What Are the Default Settings in TaxBuddy for FY 2025-26?
- Rajesh Kumar Kar
- Sep 16
- 9 min read
Filing Income Tax Returns (ITR) can often feel complex, especially with frequent changes in tax laws, slabs, and deductions. TaxBuddy simplifies this process for taxpayers by providing an intuitive, AI-driven platform that helps calculate taxes, select the most beneficial regime, and auto-populate ITR forms with minimal effort. The platform is designed to reduce errors, save time, and streamline filing for individuals, professionals, and small businesses. With pre-configured defaults for deductions, exemptions, and document uploads, TaxBuddy ensures accurate filing while maximising tax benefits. In addition, its mobile app allows taxpayers to file returns securely from anywhere.
Table of Contents
Default Tax Regime in TaxBuddy for FY 2025-26
TaxBuddy automatically defaults users to the tax regime most advantageous based on their income and eligible deductions for FY 2025-26. This default setting considers both the old and new tax regimes and compares total tax liability, exemptions, and deductions to suggest the optimal choice. It ensures that taxpayers do not miss out on any benefits while complying fully with the Income Tax Act.
Tax Slabs Under the New Regime for AY 2026-27
For AY 2026-27, the new tax regime under Section 115BAC has updated tax slabs. TaxBuddy integrates these updated slabs into its calculation engine, automatically applying the correct rates to different income brackets. Salaried individuals, business professionals, and non-salaried taxpayers are assigned accurate tax computations according to their total taxable income, including allowances, investments, and other sources.
How TaxBuddy Selects the Most Beneficial Regime
TaxBuddy evaluates both old and new tax regimes for each user. It factors in standard deductions, HRA, 80C, 80D, NPS contributions, and other eligible exemptions. The platform then recommends the regime that results in the lowest tax liability, ensuring maximum savings. Users can also manually compare regimes if desired, making it transparent and easy to understand.
Auto-Filled ITR Forms and Document Uploads
One of the key features of TaxBuddy is auto-population of ITR forms using Form 16, Form 26AS, and other uploaded documents. Users can securely upload salary statements, TDS certificates, investment proofs, and bank statements, which the platform uses to fill in all relevant fields in the ITR form. This reduces manual errors and saves considerable time during filing.
Key Default Settings for Deductions and Exemptions
TaxBuddy comes with pre-set defaults for common deductions and exemptions such as 80C (investments), 80D (health insurance), HRA, standard deductions, and NPS contributions. These defaults can be adjusted if a taxpayer has additional eligible expenses or investments. By using these defaults, TaxBuddy ensures no deductions are missed, and tax liability is minimized.
Step-by-Step ITR Filing Process on TaxBuddy
Step 1: Upload Form 16 and Other Supporting Documents The first step in filing your ITR on TaxBuddy involves securely uploading your Form 16 issued by your employer. Form 16 contains key details of your salary, deductions, and tax already paid, which form the basis of your ITR. Along with Form 16, you can also upload other supporting documents, such as bank statements, interest certificates, rent receipts for HRA claims, insurance premium proofs, and investment receipts for Section 80C deductions. TaxBuddy’s platform automatically reads and validates these documents, reducing the chances of errors in your return. This step ensures that all necessary information is available for accurate tax calculation and smooth filing.
Step 2: Review Auto-Populated ITR Form for Accuracy Once your documents are uploaded, TaxBuddy auto-populates the relevant ITR form with your income, deductions, and tax details. You can carefully review the pre-filled form to ensure that all information is accurate. The platform highlights any discrepancies or missing details, allowing you to make corrections before submission. This reduces the risk of errors that could trigger notices from the Income Tax Department and ensures a more reliable filing experience.
Step 3: Adjust Defaults or Add Additional Deductions After reviewing your ITR, you can adjust any default entries or add eligible deductions that were not captured in the auto-population. For example, you may claim deductions under Sections 80D, 80E, 80TTA, or 80C that were missed. TaxBuddy provides a clear checklist of available deductions, making it easy to maximize your tax benefits. This step helps ensure that your taxable income is accurately calculated, minimizing the risk of overpayment or underpayment of taxes.
Step 4: Compare Tax Under Old and New Regimes TaxBuddy allows you to compare the tax liability under both the old and new tax regimes side by side. You can see the impact of claimed deductions and exemptions under the old regime versus the simplified rates of the new regime. The platform provides a recommendation based on your financial profile, helping you choose the regime that offers the most tax benefit. This comparison ensures an informed decision without the need for manual calculations.
