Don’t Know Where to Start? TaxBuddy DIY Filing Takes You Step by Step
- Bhavika Rajput
- 1 hour ago
- 9 min read
Filing your Income Tax Return (ITR) accurately and on time is essential for compliance and avoiding penalties. For the Financial Year 2024–25 (Assessment Year 2025–26), the CBDT has introduced updated ITR forms, revised utilities, and options for both online and offline filing. Taxpayers now have multiple ways to file, including directly on the e-filing portal or using downloadable utilities like Excel, Java, or JSON formats. Understanding these tools, the documentation required, and the step-by-step filing process is crucial for error-free filing and smooth processing of refunds. Platforms like TaxBuddy can simplify the process, offering guidance and pre-filled data verification to ensure seamless filing.
Table of Contents
Gather Your Documents Before Filing
Before beginning the process of filing your Income Tax Return (ITR), it is essential to gather and organize all relevant financial documents. This preparation not only ensures a smoother filing experience but also minimizes the chances of errors, discrepancies, or missed deductions.
For salaried individuals, the first and most important document is Form 16 provided by your employer. Form 16 summarizes your salary, TDS (Tax Deducted at Source), and other key details required for ITR filing. Along with Form 16, bank statements for the entire financial year are crucial to verify interest income, deposits, or any other taxable income. Similarly, TDS certificates from banks or other sources of income, such as rent or investments, must be collected to claim accurate credit for taxes already paid.
Taxpayers should also gather proofs for deductions under various sections of the Income Tax Act, such as:
Section 80C: Life insurance premiums, PPF contributions, ELSS investments, tuition fees, and principal repayment of home loans.
Section 80D: Health insurance premiums for self, family, and senior citizen parents.
Section 80E: Education loan interest payments.
Other relevant sections: Donations, savings schemes, or any eligible deductions.
For business owners or self-employed professionals, the documentation process is more comprehensive. Accurate records of business income, expenses, invoices, and audit reports are necessary to ensure proper computation of taxable income and compliance with audit requirements.
Having all these documents ready in advance allows for accurate calculation of income, ensures that every eligible deduction is claimed, and significantly reduces the risk of errors or notices from the Income Tax Department. Proper organization also simplifies the use of ITR utilities or online filing platforms like TaxBuddy, making the process faster, seamless, and reliable.
Log In to the Income Tax e-Filing Portal
The official Income Tax e-filing portal allows taxpayers to file their returns online conveniently. Access the portal using your PAN, password, and registered email/phone number. Ensure your credentials are active and updated. Once logged in, you can choose between filing directly online or uploading a return prepared using an ITR utility. A verified account on the portal also allows tracking the status of refunds, communication regarding notices, and secure submission of your ITR.
Start the Filing Process
After logging in, click on the “File Income Tax Return” option. Select the relevant assessment year (AY 2025–26) and verify your pre-filled details. The portal will display your PAN, name, and contact details. Ensure these details match your documents. This stage sets the foundation for accurate filing and helps the system auto-populate certain sections of the ITR, reducing manual entry errors.
Select the Filing Mode
Taxpayers can choose between the online filing mode directly on the portal or offline utilities (Excel, Java, or JSON). Each method has its advantages: online filing is quick and user-friendly, while offline utilities allow working offline, performing validations, and then uploading the return. The JSON format is particularly recommended for accurate data transfer and error-free uploads, as it minimizes manual entry mistakes.
Choose the Correct ITR Form
Choosing the correct ITR form is essential for compliance.ITR-1andITR-2 are commonly used for salaried individuals and HUFs, while ITR-3 and ITR-4 are for professionals and business owners. TaxBuddy and the e-filing portal guide taxpayers in selecting the right form based on income sources, eligibility for exemptions, and the need to report business or professional income.
Is Your Income Eligible for the New Tax Regime?
The new tax regime provides lower tax rates but restricts deductions and exemptions. Assess whether your income structure benefits more from the new regime or the old regime. Salaried taxpayers with minimal deductions may benefit from the new regime, while those with investments under sections like 80C, 80D, and 80E may prefer the old regime. Evaluating eligibility ensures optimized tax liability.
