Got a Side Hustle? Here’s How TaxBuddy Helps You Stay Tax-Compliant in 2025

Bhavika Rajput
6 hours ago
8 min read

Managing a side hustle in India—whether it’s freelancing, consulting, or running an online business—comes with the added responsibility of staying tax-compliant. With the complexities of the Income Tax Act, evolving reporting requirements, and various ITR forms, tax filing can quickly become overwhelming for side hustlers. In 2025, it's more important than ever to ensure that your diverse income streams are properly reported and your tax liabilities are minimized. That’s where TaxBuddy steps in. By offering an AI-powered platform combined with expert guidance, TaxBuddy automates the entire tax filing process, ensuring accuracy and compliance. It helps freelancers, consultants, and gig workers manage everything from data aggregation to maximizing tax-saving opportunities, making tax season smoother and stress-free.

End-to-End Support for Diverse Side Hustles

Automated Data Aggregation and Compliance Checks

Expert-Assisted Filing and Maximum Tax Savings

Latest ITR Form Filing, Digital Compliance & Law Updates

Year-round Post-Filing Support (Notice Management & Audit Ready)

Pricing Transparency & Data Security

Conclusion

FAQs

End-to-End Support for Diverse Side Hustles

When you're managing a side hustle, whether it's freelancing, consulting, or running an online business, tax compliance can be tricky. TaxBuddy addresses this by offering support for all types of side incomes, ensuring that freelancers, gig workers, consultants, and even investors stay compliant with the law. From platforms like freelance writing or consultancy to e-commerce stores, TaxBuddy is equipped to handle various income streams with ease.

TaxBuddy provides support for multiple Income Tax Return (ITR) forms, including ITR-3 for those with business or professional income and ITR-4 for those availing the presumptive taxation scheme under Sections 44AD and 44ADA. Whether you have freelance income, business profits, or capital gains, TaxBuddy ensures your income is reported under the correct tax head, avoiding confusion and errors.

Presumptive Taxation Simplified: For those eligible under Section 44AD (small businesses) and Section 44ADA (professional services), TaxBuddy simplifies the process by flagging your eligibility for presumptive taxation. This scheme reduces the need for detailed bookkeeping and audit procedures, as it allows you to declare income on a presumptive basis. If your turnover falls within the limits (₹3 crore for businesses, ₹75 lakh for professionals), TaxBuddy will automatically recommend this option, saving you time and effort while ensuring full compliance.

Automated Data Aggregation and Compliance Checks

Tax filing for side hustlers often involves managing a range of data from multiple sources. TaxBuddy eliminates the hassle by automatically importing data from your government accounts, such as PAN, Aadhaar, Form 16, AIS, 26AS, and bank statements. It even pulls in data from e-commerce platforms and brokerage reports to ensure that all relevant income and expenses are captured accurately.

TaxBuddy's AI-driven algorithms automatically categorize this data, assigning it to the correct income heads—whether it's salary, business income, capital gains, or other sources. This automated categorization minimizes human errors and ensures that nothing is overlooked. Furthermore, TaxBuddy performs automated reconciliation between your declared income and official government records (AIS/26AS). This feature flags any discrepancies, ensuring that your tax return aligns perfectly with the government’s records before filing. This process is crucial for preventing future scrutiny or tax notices.

Expert-Assisted Filing and Maximum Tax Savings

Tax filing often involves making strategic decisions to ensure you maximize deductions and minimize liabilities. While TaxBuddy’s automated features help with categorization, the platform also offers expert assistance through a team of qualified Chartered Accountants (CAs). These professionals review your return, optimize your deductions, and ensure you're leveraging every possible tax-saving opportunity.

TaxBuddy’s CA team advises on available deductions under various sections such as 80C, 80D, 80G, and other common tax breaks. Additionally, the platform helps with capital loss carry-forwards, house rent allowances, business expenses, and more, ensuring you get the maximum possible benefit. Real-time tax deduction calculators provide estimates for your tax liabilities and refunds as you file, making sure you have a clear understanding of your tax status at all times. This real-time visibility helps you make informed decisions and adjust your filing strategy before final submission.

Latest ITR Form Filing, Digital Compliance & Law Updates

The Indian tax system is constantly evolving, and TaxBuddy stays ahead of these changes by keeping all its ITR forms fully updated for FY 2024-25. The new ITR-1 and ITR-4 forms, for instance, now have expanded eligibility for Long-Term Capital Gains (LTCG) and digital receipt disclosures. TaxBuddy ensures that these changes are seamlessly integrated into the platform, so you don’t have to worry about keeping up with the latest tax filing requirements.

Additionally, deadline reminders are built into the platform, so you never miss important filing dates. These reminders help you avoid penalties and the hassle of late filings. TaxBuddy also offers support for belated returns, giving you the flexibility to file late without incurring harsh penalties. Its penalty protection ensures that you stay compliant, regardless of whether you file on time or need to submit a belated return.

Year-round Post-Filing Support (Notice Management & Audit Ready)

Tax filing doesn’t end once you hit submit. Many side hustlers may face tax notices, often due to discrepancies in income reporting or other issues. TaxBuddy provides free post-filing support, helping you navigate and resolve any notices under Section 139(9) or 143(1). This support includes guidance on mismatches or any required documentation to ensure a smooth resolution.

For those whose businesses exceed the presumptive taxation thresholds (₹3 crore for businesses or ₹75 lakh for professionals), TaxBuddy also offers audit support. The platform guides you through the necessary audit preparation, helping ensure that your financial statements and reports comply with the requirements of the Income Tax Act, 1961. This proactive assistance makes sure you're fully prepared in case of any tax audits.

