Tax Planning
ITR Filing 2025: Checking your Annual Information Statement (AIS) ensures accurate reporting and reduces chances of costly tax notices. Both civilians and defence personnel can use udChalo’s CA‑Assisted plans for hassle‑free filing.
Key Highlights
- AIS is a comprehensive statement of your income & transactions from banks, employers, TDS, and SFT.
- Verifying AIS before filing helps match Form 26AS and catch errors early.
- Defence personnel (army, navy, air force, jawans) have specific income elements—pension, allowances—so AIS review is critical.
- udChalo Finserv offers CA‑Assisted Tax Filing Plans tailored for civilians and defence families.
- Clear dos & don’ts and jargon explanations make ITR stress-free and straightforward.
Filing your Income Tax Return (ITR) for AY 2025-26? Whether you are a civilian or part of the defence community, including the Army, Navy, Air Force, or an ex-Jawan, one critical step can make all the difference: checking your Annual Information Statement (AIS).
Featured Articles
Key Highlights
- Compare top tax-saving investments under Section 80C
- Know the difference between ELSS vs PPF in returns and lock-in
- Match investments to your financial and risk profile
- Avoid common tax-saving mistakes before 31 March 2025
- File taxes easily with udChalo's CA-assisted tax filing plans
Choosing the best tax-saving options in 2025 is more than a financial formality. Whether you are a soldier, veteran or defence family member, smart investments can help you save tax while building long-term wealth. However, with numerous 80C options available, such as ELSS, PPF, NSC, and 5-year FDs, which one should you choose?
In this blog, we compare the top tax-saving investments under Section 80C. Each option is broken down by its returns, risk and lock-in period. We also help you match the right product to your financial profile. And when you are ready, udChalo's CA-assisted tax filing service can help file your ITR confidently.
What is Section 80C?
Section 80C allows taxpayers to claim deductions up to ₹1.5 lakh annually by investing in approved financial products or incurring eligible expenses. These include:
- Public Provident Fund (PPF)
- Equity Linked Savings Scheme (ELSS)
- National Savings Certificate (NSC)
- 5-year bank Fixed Deposits
- Employee Provident Fund (EPF)
- Life insurance premiums
- Tuition fees for children
- Home loan principal repayment
It is one of the most popular tax-saving sections, but the key is to choose the correct option based on your returns, risk, and lock-in period.
Top Tax-Saving Investments Compared
Investment Option | Returns (Approx.) | Risk Level | Lock-in Period | Tax on Returns |
|---|---|---|---|---|
ELSS | 10 to 14 percent | High | 3 years | 10 percent LTCG above ₹1 lakh |
PPF | 7.1 percent (fixed) | Very Low | 15 years | Tax-free |
5-Year FD | 6.5 to 7.25 percent | Low | 5 years | Fully taxable |
NSC | 7.7 percent (fixed) | Low | 5 years | Fully taxable |
EPF | 8.15 percent (fixed) | Very Low | Till retirement | Tax-free (conditions apply) |
Life Insurance | 4 to 6 percent | Very Low | Minimum 5 years | Tax-free under Section 10(10D) |
Understanding ELSS vs PPF
ELSS
Equity Linked Savings Scheme (ELSS) is a tax-saving mutual fund that invests in the equity markets. Returns are market-linked.
- Lock-in: 3 years
- Ideal for: Young investors, higher return seekers
- Tax on gains: 10 per cent LTCG above ₹1 lakh
PPF
Public Provident Fund is a government scheme that offers guaranteed, tax-free returns.
- Lock-in: 15 years
- Ideal for: Long-term wealth, safety-first savers
- Tax status: Fully exempt at investment, interest and maturity
Feature | ELSS | PPF |
|---|---|---|
Type | Equity mutual fund | Government savings scheme |
Risk | High | Very low |
Returns | 10 to 14 percent | 7.1 percent (fixed) |
Lock-in | 3 years | 15 years |
Ideal For | Wealth building | Safe long-term saving |
| Tax on Returns | 10 percent above ₹1 lakh | Tax-free |
Who Should Choose What?
