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Selecting the correct ITR form is essential for pensioners to ensure accurate reporting and smooth processing under the Income Tax Act, 1961. The choice between ITR-1 and ITR-2 depends on income limits, capital gains, the number of house properties, and the presence of foreign assets. Pension-only income with basic interest earnings often fits within ITR-1 , while capital gains, multiple houses, or income above ₹50 lakh automatically shift the requirement to ITR-2. Filing wi

Tuition fees paid for a child’s education can reduce taxable income when claimed under Section 80C of the Income Tax Act. This deduction applies only to full-time education for up to two children in recognized schools, colleges, universities, and institutions within India. Only the tuition component qualifies, while charges such as donations, development fees, transportation costs, and hostel expenses are excluded. Since the total Section 80C limit remains ₹1.5 lakh, tuition

Tax-saving choices often look similar at first glance, but NPS, ELSS, and PPF stand apart because they cover three distinct investor needs—growth, stability, and retirement security. All three qualify for deductions under Section 80C of the Income Tax Act, 1961, yet their risk levels, returns, tax treatments, and lock-in rules differ sharply. Understanding these differences helps ensure that the right mix is chosen based on goals, income tax regime, and appetite for market ex

Capital gains reporting in ITR-2 for FY 2024-25 involves detailed disclosure of every asset sold, including shares, mutual funds, bonds, property, or any other capital asset. The Income Tax Department now requires separate reporting of gains earned before and after 23 July 2024 because the Finance Act 2024 introduced revised rules, making accuracy more critical than ever. Each transaction must be captured with cost, sale consideration, ISIN (where applicable), holding perio

Preventive health check-up deductions allow taxpayers to reduce taxable income through routine medical screenings, but the benefit is often misunderstood due to uncertainty around acceptable proof and documentation. The Income Tax Act permits a specific limit for these check-ups under Section 80D , provided the taxpayer can support the claim with valid records. This makes the quality of documentation just as important as eligibility. Clear payment evidence, verifiable diagnos

Section 80DDB of the Income Tax Act allows a tax deduction for medical expenses incurred on specified serious diseases affecting dependent family members, including dependent parents. The provision supports taxpayers facing high treatment costs for illnesses such as cancer, chronic renal failure, neurological disorders, and other critical ailments listed under Rule 11DD. Deduction eligibility depends on age, actual medical bills, and reimbursements received, with higher limi

Section 244A governs interest on delayed income tax refunds, ensuring compensation when refunds take longer than the timelines set under the Income Tax Act. Interest applies on excess TDS, advance tax, or self-assessment tax, and is calculated at 0.5% per month on qualifying refunds. The refund must exceed 10% of total tax liability or ₹100 to trigger interest. Timely filing and accurate bank validation are essential to prevent delays, and platforms such as TaxBuddy help s

HRA , LTA , and perquisite mismatches in salary deductions often trigger income tax notices when the claimed exemptions do not align with Form 16 , salary slips, or transaction records reported to the Income Tax Department. Most errors stem from incorrect calculations, missing documents, inflated claims, or discrepancies between rent receipts, travel proofs, employer valuations, and bank statements. These are flagged through Section 143(1) intimation or scrutiny notices, requ

Filing ITR-U is a provision under Section 139(8A) that allows taxpayers to correct missed capital gains income or other omissions from a previously filed return. It provides a structured way to update income details, pay any additional tax, and reduce the risk of scrutiny. Missing capital gains—whether equity, property, or mutual funds—is one of the most common errors, and ITR-U enables reporting these gains correctly even after the original deadline has passed. Platforms li

Filing an updated return under Section 139(8A) allows taxpayers to correct omissions, disclose previously unreported income, and regularise tax records even after the original filing deadline has passed. This extended compliance route helps avoid prosecution, reduces the risk of heavy penalties, and promotes transparent tax reporting. The provision gives taxpayers up to 48 months from the end of the assessment year to voluntarily correct mistakes, making it one of the most