#itr efiling platform

Many taxpayers visit the Income Tax Portal only during the return filing season, but its usefulness extends far beyond submitting an ITR.

The portal serves as a centralised platform for accessing tax records, verifying credits, making payments, tracking refunds, and managing various compliance-related activities throughout the year.

By understanding and using its key features, taxpayers can improve filing accuracy, stay informed about their tax position, and handle tax obligations more efficiently for FY 2025-26 and AY 2026-27.

Let's explore the most important features available on the Income Tax Portal:

AIS & TIS: Your Tax Information Hub

The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) provide a consolidated view of income and financial transactions reported to the Income Tax Department.

Why it matters:

Helps identify all reported income

Shows interest, dividends, and investment transactions

Reduces the chances of missed income reporting

Supports accurate ITR filing

Form 26AS: Verify Your Tax Credits

Form 26AS acts as your tax passbook and reflects taxes deposited against your PAN.

Key benefits:

Verify the TDS deducted by employers and banks

Check advance tax and self-assessment tax payments

Confirm tax credits before filing ITR

Prevent refund delays caused by mismatches

e-Verification: Complete Your Filing

Filing an ITR is only the first step. Verification is mandatory to complete the filing process.

Popular verification methods:

Aadhaar OTP

Net Banking

Bank Account Validation

Demat Account Verification

Without e-verification, the return may be treated as invalid.

Refund Tracking: Stay Updated

The portal allows taxpayers to monitor refund progress after filing.

You can track whether the refund is:

Under processing

Approved

Issued

Failed due to bank issues

Sent for revalidation

This feature helps taxpayers quickly resolve refund-related concerns.

Practical Comparison – How Portal Features Help Taxpayers

Example: Delhi Salaried Employee

Amit Verma, a marketing manager, plans to file his ITR for FY 2025-26.

Before filing, he:

Reviews AIS to identify bank interest income

Checks Form 26AS to confirm TDS credits

Pays pending self-assessment tax through e-Pay Tax

Files and e-verifies his return

Tracks refund status through the portal

By using these features, Amit avoids mismatches and ensures faster processing of his return.

Key Takeaways for FY 2025-26

AIS and TIS help identify income reported to the department

Form 26AS should always be checked before filing

e-Verification is mandatory for a valid filing

Refund tracking helps monitor processing status

Notice and grievance sections support compliance management

Reviewing portal information before filing reduces errors

Final Thought

Income Tax Portal features are designed to make tax compliance easier, faster, and more transparent.

AIS helps identify income. Form 26AS verifies tax credits. e-Verification completes filing. Refund tracking keeps taxpayers informed.

Using these features regularly can help taxpayers file more accurately and avoid future compliance issues.

Income Tax Portal Features = Better Accuracy + Faster Processing + Improved Compliance

Technology companies, startups, and multinational employers increasingly use stock-based compensation to attract and retain talent. If you've received a job offer with Restricted Stock Units (RSUs) or Employee Stock Option Plans (ESOPs), you're probably wondering which one is better for building long-term wealth.

The answer isn't as simple as choosing one over the other. Both have unique advantages, risks, tax implications, and wealth-building potential. Understanding how they work can help you make informed financial decisions.

What Are RSUs?

Restricted Stock Units (RSUs) are company shares granted to employees. However, you don't own them immediately. They become yours only after meeting certain conditions, usually staying with the company for a specified period, known as the vesting period.

Once vested, the shares belong to you without requiring any purchase.

Key Features of RSUs

No upfront investment is required.

Shares are received after vesting.

Value depends on the company's share price.

Common in publicly listed companies and large global firms.

What Are ESOPs?

Employee Stock Option Plans (ESOPs) give employees the right to purchase company shares at a predetermined price, called the exercise price, after completing the vesting period.

Unlike RSUs, ESOPs require you to buy the shares before you become the owner.

Key Features of ESOPs

Employees receive an option, not actual shares.

Shares must be purchased after vesting.

Potential for significant gains if the company's valuation increases.

Widely used by startups and high-growth companies.

RSU vs ESOP: Quick Comparison

How Do They Build Wealth?

RSUs Offer Predictable Wealth

RSUs provide certainty because vested shares already have value.

Even if the company's stock price falls slightly, employees still receive shares. This makes RSUs a relatively safer form of equity compensation.

For example:

You receive 100 RSUs.

The stock trades at ₹1,000 when vested.

Your holding is worth ₹1,00,000.

If the stock later rises to ₹1,500, your investment grows to ₹1,50,000.

