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Section 194H of the Income Tax Act, 1961 governs the deduction of tax at source on commission or brokerage payments made to residents. It ensures that income earned through intermediary services is reported accurately and taxed at the source itself. From 1 April 2025, the threshold limit has been raised to ₹20,000 and the TDS rate reduced to 2 percent, simplifying compliance for businesses and individual payers. TaxBuddy helps taxpayers understand such provisions and stay c

Section 194N of the Income Tax Act regulates cash withdrawals beyond prescribed limits to promote transparency and discourage unaccounted cash transactions. Introduced to drive the shift toward digital payments, this section requires banks, co-operative societies, and post offices to deduct TDS when withdrawals exceed ₹1 crore annually. Budget 2025 has refined thresholds, exemptions, and compliance processes, making it vital for both individuals and entities to stay informed

Receiving a notice for wrong reporting by your employer usually means the Income Tax Department has detected a mismatch between the details reported by your employer and the information reflected in your Form 26AS , Form 16, or filed ITR. These discrepancies commonly arise from incorrect PAN reporting, TDS not deposited on time, salary details not matching payroll records, or errors in the employer’s TDS return. Such mismatches can trigger automated notices seeking clarificat

Section 194J of the Income Tax Act, 1961, mandates the deduction of tax at source (TDS) on payments made for professional and technical services, royalties, and director remuneration. The provision ensures timely tax collection from service-based income such as legal, medical, accountancy, and consultancy fees. Applicable to both individuals and businesses, this section plays a vital role in maintaining transparency and compliance in professional transactions. It is essential

House Rent Allowance (HRA)  exemption and Section 80GG deduction are two separate tax benefits under the Indian Income Tax Act that reduce taxable income for individuals paying rent. While HRA exemption under Section 10(13A) is available only to salaried individuals receiving HRA as part of their salary, Section 80GG provides relief to those who pay rent but do not receive HRA, including self-employed individuals. Understanding the distinction between these two helps taxpayer

Section 80EEA  of the Income Tax Act, 1961 provides an additional deduction of up to ₹1.5 lakh on home loan interest for first-time home buyers purchasing affordable housing. Introduced through the Finance Act, 2019, it extends beyond Section 24(b) benefits, encouraging residential ownership for middle-income earners. This provision supports the government’s “Housing for All” vision by making home loans more tax-efficient and promoting affordable housing among new buyers. Tab

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

A TDS mismatch between Form 26AS and the Annual Information Statement (AIS) can lead to refund delays, inaccurate tax credit claims, and even income tax notices. The Income Tax Department uses both documents to verify reported income and tax deductions, so even minor differences must be resolved quickly. For Assessment Year 2025–26, the emphasis on reconciling TDS data across Form 26AS  and AIS has increased, as Form 26AS remains the official record of TDS credits, while AIS

Excess TDS occurs when the total tax deducted at source during a financial year exceeds the actual tax liability of a taxpayer. This often arises due to multiple employers, higher TDS on fixed deposits, or errors in calculation. Claiming a refund for excess TDS is straightforward once the correct procedure is followed, including filing an accurate Income Tax Return (ITR), verifying bank details, and monitoring the refund status. Understanding the step-by-step process helps en

Filing an Income Tax Return (ITR) without Form 16 is entirely possible. Form 16 is a TDS certificate issued by employers, but it is not mandatory for ITR filing. Taxpayers can use salary slips, Form 26AS, and other supporting documents to accurately calculate their income, claim deductions, and file returns. The Income Tax Act, 1961 allows all eligible individuals to submit returns even without Form 16, provided they maintain proper documentation. Platforms like TaxBuddy sim