One stop for everything related to taxes,
Our Blogs

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

Tax planning becomes critical when side income is earned alongside a full-time salary, as all earnings are aggregated under the Income Tax Act, 1961. Income from freelancing, rentals, investments, or online gigs can quickly push total income into higher tax slabs if left unplanned. Choosing the correct income head, managing advance tax, and selecting between the old and new tax regimes directly impact tax liability. Structured planning helps reduce interest, penalties, and no

For FY 2025–26, the new tax regime offers lower slab rates, a higher standard deduction, and tax-free income up to ₹12 lakh through enhanced rebate. Despite these changes, the old tax regime continues to provide better outcomes for salaried individuals whose pay structure includes significant deductions such as HRA, home loan interest, and Chapter VI-A investments. The real advantage now depends less on income level and more on how salary components and deductions are structu

Presumptive taxation and expense-based planning are two distinct tax computation methods available to professionals under the Income Tax Act, 1961. Presumptive taxation under Section 44ADA simplifies compliance by taxing 50 per cent of gross receipts as income, while expense-based planning allows actual business expenses to be deducted under regular provisions. The choice directly impacts tax liability, compliance burden, and audit exposure. Understanding how both methods wor

Switching between the old and new tax regimes may appear harmless in the short term, but for many taxpayers, especially professionals transitioning to business income mid-career, this decision can create long-term tax inefficiency. Under India’s current income tax framework, salaried individuals enjoy annual flexibility, while business and professional taxpayers face irreversible lock-in rules. Budget 2024–25 changes and the upcoming Income Tax Bill 2025 further reinforce the

Choosing between the old and new tax regimes directly impacts tax outgo, refunds, and long-term planning. With the new tax regime becoming the default and offering tax-free income up to ₹12 lakh after Budget 2025 updates, the decision now depends more on income profile than assumptions. TaxBuddy evaluates both regimes side by side by factoring in income level, deductions, exemptions, and taxpayer category to identify the option that results in the lowest tax liability while r

The new tax regime under Section 115BAC has been the default option for salaried employees since FY 2023–24. While it offers lower slab rates and a nearly tax-free income up to ₹12 lakh after rebate from FY 2025-2026, it removes most commonly used deductions. For salaried individuals with home loans, insurance, or long-term investments, the tax saved through deductions under the old regime often exceeds the benefit of lower slabs. As a result, many employees unknowingly pay h

GST e-invoicing and return filing are now deeply interconnected under the Indian GST law. Once an e-invoice is generated through the Invoice Registration Portal, its data flows directly into GST returns, reducing manual intervention and mismatches. This linkage ensures that outward supplies reported in GSTR-1 and tax liabilities declared in GSTR-3B remain consistent. With stricter timelines and compliance controls introduced in 2025, businesses must rely on accurate system-l

GST compliance for service providers in India has become more structured but significantly more data-driven in 2025. Agencies, chartered accountants, and consultants now face clearer tax rates and thresholds, alongside tighter scrutiny through analytics, cross-linking with income tax data, and stricter return matching. Errors in invoicing, ITC claims, or return reconciliation can quickly lead to notices and blocked credits. In this environment, managing GST is no longer a per