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Section 143(1) intimation is an automated communication generated after an income tax return is processed, highlighting adjustments such as arithmetic corrections, incorrect claims, or mismatches with AIS or Form 26AS. Many taxpayers confuse this preliminary computation sheet with an actual income tax notice, even though the two serve different purposes. Intimations perform automated checks, while income tax notices require deeper scrutiny, additional information, or reassess

Multiple Form 16s often create mismatches in salary reporting, TDS credits, and employer information, causing income tax notices for discrepancies under automated ITR processing. When employment changes occur within a financial year, each employer issues a separate Form 16, and the income must be consolidated accurately to align with AIS and Form 26AS. Errors arise when salary components are double-counted or when TDS details are missed. Platforms such as TaxBuddy streamlin

High-value transaction income tax notices are issued when financial activity reported by banks, mutual funds, registrars, or credit card companies does not match the information declared in an income tax return. The Income Tax Department reviews data received through the Statement of Financial Transactions (SFT) and Automated Information Systems to flag cash deposits, property deals, investments, and large payments that cross specific thresholds. When inconsistencies arise, n

Introduction Tax planning and tax management are strategies for minimizing taxes and optimizing financial outcomes. Tax planning is the act of assessing your finances and making informed decisions that reduce your tax bill . Tax management is a more complete method that focuses on properly managing all tax matters. For a taxpayer, it is crucial to understand the difference between tax planning and tax management and the broader ramifications of each of them. Table of Contents

Income tax notices triggered by AIS, TIS, SFT, or TDS mismatches often require a quick decision: whether to file a belated return or move directly to an updated return. The right choice depends on timelines, the type of discrepancy, and whether the department already holds concrete data that indicates under-reporting. The distinction matters because each option carries different costs, compliances, and legal outcomes. Platforms like TaxBuddy simplify this decision by analys

Income tax notices related to “Income from Other Sources” commonly arise when dividends, lottery winnings, or windfall gains reported in an ITR do not match the figures captured in Form 26AS or AIS. These mismatches are flagged under sections governing such income, including Sections 56, 115BB, 194, and related provisions. The notices typically reflect underreported amounts or discrepancies in gross values, TDS credits, or high-value transactions. With growing automated scru

High TDS deductions without filing an Income Tax Return often trigger non-filing notices because the Income Tax Department detects tax already collected on income that remains unreported. Form 26AS and AIS highlight these high-TDS entries, prompting alerts under sections like 139(9) or 143(1) when no return is filed. These cases signal potential underreporting and require timely correction. TaxBuddy uses automated data reconciliation, expert review, and structured notice res

Section 154 of the Income Tax Act serves as the primary mechanism for correcting apparent mistakes in tax intimations and assessments that often lead to wrong income tax demand notices. Mathematical errors, incorrect TDS credits, or mismatches in bank details commonly trigger avoidable demands during automated processing. Section 154 enables quick rectification by allowing correction of such mistakes directly from the records without requiring a full return revision. Digital

Tuition fees paid for a child’s education can reduce taxable income when claimed under Section 80C of the Income Tax Act. This deduction applies only to full-time education for up to two children in recognized schools, colleges, universities, and institutions within India. Only the tuition component qualifies, while charges such as donations, development fees, transportation costs, and hostel expenses are excluded. Since the total Section 80C limit remains ₹1.5 lakh, tuition

Capital gains reporting in ITR-2 for FY 2024-25 involves detailed disclosure of every asset sold, including shares, mutual funds, bonds, property, or any other capital asset. The Income Tax Department now requires separate reporting of gains earned before and after 23 July 2024 because the Finance Act 2024 introduced revised rules, making accuracy more critical than ever. Each transaction must be captured with cost, sale consideration, ISIN (where applicable), holding perio