Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

Yes, TaxBuddy offers both self-filing and expert-assisted plans for ITR filing. The self-filing option is perfect for individuals who are comfortable with the filing process and prefer handling their own taxes using TaxBuddy's platform. On the other hand, for those who need assistance, TaxBuddy also provides expert-assisted plans, where tax professionals guide you through the entire process, ensuring accurate filing and compliance with all tax laws.

Which is the best site to file ITR?

TaxBuddy is considered one of the best platforms for filing ITR. It offers a seamless, user-friendly experience that incorporates AI-driven tools to ensure error-free filing. The platform allows you to choose between self-filing and expert-assisted services, making it suitable for both experienced filers and those seeking professional assistance. Its easy-to-navigate interface, real-time updates, and accurate calculations make it a top choice for filing ITR.

Where to file an income tax return?

You can file your ITR through the official Income Tax Department website at incometax.gov.in, or you can use platforms like TaxBuddy for a smoother and more guided experience. TaxBuddy simplifies the entire process, offering tools for both self-filing and expert-assisted filing, ensuring that you can file your return accurately and on time.

Who is eligible for the Section 87A rebate?

The Section 87A rebate is available to resident individuals whose taxable income does not exceed ₹5 lakh under the old tax regime or ₹12 lakh under the new tax regime (effective from FY 2025-26). It provides a direct reduction in your tax liability, making it a valuable benefit for low-income taxpayers.

Can NRIs claim the Section 87A rebate?

No, the Section 87A rebate is only available to resident individuals. Non-resident Indians (NRIs) are not eligible for this rebate, regardless of their income level.

Is the Section 87A rebate applicable to senior citizens?

Yes, senior citizens (aged 60-80) are eligible for the Section 87A rebate, provided their taxable income does not exceed ₹5 lakh under the old tax regime. However, for super senior citizens (aged 80 and above), the rules may vary, and they may be eligible for different tax benefits.

Does the rebate apply to all types of income?

No, the Section 87A rebate does not apply to income that is taxed at special rates, such as capital gains, income from lottery winnings, or income from specific investments. It only applies to general taxable income, which includes salary, business income, etc.

How can TaxBuddy’s app help with Section 87A?

TaxBuddy’s app helps you determine your eligibility for the Section 87A rebate by automatically calculating your total taxable income and suggesting the best tax regime for you. It ensures that you claim the rebate accurately, helping you maximize your savings while filing your return with no errors.

What is the maximum rebate under Section 87A in the new tax regime?

In the new tax regime, the maximum rebate under Section 87A is ₹60,000 for taxpayers whose taxable income is up to ₹12 lakh. This rebate helps lower the tax burden for those with modest taxable incomes, making it a key benefit in the new tax regime.

What is the rebate under the old tax regime?

Under the old tax regime, the maximum rebate under Section 87A is ₹12,500 for individuals with taxable income up to ₹5 lakh. This rebate directly reduces the tax payable, providing significant relief to individuals within this income bracket.

Is there any deadline for claiming the Section 87A rebate?

The Section 87A rebate can be claimed when filing your ITR, provided it is done before the filing deadline for the respective assessment year. It is crucial to file your return on time to ensure you receive the rebate, as delays in filing may result in losing eligibility for the rebate.

How does TaxBuddy ensure I get the maximum rebate?

TaxBuddy helps you maximize your Section 87A rebate by analyzing your financial situation and suggesting the best tax regime for your circumstances. It ensures that all eligible rebates, deductions, and exemptions are accurately claimed, helping you reduce your tax liability and optimize your overall tax position.

How AI-Assisted Tax Filing Helps Revolutionise Investment Platforms

Astha Bhatia
19h
9 min read

Tax season in India is undoubtedly a defining moment for investment platforms, as it triggers investors to seek reliable, prompt, and seamless tax-filing support. Every year, post March 31^st, taxpayers calculate their tax liability. However, this isn’t a one-time journey. Investment planning is something that happens all across the year, and investors require digitalised solutions that simplify complex tax laws.

