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Section 80C  and Section 80CCD  are two of the most popular tax-saving provisions under the Income Tax Act, 1961. Both offer significant opportunities to lower taxable income, but their scope and eligibility differ. Section 80C focuses on diversified investments such as ELSS, PPF, and life insurance, while Section 80CCD encourages retirement savings through the National Pension System (NPS). The right choice depends on income level, employment type, and investment goals. Unde

Section 24(b)  of the Income Tax Act, 1961 allows taxpayers to claim deductions on the interest paid for home loans taken to purchase, construct, repair, or renovate residential properties. It provides substantial relief for homeowners by reducing taxable income through interest deductions, subject to specific limits and eligibility conditions. For self-occupied houses, the maximum deduction is ₹2,00,000 per year, while for rented properties, there is no upper limit. This sec

Section 80GG  of the Income Tax Act, 1961 allows taxpayers who do not receive House Rent Allowance (HRA) to claim a deduction for rent paid. This provision ensures that even those living in rented accommodations without HRA can avail tax relief, provided they meet the eligibility conditions. To claim the deduction, individuals must not own a residential property at their place of work, must pay rent for accommodation, and must file Form 10BA declaring rent details. Proper com

Section 44ADA  of the Income Tax Act offers a simplified taxation route for professionals with annual receipts up to ₹75 lakh. It allows eligible individuals to declare 50% of their gross receipts as taxable income, eliminating the need for detailed expense records or complex bookkeeping. This scheme is especially beneficial for professionals like doctors, lawyers, architects, and consultants who seek ease of compliance and reduced administrative work. By adopting this scheme

Freelancers and consultants are subject to income tax just like salaried individuals, but their income is treated as business or professional earnings under the Income Tax Act. With multiple income streams, TDS entries, and expense claims, filing taxes  can be complex. The government’s emphasis on digital compliance and updated tax rules under Budget 2025 has made online filing platforms indispensable. AI-powered platforms like TaxBuddy  simplify ITR filing for freelancers by

Choosing the right ITR form is vital for accurate tax filing , especially for individuals earning from business or professional activities. The 2025 updates by the Income Tax Department have clarified eligibility and simplified reporting, making it easier for taxpayers to decide between ITR-3 and ITR-4 based on their income type, turnover, and record-keeping practices. Both ITR-3 and ITR-4 apply to business or professional income, but the choice depends on whether the taxpaye

Sections 44AD  and 44ADA  under the Income Tax Act, 1961, simplify tax filing  for small businesses and professionals by allowing them to declare income on a presumptive basis rather than maintaining detailed books of accounts. These provisions encourage voluntary compliance and ease the financial reporting burden, especially for those with moderate annual receipts. Table of Contents Section 44AD: Simplified Tax Scheme for Small Businesses Section 44ADA: Presumptive Taxation

Capital losses  can significantly impact tax planning if not managed correctly. The Income Tax Act, 1961 allows taxpayers to reduce their taxable income by setting off such losses against capital gains in the same or future years. The concept of set-off and carry forward helps individuals and businesses optimize their tax outgo by adjusting losses within defined limits and time frames. With recent Budget 2025 changes expanding flexibility, understanding these provisions has b

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

Reporting mutual fund redemptions and capital gains correctly in an Income Tax Return (ITR) ensures compliance with the Indian Income Tax Act and prevents mismatch notices from the department. Each redemption—whether from equity, debt, or hybrid mutual funds—must be classified as short-term or long-term based on the holding period, and taxed accordingly. Gains are declared under Schedule CG, while dividends fall under income from other sources. With revised rules under Budget