Step 5: Confirm the Recommended Regime and Calculated Tax Once you have reviewed the tax comparison, confirm the recommended regime on TaxBuddy. The platform calculates your final tax liability, factoring in TDS, advance tax payments, and eligible deductions. You can also see if you are eligible for a refund or if additional tax needs to be paid. This step ensures complete transparency in your filing process and helps avoid errors or missed payments.
Step 6: Submit for E-Verification or Opt for Expert-Assisted Review After confirming your ITR details, you can submit the return directly through TaxBuddy. You have the option to e-verify using Aadhaar OTP, net banking, or other authorized methods. Alternatively, you can choose the expert-assisted plan, where a tax professional reviews your ITR before submission. This provides an added layer of accuracy and compliance assurance. Once submitted and verified, your return is officially filed with the Income Tax Department, and you can track the status of refunds or notices through TaxBuddy.
E-Verification and Filing Revision Support
After filing, TaxBuddy provides easy options for e-verification via Aadhaar OTP, net banking, or bank account-based verification. The platform also supports revised returns, allowing taxpayers to correct errors or update deductions, ensuring compliance without penalties.
Taxpayer Categories Supported by TaxBuddy
TaxBuddy caters to a variety of taxpayers, including salaried individuals, freelancers, small business owners, and professionals. It handles complex scenarios such as multiple income sources, capital gains, rental income, and foreign income, making it a versatile solution for all filing needs.
Advantages of Default Settings in TaxBuddy
TaxBuddy’s default settings are designed to provide taxpayers with a seamless and efficient filing experience. By pre-configuring critical aspects of the tax filing process, the platform ensures that users can complete their ITR submissions quickly without compromising accuracy. One major benefit is the automatic application of eligible deductions. This feature allows taxpayers to claim applicable exemptions under sections like 80C, 80D, 80E, and 87A without manually checking each one, significantly reducing the risk of missing any eligible tax-saving opportunities.
In addition, TaxBuddy automatically applies the correct tax slab based on the user’s income and ensures that the selected tax regime—old or new—is accurately reflected in the calculations. This minimizes human errors that often occur when manually calculating taxable income or trying to decide between regimes.
Another important advantage is compliance with the latest regulations. TaxBuddy’s AI-driven engine continuously updates default settings according to changes in tax laws, notifications, and assessment rules. This guarantees that deductions, exemptions, and slab rates are current for the relevant financial year, providing a filing process that is not only efficient but also fully compliant with the Income Tax Act.
Tips to Optimize Filing Using TaxBuddy Defaults
Using TaxBuddy’s smart defaults can save time and simplify ITR filing, but ensuring accuracy and maximizing benefits requires careful attention. Here’s how taxpayers can make the most of these features:
Verify All Auto-Filled Details and Uploaded Documents TaxBuddy automatically pre-populates your ITR with available data, such as salary details, TDS credits, and previously submitted information. It’s essential to cross-check all auto-filled details for accuracy, including PAN, employer information, and income components. Verify uploaded documents such as Form 16, bank statements, and investment proofs to ensure there are no mismatches or missing entries that could trigger errors or delays.
Update Additional Investments or Expenses Defaults may not include all eligible investments, deductions, or expenses. Review Sections 80C, 80D, 80E, and other applicable exemptions, and update the platform with any additional contributions such as life insurance premiums, tuition fees, or NPS contributions. This ensures maximum tax benefits and reduces taxable income accurately.
Compare Tax Between Old and New Regimes If certain exemptions or deductions are unique to the taxpayer, comparing liabilities under the old and new tax regimes is important. TaxBuddy’s platform allows users to calculate and analyze tax under both regimes, helping identify the most beneficial option. This step ensures informed decisions and prevents overpayment of tax.
Use Expert-Assisted Review for Complex Cases For situations like capital gains, foreign income, or high-value transactions, a professional review is recommended. TaxBuddy provides expert-assisted options where tax professionals verify calculations, reconcile discrepancies, and ensure compliance. This not only minimizes errors but also provides reassurance for complex filing scenarios.
By following these steps, taxpayers can fully leverage TaxBuddy’s defaults while ensuring precise, optimized filing, faster refunds, and reduced risk of notices from the Income Tax Department.
