First Job? Let TaxBuddy Set Up Your Tax Saving Journey
- PRITI SIRDESHMUKH
- Sep 25
- 8 min read
Updated: Sep 29
Starting a first job brings excitement and a new set of responsibilities, including understanding and managing taxes. For first-time earners, navigating the Income Tax Act 1961, choosing between the old and new tax regimes, and identifying eligible deductions can feel overwhelming. TaxBuddy offers an intelligent mobile app that simplifiestax filing, guides users on maximizing savings, and helps first-time employees start their financial journey with confidence and clarity.
Table of Contents
Understanding Your Tax Obligations in Your First Job
As a first-time employee, your salary is subject to Income Tax under the Indian Income Tax Act. Your employer deducts Tax Deducted at Source (TDS) from your monthly salary, which is then deposited with the government. It’s essential to understand the components of your salary, such as basic pay, house rent allowance (HRA), special allowances, and perquisites, as each affects your taxable income differently. Filing your ITR ensures that your tax payments match your income and allows you to claim refunds if excess TDS has been deducted. Awareness of deadlines, filing forms, and eligibility for deductions sets the foundation for a disciplined tax routine.
Choosing Between Old and New Tax Regimes
Choosing the right tax regime is a critical decision for taxpayers in India, especially for first-time filers. India currently offers two tax regimes: theold tax regime and the new tax regime. The old regime allows taxpayers to claim a wide range of exemptions and deductions, such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), contributions to Employee Provident Fund (EPF), life insurance premiums, tuition fees, and other eligible investments under Section 80C. These exemptions can significantly reduce the taxable income for salaried individuals who actively invest in tax-saving instruments or have recurring expenses eligible for deductions.
On the other hand, the new tax regime offers lower tax rates across income slabs but limits the number of deductions and exemptions available to taxpayers. While this regime simplifies the filing process by reducing the need to track multiple deductions, it may result in a higher taxable income for individuals who have substantial investments or eligible expenses.
Using tools like TaxBuddy can make this decision easier. TaxBuddy can calculate your taxable income under both the old and new regimes, estimate your tax liability accurately, and provide a clear comparison. By analyzing your financial details, such as salary components, investments, and eligible deductions, TaxBuddy helps you determine which regime is more beneficial, ensuring that you optimize your tax savings while complying with the latest Income Tax rules. This approach allows taxpayers to make an informed, data-driven choice that aligns with their financial situation and long-term planning goals.
How TaxBuddy Simplifies Tax Filing for Beginners
TaxBuddy provides a user-friendly platform tailored for first-time filers. With automated tools, it helps match Form 16 details with your bank statements, TDS records, and other income sources. The platform guides you through exemptions, deductions, and deductions under Sections 80C, 80D, and 10 allowances. Its interface ensures that you can file your ITR with minimal errors, reduces the risk of penalties, and keeps a record for future reference. For beginners, TaxBuddy removes the complexity of manual calculations and provides clear insights into tax obligations.
Maximizing Deductions with TaxBuddy
TaxBuddy helps identify all possible deductions that can reduce taxable income. Common deductions include Section 80C investments (PF, PPF, ELSS), Section 80D (health insurance), HRA exemptions, and education loans under Section 80E. The platform calculates your maximum eligible deduction and integrates it seamlessly while filing, ensuring you pay only what’s necessary. For first-time employees, understanding deductions can feel overwhelming, but TaxBuddy automates this, making it simple to optimize tax savings.
Step-by-Step Tax Filing Using the TaxBuddy Mobile App
Filing taxes using the TaxBuddy mobile app is designed to be a seamless, accurate, and user-friendly process, even for those who may not be familiar with the complexities of income tax filing. The process begins with uploading your Form 16 or salary details directly into the app. This can be done by simply taking a photo, uploading a PDF, or entering the details manually, depending on the source of your income. Once uploaded, the app automatically reads the information and matches it with TDS records and other income statements available in the system.
After your income and TDS details are auto-matched, the app reviews your eligible exemptions, deductions, and allowances based on your financial profile. It highlights areas where you can claim deductions under various sections such as 80C, 80D, 80E, and HRA, ensuring you take full advantage of available tax benefits.
The next step allows you to select the tax regime—old or new—that results in the lowest tax liability. The app provides a clear comparison, making it easy to make an informed choice. Once reviewed, you can file your ITR digitally through the app. The filing is fully compliant, and you receive an instant acknowledgment from the Income Tax Department.
For those who prefer expert guidance, the TaxBuddy mobile app also offers expert-assisted filing, where tax professionals review your information, suggest optimizations, and ensure error-free submission. This combination of automation and professional support minimizes mistakes, reduces processing delays, and provides a smooth, hassle-free tax filing experience.
Bank Account Requirements for First-Time Tax Filers
A valid bank account is mandatory for receiving refunds. Ensure that the account is active, correctly linked to your PAN, and able to receive NEFT/RTGS transfers. TaxBuddy automatically verifies your account details during filing to prevent refund delays. For first-time filers, linking the correct bank account ensures that any excess TDS is refunded directly and efficiently.
Common Mistakes First-Time Jobbers Make in Tax Filing
First-time jobbers often face challenges when filing their income tax returns due to limited experience with tax rules and procedures. One of the most common mistakes is uploading an incorrect or incomplete Form 16. Form 16 serves as the primary document summarizing salary income and the tax deducted at source (TDS) by the employer. Any errors in this form, such as missing pages, wrong figures, or unreported allowances, can lead to discrepancies in the tax filing process, potentially resulting in notices from the Income Tax Department or delays in refund processing.
