed each year before filing, but not afterward. Business owners have more restrictions, as once they opt for the new regime, they are locked in unless they switch back permanently under specific conditions. Assisted experts help taxpayers finalize the correct regime before submission, avoiding regrets or missed opportunities.

Q12. How does TaxBuddy ensure secure and smooth filing? TaxBuddy ensures a seamless filing experience through a combination of advanced technology and professional support. The platform uses secure servers and encryption to protect sensitive data, while its AI-driven features validate entries, check for mismatches, and prevent errors in real time. The interface is designed to be user-friendly, allowing taxpayers to upload documents easily, access pre-filled forms, and compare regimes with clarity. In assisted mode, tax professionals provide end-to-end support, making the process both secure and stress-free.