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Professional tax is a small but important deduction that can reduce your taxable income. Whether it’s automatically deducted from your salary or paid directly by self-employed individuals, it qualifies for a deduction under Section 16(ia) of the Income Tax Act, 1961. Reporting it correctly in your ITR ensures your taxable income is computed accurately and helps avoid discrepancies during assessment. Understanding where and how to claim it depends on your income type and the I

Income earned by a minor child in India is taxed under specific rules that depend on how the income is generated. The Income Tax Act outlines clear provisions on when a minor’s income must be clubbed with a parent’s tax return and when the child must file a separate ITR. These rules apply to common income sources such as bank interest, gifts, investments, or earnings from a child’s talent or business activity. Understanding these provisions ensures correct reporting, prevents

ITR filing for trusts receiving donations requires strict compliance with the Income Tax Act, 1961. Trusts registered under sections like 12AB, 10(23C), or 80G must file ITR-7 and report all donations in Form 10BD. The process involves maintaining accurate records, meeting audit requirements, and disclosing donor details to retain exemptions under Sections 11 and 12. Updated reporting rules, validation checks, and mandatory disclosures ensure transparency for donors and regu

Reporting F&O trading income in ITR-3 requires clarity on turnover rules, business income classification, tax audit conditions, and how profits or losses from F&O trades must be declared. F&O trades are treated as non-speculative business income, which means they must be reported under the “Profits and Gains from Business or Profession” section. Correct reporting ensures eligibility for loss set-off, avoids tax notices, and keeps compliance clean for future assessments. The

Section 139(8A)  of the Income Tax Act, 1961 allows taxpayers to correct or update their previously filed returns by submitting an Updated Return, known as ITR-U. Introduced in the Finance Bill 2022 and refined in Budget 2025, this provision ensures taxpayers can rectify errors, report missed income, and comply with tax obligations more accurately. The recent Budget 2025 changes have extended the filing window to 48 months and simplified compliance requirements, making it eas

Small business owners often face income tax notices because of mismatched books, incorrect ITR forms, and gaps in AIS or TDS data. A clear system for recording business transactions, reconciling income, and selecting the right return form significantly reduces these triggers. Accurate books support proper deductions, while digital tools streamline tasks like AIS matching and advance tax calculation. TaxBuddy improves this process with automated form selection, real-time reco

An income mismatch in ITR filing occurs when the income declared by a taxpayer does not align with the data available to the Income Tax Department through sources such as Form 16, Form 26AS, AIS, or TIS. Such discrepancies often trigger tax notices, revised return requirements, or delayed refunds. Identifying and resolving mismatches early can prevent penalties and ensure a smooth compliance experience. Table of Contents What is Income Mismatch in ITR Filing Common Causes o

Defective returns under Section 139(9) of the Income Tax Act , 1961, can directly block or delay your income tax refund. When a return is marked “defective,” the Income Tax Department halts processing until errors are corrected. This often occurs due to missing documents, incorrect entries, or non-disclosure of crucial details such as bank accounts. As a result, taxpayers lose access to refunds, deductions, and even carry-forward benefits until a corrected return is filed and

Tax filing in India is becoming faster, smarter, and more reliable with the rise of AI-assisted platforms. In 2025, the key challenge is not just speed but also ensuring error-free compliance with the Income Tax Act, 1961. TaxBuddy addresses this challenge by combining the efficiency of artificial intelligence with the assurance of human expertise. AI handles the data gathering, real-time validation, and auto-calculations, while tax professionals cross-check every return fo

Filing an income tax return (ITR) after the due date is known as a belated return. For business owners and professionals, missing the original deadline can lead to penalties, interest, and restricted benefits. However, the Income Tax Act allows taxpayers to file a belated ITR under Section 139(4). Understanding how and when to file ensures compliance while minimizing losses. This guide explains the complete process, from eligibility and documentation to filing on time throug