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A Lower Deduction Certificate under Section 197 helps NRIs selling property in India reduce the tax deducted at source so that TDS is aligned with actual capital gains instead of the full sale value. Without this certificate, buyers deduct tax on the entire transaction amount, leading to excess deduction and blocked funds. By applying for a lower deduction certificate in advance, NRIs can retain a larger portion of their sale proceeds immediately, avoid refund delays, and ens

Form 13 under Section 197 of the Income-tax Act , 1961, allows taxpayers to reduce TDS by aligning tax deduction with actual liability. It can be used for multiple income sources such as salary, interest, rent, commission, dividends, and professional fees within a single application. Instead of facing higher TDS on each income stream separately, taxpayers can consolidate their income details and request a lower deduction rate. This helps prevent excess tax deduction, improves

NRIs can apply for a Lower Deduction Certificate under Section 197 of the Income Tax Act , 1961, to reduce or eliminate TDS on income such as rent, interest, or property sales. This certificate allows payers like buyers or banks to deduct tax at a lower rate or nil, avoiding excess withholding. Applying for this certificate ensures that NRIs don't face higher-than-necessary tax deductions and allows them to claim any overpaid tax through refunds. Understanding the application

Form 13 under Section 197 of the Income-tax Act , 1961, allows NRIs selling property in India to reduce or eliminate TDS on the sale transaction by ensuring tax is deducted only on actual capital gains instead of the full sale value. Without this certificate, buyers deduct TDS at higher rates on the total consideration, leading to excess tax deduction and delayed refunds. Applying for Form 13 before the transaction helps NRIs improve cash flow, avoid unnecessary tax blockage,

When Non-Resident Indians (NRIs) sell property in India, they face high Tax Deducted at Source (TDS) rates under Section 195 of the Income Tax Act, 1961. However, they can reduce this burden by applying for a lower TDS rate through Form 13 under Section 197 . This form allows NRIs to request a TDS deduction based on their actual tax liability, taking into account capital gains and exemptions. Form 13 approval ensures that the correct TDS amount is deducted, preventing overpay

Under the Income Tax Act, 1961, individuals and Hindu Undivided Families (HUFs) are treated as separate taxable entities, which leads to important differences in how income tax returns are filed. While an individual files ITR as a natural person reporting personal income, an HUF files returns as a family unit represented by the Karta and identified through its own PAN and bank account. These structural differences affect eligibility for ITR forms, tax deductions, compliance r

A Hindu Undivided Family (HUF)  is a separate taxable entity under the Income Tax Act, 1961 that allows families to manage income and tax planning collectively. Creating and maintaining an HUF requires legal documentation, PAN registration, bank account setup, and regular income tax return filing. TaxBuddy simplifies this process through a fully digital platform that supports families from HUF creation to annual tax compliance. With guided documentation, expert consultations,

Hindu Undivided Families (HUFs) are widely used in India as a structured way to manage family assets and reduce overall tax liability. Recognised as a separate taxable entity under the Income Tax Act, 1961, an HUF allows families to pool income from property, investments, or business activities under one tax unit. This structure enables income splitting, access to an additional basic exemption limit, and separate deductions that may not be available if all income is reported

Many families create a  Hindu Undivided Family (HUF)  to manage ancestral assets and reduce overall tax liability. However, improper handling of compliance, documentation, and tax filing often leads to disputes or scrutiny from tax authorities. Errors such as mixing personal and HUF funds, using incorrect ITR forms, or failing to maintain proper records can weaken the legal standing of the HUF as a separate tax entity. Understanding the most common mistakes in managing an HUF

HUF registration  allows a family to create a separate taxable entity under the Income Tax Act, enabling structured ownership of assets and tax-efficient wealth management. By pooling ancestral property, investments, or family business income under a Hindu Undivided Family (HUF), families can legally split income, reduce overall tax liability, and organise financial assets across generations. This structure also simplifies inheritance and preserves family wealth. When impleme