Better Alternatives to ClearTax for Online Feature to File ITR (FY 2024-25 & FY 2025-26)

Farheen Mukadam
Jul 9
10 min read

In 2025, taxpayers looking for alternatives to ClearTax for filing their Income Tax Returns (ITR) can benefit from two strong options: TaxBuddy and the Income Tax Department’s official e-filing portal. These platforms offer distinct advantages, from expert assistance to seamless AI-powered automation. Both cater to a variety of needs, ensuring a smooth, secure filing experience. Here’s a detailed look at each option.

For those seeking simplicity, convenience, and expert-backed support, TaxBuddy shines as a premium alternative, while the government portal remains a reliable choice for those comfortable with self-service options.

Income Tax Department’s Official e-Filing Portal
TaxBuddy: AI-Powered, Expert-Assisted ITR Filing Platform
Comparison Summary: TaxBuddy vs ClearTax
Conclusion
FAQs

Income Tax Department’s Official e-Filing Portal

Key Features of the Official e-Filing Portal

The Income Tax Department’s official e-filing portal (available at www.incometax.gov.in) is India’s government-backed, no-cost platform for filing Income Tax Returns (ITR). It offers several key features that make it a preferred choice for many taxpayers:

Free Filing: All ITR forms, including ITR-1, ITR-2, ITR-3, ITR-4, and others, can be filed completely free of charge. There are no hidden charges or subscription fees, which is ideal for individuals who wish to file their returns without any additional costs.
Pre-Filled Forms: The portal helps reduce manual entry errors by offering pre-filled forms. Data such as income, tax deductions, and tax payments can be automatically pulled from Form 26AS, your PAN, and Aadhaar numbers, making the filing process much quicker and more accurate.
Multiple E-Verifications: To ensure secure filing, the government’s portal offers multiple e-verification options. This includes Aadhaar OTP, net banking, and bank account validation, which make it easy for users to authenticate their returns and complete the filing process.
Real-Time Refund Tracking: After submitting the return, the portal provides real-time tracking for refund status. Taxpayers can check the progress of their refunds, which is especially useful for those who are expecting a refund and want to monitor its progress.
Dedicated Customer Support: The portal offers extensive support with an integrated FAQ section, detailed tutorials, and a helpdesk to guide users through the filing process.
Compliance with Latest Tax Laws: The e-filing portal is regularly updated to comply with the latest amendments in the Income Tax Act, including changes introduced in the Budget and applicable for FY 2024-25 and FY 2025-26. Taxpayers can be confident that their filings are aligned with current tax laws.
Extended Deadlines: The portal accommodates extended filing deadlines for those who file returns after the due date, ensuring that taxpayers are not penalized if they miss the regular deadline (e.g., the extended deadline for FY 2024-25 is September 15, 2025).

Why Choose the Government’s Official Portal?

The Income Tax Department’s e-filing portal remains a popular choice due to its direct integration with the government and its no-cost offerings. Here’s why many prefer to use this portal:

Government-Backed and Reliable: Since this platform is run by the Indian government, it provides a level of trust and security that is hard to match. You can be assured that your data is handled in full compliance with the law, and all transactions are securely processed.
Free of Charge: Unlike other third-party platforms, the official portal allows free filing of your returns. This makes it a great option for individuals who have simple tax situations and want to avoid paying extra fees for filing services.
Convenience for Self-Filers: For individuals comfortable with self-filing, the portal offers all the necessary tools and resources, such as pre-filled forms, FAQs, and guides, to simplify the process. It is particularly beneficial for taxpayers with simple income streams such as salaries or interest income, who can easily file their returns on their own.
Real-Time Refund Updates: The portal gives you the advantage of tracking the status of your refund in real time, helping you keep tabs on the process and plan accordingly.
Accuracy and Compliance: Since it directly integrates with the Income Tax Department’s system, the portal ensures that your return is fully compliant with all tax regulations and standards. This reduces the chances of errors and increases the likelihood of smooth processing and quick refunds.

While the portal may not be as intuitive as some commercial services, its reliability, affordability, and government-backed nature make it a solid option for those looking for a free and secure filing platform.