How Deductions Work in the Old Tax Regime
In the old tax regime, deductions under sections like 80C, 80D, 80E, and HRA exemptions reduce taxable income. Accurate declaration of investments and payments is crucial for claiming these benefits. TaxBuddy helps identify eligible deductions, calculate limits, and ensure compliance. Filing under the old regime requires careful verification of supporting documents to avoid mismatches during processing.
Review & Update Pre-Filled Details
The portal auto-fills certain information from your previous filings, Form 16, and TDS statements. It is essential to review these pre-filled details carefully, ensuring accuracy in salary, tax deductions, and other income sources. Errors in pre-filled data can delay refunds or trigger notices. Platforms like TaxBuddy provide step-by-step verification to correct discrepancies before submission.
Declare Additional Income & Deductions
Any income not captured in pre-filled data, such as interest from savings, capital gains, rental income, or freelance income, should be declared. Similarly, additional deductions, exemptions, and investment-related claims must be entered accurately. Proper reporting prevents future scrutiny and ensures refunds are processed smoothly.
Compute Tax and Make Payments
After entering all income and deductions, compute your tax liability. If taxes are unpaid, pay the remaining amount through the e-filing portal. Advance tax, self-assessment tax, and TDS adjustments should be considered while calculating the net tax payable. Timely payment avoids interest and penalties and ensures smooth processing.
Final Review and E-Verification
Before submission, review the complete return for accuracy. Verify all details including income, deductions, and tax payments. After submission, complete e-verification using Aadhaar OTP, net banking, or other authorized methods. E-verification is mandatory to complete the filing process; unverified returns are considered invalid.
Regulatory and Process Updates for AY 2025–26
For Assessment Year (AY) 2025–26, the Central Board of Direct Taxes (CBDT) has introduced several regulatory and procedural updates designed to streamline the Income Tax Return (ITR) filing process, reduce errors, and improve overall compliance. One of the key changes is the introduction of new ITR utilities. These utilities are software-based tools provided by the Income Tax Department to assist taxpayers in preparing and filing their returns accurately. The new utilities are equipped with updated forms that reflect the latest amendments in tax laws, provisions for deductions, and reporting requirements for various types of income, including salary, business income, capital gains, and foreign assets.
A major focus of these updates is the TDS (Tax Deducted at Source) credit reflection. TDS statements, which are typically due by May 31, 2025, now reflect in the system starting early June. Proper reflection of TDS credits ensures that taxpayers’ pre-paid taxes are correctly accounted for and prevents discrepancies between reported income and credited TDS amounts. Filing before TDS credits are accurately reflected may result in mismatches, which can lead to delays in refund processing or notices from the Income Tax Department.
Additionally, the system readiness updates are critical. The Income Tax Department has upgraded its e-filing portal to integrate the new ITR utilities, provide enhanced validation checks, and ensure secure submission of returns. Taxpayers are now required to ensure their returns align with these updated systems and utilities. Compliance with these updates minimizes the chances of errors, prevents the need for revisions, and facilitates timely processing of refunds.
For professionals and businesses, understanding these regulatory and process updates is essential. Not only does it safeguard against penalties and notices, but it also enables efficient planning, accurate reporting, and smooth interaction with the Income Tax Department. Awareness of these changes ensures taxpayers leverage the updated tools effectively, making the ITR filing process seamless and error-free for AY 2025–26.
Why TaxBuddy DIY Stands Out
TaxBuddy’s DIY platform has transformed the way individuals and professionals approach income tax filing by combining simplicity, guidance, and automation into one seamless experience. The platform offers step-by-step assistance for ITR filing, ensuring users can complete their returns accurately without confusion. Pre-filled data verification and automated error checks reduce the risk of mistakes, which are common causes of delayed refunds or notices from the Income Tax Department.
One of the key advantages of TaxBuddy DIY is the flexibility it offers. Users can choose between self-filing or expert-assisted plans based on their comfort level and complexity of their tax situation. The platform automatically tracksTDS (Tax Deducted at Source) credits, ensuring that all entries match official records, which helps avoid discrepancies and potential scrutiny.
