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Filing an income tax return for pension income combined with savings account interest requires clarity on how these two income streams are taxed under the Income Tax Act for FY 2024-25. Pension is treated as salary income, while savings interest falls under income from other sources, and both must be reported accurately. Seniors can also access additional deductions such as Section 80TTB, which reduces taxable interest income. Selecting the correct ITR form, understanding ex

FD interest earned by homemakers is fully taxable and must be reported each year, even if the amount is small or not withdrawn. Under the Income Tax Act, interest from fixed deposits falls under “Income from Other Sources,” making accurate reporting essential. Choosing the correct ITR form, reconciling TDS through Form 26AS , and identifying applicable deductions help maintain proper tax compliance. Homemakers must also ensure PAN details, KYC information, and interest certif

Schedule 80G is the section in an Income Tax Return where donations made to approved charitable institutions are declared for deduction under Section 80G. The details entered in this schedule influence the deduction amount and directly impact taxable income. Accurate reporting ensures the donation is valid, eligible, and supported with proper documentation, especially under the old tax regime. With increased scrutiny and mandatory 80G verification norms, precise entry becomes

Section 80TTA allows a deduction of up to ₹10,000 on interest earned from savings bank accounts, and this benefit can be claimed directly inside ITR-1 under the Chapter VI-A deduction schedule. The rule applies to individuals and HUFs with interest income from savings accounts in banks, post offices, or cooperative societies. Interest from fixed deposits or recurring deposits is not covered under this section. Senior citizens use Section 80TTB instead. Accurate reporting of

Residential status under the Income Tax Act, 1961, determines how an individual’s income will be taxed in India. It affects whether global income or only Indian income becomes taxable, making it one of the most crucial steps before filing returns. As per Section 6 of the Act, residential status depends on the number of days an individual stays in India and their past presence over the preceding years. Accurate classification ensures compliance, helps avoid double taxation, an

Tax planning for FY 2024-25 revolves around using the revised income tax slabs, maximizing eligible deductions, and aligning investments with the latest Budget reforms. The government’s emphasis on a simplified new regime and increased standard deductions offers individuals more flexibility in optimizing their tax liability. By choosing the right mix of exemptions, salary structuring, and investments, taxpayers can significantly reduce their overall tax outgo while ensuring c

Taxpayers often stop at Section 80C when planning their savings, overlooking several other powerful deductions under the Income Tax Act, 1961. These lesser-known sections can substantially reduce tax liability while aligning financial goals with long-term benefits such as health coverage, education, and retirement planning. With the right mix of deductions and informed investment decisions, tax planning becomes a strategic advantage rather than a routine annual task. Table

Chapter VI-A of the Income Tax Act, 1961 provides a structured way for taxpayers to reduce their taxable income through specific deductions. These deductions cover investments, insurance premiums, medical expenses, donations, and interest income, offering comprehensive relief under the old tax regime. The updated list for FY 2024-25 includes sections ranging from 80C to 80U , with limits designed to encourage financial discipline and savings. TaxBuddy simplifies this proces

Education loans not only make higher studies possible but also bring valuable tax relief through Section 80E of the Income Tax Act, 1961. This section allows individuals to claim a deduction on the interest paid on education loans for themselves, their spouse, children, or wards. The benefit applies exclusively to the interest component and can be claimed for up to eight consecutive years. There is no upper limit on the deduction, which means every rupee of interest paid red

The National Pension System (NPS) provides a powerful opportunity to reduce taxable income while building long-term retirement wealth. Under Section 80CCD(1B) of the Income Tax Act, individuals can claim an additional deduction of up to ₹50,000 for contributions to their NPS Tier I account. This benefit comes on top of the ₹1.5 lakh deduction available under Section 80C and Section 80CCD(1), effectively allowing taxpayers to claim a total deduction of ₹2 lakh in a financial