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Foreign assets must be reported accurately by every Indian resident earning or holding property, bank accounts, equity, or investments outside India. Any mismatch or omission in Schedule FA immediately increases the chance of receiving an income tax notice, especially with enhanced global data exchange systems and CBDT's foreign asset monitoring. Notices commonly arise when bank accounts, RSUs, overseas properties, or foreign income remain unreported or incorrectly converted

Income tax notices often arise from mismatches in AIS, discrepancies in Form 26AS, missing income details, or verification issues linked to PAN. Quick and accurate responses are crucial because the department allocates strict timelines—usually between 7 and 30 days—to avoid penalties or further scrutiny. A structured approach helps ensure the reply is complete, legally sound, and backed with proper documentation. TaxBuddy’s Notice Management Service supports this process by d

A Section 156 Demand Notice informs a taxpayer that the Income Tax Department has detected unpaid tax, interest, penalty, or fee based on an order passed under the Income Tax Act. It specifies the exact amount owed and typically requires payment within 30 days. Quick verification is crucial, as errors in TDS credits, return data, or processing can create incorrect demands. TaxBuddy assists by matching the notice with Form 26AS , AIS, and filed returns, helping identify mismat

Time limits for income tax notices under Sections 143 , 148 , and 156 determine how long the Income Tax Department can process returns, start scrutiny, reopen assessments, or raise tax demands. These deadlines shape whether a notice is valid or time-barred. Section 143 governs processing and scrutiny assessments, Section 148 deals with reassessments for escaped income, and Section 156 issues payment demands based on earlier orders. Each carries strict statutory timelines to

Section 143(2) scrutiny notice is issued when the Income Tax Department selects a return for deeper verification to check discrepancies, mismatched income details, or questionable deductions. The notice requires taxpayers to submit supporting documents such as Form 16 , Form 26AS, bank statements, investment proofs, and business records to justify entries made in the ITR. Responding within timelines is essential, as delays may lead to penalties or best-judgment assessments.

House property and home loan mismatches frequently arise when rental income disclosed in ITR filings does not align with AIS or Form 26AS data, prompting automated notices under Section 143(1). These mismatches often involve unreported rent, incorrect interest claims, or TDS deductions that do not match Schedule HP entries. Automated cross-verification by the Income Tax Department highlights such differences instantly, creating a need for accurate reconciliation. With increas

A Section 139(9) defective return notice appears when the Income Tax Department identifies missing details, incorrect information, or inconsistencies in an ITR. Errors such as mismatched income data, wrong bank details, or selecting an incorrect return form can trigger this notice. Once marked defective, the return must be corrected within the given time—usually 15 days—to avoid being treated as invalid. An invalid return carries consequences such as interest, penalties, and

Unreported capital gains often trigger income tax notices when the Income Tax Department detects mismatches between financial records and the details submitted in a tax return. These notices typically arise from missed mutual fund redemptions, equity sales, property transactions, or incorrect reporting in AIS or Form 26AS. When this mismatch appears, taxpayers are asked to clarify the source of gains, furnish missing documents, or file a corrected return. Understanding why th

Cash withdrawals and deposits in current accounts have become a major point of verification for the Income Tax Department, especially when the transaction pattern does not align with the income profile disclosed in the return. High-value deposits, repeated cash movements, and mismatches with GST or business turnover often lead to scrutiny under sections such as 142(1) , 143(2) , or 69A. Banks also report these transactions through AIS and SFT, allowing the department to track

AIS mismatch income tax notices arise when the income reported in the Annual Information Statement differs from what appears in an income tax return. These discrepancies usually involve bank interest, dividends, TDS entries, securities transactions, or other third-party data submitted to the Income Tax Department. Automated notices highlight mismatched figures that may lead to incorrect tax calculation, refund delays, or additional tax demands. Quick verification and accurate