Profile | Recommended Options | Why It Works |
|---|---|---|
Young professionals | ELSS, Term Insurance | High growth potential, affordable cover |
Mid-career salaried personnel | ELSS and PPF mix | Balanced approach to risk and safety |
Defence retirees or veterans | PPF, NSC | Capital protection, stable returns |
Homemakers or dependents | Life Insurance, PPF | Safety, long-term savings |
First-time taxpayers | 5-Year FD, ELSS | Easy entry, low documentation |
Mistakes to Avoid While Choosing Tax-Saving Investments
Many taxpayers wait till March to make hurried investments. Here are some common mistakes:
- Delaying tax-saving until the deadline
- Choosing products only for tax, not for goals
- Not understanding the lock-in and risk
- Ignoring the tax on returns after investment
- Missing documentation while filing
Tip: Avoid these mistakes with udChalo's expert tax filing support. You can select a plan that includes document checks and personalised CA guidance. Explore tax plans
How Much Should You Invest in ELSS vs PPF?
Here's a simple guide to divide your ₹1.5 lakh 80C limit:
Risk Appetite | ELSS Allocation | PPF Allocation |
|---|---|---|
High | ₹1,20,000 | ₹30,000 |
Moderate | ₹75,000 | ₹75,000 |
Conservative | ₹30,000 | ₹1,20,000 |
The idea is not to go all-in on one product unless it matches your goals.
Checklist Before Filing Taxes
Tick off this list before filing your return:
- PAN and Aadhaar details
- Form 16 or income proof
- Investment proofs (ELSS, PPF, LIC, etc.)
- Rent receipts or HRA declaration
- Capital gains and interest statements
- Tax-saving declarations under 80C, 80D, 80E, etc.
Need help? udChalo's tax team helps you upload everything correctly and ensures your return is accurate and complete.
How udChalo Simplifies Tax Filing
udChalo offers CA-assisted tax filing for defence personnel and families. You can pick a plan based on your income, filing complexity or investment needs.
Benefits:
- CA-verified ITR filing
- Help with investment proof validation
- Guidance on ELSS, PPF, NSC, and other 80C options
- Priority support for armed forces and dependents
- Quick e-verification and refund updates
Make the Right Tax-Saving Moves Before the Deadline
There is no one-size-fits-all answer to tax saving. What works for a young officer may not work for a retired veteran. Understand your risk profile, income goals and lock-in flexibility. Compare ELSS vs. PPF, or consider blending both.
And when you are ready to file your return, let udChalo's expert team make it seamless. Select a CA-assisted tax filing plan, upload your documents, and relax. Your savings and tax benefits are in trusted hands.
FAQs
1. Which is better between ELSS and PPF in 2025?
ELSS offers higher returns but carries market risk. PPF is safer, backed by the government, and offers fixed returns. Individuals filing ITR for defense or ITR for Jawans often prefer a mix based on their risk tolerance and long-term goals.
2. Can I split my 80C investment across multiple options?
Yes. You can divide your ₹1.5 lakh limit among ELSS, PPF, NSC, and life insurance. This flexibility is useful for those filing ITR for army, ITR for navy, or ITR for air force, depending on their salary structure and financial planning needs.
3. Are PPF returns really tax-free?
Yes. Both the interest earned and the maturity amount from a PPF account are fully exempt from tax. This makes PPF a popular choice for those filing ITR for Defence, especially among risk-averse savers like retired personnel and families of Jawans.
4. What are LTCG taxes on ELSS?
Gains exceeding ₹1 lakh in a financial year from ELSS investments are taxed at 10%. This is important to consider when filing ITR for Jawans, ITR for defense, or even for army officers investing in equity-linked schemes under Section 80C.
5. Who can use udChalo's tax filing service?
Any defence personnel—serving or retired—veterans, and their families can use udChalo’s CA-assisted ITR filing services. The platform supports users across profiles, whether filing ITR for navy, ITR for air force, or ITR for army.
6. Can I get help with uploading documents on udChalo?
Yes. A dedicated CA will help guide you through document uploads, verifications, and declarations. This is especially helpful for those filing ITR for Defence from remote postings or field locations.
