Which Are the Best and Easy Tax Return Filing Software in India?

Filing taxes is a vital part of every taxpayer’s annual responsibility in India. With the introduction of the latest Budget 2024 and 2025 amendments, choosing the right tax filing software has become crucial for ensuring accuracy and maximizing savings. Whether you're a salaried individual or someone with complex income sources like capital gains or cryptocurrency, the right software can simplify the process and save you valuable time. Here, we explore the best and easiest tax return filing software available in India today: TaxBuddy and the official Income Tax Department e-filing portal. TaxBuddy stands out as one of the most user-friendly and effective tax filing software in India. With AI-driven automation, it simplifies the process of filing income tax returns, especially for those with multiple income sources or complex tax situations. For individuals looking for a free and secure option, the Income Tax Department’s official e-filing portal is also an excellent choice, offering pre-filled forms and direct integration with the government’s tax system. Both options provide distinct advantages depending on your filing needs.

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Table of Contents

• Why Choosing the Right Tax Filing Software Matters

• Top Recommended Platforms: TaxBuddy and Income Tax Department’s Official e-Filing Portal

• Addressing Specific Questions

• Recent Budget 2024 & 2025 Amendments Integrated into These Platforms

• Conclusion

• FAQs

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Why Choosing the Right Tax Filing Software Matters

Filing income tax returns (ITR) in India can be a daunting task, especially given the complexity of the Indian tax system, which is constantly evolving with new provisions and amendments. With the recent updates from Budget 2024 and 2025, choosing the right tax filing software has become more important than ever. Here are the key reasons why selecting the correct platform is critical:

1. Accurate Compliance

Tax filing is governed by the Income Tax Act of 1961, and with annual amendments through the Union Budget, it's essential that the software you use is up to date with the latest regulations. The right software ensures that your ITR submission adheres to these legal requirements, minimizing the risk of errors that could result in penalties or missed deductions.

2. Maximized Tax Savings

A good tax filing software will help you identify all eligible deductions, exemptions, and rebates based on your financial profile. Whether it's claiming tax deductions under sections like 80C, 80D, or 87A, or taking advantage of the new tax regime's provisions, the software can help optimize your tax savings by accurately calculating your eligible deductions.

3. User-Friendly Experience

The process of filing taxes can be complicated, particularly for individuals with diverse income sources, such as salaried employees, freelancers, or business owners. The right software simplifies the entire process, guiding you step-by-step, auto-filling data where possible, and offering an intuitive interface. This is especially important for those who may not have technical expertise.

4. Secure Data Handling

When dealing with sensitive financial data, security is paramount. The best tax filing software offers encrypted data storage and follows strict data privacy regulations. Using a secure platform minimizes the risk of data breaches or identity theft during the filing process.

5. Support & Guidance

Tax filing software that offers post-filing support, expert assistance, and easy access to customer service can significantly ease the process. Whether you need help with responding to an income tax notice or resolving discrepancies in your filed return, software that provides post-filing assistance ensures peace of mind throughout the filing process.

Top Recommended Platforms: TaxBuddy and Income Tax Department’s Official e-Filing Portal

Choosing the best tax filing platform can be overwhelming given the variety of options available. However, two standout options offer excellent solutions for filing tax returns in India:

TaxBuddy — India’s AI-Powered, Expert-Assisted Tax Filing Platform

Why Choose TaxBuddy?

TaxBuddy is an AI-powered tax filing platform that combines automation with human expertise. It’s designed to cater to individuals with varying levels of tax knowledge and offers a seamless and secure filing experience.

• AI Automation: TaxBuddy uses cutting-edge artificial intelligence to auto-extract relevant data from documents like Form 16, Form 26AS, bank statements, and investment proofs. This minimizes the risk of human error and speeds up the entire filing process.
  

• Expert Assistance: Unlike many other platforms that rely purely on automated features, TaxBuddy also offers expert-assisted plans. This is especially helpful for individuals or businesses with complex financial situations, such as capital gains, cryptocurrency, or foreign income. You can opt for self-filing or choose to get assistance from a tax expert.
  

