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Section 54EC of the Income Tax Act, 1961 offers taxpayers an effective way to save long-term capital gains (LTCG) tax. By investing the gains from selling property or other eligible assets into government-backed 54EC Bonds, individuals can claim an exemption on the taxable amount. These bonds, issued by entities such as NHAI, REC, PFC, and IRFC, provide a secure avenue for reinvestment while ensuring tax relief under specific conditions. The investment must be made within six

Section 54  of the Income Tax Act, 1961 offers a major tax relief for homeowners selling a residential property. If the profit from the sale is reinvested in another residential house, the capital gains can be exempted from tax. This provision ensures that taxpayers who continue investing in housing assets are not burdened with capital gains tax, provided they meet specific timelines and conditions. The exemption applies only to long-term capital gains and is available to ind

ITR validation errors are one of the most common hurdles faced by taxpayers each year while filing income tax returns . These errors occur due to data mismatches, incomplete details, or incorrect form usage during e-filing. The Income Tax Department’s system automatically flags such inconsistencies to maintain accuracy and compliance. Understanding these validation checks and knowing how to correct them helps prevent delays, refund issues, or notices. TaxBuddy  simplifies thi

Section 154  of the Income Tax Act, 1961, empowers taxpayers to correct apparent mistakes  in their income tax assessments or intimation orders issued by the department. These errors are typically factual or computational and do not involve complex legal interpretations. The government’s e-filing portal now allows individuals to file rectification requests entirely online, making it simpler and faster to correct discrepancies such as mismatched TDS, wrong loss carry-forwards,

When  filing an Income Tax Return (ITR) , ensuring that the salary declared matches the figures in Form 16, the Annual Information Statement (AIS) , and Form 26AS is essential for smooth processing. Any mismatch can trigger refund delays, error notices, or scrutiny by the Income Tax Department. Salary mismatches often occur due to incorrect TDS reporting, multiple employers, or missing income entries. Understanding how to identify and resolve such discrepancies can help taxpa

When an Income Tax Return (ITR) is filed with incomplete information, incorrect details, or without fulfilling mandatory requirements, it can be flagged as defective under Section 139(9)  of the Income Tax Act, 1961. The notice is issued by the Assessing Officer (AO) to allow the taxpayer to rectify these errors within a specified period. Common reasons include wrong ITR form selection, missing schedules, mismatched income and TDS data, or non-submission of audit reports. Und

Before filing your Income Tax Return (ITR) , verifying your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) is essential. These statements consolidate your financial data, including income, investments, and TDS details, as reported to the Income Tax Department. Any mismatch between your AIS/TIS and actual income can lead to scrutiny, delayed refunds, or notices. Reviewing and reconciling them ensures every transaction is correctly captured—helping y

Filing an Income Tax Return (ITR) for crypto income under Section 115BBH in India involves specific reporting rules, fixed tax rates, and detailed compliance steps. Income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs is taxed at a flat 30% rate, with no deductions or loss set-off permitted. Every crypto transaction must now be reported in the ITR under a dedicated “Schedule VDA,” ensuring transparency and compliance with Income Tax Department guidelines.

Taxpayers classified as Resident and Ordinarily Resident (ROR) in India are required to disclose all foreign income and assets in their Income Tax Return (ITR-2). This includes overseas bank accounts, shares, properties, and other financial interests held during the relevant calendar year. The reporting must be done in Schedule FA, covering assets and income from January 1 to December 31 of the previous year. The disclosure is mandatory even if such income is not taxable in I

Filing income tax returns in India as a Non-Resident Indian (NRI) involves specific rules, documents, and eligibility conditions. Taxation for NRIs depends on income earned or received fin India, and with recent updates under the Union Budget 2025, understanding these nuances is crucial for compliance. The process includes determining residential status, choosing the correct ITR form, claiming eligible deductions, and filing the return through the official e-filing portal. P