7. How do I know which tax-saving investment is right for me?
It depends on your income, risk appetite, and financial goals. Use udChalo’s comparison tools or consult a CA for personalised advice, whether you are filing ITR for defense families, ITR for Jawans, or retired navy or air force personnel.
8. Is ELSS risky for first-time investors?
Yes, ELSS carries market risk. But it also offers high return potential with a short three-year lock-in. It is often recommended as a starting point for young professionals and those filing ITR for army or other defence personnel in early service years.
9. Is EPF enough to exhaust my 80C limit?
It depends on your salary. EPF contributions may not fully utilise the ₹1.5 lakh limit, so you might need to invest in PPF, ELSS, or life insurance to claim the full benefit—especially for those filing ITR for air force, navy, or ITR for defense.
10. When should I finish my investments for FY 2024–25?
Ideally by 15 March 2025. Avoid last-minute rushes to ensure proper documentation and proof submissions. Whether you are filing ITR for Jawans or ITR for Defence pensioners, early planning ensures fewer errors and full benefit utilisation.
11. I am posted in a remote area. Can I still file taxes with udChalo?
Yes. udChalo’s ITR filing service is 100% online. You can upload documents, connect with a CA, and file your return from anywhere in India. This is particularly beneficial for those filing ITR for army or ITR for air force from field or border locations.
12. Are pensioners from the defence services eligible for 80C deductions?
Yes. Pension is taxable income, so retired defence personnel can invest in ELSS, PPF, NSC, or insurance to claim deductions under Section 80C. Whether you are filing ITR for navy, ITR for air force, or ITR for Jawans after service, the benefits remain the same.
13. Do retired defence personnel have to file ITR if their income is below ₹5 lakh?
If total income after deductions is below the taxable threshold, filing is not mandatory. However, it is advisable to file ITR for defense veterans to claim refunds, keep financial records, or apply for loans, visas, and other official requirements.
14. Can defence veterans invest in both PPF and Senior Citizen Savings Scheme (SCSS)?
Yes. Retired personnel can invest in both. PPF offers long-term, tax-free growth, while SCSS provides fixed, regular income. Both qualify for 80C deductions and are widely used by those filing ITR for defence or ITR for Jawans after retirement.
15. Is the HRA claim applicable for serving defence personnel living in their own house?
No. If you live in your own house, you cannot claim HRA. However, you can claim home loan interest under Section 24 and principal repayment under Section 80C. These apply to anyone filing ITR for army, ITR for navy, or ITR for air force.
Key Highlights
- Six compulsory scrutiny categories (CS01–CS06) with clear data-backed triggers
- Section 143(2) notices must be served by 30 June 2025
- CS05 scrutiny applies to those with repeat tax adjustments above ₹50 lakh (metros), ₹20 lakh (other cities)
- All scrutiny assessments to be conducted via faceless assessment through NaFAC
- udChalo CA-Assisted Tax Filing can help defence and civilian taxpayers file accurate returns and avoid scrutiny
Tax season is here, and the Central Board of Direct Taxes (CBDT) has released its latest Income Tax Scrutiny Guidelines for FY 2025–26. Whether you are an active soldier, a veteran, a defence family member, or a civilian, understanding the mandatory scrutiny criteria is essential to avoid unnecessary tax stress.
Let’s break down these new rules in simple terms, explain what CS01 to CS06 mean, and guide you on how udChalo’s tax filing services can help ensure a smooth return process.
What Are CBDT Income Tax Scrutiny Guidelines?
The CBDT scrutiny guidelines are rules set by the tax department that decide who will be selected for a detailed check (scrutiny) of their filed Income Tax Returns (ITRs). For FY 2025–26, the guidelines specify compulsory scrutiny of cases selected based on high-risk categories or flagged intelligence.
What Triggers Compulsory Scrutiny?
The following table summarises the six key CBDT scrutiny codes:
CS Code | Trigger | Who It Impacts |
|---|---|---|
CS01 | Case where a survey under Section 133A is conducted post 1 April 2023 | Businesses and individuals subject to survey |
CS02/03 | Case involving search/requisition under Section 132 | Individuals/entities covered by search |
CS04 | ITR-7 returns claiming exemption without registration | Trusts, NGOs |
CS05 | Cases with recurring additions over ₹50 lakh (metro) or ₹20 lakh (non-metro), upheld in earlier years | All categories, especially businesses |
CS06 | Cases flagged via information/intelligence alerts | Anyone, based on flagged financial activity |
Understanding the Jargon
- Section 132: Income Tax "search and seizure" operations conducted when tax evasion is suspected.
