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Many salaried individuals and professionals invest in popular tax-saving instruments every year, yet still end up paying more tax than expected. This happens because tax planning often stops at familiar investments instead of aligning deductions, income sources, and the chosen tax regime under the Income Tax Act, 1961. Incomplete awareness of available deductions, incorrect regime selection, and procedural mistakes during filing reduce the actual tax benefit. Without a holist

Advance tax planning plays a critical role in preventing interest liabilities under Sections 234B and 234C of the Income Tax Act, 1961. These provisions impose interest when advance tax is either underpaid or paid late during the financial year. Proper estimation of income, timely quarterly payments, and periodic revisions help taxpayers stay compliant and avoid avoidable interest costs. With stricter scrutiny on advance tax compliance continuing in recent years, aligning tax

Professionals such as freelancers, consultants, and independent practitioners often deal with irregular and project-based income rather than fixed monthly earnings. This makes advance tax compliance challenging, as tax liability cannot be estimated using standard salary-based assumptions. Under the Income Tax Act, 1961, advance tax becomes mandatory when annual tax liability exceeds ₹10,000, even if income fluctuates during the year. TaxBuddy addresses this gap by offering st

Tax planning becomes critical when side income is earned alongside a full-time salary, as all earnings are aggregated under the Income Tax Act, 1961. Income from freelancing, rentals, investments, or online gigs can quickly push total income into higher tax slabs if left unplanned. Choosing the correct income head, managing advance tax, and selecting between the old and new tax regimes directly impact tax liability. Structured planning helps reduce interest, penalties, and no

Freelancers in India are often advised to use tax-saving strategies designed for salaried individuals, but this approach leads to incorrect filings and compliance risks. Under the Income Tax Act, freelance income is treated as profits from a business or profession, not salary. This single distinction changes how income is taxed, how deductions apply, and how returns are filed. Salary-based tax planning depends on employer structures like Form 16, fixed TDS, and predefined exe

Professionals in India choose between the old and new tax regimes each year by comparing their final tax liability under both options using the latest income tax slabs, deductions, and rebates. With the new tax regime becoming the default under Section 115BAC and offering higher basic exemption limits, increased standard deduction, and rebate benefits, the decision now depends largely on the level of deductions claimed. Salaried employees, freelancers, and consultants evaluat

Choosing between the old and new tax regimes directly impacts annual tax outgo and cash flow. The decision depends on income composition, eligibility for deductions, and slab-wise tax rates introduced under Budget 2025. TaxBuddy evaluates both regimes using an AI-driven framework that considers salary structure, deductions, exemptions, and business income to identify the lower-tax option. This evaluation removes guesswork by presenting a side-by-side comparison tailored to ea

For FY 2025–26, the new tax regime offers lower slab rates, a higher standard deduction, and tax-free income up to ₹12 lakh through enhanced rebate. Despite these changes, the old tax regime continues to provide better outcomes for salaried individuals whose pay structure includes significant deductions such as HRA, home loan interest, and Chapter VI-A investments. The real advantage now depends less on income level and more on how salary components and deductions are structu

The default new tax regime under Section 115BAC promises simplicity through lower tax slabs, but it removes most exemptions and deductions that salaried employees commonly use. From HRA and LTA to Section 80C and home loan interest, these exclusions significantly alter tax outcomes. Since FY 2024–25, this regime applies automatically unless actively changed, impacting take-home pay for many professionals. Despite revised slabs and enhanced rebates announced in Budget 2025, sa

Presumptive taxation and expense-based planning are two distinct tax computation methods available to professionals under the Income Tax Act, 1961. Presumptive taxation under Section 44ADA simplifies compliance by taxing 50 per cent of gross receipts as income, while expense-based planning allows actual business expenses to be deducted under regular provisions. The choice directly impacts tax liability, compliance burden, and audit exposure. Understanding how both methods wor