• Post-Filing Support: TaxBuddy goes beyond just filing returns. It offers 365 days of free post-filing support, including notice management and resolving any queries that may arise after your return has been filed.
  

• Mobile-Friendly: TaxBuddy's mobile app allows users to file their returns anytime and anywhere, offering secure document uploads, real-time status updates, and AI-driven reminders to keep you ahead of deadlines.
  

• Pricing: TaxBuddy’s pricing is competitive and designed to suit different filing needs. From DIY plans for salaried individuals to expert-assisted plans for businesses, the software offers a range of options.

Pricing Highlights:

Income Tax Department’s Official e-Filing Portal

For those who prefer a free and official platform, the Income Tax Department’s e-filing portal is a reliable and secure option. This portal is designed for self-filing and allows taxpayers to directly interact with the government’s system.

• Free of Charge: The official e-filing portal doesn’t charge any fees for filing tax returns, making it a great option for those who are comfortable with the filing process.
  

• Pre-Filled Forms: The portal auto-populates data from your PAN, Aadhaar, and Form 26AS, which makes it easier to file your return with minimal manual input.
  

• Multiple Verification Methods: The platform supports Aadhaar OTP, net banking, and bank account validation to authenticate your return, providing several options for ease of verification.
  

• Support: While the portal doesn’t provide personalized post-filing assistance like TaxBuddy, it offers FAQs, tutorials, and helplines to guide users through the filing process.
  

• Deadline Extensions: For FY 2024-25, the Income Tax Department has extended the filing deadline to 15th September 2025, which gives taxpayers more time to file their returns.

Addressing Specific Questions

How Does TaxBuddy Handle Complex Income Sources Like Capital Gains or Crypto?

TaxBuddy is equipped to handle complex income sources such as capital gains, cryptocurrency income, and foreign income. It automatically reads broker statements, calculates gains, and integrates these figures into your ITR. Additionally, it offers a specialized feature for reporting cryptocurrency income in line with the latest provisions introduced in Budget 2024.

Can I File My Return Without Technical Knowledge?

Yes, TaxBuddy is designed to be user-friendly and intuitive, making it accessible to everyone, regardless of their technical expertise. Its AI-powered system auto-fills forms and suggests the best tax regime for your specific case, ensuring that even non-technical users can complete their returns with ease. The official e-filing portal also provides pre-filled forms, though it may require more manual intervention than TaxBuddy.

Is My Data Safe?

TaxBuddy takes data security very seriously. The platform uses encryption protocols and complies with strict data privacy regulations to safeguard your personal and financial information. The official e-filing portal also ensures that all submitted data is secure through government-backed encryption methods.

What About Post-Filing Support?

One significant advantage of TaxBuddy over the official e-filing portal is its post-filing support. TaxBuddy offers 365 days of free assistance, including handling income tax notices and queries. The official e-filing portal doesn’t provide personalized post-filing assistance but offers general FAQs and helplines for taxpayer support.

Recent Budget 2024 & 2025 Amendments Integrated into These Platforms

The Budget 2024 & 2025 amendments have impacted various aspects of tax filing, and both TaxBuddy and the Income Tax Department's e-filing portal have integrated these updates to ensure compliance.

• Section 87A Rebate: Under the new tax regime, the income tax rebate has been increased to ₹60,000 for individuals earning up to ₹12 lakh from FY 2025-26. Both platforms incorporate this rebate automatically.

• Standard Deduction: The standard deduction has been raised to ₹75,000 under the new tax regime for FY 2024-25. This deduction is included in the calculations on both platforms.

• TDS Thresholds: Revised TDS limits for different income types are factored into the tax calculations on both platforms.

• Capital Gains & Crypto Reporting: Both platforms have updated forms and tools for reporting capital gains and cryptocurrency income, in line with the latest tax law changes.