- Section 133A: Income Tax "survey" of business premises.
- ITR-7: Income Tax Return form used by charitable and religious institutions.
- Recurring Additions: Repeated disallowance of expenses or income declared by a taxpayer, across multiple years.
- NaFAC: National Faceless Assessment Centre, which handles online scrutiny without physical appearances.
Why Defence Personnel & Families Should Pay Attention
Though many defence salaries and benefits are structured, allowances, reimbursements, and postings often lead to exceptions. Misreporting or under-documentation may trigger scrutiny, especially under CS06 (intelligence alerts) or CS05 (repeated additions). Families of personnel managing investments and property must also stay updated.
For veterans, income from pensions, house rent, and retirement benefits must match Form 26AS and AIS (Annual Information Statement). Civilians face scrutiny for high-value transactions, foreign income, or undeclared donations.
Read More: 9 Key Changes in ITR-1 to ITR-4 for AY 25-26
Old vs New Scrutiny: A Quick Comparison
Aspect | Before (Risk-Based) | Now (Rule-Based) |
|---|---|---|
Selection method | Random + algorithmic | Clear, published criteria (CS01-CS06) |
Taxpayer clarity | Low | High |
Assessment type | Manual or physical | Faceless Assessment (NaFAC) |
Defence-specific risks | Less defined | More targeted (e.g., recurring adjustments) |
Read More: Understanding the Old Tax Regime Vs. the New Tax Regime
How to Prepare & Avoid Income Tax Scrutiny
- Match reported income with Form 26AS, AIS, and TIS
- Report all allowances, reimbursements, and income sources
- Keep documentation for exemptions and deductions
- Use the correct ITR forms and avoid rounding errors
- For defence families and veterans, keep documents ready for:
- LTC claims
- Disability pension (if applicable)
- Property income
- Investments, mutual fund redemptions
How udChalo FinServ Can Help
udChalo’s CA-Assisted Tax Filing Plans offer tailored solutions for defence personnel, families, and civilians. With our expert help, you can:
- Choose the correct ITR form
- Reconcile AIS/Form 26AS mismatches
- Avoid scrutiny by ensuring accurate, supported claims
- Get timely e-verification and filing assistance
Explore udChalo’s Tax Filing Services
Opt for CA-Assisted Tax Filing
Wrapping Up: Stay Ahead of Tax Scrutiny
The CBDT Income Tax Scrutiny Guidelines for FY 2025–26 bring clarity and structure to the tax review process. With CS01 to CS06 codes, selection is no longer random but data-driven. This makes proper filing essential for every taxpayer, including the defence community.
Let udChalo FinServ take the complexity out of tax season. Choose a CA-assisted plan that fits your needs and file stress-free.
Avoid scrutiny. File right. File early with udChalo.
FAQs
- What is CBDT scrutiny under Section 143(2)?
It is a notice issued by the Income Tax Department when your return is selected for detailed examination. This scrutiny may be initiated to verify high deductions, large exemptions, or inconsistencies in declared income. Whether you are filing ITR for defense, ITR for Jawans, or ITR for navy personnel, responding within the timeline is essential to avoid reassessment or penalties. - Who can be selected under CS01–CS06 scrutiny codes?
These scrutiny codes apply to specific cases such as those searched under Section 132 (CS02/03), charitable trusts with questionable exemptions (CS04), or profiles flagged by data analytics (CS06). Anyone can fall under these—civilians or armed forces personnel—if their profile fits the criteria, including individuals filing ITR for army, ITR for air force, or ITR for Defence. - What is the deadline for scrutiny notice under FY 2025–26?
The last date for issuing a scrutiny notice under Section 143(2) is 30 June 2025 for returns filed for FY 2023–24. If you are a salaried officer or filing ITR for Jawans or defense pensioners, and you do not receive a notice by this date, your return may be considered accepted. - Are defence personnel more likely to be scrutinised?