Another frequent issue is ignoring TDS details or mismatched records. First-time filers sometimes overlook the TDS information reflected in Form 26AS or fail to reconcile it with their salary statements. This mismatch can cause the tax authorities to reject the return or delay refunds.
Missing out on eligible deductions is also common. Taxpayers may forget to claim deductions under sections like 80C, 80D, or 80E, reducing potential tax savings. Choosing the wrong tax regime is another pitfall; selecting between the old and new tax regimes without proper calculation can increase tax liability unnecessarily.
Delaying filing and missing deadlines is an additional risk. Late filing can attract penalties and interest, further complicating the process for someone filing taxes for the first time.
TaxBuddy helps mitigate these errors effectively. The platform automatically validates income and TDS details, checks for inconsistencies, highlights missing or incomplete information, and guides users through the correct entry of data. By providing step-by-step assistance, TaxBuddy ensures first-time filers can complete their tax returns accurately, on time, and without the stress of manual calculations or overlooked deductions.
Expert Assistance: When and How to Use It
Expert assistance in tax filing is highly beneficial for individuals whose financial situations are more complex than standard salaried income. While TaxBuddy’s self-filing option provides an intuitive and easy-to-use platform for beginners and those with straightforward income sources, there are scenarios where professional guidance becomes essential. For example, if you have income from multiple employers during a financial year, reconciling TDS (Tax Deducted at Source) and ensuring that your total taxable income is correctly reported can be challenging. Similarly, additional sources of income, such as freelance earnings, capital gains from investments, or rental income from property, require careful reporting to comply with tax laws and to avoid errors that could lead to notices from the Income Tax Department.
Complex deductions or exemptions, such as those under sections 80C, 80D, or 54/54F for capital gains, also benefit from expert review. TaxBuddy’s professional assistance ensures that all income is accurately declared, deductions are optimally claimed, and the ITR is filed in compliance with regulations, minimizing the risk of mistakes while maximizing legitimate tax benefits.
Conclusion
First-time jobbers can confidently manage tax filing by understanding their obligations, choosing the right regime, and leveraging modern tools like TaxBuddy. The platform simplifies the process, maximizes deductions, and ensures timely compliance. 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. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both options. The self-filing plan is ideal for taxpayers who are confident in managing their ITR independently, offering a guided interface, auto-calculations, and step-by-step instructions. The expert-assisted plan is perfect for those seeking professional help, ensuring accurate filings, maximized deductions, and compliance with all regulations. Both options provide secure data handling and easy refund tracking.
Q2. Which is the best site to file ITR?
TaxBuddy is widely recognized as a leading platform for filing ITR in India. It combines AI-driven automation with a user-friendly interface, allowing both beginners and experienced taxpayers to file returns efficiently. TaxBuddy ensures accurate calculations, seamless TDS reconciliation, and compliance with the latest Income Tax regulations.
Q3. Where to file an income tax return?
You can file your ITR online via the official Income Tax Department portal or through platforms like TaxBuddy that simplify the process. Using TaxBuddy allows direct upload of Form 16, auto-matching of TDS, and hassle-free e-verification without manually navigating complex forms.
Q4. Can I claim HRA if I live with my parents?
Yes, HRA can be claimed if you pay rent to your parents, provided there is a proper rent agreement and the rent amount is actually paid. TaxBuddy helps calculate the eligible HRA deduction under both old and new tax regimes and ensures accurate reporting in your ITR.
Q5. How do I check my TDS before filing ITR?
TDS can be checked using Form 26AS on the Income Tax portal or through salary slips and Form 16. TaxBuddy automatically reconciles TDS credits with your Form 16 and provides a summary for easy verification, minimizing errors that could delay refund processing.
Q6. Is it mandatory to link a bank account for ITR filing?
Yes, linking a bank account is mandatory for receiving refunds and e-verification purposes. TaxBuddy allows easy entry of your bank details, ensuring direct credit of refunds and secure handling of all tax-related transactions.
Q7. Can I revise my ITR after submission?
Yes, you can file a revised return under Section 139(5) if you discover errors or missed deductions. TaxBuddy guides you through revising your ITR accurately, ensuring compliance with the revised rules and proper adjustment of taxes or refunds.
Q8. How does TaxBuddy calculate eligible deductions?
TaxBuddy uses AI-driven algorithms to identify all applicable deductions under Sections 80C, 80D, 80E, HRA, and others. The platform cross-verifies your inputs with Form 16 and supporting documents, automatically applying eligible exemptions and ensuring optimized tax liability.
Q9. Which documents are needed for first-time tax filers?
First-time filers typically need Form 16 (if salaried), bank statements, investment proofs, insurance receipts, rent receipts for HRA, and PAN details. TaxBuddy provides an organized checklist and allows easy upload of documents, simplifying the filing process.
Q10. Can I file ITR if I switched jobs during the year?
Yes, you can file ITR after switching jobs. TaxBuddy consolidates multiple Form 16s from different employers, auto-matching TDS details and total income to ensure accurate reporting without missing any employer contributions.
Q11. Does TaxBuddy support filing for freelancers or part-time income?
Absolutely. TaxBuddy supports freelancers, consultants, and part-time earners, accurately computing income from all sources, applying eligible expenses, and generating the correct ITR form, such as ITR-3 or ITR-4, depending on your filing category.
Q12. How long does it take to receive a refund after filing with TaxBuddy?
Refund timelines depend on accurate filing and TDS verification. Generally, refunds are processed within a few weeks to a couple of months after e-verification. TaxBuddy provides real-time updates and notifications, helping you track your refund status efficiently.
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