Digital-first platforms have fuelled DIY and AI-assisted tax filing in India for the same reason. Around 78% of businesses have adopted technology to enable seamless tax filing, according to a Deloitte’s Survey on Income Tax Digitalisation in India 2.0. It is these peak financial moments that can not only drive customer engagement but also serve as critical touchpoints for investment platforms to generate better opportunities.

Most taxpayers struggle with fragmented tax data matching diverse investments. Collating information from important tax documents, such as Form 16, capital gains statement, AIS, and other investment proofs, through multiple platforms can be a huge challenge. Investment platforms are also likely to receive an influx of support queries related to capital gains statements and clarification on tax liabilities during tax season.

Rather than watching customers switch to other platforms, embedded AI-assisted income tax filing can transform this scenario. It offers investment platforms a solution tailored to the nuances of Indian tax laws. Read on to know how platforms can leverage this technology for improved customer satisfaction, retention, and engagement.

Know All About AI-Assisted Tax Filing
Benefits of AI-Assisted Tax Filing
User Journey of an AI-Assisted Tax Filing Solution
Technical Architecture for TaxBuddy's Tax Filing Solution
Conclusion
FAQs

Know All About AI-Assisted Tax Filing

AI-assisted filing means the integration of Artificial Intelligence technologies into the tax filing process. Technologies, such as natural language processing, optical character recognition, and machine learning, are utilised to automate tax filing. As a result, steps such as extracting, validating, and submitting data during the process of tax filing become automated. This not only minimises the risk of errors but also delivers a seamless user experience.

By leveraging these tools, systems can scan and interpret tax documents such as forms, investment statements, and receipts, which helps in reducing filing time. Opting for this kind of automated process is ideal in settings where tax rules are updated frequently and where income comes from multiple sources. Chances of data mismatches and the notices that are triggered due to them are also reduced.

AI-assisted tax filing transforms a traditional and error-prone process into a hassle-free and scalable system, which is capable of adapting to the evolving ecosystem of tax legislation in India.

Benefits of AI-Assisted Tax Filing

Implementing AI-assisted tax filing offers a multitude of strategic advantages for investment platforms.

Enhances User Experience

Making the entire process of filing taxes less frustrating for investors is a strategic business advantage. Entering the data and validating it are crucial pain points in any user’s journey. Faster and more accurate workflows require less manual intervention. Once these challenges are resolved, it becomes easy for users to manage all their investments and file taxes —all under a single unified system. This translates to higher user satisfaction and loyalty towards an investment platform.

TaxBuddy’s AI-assisted tax filing solution offers a complete tax-filing experience for investors. Once the user uploads their capital gains statement, TDS, and other relevant documents, along with PAN details, the integrated solution auto-imports data from the uploaded information.

While users can opt between assisted and Do-It-Yourself (DIY) filings, TaxBuddy offers a 365-day notice support to all those investors who opt for assisted filing. In simple words, if the investor receives an income tax notice during that particular year, TaxBuddy’s team will address the notice and provide a relevant resolution. This adds confidence to the process.

Data Reduces Customer Churn

Since the data is automatically imported from the documents uploaded by the investors, the risk of errors is low. In this way, AI reduces manual transcription errors, ensuring that investor data is consistent and accurate across filings. This also minimises the risks associated with legal issues and penalties arising from incorrect filings.

AI-assisted tax filing delivers a compliant and efficient tax-filing experience to investors, thereby helping reduce the customer churn ratio significantly. If a user is able to initiate and complete the entire tax filing process in a platform where they manage their investments, they have no reason to choose a competitor or look elsewhere.

Adapts Quickly to Changing Tax Regulations

Indian tax regulations change from time to time. As per a Union Budget 2026-27 analysis, here are some of the amendments proposed:

All share buybacks need to be taxed as capital gains.
The Securities Transaction Tax on options has been increased from 0.1% to 0.15%.
Minimum Alternate Tax has been decreased from 15% to 14%.
Deductions will be nil on interest expenditure incurred from earnings from mutual funds or dividends.