TaxBuddy: AI-Powered, Expert-Assisted ITR Filing Platform

Why TaxBuddy is a Better Alternative

TaxBuddy offers a comprehensive solution for tax filing, combining the power of AI automation with expert support from Chartered Accountants (CAs). Here’s why TaxBuddy is an ideal choice for individuals looking for a smarter, more personalized approach to filing taxes:

AI-Driven Automation: TaxBuddy’s AI automatically populates your ITR forms by analyzing your uploaded documents (such as Form 16, salary slips, and more). This saves significant time by eliminating the need for manual data entry, and the AI also ensures that any potential errors are detected and corrected.
Expert Assistance: Unlike the self-service options available on many platforms, TaxBuddy offers personalized assistance from tax experts. Whether you're a salaried individual, freelancer, or business owner, TaxBuddy has experts ready to guide you through complex tax situations, ensuring that your return is filed accurately and optimally.
Post-Filing Support: One of the standout features of TaxBuddy is its post-filing support. Unlike many competitors, TaxBuddy provides free assistance for 365 days post-filing, including handling notices from the Income Tax Department and answering any tax-related queries. This makes it an excellent option for taxpayers who prefer ongoing support even after filing their returns.
Transparent Pricing: TaxBuddy offers fixed pricing with no hidden charges. With DIY filing plans starting at ₹699 and expert-assisted plans beginning at ₹999 (exclusive of GST), TaxBuddy provides clear pricing, making it an affordable and transparent option for tax filing.
Comprehensive Coverage for Complex Returns: TaxBuddy is ideal for individuals with complex tax returns, such as those involving capital gains, foreign income, cryptocurrency investments, and F&O trading. These types of income require specialized knowledge, and TaxBuddy ensures that your return is filed with the appropriate expertise.
Mobile-Friendly: TaxBuddy’s mobile app allows users to file returns on the go, making the entire process more convenient and accessible. The app is seamlessly integrated with the Income Tax Department’s e-filing portal, allowing you to track your refund status and complete your filing process efficiently.

Features and Benefits of Using TaxBuddy for ITR Filing

AI-Powered Automation: Quickly upload documents like Form 16 and tax receipts, and TaxBuddy’s AI will auto-populate your forms, optimizing your deductions and ensuring accuracy. This feature reduces the risk of human error and saves valuable time.
End-to-End Support: Whether it’s a simple ITR-1 for salaried employees or a more complex ITR-3 for freelancers and business owners, TaxBuddy offers full-service assistance from document collection to form submission and post-filing support.
Expert Tax Guidance: With access to qualified tax experts, TaxBuddy ensures that your filing is done in compliance with the latest tax laws. Taxpayers can ask questions directly to their assigned expert, ensuring clarity and peace of mind during the filing process.
Cost-Effective Plans: TaxBuddy’s affordable pricing structure makes it a budget-friendly option for both DIY filers and those seeking professional help. The transparent pricing structure ensures that you know exactly what you're paying for, with no hidden fees.
Comprehensive Coverage for All Income Types: TaxBuddy is equipped to handle multiple income sources, such as capital gains, foreign income, and cryptocurrency earnings, ensuring that all of your taxable income is accurately reported and optimized.
Post-Filing Support: TaxBuddy provides free, expert assistance throughout the entire year, including help with handling any post-filing notices or inquiries from the Income Tax Department. This service adds great value for those who may need additional guidance after filing their returns.

Comparison Summary: TaxBuddy vs Income Tax Department’s Official e-Filing Portal

Why TaxBuddy Stands Out

While the Income Tax Department’s e-filing portal provides a reliable, free, and secure way to file your returns, TaxBuddy brings added value with its AI-powered automation, personalized expert support, and post-filing assistance.

AI Automation: TaxBuddy’s AI technology helps fill forms faster and more accurately, detecting potential errors before they occur. The government portal, on the other hand, offers pre-filled forms but requires users to manually verify and complete their returns.
Expert Assistance: TaxBuddy stands out by offering access to professional Chartered Accountants who guide you throughout the filing process. This is especially helpful for individuals with more complex tax situations, such as multiple income sources or foreign earnings, which the official portal doesn’t provide.
Post-Filing Support: TaxBuddy’s free post-filing support for up to a year is a major advantage over the government portal. The official portal doesn’t offer any post-filing assistance unless you opt for paid services.
Pricing: TaxBuddy provides transparent and fixed pricing plans for both self-filing and expert-assisted filing. The Income Tax Department’s portal is free to use but offers limited support unless taxpayers seek additional services.

Conclusion

When considering alternatives to ClearTax for filing your ITR in 2025, both TaxBuddy and the Income Tax Department’s official e-filing portal stand out as solid choices. If you’re comfortable with self-filing and prefer a government-backed, free solution, the official portal is ideal. However, for individuals seeking a more personalized, AI-driven, and expert-assisted filing experience, TaxBuddy offers the convenience of seamless automation combined with professional support.

For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile appfor a simplified, secure, and hassle-free experience.

FAQs

Q1. What makes TaxBuddy different from the official Income Tax e-filing portal?

