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The Annual Information Statement (AIS) is a detailed record of your financial transactions, including income, investments, and TDS details, reported to the Income Tax Department. Submitting accurate feedback on AIS ensures that your financial data is correctly reflected in your income tax records, minimising errors during return filing . The process can be completed easily online through the e-filing portal, where users can review, correct, and verify details in just a few s

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

Section 54  of the Income Tax Act, 1961 offers a major tax relief for homeowners selling a residential property. If the profit from the sale is reinvested in another residential house, the capital gains can be exempted from tax. This provision ensures that taxpayers who continue investing in housing assets are not burdened with capital gains tax, provided they meet specific timelines and conditions. The exemption applies only to long-term capital gains and is available to ind

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

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,

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

A belated Income Tax Return  (ITR) allows taxpayers to file after the due date under Section 139(4) of the Income Tax Act, 1961. Many individuals wonder whether a tax refund can still be claimed in such cases. The answer is yes — refunds can be claimed if the return is filed within the permitted timeline, typically by 31st December of the assessment year. However, filing a belated return also brings certain implications, including late fees, interest, and restrictions on carr

Paying advance tax is mandatory if your total tax liability exceeds ₹10,000 in a financial year. The process has become entirely digital, with Challan 280 serving as the official form to pay advance tax online under the Income Tax Act, 1961. This form is used for various payments such as advance tax, self-assessment tax, and regular assessment tax, ensuring timely compliance with tax obligations. TaxBuddy  simplifies this process by helping taxpayers calculate their advance t

Advance tax  applies to income that attracts a tax liability of ₹10,000 or more in a financial year, including gains from shares, mutual funds, or property sales. It ensures taxpayers pay taxes in installments throughout the year instead of at once while filing returns . Capital gains, being unpredictable, often create confusion about when and how to pay advance tax. Understanding the correct calculation and due dates is crucial to avoid interest under Sections 234B and 234C.

Interest under Sections 234B and 234C of the Income Tax Act applies when advance tax is either not paid or paid after the due dates. The Income Tax Department imposes these interest charges to ensure the timely payment of taxes throughout the financial year. For taxpayers, understanding how this interest is calculated is crucial to avoid unnecessary penalties and stay compliant. Using the latest FY 2025-26 updates, this guide explains the computation process for each section