Keeping up with these ever-changing regulations and laws is no easy feat, but with TaxBuddy, platforms need not to update them on their system manually. An AI-assisted tax filing solution automatically works to integrate these changes, so users can be compliant with the latest laws. This way, platforms benefit from improved compliance, reducing operational overhead and legal risks.

Handles Large Volumes of Filings

Scalability during the peak season of tax filing is a crucial need for investment platforms. And AI-driven integrated solutions are capable of managing huge volumes of filings, making it easier for platforms to cater to demand. There is no need for proportional increases in infrastructure.

Moreover, automation unlocks significant operational efficiencies. By managing routine tax-filing tasks from start to end, the burden on the operations team reduces, enabling them to focus on other strategic activities for business growth. Embedding AI-assisted tax filing acts as a forward-looking differentiator that helps build customer loyalty in an increasingly competitive landscape.

User Journey of an AI-Assisted Tax Filing Solution

When an investment platform opts for TaxBuddy’s AI-assisted tax filing solution, a typical journey usually begins with an investor receiving a notification about upcoming tax deadlines. Once they log in and provide the required PAN details, they can upload their capital gains statement, TDS, and other supporting documents. The software extracts data from these documents and auto-fills the returns accordingly, while highlighting discrepancies, if any. Once the draft is ready, the investor can analyse it and make edits, if needed, before giving approval for submission.

Meanwhile, the platform’s backend validates data on a continuous basis, applying the latest tax rules, to ensure the filing is secure and compliant. Once the user submits the return, the system provides the relevant updates and refunds tracking. This integrated approach ensures a simplified user journey, enhancing satisfaction and efficiency.

Technical Architecture for TaxBuddy's Tax Filing Solution

TaxBuddy’s AI-assisted tax filing ecosystem is designed with a modular, scalable architecture that seamlessly integrates into investment platforms. This helps provide a frictionless, compliant, and secure user experience.

The journey involves the three main steps:

Data ingestion
AI-driven processing functionality
Secure compliant filing with continuous monitoring

There are multiple points for data processing, which include a secure API connection and the uploading of documents by users. The platform supports multiple formats, including PDFs, CSVs, and direct data streams, ensuring flexibility for different platform requirements.

After this process, the optical character recognition module digitises unstructured documents, such as capital gains statements, Form 16, etc. The natural language processing algorithm then interprets the textual data before extracting key entities, such as income amount, TDS, or type of investment.

Post extraction, the data is fed into a deterministic rule engine, which then applies the existing current taxation laws applicable in India. It then cross-checks data for errors, detects anomalies, and calculates tax liabilities based on the data uploaded by the user.

Next, customisable queues route complex cases to human experts. This approach helps investors with complex tax structures file their returns with ease. At each point, the investor is informed and updated through notifications and status updates.

Once the returns are validated, they are formatted in accordance with the required e-filing standards and securely transmitted to the Income Tax Department. As a registered e-Return Intermediary, TaxBuddy’s integrated solution tracks filing status, notices, and refunds, helping resolve any disputes.

TaxBuddy ensures data security through end-to-end encryption, role-based access controls, and regular security audits. Authentication uses token-based Single Sign-On solutions to streamline user management and TaxBuddy’s information security management system has been certified ISO/IEC 27001 by TÜV SÜD. This flexible, secure, and scalable architecture helps investment platforms to deliver accurate, compliant, and seamless tax filing experiences.

Conclusion

AI-assisted tax filing is no longer an add-on feature. Instead, investment platforms may consider embedding it to deepen customer relationships, reduce seasonal churn, and unlock new opportunities. By combining automated data extraction with robust compliance controls, platforms can offer a seamless, branded tax experience.

TaxBuddy’s partner integration journey is designed to be simple and partner-friendly from the start. Our team also supports partners beyond technology integration, offering content and marketing support to drive user awareness and adoption. A number of players in the fintech ecosystem, such as Jio Finance, SimplifyMoney, MyFinancials, KarmaLife AI, have already embedded TaxBuddy’s AI-assisted tax-filing solution. Request a personalised demo to see how our team can help your platform increase customer retention by offering a seamless, AI-powered tax filing solution.