Pricing Transparency & Data Security

TaxBuddy is designed to be affordable for side hustlers, freelancers, and business owners. The platform offers self-filing plans starting at ₹699, perfect for individuals with simpler tax returns. For those requiring expert assistance, plans start at ₹999, providing full support for more complex tax scenarios, such as capital gains, business income, or crypto earnings.

On top of its affordable pricing, TaxBuddy prioritizes your data security. All sensitive information is protected by bank-grade encryption, ensuring your personal and financial data is kept safe from unauthorized access. The platform adheres to Indian IT laws and provides a secure, compliant environment for handling your tax-related information.

Conclusion

For anyone managing a side hustle in India, TaxBuddy offers a seamless, tech-powered solution for tax filing in 2025. With its blend of automation, expert advice, and affordable pricing, it ensures you stay compliant, save on taxes, and avoid costly mistakes. Whether you're freelancing, running an online business, or earning from multiple income streams, TaxBuddy simplifies the entire process. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

1. How does TaxBuddy help side hustlers stay tax-compliant in 2025?

TaxBuddy simplifies tax compliance for side hustlers by offering automated data aggregation from multiple income sources (freelancing, consulting, online business, investments, etc.), expert-assisted filing, and presumptive taxation options. The platform ensures that side hustlers file the correct ITR forms, claim deductions, and file on time, avoiding penalties. It also provides real-time tax calculation, helping you track your liabilities and refunds before submitting your return.

2. Which tax forms should side hustlers use when filing taxes?

Side hustlers in India often use forms like ITR-3 (for business or professional income) and ITR-4 (for those eligible for the presumptive taxation scheme). TaxBuddy helps you choose the right form based on your income type. If you’re running a small business or offering professional services, you may qualify for the presumptive taxation scheme under Sections 44AD and 44ADA, which simplifies your filing process.

3. How does TaxBuddy help with freelance income reporting?

Freelancers often have income from multiple clients or platforms, making it difficult to track. TaxBuddy automatically imports and categorizes income data from your bank statements, Form 16, AIS, and brokerage reports. It then ensures all income is reported under the correct heads (business income, other sources, etc.), reducing errors and simplifying the reporting process for freelancers.

4. What is presumptive taxation, and how can TaxBuddy help me use it?

Presumptive taxation is a scheme that allows you to declare your income on a presumptive basis, without maintaining detailed books of accounts. TaxBuddy helps you identify whether you qualify for Section 44AD (for small businesses) or Section 44ADA (for professionals) based on your income, making the filing process easier. If your turnover is below the prescribed limit (₹3 crore for businesses, ₹75 lakh for professionals), you can avail of this scheme, saving time and money on bookkeeping and audits.

5. How does TaxBuddy automate data aggregation and reconciliation?

TaxBuddy uses AI-powered technology to automatically pull income data from various sources, such as Form 16, AIS, 26AS, bank statements, and even e-commerce platforms. It then reconciles this data with government records to ensure there are no discrepancies. This automated reconciliation minimizes errors, reducing the likelihood of tax notices and penalties.

6. What are the tax-saving deductions available to side hustlers, and how does TaxBuddy help claim them?

TaxBuddy helps side hustlers claim tax-saving deductions like Section 80C (investments in PF, PPF, ELSS), Section 80D (health insurance), Section 80G (donations), and others. The platform's real-time deduction calculator helps you track your deductions as you file, ensuring you get the maximum possible tax savings. It also guides you on how to report business expenses, capital losses, and other applicable tax-saving opportunities.

7. Can TaxBuddy assist with filing capital gains taxes for side hustlers involved in stock or property trading?

Yes, TaxBuddy helps side hustlers involved in capital gains reporting, whether from stocks, property sales, or other investments. The platform automatically calculates your capital gains based on your transactions and guides you through taxable gains, LTCG (long-term capital gains), and STCG (short-term capital gains) calculations. TaxBuddy also ensures that you can claim any capital gains exemptions available under the Income Tax Act.

8. How does TaxBuddy assist with tax notice management for side hustlers?

TaxBuddy provides post-filing support for handling tax notices. If you receive a notice under Section 139(9) or 143(1), TaxBuddy’s CA team will assist you with the necessary documentation, resolving mismatches, and guiding you on how to respond to the notice. This support helps prevent further penalties or scrutiny and ensures that your side hustle stays compliant.

9. Is there a mobile app for TaxBuddy, and how does it make tax filing easier for side hustlers?

Yes, TaxBuddy offers a mobile app that allows side hustlers to file taxes on-the-go. The app provides features like automatic data import, real-time tax calculation, and step-by-step filing guidance, making it easier to file your taxes directly from your smartphone. With the app, you can track your deductions, refunds, and deadlines, ensuring that you never miss important filing dates.

10. What happens if I miss the deadline for filing my tax return?

If you miss the tax filing deadline, TaxBuddy helps you file a belated return. While there might be penalties for late filing, TaxBuddy will guide you through the process, minimizing penalties and ensuring your return is still filed correctly. The platform also helps you with revised returns in case you need to make corrections after submission.

11. How secure is my personal data on TaxBuddy’s platform?

TaxBuddy uses bank-grade encryption to ensure that your personal and financial data is secure. The platform adheres to Indian IT laws and complies with data protection regulations to keep your information safe from unauthorized access. TaxBuddy's secure filing process provides peace of mind for side hustlers, knowing their data is protected throughout the tax filing journey.

12. How does TaxBuddy’s expert assistance benefit side hustlers with complex income sources?

TaxBuddy’s expert-assisted filing provides side hustlers with personalized support from Certified Chartered Accountants (CAs) who review your return, maximize deductions, and ensure compliance with the latest tax laws. Whether you have multiple income sources, need help with capital gains, or want to optimize your business deductions, the CA team ensures you get the most out of your tax filing experience while keeping you compliant.