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Section 54EC of the Income Tax Act, 1961 offers taxpayers an effective way to save long-term capital gains (LTCG) tax. By investing the gains from selling property or other eligible assets into government-backed 54EC Bonds, individuals can claim an exemption on the taxable amount. These bonds, issued by entities such as NHAI, REC, PFC, and IRFC, provide a secure avenue for reinvestment while ensuring tax relief under specific conditions. The investment must be made within six

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

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

Filing an Income Tax Return (ITR) for crypto income under Section 115BBH in India involves specific reporting rules, fixed tax rates, and detailed compliance steps. Income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs is taxed at a flat 30% rate, with no deductions or loss set-off permitted. Every crypto transaction must now be reported in the ITR under a dedicated “Schedule VDA,” ensuring transparency and compliance with Income Tax Department guidelines.

Taxpayers classified as Resident and Ordinarily Resident (ROR) in India are required to disclose all foreign income and assets in their Income Tax Return (ITR-2). This includes overseas bank accounts, shares, properties, and other financial interests held during the relevant calendar year. The reporting must be done in Schedule FA, covering assets and income from January 1 to December 31 of the previous year. The disclosure is mandatory even if such income is not taxable in I

Filing an Updated Income Tax Return (ITR-U) allows taxpayers to correct mistakes or declare missed income after submitting their original or belated return. Introduced under Section 139(8A) of the Income Tax Act, this provision enables individuals to file or revise their returns within 24–48 months from the end of the relevant assessment year. It’s designed to promote voluntary compliance while avoiding penalties for non-disclosure of income. Table of Contents What Is an Upda

For correcting mistakes in your Indian Income Tax Return (ITR), both ITR-U (Updated Return) and Revised Return serve as valid mechanisms. Each caters to different circumstances depending on when the error is discovered and the type of correction required. A Revised Return is suitable for timely corrections within the assessment year, while ITR-U is meant for older or missed returns discovered much later. Understanding the differences between these two ensures compliance, pr

When a refund fails due to bank validation issues, the Income Tax Department holds the amount until the correct details are provided. This usually happens when the taxpayer’s bank account is not pre-validated, inactive, or mismatched with the PAN. To reissue your income tax refund after a bank validation failure, update and revalidate your bank details on the Income Tax e-filing portal, then submit a “Refund Reissue Request.” The process ensures your refund is credited secure