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Dividend income taxation in India for FY 2024–25 (AY 2025–26) continues under the Income Tax Act, 1961, with key refinements introduced in Budget 2025. The TDS threshold for dividends has been raised to ₹10,000, and new compliance guidelines ensure smoother and more transparent reporting. Since the abolition of Dividend Distribution Tax, the responsibility for paying tax on dividends now lies with investors. Understanding how to compute and report dividend income correctly i

Reporting mutual fund redemptions and capital gains correctly in an Income Tax Return (ITR) ensures compliance with the Indian Income Tax Act and prevents mismatch notices from the department. Each redemption—whether from equity, debt, or hybrid mutual funds—must be classified as short-term or long-term based on the holding period, and taxed accordingly. Gains are declared under Schedule CG, while dividends fall under income from other sources. With revised rules under Budget

TDS  on property sale under  Section 194-IA ensures that tax is collected at the source during the sale of immovable property valued above ₹50 lakh. The buyer is responsible for deducting 1% TDS on the higher of the sale price or stamp duty value and depositing it with the government through Form 26QB. The seller, on the other hand, must ensure this TDS is reflected in Form 26AS to claim credit while filing the Income Tax Return . Understanding these obligations prevents mism

Reporting capital gains  accurately in ITR-2 is critical for taxpayers who have sold assets like property, shares, or mutual funds. Even minor errors in Schedule CG can lead to defective return notices or delays in refund processing. ITR-2 is specifically designed for individuals and HUFs who earn income from capital gains but not from business or profession. The process involves identifying short-term and long-term gains, applying relevant exemptions, and ensuring precise re

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,

Form 26AS  and Form 16  are two key documents under the Indian Income Tax Act that ensure transparency and accuracy in income tax filing. Both serve as crucial records of taxes deducted and deposited, but they differ in purpose, structure, and scope. Form 26AS reflects the total tax deducted, collected, or paid under your PAN, while Form 16 certifies the tax deducted on your salary by your employer. Understanding their differences helps prevent tax mismatches, avoid defective

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

Failure to verify your Income Tax Return (ITR) within the prescribed 30 days can invalidate your filing under the Income Tax Act, 1961. The return is treated as unfiled, leading to penalties, refund denials, and potential scrutiny from the Income Tax Department. With e-verification being the final step in the tax filing process, missing this deadline can disrupt financial planning, delay refunds, and even affect your compliance history. Understanding the implications and corr