Finance Buddy

If you switched jobs during the last financial year, filing your income tax return ( ITR ) could be a bit tricky. With multiple Form 16s, possible TDS mismatches, and lump-sum payments like gratuity or PF withdrawals in the mix, even a minor slip-up can invite a notice from the tax department. Experts break down the common pitfalls and share tips to help you file your return smoothly. Don’t miss income from previous employer “One of the biggest mistakes taxpayers make is reporting income from only their latest employer and forgetting the salary earned from the previous one,” says Niyati Shah, chartered accountant and vertical head, personal tax at 1 Finance. “This leads to underreporting of income and can trigger a notice from the tax department.”   Deepesh Chheda, partner at Dhruva Advisors, points out that employees also often fail to inform their new employer about income from the earlier job using Form 12B.   “As a result, the new employer calculates tax only on the curre...

Selling a property often comes with a sweet profit—but also a bitter tax bill. Long-term capital gains (LTCG) on the sale of land or buildings attract a 12.5% tax (plus cess), and many sellers scramble to invest in 54EC bonds like those issued by NHAI or REC to save on this levy. But is this the smartest move financially? According to Sujit Bangar, Founder of Tax Buddy, the answer depends on your investment horizon, risk appetite, and financial goals. “Most people blindly rush to 54EC bonds to save tax, but they may be missing out on higher returns elsewhere,” he notes. Two primary ways to save capital gains tax Under the Income Tax Act, there are two major routes to tax exemption on LTCG: Section 54/54F – Reinvest the capital gain into a new residential property. Section 54EC – Invest in notified bonds such as NHAI or REC within six months of the sale. The 54EC route is popular because it's relatively low-risk and requires no involvement in the real estate market again. But this “...

A growing number of retail investors in India are discovering that earning less than ₹12 lakh from stock markets does not automatically mean a tax exemption. According to Sujit Bangar, founder of TaxBuddy.com, investors often get caught off guard because they overlook how each type of income is taxed under different rules. In a recent example, Bangar highlighted the case of a full-time investor who earned 7 lakh from the market. Expecting zero tax, the investor instead received a tax notice demanding 74,375. Breakdown of the investor's income The investor’s earnings included: 3 lakh in intraday losses ₹2.5 lakh from futures and options (F&O) gains ₹3.5 lakh in short-term capital gains  (STCG) ₹4 lakh in long-term capital gains (LTCG) The total profit was under ₹12 lakh. However, that did not make it exempt from tax. How tax rules treat different incomes Tax laws treat each income type separately: Intraday trading: Treated as speculative business income, taxed at slab rates, a...