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The Annual Information Statement (AIS) is a detailed record of your financial transactions, including income, investments, and TDS details, reported to the Income Tax Department. Submitting accurate feedback on AIS ensures that your financial data is correctly reflected in your income tax records, minimising errors during return filing . The process can be completed easily online through the e-filing portal, where users can review, correct, and verify details in just a few s

Accurate tax filing is the strongest safeguard against future Income Tax Department (ITD) notices. Every mismatch, missed income entry, or unreported bank account increases the chances of a compliance trigger. TaxBuddy minimises these risks through automated, AI-driven checks that validate every detail against AIS, TIS, Form 26AS, and updated Income Tax Act amendments. Its system identifies issues before filing, ensures full reporting of bank accounts, detects income discrep

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

Section 54EC of the Income Tax Act, 1961 offers taxpayers an effective way to save long-term capital gains (LTCG) tax. By investing the gains from selling property or other eligible assets into government-backed 54EC Bonds, individuals can claim an exemption on the taxable amount. These bonds, issued by entities such as NHAI, REC, PFC, and IRFC, provide a secure avenue for reinvestment while ensuring tax relief under specific conditions. The investment must be made within six

Section 54  of the Income Tax Act, 1961 offers a major tax relief for homeowners selling a residential property. If the profit from the sale is reinvested in another residential house, the capital gains can be exempted from tax. This provision ensures that taxpayers who continue investing in housing assets are not burdened with capital gains tax, provided they meet specific timelines and conditions. The exemption applies only to long-term capital gains and is available to ind

TDS  on property sale under  Section 194-IA ensures that tax is collected at the source during the sale of immovable property valued above ₹50 lakh. The buyer is responsible for deducting 1% TDS on the higher of the sale price or stamp duty value and depositing it with the government through Form 26QB. The seller, on the other hand, must ensure this TDS is reflected in Form 26AS to claim credit while filing the Income Tax Return . Understanding these obligations prevents mism

Reporting capital gains  accurately in ITR-2 is critical for taxpayers who have sold assets like property, shares, or mutual funds. Even minor errors in Schedule CG can lead to defective return notices or delays in refund processing. ITR-2 is specifically designed for individuals and HUFs who earn income from capital gains but not from business or profession. The process involves identifying short-term and long-term gains, applying relevant exemptions, and ensuring precise re

ITR validation errors are one of the most common hurdles faced by taxpayers each year while filing income tax returns . These errors occur due to data mismatches, incomplete details, or incorrect form usage during e-filing. The Income Tax Department’s system automatically flags such inconsistencies to maintain accuracy and compliance. Understanding these validation checks and knowing how to correct them helps prevent delays, refund issues, or notices. TaxBuddy  simplifies thi