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Certain salary structures continue to deliver lower tax liability under the old tax regime in FY 2025–26 despite the higher rebate threshold and simplified slabs under the new regime. Salaried individuals with significant House Rent Allowance, home loan interest, and eligible investments often see greater tax savings when deductions are fully utilised. For income levels above ₹15 lakh, the benefit of exemptions and Chapter VI-A deductions can outweigh the rate advantage of th

Switching between the old and new tax regimes under Section 115BAC may appear harmless for salaried individuals, especially when income levels rise or deductions seem limited. However, mid-career regime changes often disrupt long-term tax planning built around consistent investments, housing decisions, and family-related deductions. As careers progress, deductions typically increase, not decline. Frequent regime switching during this phase can reduce the effectiveness of comp

GST return data accuracy plays a critical role in avoiding scrutiny from tax authorities. Even small mismatches between GSTR-1, GSTR-3B, GSTR-2B, and income tax returns can trigger automated alerts or formal notices. Most notices arise not from fraud, but from manual errors, unreconciled invoices, or incorrect ITC claims. Ensuring consistency across  GST filings  and income disclosures has become essential under the CGST Act, 2017. Platforms that combine technology-led reconc

GST return filing  is mandatory for online service businesses in India, even when the turnover limits applicable to regular taxpayers are not crossed. Digital service providers, SaaS companies, consultants, and platform-based businesses must report online sales, pay tax, and reconcile data accurately under the GST law. Returns such as  GSTR-1 , GSTR-3B, and, in specific cases GSTR-5A apply depending on the nature of digital services offered. With increasing data matching, tig

GST compliance  does not pause during zero-transaction months. Registered taxpayers are legally required to file NIL returns even when there are no sales, purchases, or tax liabilities. Missing these filings can trigger daily late fees, compliance blocks, and even GSTIN suspension. As enforcement tightens in 2025, timely NIL filing has become critical for businesses with seasonal operations or temporary inactivity. Automated platforms like TaxBuddy simplify this requirement b

Switching between the old and new tax regimes may appear harmless in the short term, but for many taxpayers, especially professionals transitioning to business income mid-career, this decision can create long-term tax inefficiency. Under India’s current income tax framework, salaried individuals enjoy annual flexibility, while business and professional taxpayers face irreversible lock-in rules. Budget 2024–25 changes and the upcoming Income Tax Bill 2025 further reinforce the

Professionals in India review the old and new tax regimes every financial year to ensure their tax outgo is optimised under the Income Tax Act, 1961. This decision depends on income level, eligibility for deductions and exemptions, and recent slab changes announced in Budget 2025. While the new tax regime is now the default option with lower slab rates and a higher rebate threshold, the old regime continues to benefit those with substantial deductions. A yearly evaluation hel

Choosing between the old and new tax regimes directly impacts tax outgo, refunds, and long-term planning. With the new tax regime becoming the default and offering tax-free income up to ₹12 lakh after Budget 2025 updates, the decision now depends more on income profile than assumptions. TaxBuddy evaluates both regimes side by side by factoring in income level, deductions, exemptions, and taxpayer category to identify the option that results in the lowest tax liability while r

The new tax regime under Section 115BAC has been the default option for salaried employees since FY 2023–24. While it offers lower slab rates and a nearly tax-free income up to ₹12 lakh after rebate from FY 2025-2026, it removes most commonly used deductions. For salaried individuals with home loans, insurance, or long-term investments, the tax saved through deductions under the old regime often exceeds the benefit of lower slabs. As a result, many employees unknowingly pay h

GST compliance  in India works very differently for freelancers and traders. The distinction lies in the nature of supply, services versus goods, which directly affects registration limits, tax rates, return filing, and overall GST filing requirements. Freelancers typically deal with service-based income, export clients, and platform-led payments, while traders handle goods, inventory, and logistics-related compliances tied closely to GST filing cycles. Applying the same GST