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Paying advance tax is mandatory if your total tax liability exceeds ₹10,000 in a financial year. The process has become entirely digital, with Challan 280 serving as the official form to pay advance tax online under the Income Tax Act, 1961. This form is used for various payments such as advance tax, self-assessment tax, and regular assessment tax, ensuring timely compliance with tax obligations. TaxBuddy  simplifies this process by helping taxpayers calculate their advance t

Advance tax  applies to income that attracts a tax liability of ₹10,000 or more in a financial year, including gains from shares, mutual funds, or property sales. It ensures taxpayers pay taxes in installments throughout the year instead of at once while filing returns . Capital gains, being unpredictable, often create confusion about when and how to pay advance tax. Understanding the correct calculation and due dates is crucial to avoid interest under Sections 234B and 234C.

Interest under Sections 234B and 234C of the Income Tax Act applies when advance tax is either not paid or paid after the due dates. The Income Tax Department imposes these interest charges to ensure the timely payment of taxes throughout the financial year. For taxpayers, understanding how this interest is calculated is crucial to avoid unnecessary penalties and stay compliant. Using the latest FY 2025-26 updates, this guide explains the computation process for each section

Receiving a notice under  Section 143(2) of the Income Tax Act, 1961, means your Income Tax Return has been selected for detailed scrutiny by the Assessing Officer. This is part of the government’s regular assessment process to verify the accuracy of income, deductions, and claims made in your return. Such scrutiny doesn’t imply wrongdoing—it simply ensures your filings align with available data and compliance norms. A timely and accurate response is crucial to avoid penaltie

Section 143(1)(a) of the Income Tax Act empowers the Income Tax Department to make initial adjustments to a filed return when mismatches, omissions, or calculation errors are detected. These adjustments are based on data from Form 16, Form 16A, or Form 26AS and aim to correct discrepancies before final processing. Taxpayers may receive an intimation highlighting income differences, disallowed deductions, or unreported income. Responding accurately and on time is critical to p

A defective return notice under  Section 139(9) is issued by the Income Tax Department when an Income Tax Return (ITR) contains missing details, inconsistencies, or mismatched data that prevent proper assessment. This notice gives taxpayers a chance to rectify such defects within a specified time to avoid their return being treated as invalid. The recent Budget 2025 and CBDT updates have improved the e-filing process, making it simpler for taxpayers to identify and correct th

The ITR-U  or Updated Income Tax Return allows taxpayers to correct or update previously  filed returns  within a specified window. For FY 2024-25 (AY 2025-26), the original return deadline has been extended to September 15, 2025, followed by a belated filing period until December 31, 2025. From April 1, 2026, taxpayers can file an ITR-U to make corrections until March 31, 2030—an extended 48-month period introduced under the Finance Act 2025. These changes make tax complianc

The Income Tax Department allows taxpayers to file their returns even after missing the due date through a belated return or to correct past mistakes through an updated return. Understanding the difference is crucial because the type of return you file affects your tax liability, penalties, and refund eligibility. Both options serve different purposes—while a belated return is about delayed compliance, an updated return is about rectification and transparency. Choosing the ri

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

Before filing your Income Tax Return (ITR) , verifying your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) is essential. These statements consolidate your financial data, including income, investments, and TDS details, as reported to the Income Tax Department. Any mismatch between your AIS/TIS and actual income can lead to scrutiny, delayed refunds, or notices. Reviewing and reconciling them ensures every transaction is correctly captured—helping y