ESOPs Can Deliver Higher Returns

ESOPs offer greater upside because employees buy shares at a fixed exercise price.

Suppose:

Exercise price = ₹100

Current market value = ₹900

Buying the shares at ₹100 allows you to capture the difference if the company continues growing.

This is why many startup employees have generated substantial wealth after successful IPOs or acquisitions.

However, if the company's value drops below the exercise price, the options may become worthless.

Which One Carries More Risk?

RSUs

Guaranteed value after vesting.

No purchase required.

Lower financial risk.

Better for conservative investors.

ESOPs

Require investment.

Value depends heavily on company performance.

Can become worthless if stock prices fall.

Suitable for employees willing to take a higher risk.

Tax Implications

Tax treatment differs significantly.

RSUs

At vesting:

The fair market value is generally treated as salary income.

At sale:

Capital gains tax applies on any appreciation after vesting.

ESOPs

At exercise:

The difference between market value and exercise price may be taxed as a perquisite, depending on applicable tax rules.

At sale:

Capital gains tax applies on further appreciation.

Understanding these tax events is important because they can significantly affect your overall returns.

Which Is Better for Startup Employees?

Startups often prefer ESOPs because they may not have sufficient cash to offer higher salaries.

Employees who join early may receive options at very low exercise prices. If the company experiences rapid growth, these options can create significant wealth.

However, startup success is never guaranteed.

Before exercising ESOPs, consider:

The company's financial health.

Future fundraising plans.

Exit opportunities.

Liquidity of shares.

Tax obligations.

Which Is Better in Large Companies?

Established companies frequently offer RSUs.

These companies usually have:

Stable stock prices.

Regular vesting schedules.

Easier liquidity because shares are publicly traded.

Employees benefit from predictable wealth creation without making additional investments.

How Should You Decide?

Ask yourself the following questions:

Is the company publicly listed or privately held?

Can you afford the exercise cost?

Are you comfortable taking investment risk?

How long do you plan to stay with the company?

Does the company have strong long-term growth prospects?

Your answers will help determine which stock benefit aligns better with your financial goals.

Final Thoughts

Neither RSUs nor ESOPs are universally better. The right choice depends on your employer, risk tolerance, investment capacity, and long-term financial objectives. Along with evaluating the wealth-building potential of these stock benefits, it is equally important to understand their tax implications and how they affect your ITR filing. Proper planning for taxation at vesting, exercise, and sale can help you maximize returns while ensuring accurate income tax compliance.

If you value certainty and lower risk, RSUs generally provide more predictable wealth accumulation.

If you're confident in your company's future and are comfortable with higher risk, ESOPs have the potential to generate significantly larger returns.

Filing your income tax return (ITR) is an important part of managing your finances. Today, many people use online platforms to file their returns quickly and easily. But when it comes to choosing between TaxBuddy vs ClearTax, which one should you trust?

Introduction

Filing ITR-1 may be simple, but common mistakes can lead to notices or delays. Avoiding these errors ensures compliance and peace of mind. Let’s dive into the top mistakes taxpayers make and how TaxBuddy helps prevent them.

1. Missing Out on Interest Income

Many overlook income from savings accounts or fixed deposits. Declare these to avoid scrutiny.

2. Incorrect Salary Breakup

Filing the wrong salary components from Form 16 can lead to mismatches with the Income Tax Department's records.

3. Not Reporting Exempt Income

Exempt incomes like HRA or Section 10 allowances must be disclosed for transparency.

4. Ignoring TDS Details

Check Form 26AS for tax deductions and ensure accuracy in reporting.

Example Scenario

Ravi failed to declare ₹30,000 interest income, triggering a notice. With TaxBuddy’s help, he revised his return promptly, avoiding penalties.

How TaxBuddy Helps You Stay Error-Free

Cross-verifies your income with Form 26AS.

Ensures all exemptions and deductions are properly declared.

Offers expert review before submission.

Conclusion

Introduction Section 87A provides a great tax relief benefit, but many taxpayers often overlook it or find it confusing. This blog breaks down how you can claim the rebate and how TaxBuddy makes the entire process hassle-free.

1. The Importance of Section 87A Section 87A offers relief to individuals with taxable incomes under ₹5,00,000. If you qualify, you can reduce your tax liability by ₹12,500, which could significantly lower the amount you owe to the government.

2. Eligibility and Rebate Amount

Eligibility: Resident individuals with taxable income up to ₹5,00,000.

Rebate: A maximum of ₹12,500, reducing your tax payable to zero if your taxable income is under ₹5,00,000.

