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Bulk cash deposits made after selling a property often attract the attention of the Income Tax Department. These deposits are tracked through banking and reporting systems and matched against income tax returns to verify whether the source of funds has been properly disclosed. When the numbers do not align, notices are issued seeking clarification. Such situations are common after property transactions, especially where sale proceeds are received partly or fully in cash. Addr

Late filing of an Income Tax Return triggers fixed fees under Section 234F, calculated based on total income and the delay period. The rule applies when a return is filed after the due date under Section 139(1), with charges of ₹5,000 or ₹10,000 for higher-income taxpayers and ₹1,000 for lower-income categories, while those below the exemption limit face no fee. Notices for delayed or missed filings also integrate these charges into the intimation. Digital platforms such as T

Capital losses appearing in AIS but missing from the filed ITR often trigger mismatch notices because the tax department treats unreported entries as potential discrepancies in capital gains disclosure. When AIS reflects sale transactions from equities, mutual funds, or other capital assets, but the ITR does not incorporate the same details, the system flags the inconsistency. This situation is common when taxpayers misreport loss-making trades or assume losses need not be de

Property purchases above certain limits are closely tracked by the Income Tax Department through high-value transaction reporting. When the transaction value declared in registration records or banking data does not align with income disclosures, a verification notice is triggered. These notices do not always imply wrongdoing, but they require timely and accurate responses backed by documentation. Property buyers often face confusion around valuation differences, funding sour

Trusts and NGOs frequently receive income tax notices linked to registration and renewal under Sections 12AB and 80G. Most issues arise from Form 10A and Form 10AB filings, where missing documents, expired approvals, or discrepancies in activity reports prompt automated flags by the Income Tax Department. These notices, if ignored, can result in denial of exemptions and full taxation of income. Clear documentation, timely responses, and accurate reporting under ITR-7 are cruc

GSTR-2B serves as a static, monthly ITC statement that lists all invoices, debit notes, ISD credits, and import-related data reported by suppliers. Its accuracy directly determines how much Input Tax Credit can be claimed in GSTR-3B. Businesses depend on GSTR-2B to prevent excess claims, avoid mismatches, and ensure compliance with GST rules. TaxBuddy uses this monthly dataset to simplify reconciliation, highlight discrepancies before filing, and reduce the risk of interest

E-commerce sellers face some of the most complex GST obligations in India, primarily due to platform-based transactions, automated TCS deductions, and strict reporting rules under GSTR-1 and GSTR-3B. Every sale, return, commission, and fee flows through digital records that must match the GST portal’s ledgers exactly, making reconciliation essential for avoiding mismatches and notices. Since e-commerce operators collect TCS under Section 52 and deposit it through GSTR-8, sell

The GST Composition Scheme reduces compliance pressure for small businesses by offering simplified tax reporting and fixed-rate payments for eligible traders, manufacturers, restaurants, and service providers. Its two core filings—CMP-08 every quarter and GSTR-4 annually—form the backbone of compliance under this scheme. Each filing captures taxable outward supplies, tax payable, and yearly consolidated records without involving Input Tax Credit calculations. Missing these fi

GST compliance for online traders has become a non-negotiable obligation, especially for sellers operating on platforms like Amazon, Flipkart, and Meesho, where GST registration is mandatory irrespective of turnover. Marketplaces deduct TDS under Section 194-O and collect TCS under GST, which pushes traders to maintain accurate monthly filings and reconciliations. Rising enforcement, MFA rollout across the GST portal, and tighter scrutiny in 2025 make structured compliance e

Freelancers and consultants registered under GST must manage invoice reporting, tax payments, and input tax credit claims with precision to avoid notices and blocked credits. GSTR-1 and GSTR-3B form the backbone of monthly or quarterly compliance, while ITC reconciliation ensures accuracy across suppliers and expenses. The rules apply whether services are offered within India or to overseas clients, and even voluntary registrants face the same filing obligations. TaxBuddy p