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Claiming tax deductions is a legitimate way to reduce tax liability, but excessive or disproportionate claims often invite scrutiny from the Income Tax Department. Advanced data analytics now compare deductions with income patterns, bank activity, and third-party information available through AIS and TIS. When deductions appear unusually high relative to reported income, returns are more likely to be selected for verification or detailed assessment. Understanding how excessiv

House Rent Allowance, National Pension System contributions, insurance premiums, and capital gains exemptions can be strategically combined into a single tax plan to significantly reduce taxable income for salaried individuals in India. This approach primarily works under the old tax regime, where multiple exemptions and deductions under the Income Tax Act, 1961 continue to remain available. When planned correctly, HRA lowers taxable salary, NPS reduces gross income, insuranc

Last-minute tax saving under the Income Tax Act, 1961 often creates more problems than benefits. Rushed investments, hurried document collection, and incomplete verification lead to incorrect claims, mismatches with Form 26AS and AIS, and missing disclosures. These errors frequently result in defective returns under Section 139(9) or force taxpayers to revise their returns under Section 139(5). Filing close to the deadline increases the risk of notices, refund delays, and com

Buying a house or taking a home loan changes tax planning significantly under the Income Tax Act, 1961. Multiple provisions related to income from house property, home loan interest, principal repayment, and capital gains come into play. These benefits differ based on property usage, ownership structure, and the tax regime chosen. Understanding how Sections 22 to 27, 24(b), 80C, 80EE, and 80EEA interact is essential to avoid incorrect claims and maximise eligible deductions.

Tax planning becomes critical when individuals are involved in high-value transactions such as large cash deposits, property purchases, foreign remittances, or significant credit card spending. These transactions are automatically tracked and reported to the tax department through systems like the Annual Information Statement and Form 26AS. Any mismatch between reported income and transaction value can trigger scrutiny or unexplained income notices. Proper planning focuses on

Section-wise tax saving under the Income Tax Act often appears effective but fails to deliver optimal results without integrated planning. Focusing on isolated deductions like Section 80C or 80D ignores how income slabs, regime selection, loss set-offs, and compliance rules interact. This fragmented approach frequently results in unused deduction limits, incorrect claims, or higher tax liability despite investments. Integrated tax planning evaluates total income structure, re

Accurate deduction claims depend on how well Form 16, AIS, and the ITR match each other. Mismatches between employer-reported data, AIS transactions, and taxpayer disclosures often lead to incorrect deductions, missed credits, or income tax notices. TaxBuddy addresses this challenge by automatically reconciling deduction data across Form 16, AIS, and ITR forms before submission. The platform extracts salary details, deductions, and TDS from uploaded documents, cross-verifies

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

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