Not necessarily. However, defence personnel may have complex income structures—allowances, reimbursements, pensions—which, if not accurately reported, may raise scrutiny. Whether filing ITR for navy or ITR for army officers, transparent records are vital. - Can pension and HRA exemptions cause issues?
Yes, especially if claimed incorrectly or without proper documentation. Pension must match Form 26AS, and HRA claims require rent receipts and valid agreements. This is relevant for both serving and retired personnel, including those filing ITR for air force and ITR for Defence. - How does faceless scrutiny work?
Faceless scrutiny is conducted through the National Faceless Assessment Centre (NaFAC). All notices and responses are managed online through the Income Tax portal. Whether filing ITR for Jawans, army officers, or civilians, no physical presence is required unless specifically requested. - Can civilians be selected under CS06?
Yes. Civilians can also be selected under CS06 based on alerts such as unexplained cash deposits or foreign transactions. These flags apply universally, regardless of whether one is filing ITR for defense or from a civil background. - What if I wrongly claimed deductions?
Incorrect deductions (like under 80C or HRA) may be disallowed, triggering tax demand and penalties. Frequent mistakes may even lead to CS05 scrutiny in the future. Whether you are filing ITR for air force, navy, or ITR for jawans, it is important to verify all claims carefully. - How does udChalo help reduce scrutiny chances?
udChalo connects defence personnel and families with expert CAs who verify documents, reconcile AIS/Form 26AS, and ensure accurate ITR filing. Whether you are filing ITR for army, navy, or ITR for Jawans, this service reduces the chances of receiving scrutiny notices by improving compliance. - I’m a retired soldier. Can I file taxes through udChalo?
Yes, retired defence personnel are one of udChalo’s key focus areas. Whether it is pension filing, property income, or capital gains, udChalo’s CA-assisted plans are tailored to simplify ITR for Defence veterans, including retired army, navy, and air force personnel.
Key Highlights
- Scammers send fake messages claiming income tax refunds are pending.
- These messages often contain suspicious links and urge quick action.
- Defence personnel and their families are common targets due to job stability.
- Clicking scam links can lead to identity theft or financial loss.
- With udChalo Finserv, you can lock your ITR filing slot at just ₹99 and file it later, safely.
Tax season brings with it a wave of scam messages that promise quick refunds or warn of blocked PANs. For defence personnel and their families, falling for such fraud can lead to serious financial risks — but knowing what to look out for can keep you safe.
What Are Fake Tax Refund Messages?
Fake tax refund messages are deceptive SMS, WhatsApp messages or emails that claim you are eligible for a tax refund. These often impersonate the Income Tax Department, using urgent or threatening language to make you click a fraudulent link.
These scams are designed to trick you into:
- Sharing personal details
- Entering bank or Aadhaar information
- Completing a fake “KYC” process
- Installing harmful software
Examples of Scam Messages
| Message Sample | Red Flags |
|---|---|
| “Your income tax refund of ₹14,520 is approved. Click here to claim now: [suspicious link]” | Vague sender, non-official link |
| “Your PAN is blocked. Complete KYC now to avoid penalty: [link]” | Fear-based language |
| “Final warning. Refund expires today. Login and verify details: [link]” | Creates urgency, may contain spelling errors |
| “Update your account info for refund credit. Download the app now.” | Fake app download request |
These are clear signs of tax refund fraud in India. Always double-check before clicking.
How to Identify Fake Refund Notifications
Spotting a scam takes less than a minute. Use this simple checklist:
| Check | What to Look For |
|---|---|
| Sender info | Does the message come from a @gov.in domain or official ID? |
| Message tone | Is it urgent, threatening, or asking you to act immediately? |
| Link preview | Hover over the link – does it lead to an unknown or suspicious site? |
| Grammar | Are there spelling mistakes or odd phrases? |
| Request type | Is it asking for PAN, Aadhaar, OTPs or login info via a link? |
Tip: The Income Tax Department will never ask for personal or bank information through SMS or WhatsApp.
