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Section 270A of the Income Tax Act imposes heavy penalties when income is misreported or under-reported. A 200% penalty applies to misreporting, while a 50% penalty is levied for under-reporting, making accuracy in tax reporting essential. Many taxpayers face these penalties due to missing income, incorrect disclosures, poor documentation, or delays in filing. Preventing such outcomes requires a clear understanding of what qualifies as misreporting, how the tax department tr

Interest income mismatch between the Annual Information Statement and the Income Tax Return is one of the most frequent issues flagged during tax processing in India. Banks, NBFCs, and other entities often report interest at different times, causing figures in AIS to differ from what appears in the taxpayer’s ITR. These discrepancies commonly trigger notices under sections 143(1) or 139(9) , delay refunds, or lead to incorrect tax calculations. Early reconciliation helps avoi

Taxpayers often stop at Section 80C when planning their savings, overlooking several other powerful deductions under the Income Tax Act, 1961. These lesser-known sections can substantially reduce tax liability while aligning financial goals with long-term benefits such as health coverage, education, and retirement planning. With the right mix of deductions and informed investment decisions, tax planning becomes a strategic advantage rather than a routine annual task. Table

Form 16A and Form 16B are both TDS certificates under Indian tax laws, but they serve entirely different purposes. Form 16A applies to non-salary income such as interest, rent, or professional fees, while Form 16B is specific to TDS deducted on property transactions above ₹50 lakh. Knowing how these forms differ ensures accurate filing, proper TDS credit claims, and smooth tax compliance. With digital platforms like TaxBuddy simplifying TDS tracking and filing, taxpayers c

Medical expenses for aging parents often form a major part of household spending. Under Section 80D of the Income Tax Act, taxpayers can claim deductions for medical insurance premiums and certain medical expenses incurred for their parents. This benefit is particularly valuable when parents are senior citizens without health insurance. By claiming this deduction correctly, taxpayers can reduce their taxable income and manage healthcare costs more efficiently. Table of Conte

For each EPF account holder, nomination is an extremely important step. In the event of the account holder's untimely death, the benefits of their PF contribution , interest, EDLI, and pension will be transferred to the nominee. Members of the EPF can amend or modify the nomination online after it is completed. Form 2, which the employer would submit to the EPFO, was initially used to change a nomination. The procedure has now been streamlined by the EPFO, and members can use

Digital payments gained prominence in 2016 when the National Payments Corporation of India (NPCI) launched the Unified Payment Interface (UPI). Without their banking credentials, you can now quickly pay peers and merchants. All you require is their mobile number or Virtual Payment Address (VPA). While UPI transactions are convenient, you might sometimes face issues due to technical glitches, slow bank services, or other hiccups. It is vital to know how to file a complaint ab

Capital gains tax on mutual funds is determined by how long the investment is held and the type of fund—equity or debt. The Income Tax Act, 1961, categorizes these gains into short-term and long-term, each attracting distinct tax rates. Budget 2025 has introduced clarity on holding periods, tax slabs, and exemption limits, making compliance easier for investors. With automation-led tax filing platforms like TaxBuddy , reporting capital gains has become simpler and more accur

House Rent Allowance (HRA)  exemption and Section 80GG deduction are two separate tax benefits under the Indian Income Tax Act that reduce taxable income for individuals paying rent. While HRA exemption under Section 10(13A) is available only to salaried individuals receiving HRA as part of their salary, Section 80GG provides relief to those who pay rent but do not receive HRA, including self-employed individuals. Understanding the distinction between these two helps taxpayer

Section 80C  and Section 80CCD  are two of the most popular tax-saving provisions under the Income Tax Act, 1961. Both offer significant opportunities to lower taxable income, but their scope and eligibility differ. Section 80C focuses on diversified investments such as ELSS, PPF, and life insurance, while Section 80CCD encourages retirement savings through the National Pension System (NPS). The right choice depends on income level, employment type, and investment goals. Unde