TaxBuddy also guides taxpayers on selecting the most optimal tax regime—old or new—based on their income, deductions, and investments. For professionals and individuals with more complex filings, the platform handles multiple income sources, deductions, and exemptions efficiently, making tax filing not only accurate but also time-saving.
Overall, TaxBuddy DIY empowers taxpayers to file confidently, reduces manual errors, ensures regulatory compliance, and streamlines the entire filing process, making it ideal for both beginners and seasoned users.
Conclusion
Accurate and timely filing of ITR is essential to avoid penalties, maximize refunds, and ensure compliance with income tax laws. Using updated utilities, JSON formats, and guided platforms like TaxBuddy can make the process seamless and error-free. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile appfor 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 flexibility with both self-filing and expert-assisted plans. Taxpayers can choose self-filing if they are comfortable handling the ITR utilities and JSON file uploads, or opt for expert assistance to ensure accurate filing, reconciliation of TDS credits, and guidance on deductions or exemptions. This ensures that taxpayers of all experience levels can file confidently.
Q2. Which is the best site to file ITR?
TaxBuddy is among the best platforms for ITR filing because it combines the latest ITR utilities with guided steps, pre-filled data verification, TDS reconciliation, and seamless e-verification. It simplifies filing, reduces errors, and helps taxpayers claim eligible deductions without missing deadlines.
Q3. Where to file an income tax return?
Income tax returns can be filed directly on the government’s e-filing portal, but platforms like TaxBuddy offer a more user-friendly experience. They integrate the latest ITR utilities, support JSON file uploads, and provide secure e-verification methods, saving time and minimizing errors.
Q4. Can I file my ITR using a JSON file?
Yes. JSON files are compatible with the ITR utilities for FY 2024–25 and allow taxpayers to upload their return directly without manual data entry. This reduces mistakes, ensures all details match the pre-filled information, and speeds up submission and verification.
Q5. What documents are required for ITR filing?
Essential documents include: Form 16 for salary income, Form 26AS or TDS certificates, bank statements, proofs of investments (like PPF, NSC, ELSS), insurance premiums, home loan statements, and any records of additional income such as rent, capital gains, or freelance earnings.
Q6. Is e-verification mandatory for ITR filing?
Yes. E-verification is required to validate your ITR submission. Methods include Aadhaar OTP, net banking, or digital signatures. Platforms like TaxBuddy also guide you through secure e-verification to avoid invalid returns.
Q7. Can I update my ITR after submission?
Yes. If errors or omissions are discovered post-submission, you can file a revised return using the same ITR utility or JSON file upload within the allowed timeframe. This ensures corrections are reflected before assessment.
Q8. How does TaxBuddy help with pre-filled data?
TaxBuddy automatically verifies pre-filled income, TDS, and deduction details. It flags discrepancies, guides corrections, and ensures that all taxable income and eligible deductions are captured accurately before filing, reducing the risk of notices from the Income Tax Department.
Q9. Will using TaxBuddy delay my refund?
No. TaxBuddy ensures accurate filing and timely submission, which can actually help expedite refunds. By reconciling TDS credits and avoiding errors, it minimizes processing delays and ensures that refunds are credited promptly.
Q10. Are TDS credits automatically reflected in the ITR utility?
Yes, TDS credits are usually pre-filled in the utility if updated by the deductors in the Income Tax system. TaxBuddy cross-verifies these credits with your Form 26AS or other TDS certificates to ensure they match before filing.
Q11. Can I file ITR without professional assistance?
Absolutely. With platforms like TaxBuddy, self-filing is straightforward. The software provides step-by-step guidance, pre-filled data checks, JSON file compatibility, and e-verification instructions, making it suitable for individuals comfortable with filing their own returns.
Q12. Does TaxBuddy provide alerts for tax deadlines?
Yes. TaxBuddy sends timely reminders for filing deadlines, e-verification, and other compliance dates. This helps taxpayers avoid penalties, interest, or missed deadlines while ensuring accurate and timely ITR submission.
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