3. How to Apply for Section 87A

Ensure your taxable income falls within the limit.

File your tax return and claim the rebate under the appropriate section.

Example Scenario If your taxable income is ₹4,90,000, you can claim a ₹12,500 rebate under Section 87A. This rebate will ensure you pay no tax, saving you money.

How TaxBuddy Can Assist TaxBuddy simplifies the process by:

Confirming your eligibility for the rebate.

Filing your returns and claiming the rebate on your behalf.

Updating you with any changes in tax laws or benefits.

Introduction Need to file your taxes but don’t know where to find Form 16? Downloading this document is easy when you know the process. Let’s explore how to obtain your Form 16 and how TaxBuddy helps you file taxes without stress.

1. Steps to Download Form 16

Ask Your Employer: Typically, employers issue Form 16 by June 15 every year.

From Payroll Portals: Some companies allow employees to download Form 16 from HR or payroll systems.

Alternative Options: If unavailable, you can request a copy via email or contact HR.

2. What to Check in Your Form 16?

Verify your name, PAN, and TDS details.

Ensure income figures and deductions align with your records.

Cross-check tax payments with Form 26AS (available on the Income Tax portal).

Example ScenarioSuppose you notice discrepancies between the TDS in Form 16 and Form 26AS. Ignoring these could lead to penalties during tax filing.

How TaxBuddy Can Assist

Guides you in retrieving Form 16 from your employer.

Cross-verifies details to avoid errors.

Offers step-by-step support for seamless tax filing.

Conclusion

Introduction If you're a freelancer or professional in India, Section 44ADA is essential for understanding your tax obligations. This section is designed for professionals like doctors, lawyers, and consultants who are offering services. Let’s dive into what it is, who qualifies, and how TaxBuddy can make your filing simpler and stress-free.

1. What is Section 44ADA? Section 44ADA provides a simplified scheme for professionals with gross receipts up to Rs 50 lakh. It allows them to declare 50% of their gross receipts as income, saving them from the hassle of maintaining detailed accounts.

2. Who is Eligible for Section 44ADA? Professionals such as doctors, lawyers, chartered accountants, and architects are eligible. If your gross receipts are under Rs 50 lakh, you can benefit from this section.

3. Advantages of Section 44ADA

No need for detailed accounting.

50% of gross receipts are assumed to be income.

Simple tax filing process.

4. Common Mistakes to Avoid

Not checking your gross receipts limit.

Failing to maintain proper records of your income sources.

Not applying Section 44ADA correctly while filing.

Example Scenario Let’s say you’re a consultant with gross receipts of Rs 40 lakh. Under Section 44ADA, you can declare Rs 20 lakh as income, saving you from complex accounting.

How TaxBuddy Can Help TaxBuddy helps you understand the rules of Section 44ADA, calculates your tax liability, and ensures all documentation is in place for your return. With TaxBuddy, you can be confident that your filing is accurate and timely.

Introduction

Leave Travel Allowance (LTA) is a popular tax benefit for salaried individuals, but understanding how to use it effectively can be tricky. This allowance helps reduce your taxable income, but certain conditions and amendments affect your eligibility. Let’s break down how LTA works and how TaxBuddy can help you make the most of it.

What is Leave Travel Allowance (LTA)?

LTA is provided by employers to cover travel expenses for the employee and their family within India.

The amount is tax-free, subject to specific conditions.

Eligibility for LTA Claims

LTA is available to salaried employees who receive it as part of their salary package.

Only domestic travel expenses are eligible for tax exemptions under LTA.

Key Amendments in LTA

The recent changes in the LTA rules have affected the number of claims employees can make.

New conditions also determine the travel destinations, with certain exemptions for remote areas.

How LTA is Taxed

LTA is tax-free, but only if the employee fulfills certain conditions, like travelling with family and submitting proof of travel.

Employees can claim LTA for two journeys in a block of four years.

TaxBuddy’s Role in Maximizing LTA Claims

TaxBuddy helps you stay updated on the latest amendments to LTA rules.

It guides you on documenting your travel expenses and ensuring that all conditions are met for tax exemptions.

Example Scenario

Imagine you’ve traveled with your family to a remote part of India, and you plan to claim LTA. With the latest amendments, ensuring the place qualifies for the exemption is crucial. TaxBuddy will help you navigate the rules and claim the maximum benefit.

How TaxBuddy Can Help

TaxBuddy provides the following services:

Keeps you updated with the latest changes in LTA rules.

Helps with documentation and submission for LTA claims.

Ensures compliance with tax laws to avoid penalties.

Conclusion