Real vs Fake Income Tax Refund Messages
| Feature | Real | Fake |
|---|---|---|
| Sender Email | Ends with @incometax.gov.in | Random Gmail or short domains |
| Platform | Official Income Tax Portal or authorised platform | SMS, WhatsApp, or third-party apps |
| Language | Polite and formal | Pushy, urgent, or threatening |
| Personalisation | Includes name, PAN, and details | Generic greeting like "Dear User" |
| Link URL | Directs to incometax.gov.in | Leads to unknown or suspicious URLs |
What Is Phishing?
Phishing is an online scam where attackers pose as trusted authorities like the Income Tax Department. Their goal is to:
- Trick you into sharing private data
- Steal your identity or bank details
- Gain unauthorised access to your digital devices
Phishing can happen via:
- Email (called phishing emails)
- SMS (called smishing)
- Voice calls (called vishing)
- WhatsApp or fake apps
Why Are Defence Families Targeted?
Scammers often target defence personnel and their families because:
- You are seen as financially stable
- Many stay in areas with limited access to real-time alerts
- There's high trust in government communication
That’s why it's crucial to stay alert and use trusted sources.
How udChalo Finserv Helps You Stay Safe
udChalo Finserv is built with defence personnel in mind. Our platform ensures:
- Safe, verified income tax filing
- Secure document handling
- Support from trained tax professionals
- No risky links or third-party apps
You can now block your ITR filing slot for just ₹99 and file when you’re ready. It’s the best way to ensure you never fall for a scam in the rush to file.
Visit udChalo Finserv to get started.
What to Do If You Receive a Scam SMS or Email
- Do not click the link.
- Take a screenshot for reference.
- Report it on cybercrime.gov.in.
- Forward scam SMS to 1909 or send it to report@phishing.gov.in.
- Check your tax refund status only on incometax.gov.in.
If you need support, udChalo Finserv’s tax experts are here to help.
Stay Alert, Stay Protected During Tax Season
Income tax refund scams are becoming increasingly sophisticated. As defence families, staying informed and alert is your best defence. Never click suspicious links, and always verify any message before acting.
Choose udChalo Finserv for a secure, defence-trusted tax filing experience. With just ₹99, you can lock in peace of mind today and file when ready.
Secure your tax filing now — before the scammers reach you.
Visit udChalo Finserv to book your slot.
FAQs
1. What are fake tax refund messages?
These are scam messages pretending to be from the Income Tax Department, claiming that a refund is due.
2. How can I tell if a refund notification is fake?
Look at the sender, the link, and the language used. If it doesn’t come from a .gov.in source or sounds urgent, it’s likely fake.
3. Can I receive scam messages on WhatsApp too?
Yes, many fraudsters use WhatsApp for phishing. The Income Tax Department does not use WhatsApp for communication.
4. What if I clicked a scam link?
Change your banking passwords, run a virus scan on your phone or computer, and report the incident to cybercrime.gov.in.
5. Is it safe to file ITR online?
Yes, if you use a secure and trusted platform like udChalo Finserv.
6. What is the ₹99 price lock by udChalo?
You can now reserve your tax filing service on udChalo for just ₹99. This locks your slot, and you can file later at your convenience.
7. Does the IT Department send refund links via SMS?
No. Refunds are credited directly to your bank account linked to your PAN. Updates are visible only on the official portal.
8. How do I check my real tax refund status?
Go to incometax.gov.in and log in with your PAN and OTP. Do not rely on third-party messages.
9. Can udChalo help with tax filing for my parents?
Yes, udChalo Finserv supports tax filing for defence families, including spouses and parents.
10. What should I do if I accidentally gave my details on a fake site?
Inform your bank immediately, change all passwords, and file a complaint on the cybercrime portal.
Section 87A rebate can reduce or even remove your tax liability if your income is within the set limits. Learn the rules, apply correctly and use expert services like udChalo to file your ITR with confidence.
Key Highlights
- Section 87A reduces your tax liability, not your income.
- Eligibility is limited to resident individuals.
- Old regime: Income up to ₹5 lakh, rebate of ₹12,500.
- New regime: Income up to ₹12 lakh, rebate of ₹60,000, with marginal relief.
- Defence personnel can claim easily through udChalo’s assisted ITR filing.