TaxBuddy combines AI-powered automation with expert tax support, offering a more personalized experience compared to the Income Tax Department's official e-filing portal, which primarily caters to self-filers. With TaxBuddy, you get AI assistance for document uploads, error detection, and personalized guidance from experts, making it ideal for complex returns, while the official portal is best suited for simple returns without much guidance.

Q2. How does TaxBuddy simplify tax filing for individuals with multiple income sources or investments?

For individuals with multiple sources of income such as freelance work, capital gains, or foreign income, TaxBuddy offers tailored assistance. The platform automatically detects these income streams and provides dedicated expert support to ensure that all income sources are accurately reported, minimizing the risk of errors. TaxBuddy’s AI-powered automation optimizes tax calculations, ensuring no deductions or exemptions are missed.

Q3. Can I use the official e-filing portal if I am not comfortable with filing taxes myself?

While the Income Tax Department’s e-filing portal is a great free resource, it is best suited for individuals who are comfortable with the filing process. It does not provide expert support or detailed guidance, which means users need to be familiar with tax laws and forms. For those who want help and prefer personalized assistance, TaxBuddy is a better option as it combines expert support with AI-powered automation.

Q4. How do I know if TaxBuddy is the right option for me?

If you are looking for a hassle-free experience with error-free filing, post-filing support, and personalized guidance for any complex tax scenarios (e.g., multiple income sources, capital gains, or foreign income), TaxBuddy is the right option. It’s designed for those who want a seamless process and don’t want to worry about handling everything themselves. If you’re looking for a free, government-backed option for simple returns, the official e-filing portal might be more suitable.

Q5. Are there any hidden charges when filing through TaxBuddy?

TaxBuddy offers transparent pricing with no hidden charges. Whether you choose the DIY plan starting at ₹699 or an expert-assisted plan starting at ₹999, you know exactly what you're paying for. The platform is upfront about its pricing, and all charges are displayed before you make a payment, so you can decide the best plan for your needs without worrying about additional fees.

Q6. Is the official e-filing portal secure for filing taxes?

Yes, the official Income Tax Department’s e-filing portal is highly secure. It uses multiple layers of encryption and provides secure methods of e-verification (such as Aadhaar OTP and net banking) to ensure that your personal and financial information is protected. However, if you're concerned about errors or require guidance through the process, TaxBuddy offers a more hands-on approach with expert assistance, while also ensuring data security.

Q7. How does the mobile app of TaxBuddy enhance the filing experience?

TaxBuddy’s mobile app provides a convenient way to file taxes on the go. You can upload documents directly from your phone, access your filing status, and even receive reminders for key tax dates. The app integrates seamlessly with the Income Tax Department’s official portal, ensuring smooth e-filing, real-time tracking of your refund, and providing you access to post-filing support if needed. The ease of filing on mobile adds an extra layer of convenience.

Q8. Does TaxBuddy handle more than just the basic ITR forms?

Yes, TaxBuddy specializes in handling a wide range of complex returns, including capital gains, foreign income, cryptocurrency earnings, and F&O trading. TaxBuddy offers specialized plans for users with complex tax situations, ensuring that all deductions, exemptions, and incomes are reported accurately, even if they involve intricate tax rules.

Q9. Can I file taxes on my own if I choose TaxBuddy's expert-assisted service?

While TaxBuddy offers expert assistance, the platform allows you to choose the level of support you need. You can file your taxes yourself with guidance from the experts at TaxBuddy or let them handle the process entirely. The expert-assisted plans are designed to provide you with the peace of mind that your taxes are being filed accurately, especially when dealing with complex income sources.

Q10. What kind of post-filing assistance does TaxBuddy provide?

TaxBuddy offers post-filing support for up to 365 days, which includes help with notices from the Income Tax Department, tax-related queries, and error corrections after submission. This service is unique compared to other platforms, providing peace of mind and additional assistance long after the filing is completed.

Q11. How does the official e-filing portal handle ITR errors?

The official e-filing portal does not offer post-filing support for handling errors once the return has been filed. If you make an error or receive a notice from the Income Tax Department, you would have to resolve the issue on your own or seek additional paid services. In contrast, TaxBuddy offers error detection during the filing process and post-filing support for up to a year to resolve any issues that may arise.

Q12. Can TaxBuddy assist with handling tax-related notices from the Income Tax Department?

Yes, TaxBuddy provides comprehensive post-filing support, which includes handling tax notices and answering any tax-related queries you may have after filing. If the Income Tax Department issues a notice related to your return, TaxBuddy’s experts will assist you in resolving the issue and guide you on the next steps. This service ensures that taxpayers don’t have to navigate the complexities of notices and potential audits on their own.