Frequently Asked Questions

1. How secure is TaxBuddy’s AI-assisted tax filing journey?

TaxBuddy’s integrated solution uses end-to-end encryption, token-based Single Sign-On, and role-based access control to safeguard all tax data. The information security management system of TaxBuddy has been certified in accordance with ISO/IEC 27001 standards by TÜV SÜD and adheres to industry compliance standards.

2. How does TaxBuddy’s AI-assisted tax filing solution handle complex tax scenarios?

Once the solution is integrated into the investment platform, TaxBuddy provides a complete ITR filing experience for users. The AI-assisted filing solution collates information from various documents uploaded by the user. In case the user needs solutions for complex scenarios, they have the option to get expert support from TaxBuddy’s experienced team of professionals.

3. What is the typical integration timeline of TaxBuddy’s AI-assisted tax filing solution?

Depending on the engineering bandwidth and user demands, an investment platform can opt for Webview or full API-led integrations. While the former can be delivered within 3 to 5 days, deeply embedded API-led integrations may take up 2 to 3 weeks.

4. How is tax rule management handled by TaxBuddy’s integrated ITR solution?

TaxBuddy updates tax rules, formats, and tax slabs through automated pipelines backed by legal reviews, ensuring that the solution remains compliant with evolving regulations. The host doesn’t need to maintain tax calculations or update regulatory changes manually.

5. How does AI-assisted tax filing help investment platforms?

By embedding ITR-filing into its ecosystem, an investment platform can deliver a seamless customer experience thereby increasing engagement, relevance, and loyalty. Once the user provides PAN details and uploads Form 16, capital gains statement, TDS receipts, and other supporting documents, the integrated solution from TaxBuddy auto-fills the data. TaxBuddy also provides expert-assisted filing for users with complex filing needs.

6. Will the partner platform get support from TaxBuddy post integration?

Yes, beyond technology integration, TaxBuddy’s team helps partners with content and marketing support to drive user awareness and adoption. In addition, TaxBuddy can also help partners plan their promotional strategy more effectively. This makes the partnership more than just an integration with a complete support system for user activation, filing completion, and post-filing assistance.

7. What level of customisation is possible with TaxBuddy’s AI-assisted tax filing solution?

TaxBuddy offers a complete white-labelled experience for investment platforms. This means that every interface, screen, and user interaction will align with that of the brand. TaxBuddy powers the backend support and stays invisible throughout the user journey. Co-branding options are also available for interested partners.

8. What are the integration requirements for any platform to adopt TaxBuddy’s white label solutions?

From an integration standpoint, TaxBuddy requires only two key inputs from the platform:

SSO API details for seamless user authentication
Design inputs such as Figma files, design templates, or brand palette to align the filing journey with the platform’s look and feel

We understand that product and tech teams are often stretched. That is why most parts of the integration are already templatized. This means we do not need extensive documentation or continuous involvement from your team.

TaxBuddy handles the heavy lifting end-to-end and works closely with your stakeholders only where necessary. This helps the integration move smoothly with minimal load on your product and engineering teams.

9. What are the typical cost implications of implementing AI-assisted tax filing?

Interested partners can schedule a call with TaxBuddy’s team of experts to understand the cost of integrating the ITR-filing module as well as other modules such as tax planner. The costs depend on the level of integration, customisation requirements and more.

10. Does TaxBuddy offer only AI-assisted tax filing solutions?

No, TaxBuddy offers two modules as part of its integrated solution: ITR Filing and Tax Planner. The investment platform can choose one of the two modules or integrate both into its system. Also, the ITR Filing module offers both DIY and assisted filing options. Users can choose one based on the level of support they require. The DIY filing journey offers a guided filing flow to help them file their returns effortlessly. However, with the assisted option, investors receive expert-backed support from TaxBuddy’s team of tax professionals.

11. What benefits do users get via TaxBuddy’s assisted filing solution?

For users who opt for Assisted filing, TaxBuddy provides 365-day notice support for the relevant financial year. This means that if the user receives an income tax notice for the same financial year, TaxBuddy’s team will provide free support for notice resolution. This support adds an extra layer of confidence to the filing experience.