Conclusion
TaxBuddy simplifies tax filing by combining AI-driven calculations, pre-configured defaults, and secure document management. It ensures accurate, optimized returns while reducing errors and saving time. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy support both self-filing and expert-assisted ITR filing? Yes, TaxBuddy provides flexible filing options to cater to different user preferences. Individuals comfortable with tax filing can use the self-filing option, which comes with pre-filled forms, automatic calculations, and guided steps to ensure accurate submission. Those who prefer professional assistance can opt for expert-assisted filing, where certified tax professionals review and file returns on their behalf, providing personalized guidance and addressing complex scenarios such as capital gains, multiple income sources, or exemptions.
Q2. How does TaxBuddy decide the default tax regime for a user? TaxBuddy analyzes the user’s total income, deductions, and eligible exemptions to recommend the most tax-efficient regime. The platform compares the old and new tax regimes based on the data provided, such as HRA, Section 80C investments, medical insurance, and other deductions. This ensures that users are informed about which regime results in the lowest tax liability, helping them make an optimized choice without manually calculating each scenario.
Q3. Can I adjust the default deductions in TaxBuddy? Yes, TaxBuddy allows users to edit or add deductions according to their actual investments and expenses. For instance, if you have additional Section 80C investments, medical insurance premiums under 80D, or education loan interest under 80E, you can include them to ensure your tax liability is accurately calculated. This flexibility ensures that returns are error-free and optimized for maximum tax savings.
Q4. Which documents are required for auto-filling ITR on TaxBuddy? For accurate auto-population of ITR forms, TaxBuddy requires Form 16, Form 26AS, TDS certificates, bank statements, and proof of investments or deductions. These documents allow the platform to pre-fill salary details, TDS credits, capital gains, and eligible deductions. Ensuring all documents are uploaded correctly minimizes errors and reduces the time required for manual data entry.
Q5. Does TaxBuddy support revised or updated returns? Yes, taxpayers can use TaxBuddy to file revised or updated returns under Sections 139(5) or 139(8A). This feature is especially useful if you discover errors in your original filing or if certain income or deductions were omitted. The platform guides users through the revision process, recalculates tax liability automatically, and ensures e-verification is completed for a valid submission.
Q6. Is e-verification mandatory after filing via TaxBuddy? Yes, e-verification is a mandatory step to complete the filing process. TaxBuddy provides multiple options for e-verification, including Aadhaar OTP, net banking, or bank account-based verification. This step confirms your identity and ensures the Income Tax Department recognizes your ITR as valid. Without e-verification, the filed return is considered incomplete.
Q7. Does TaxBuddy handle capital gains and rental income? Absolutely. TaxBuddy supports multiple income types, including capital gains from stocks, mutual funds, and property sales, as well as rental income. The platform automatically calculates the applicable tax on capital gains, accounts for exemptions under Sections 54 and 54F, and includes rental income in the total taxable income, making it easier for taxpayers with diverse sources of income to file accurately.
Q8. Can freelancers use TaxBuddy for ITR filing? Yes, freelancers and self-employed professionals can use TaxBuddy to file ITR efficiently. The platform handles income from freelance projects, consultancy, and business receipts, while factoring in eligible expenses to reduce taxable income. TaxBuddy also recommends whether the new or old tax regime is more beneficial, making it convenient for freelancers who often juggle multiple clients and invoices.
Q9. How secure is the TaxBuddy platform? TaxBuddy prioritizes data security using advanced encryption, secure servers, and strict access controls. All sensitive information, such as PAN, bank details, and Form 16 data, is stored securely to prevent unauthorized access. The platform complies with standard data protection regulations, ensuring users’ personal and financial information remains confidential throughout the filing process.
Q10. Does TaxBuddy update defaults as per latest tax regulations? Yes, TaxBuddy continuously updates its defaults, tax slabs, and exemption limits to align with the latest Income Tax rules. This ensures that users always calculate tax liability using the most recent provisions, avoiding errors due to outdated information. It also provides guidance on new deductions or relief measures introduced in the Union Budget.
Q11. Can I compare old and new regimes on TaxBuddy? Yes, the platform allows a side-by-side comparison of old and new tax regimes. Users can see which regime offers lower tax liability based on their income, deductions, and exemptions. TaxBuddy provides a clear visual representation, including calculation summaries, so taxpayers can make informed decisions without manually comparing each detail.
Q12. How long does it take to file ITR using TaxBuddy? With auto-filled forms, pre-populated deductions, and guided steps, most taxpayers can complete their ITR filing within 15–20 minutes. Expert-assisted filing may take slightly longer depending on the complexity of income sources, but the platform ensures a fast, accurate, and error-free filing experience while minimizing the usual paperwork and manual calculations.
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