One stop for everything related to taxes,
Our Blogs

Early detection of reporting errors has become critical as the Income Tax Department increasingly relies on automated data matching. Mismatches between AIS, TIS, Form 26AS, and filed returns are now one of the biggest triggers for scrutiny and notices. TaxBuddy addresses this risk by applying AI-driven analysis during the return preparation stage itself, identifying inconsistencies in income reporting, deductions, bank data, and high-value transactions before submission. This

Advance tax miscalculation is one of the most common compliance issues faced by Indian taxpayers, especially professionals, freelancers, and MSME owners. Without structured planning, income estimates often miss variable earnings, capital gains, or applicable deductions, resulting in short payment of tax. This directly triggers interest under Sections 234B and 234C, increasing the overall tax burden. The absence of a planner also makes it difficult to revise estimates across i

Capital gains tax planning is most effective when done before a transaction is executed, not after the asset is sold. Under the Income Tax Act, 1961, advance planning allows taxpayers to lawfully reduce or eliminate tax liability by timing the sale, choosing the right holding period, and preparing eligible reinvestments. Sections such as 54, 54F, and 54EC provide exemptions that are available only when conditions are met within strict timelines linked to the transaction date.

Filing an Income Tax Return that appears accurate does not always guarantee freedom from scrutiny. In recent years, automated systems under the Income Tax Act, 1961, have increasingly flagged returns based on data mismatches, risk profiling, and transaction patterns, even when taxpayers believe everything is correctly reported. Discrepancies between AIS, Form 26AS, bank-reported data, and the filed ITR are now a primary cause of scrutiny selection. Understanding how these sys

Proper tax planning is one of the most effective ways to reduce the probability of receiving income tax notices. Most notices are triggered due to mismatches between reported income and data available with the Income Tax Department through AIS, Form 26AS, and TIS. When filings are planned proactively, income disclosures, deductions, and bank details remain aligned with department records. This minimises automated alerts, scrutiny selection, and follow-up queries for AY 2025–2

Advance tax obligations often become complex when income does not accrue evenly throughout the year. Salaried individuals with bonuses, freelancers with seasonal earnings, and business owners with fluctuating cash flows frequently struggle to match tax payments with actual income. TaxBuddy addresses this gap by mapping advance tax installments directly to real income patterns instead of static estimates. Using projected earnings, deductions, tax regime selection, and real-tim

Advance tax applies when total tax liability exceeds ₹10,000 after adjusting TDS, and this rule equally impacts rental income, dividend income, and investment gains. For FY 2025–26, taxpayers earning from house property, dividends, or capital gains must estimate income in advance and pay tax in quarterly installments to avoid interest under Sections 234B and 234C. Proper advance tax planning involves understanding how each income stream is taxed, identifying applicable deduct

Many salaried individuals and professionals invest in popular tax-saving instruments every year, yet still end up paying more tax than expected. This happens because tax planning often stops at familiar investments instead of aligning deductions, income sources, and the chosen tax regime under the Income Tax Act, 1961. Incomplete awareness of available deductions, incorrect regime selection, and procedural mistakes during filing reduce the actual tax benefit. Without a holist

Advance tax planning plays a critical role in preventing interest liabilities under Sections 234B and 234C of the Income Tax Act, 1961. These provisions impose interest when advance tax is either underpaid or paid late during the financial year. Proper estimation of income, timely quarterly payments, and periodic revisions help taxpayers stay compliant and avoid avoidable interest costs. With stricter scrutiny on advance tax compliance continuing in recent years, aligning tax

Professionals such as freelancers, consultants, and independent practitioners often deal with irregular and project-based income rather than fixed monthly earnings. This makes advance tax compliance challenging, as tax liability cannot be estimated using standard salary-based assumptions. Under the Income Tax Act, 1961, advance tax becomes mandatory when annual tax liability exceeds ₹10,000, even if income fluctuates during the year. TaxBuddy addresses this gap by offering st