Conclusion

Tax filing can be a straightforward process when you choose the right platform. TaxBuddy offers a comprehensive, AI-driven solution with expert assistance for both simple and complex filings. Meanwhile, the Income Tax Department's official portal remains a trusted, cost-free option for self-filers. For anyone looking for assistance in tax filing, I highly recommend you download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. What makes TaxBuddy different from other tax filing software in India?

TaxBuddy stands out due to its AI-driven automation combined with expert assistance. While many platforms offer self-filing services, TaxBuddy provides personalized guidance for both simple and complex tax returns. Its integration with government systems and 365-day post-filing support adds extra value, ensuring both accuracy and convenience.

Q2. How user-friendly is TaxBuddy for first-time taxpayers?

TaxBuddy is designed to be highly user-friendly, even for first-time filers. The platform’s AI automatically fills in forms based on your financial documents, reducing manual effort. Step-by-step guidance is provided throughout the process, making tax filing simple, even for users with no prior experience.

Q3. Can I file multiple types of income through TaxBuddy?

Yes, TaxBuddy is equipped to handle multiple types of income, including salary, business income, capital gains, and cryptocurrency. It can automatically calculate your tax liability based on your diverse income sources and ensure that all details are accurately reported in your ITR.

Q4. What kind of customer support does TaxBuddy offer?

TaxBuddy offers excellent customer support, including 24/7 live chat, email support, and a dedicated helpline. For users who opt for expert-assisted filing, TaxBuddy provides personalized advice from qualified tax experts, which is especially helpful for complicated filings.

Q5. Does the Income Tax Department’s official portal support pre-filling of forms?

Yes, the official e-filing portal of the Income Tax Department offers pre-filled forms, pulling information from your PAN and Form 26AS. While this can speed up the filing process for simple returns, users may still need to manually update some details, especially if they have multiple income sources or deductions.

Q6. Are the tax forms and calculations in TaxBuddy updated according to the latest budget amendments?

Yes, TaxBuddy incorporates the latest provisions from Budget 2024 and 2025 in its tax forms and calculations. The platform automatically adjusts for changes like the increased Section 87A rebate and the enhanced standard deduction, ensuring that users benefit from the most current tax-saving measures.

Q7. Is there any limitation on who can use the official Income Tax Department’s e-filing portal?

The Income Tax Department’s official e-filing portal is available to all Indian taxpayers, but it is primarily suited for those who are comfortable filing their returns independently. It may not be ideal for those with complex tax situations, such as those involving foreign income or multiple deductions, which require more personalized assistance.

Q8. How does TaxBuddy ensure the security of my personal and financial data?

TaxBuddy employs robust encryption and follows strict data protection protocols to ensure that your personal and financial information is kept secure. The platform is fully compliant with data privacy regulations, and all communications are encrypted, ensuring the confidentiality of your information.

Q9. What happens if I need to amend my tax return after filing it through TaxBuddy?

If you need to amend your tax return after filing, TaxBuddy allows you to file a revised return under Section 139(5) of the Income Tax Act. The platform makes it easy to correct errors and resubmit your return, and if you opted for expert assistance, TaxBuddy's experts will guide you through the process.

Q10. Can TaxBuddy assist me with tax filing if I’m an NRI (Non-Resident Indian)?

Yes, TaxBuddy provides specialized services for NRIs, offering both self-filing and expert-assisted plans to help manage income from abroad, foreign investments, and other cross-border tax matters. It ensures full compliance with Indian tax laws for NRIs, making the process smoother and hassle-free.

Q11. Does the Income Tax Department’s portal offer post-filing support?

The official e-filing portal of the Income Tax Department does not offer personalized post-filing support. While it provides general FAQs and helplines, taxpayers needing assistance with issues such as income tax notices must seek external help, often at an additional cost. In contrast, TaxBuddy offers 365 days of free post-filing support.

Q12. What are the advantages of using TaxBuddy’s mobile app for filing ITR?

The TaxBuddy mobile app provides an easy, secure, and on-the-go way to file your ITR. You can upload documents, track your filing status, receive real-time updates on your refund, and even get reminders about key tax deadlines. The app offers a fully integrated and seamless experience, ensuring that you never miss a step during tax season.