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Section 245 of the Income Tax Act allows the department to adjust a current-year refund against pending tax demands from earlier years. This adjustment is not automatic and requires prior intimation, giving taxpayers a chance to agree, partially agree, or dispute the demand. Many refund losses happen due to ignored alerts, mismatched records, or old demands that no longer apply. Understanding how Section 245 works, how to respond on time, and when to contest a demand helps pr

Missing e-verification after filing an income tax return or ignoring an income tax notice can quietly turn a valid return into a rejected one. In many cases, refunds get blocked, demands appear years later, or adjustment notices under Section 245 reduce current refunds without warning. These issues often arise not due to tax evasion, but because of delayed actions, system mismatches, or lack of clarity on portal responses. Understanding what happens after a missed e-verificat

When an income tax notice arrives, the next step determines how quickly the issue gets resolved. A wrong response can delay refunds, increase tax demands, or trigger unnecessary litigation. Rectification, revised return, and appeal may look similar, but each serves a very specific purpose under the Income Tax Act. The correct choice depends on the nature of the error, the stage of assessment, and the section under which the notice is issued. Platforms like TaxBuddy analyse th

Business cash sales and UPI collections are now closely tracked by the Income Tax Department through bank reports, AIS, and payment gateway data. Even genuine business receipts can trigger turnover-linked income tax notices when reported figures do not align with transaction trails. Notices are commonly issued for high cash deposits, large UPI inflows, or incorrect presumptive reporting. These cases are rarely about evasion but about classification, reconciliation, and disclo

Capital gains computation mismatches arise when figures reported in Schedule CG of the Income Tax Return do not align with broker-reported data reflected in AIS or Form 26AS. These gaps are increasingly flagged by the Income Tax Department through automated systems, often leading to notices under Sections 133(6) or 142(1). Errors usually stem from incorrect cost calculations, holding period classification, missed transactions, or improper exemption claims. With brokers report

Business income and GST turnover are often confused, but tax authorities treat them very differently. Business income reflects net profit after expenses, while GST returns report gross turnover from supplies. When GST-reported turnover is higher than income declared in the ITR, automated systems flag the mismatch. This frequently leads to income tax notices alleging underreported turnover. With increased data sharing between GST and Income Tax departments, such discrepancies

AI-based risk profiling has changed how income tax notices are generated and issued in India. The Income Tax Department now relies on advanced algorithms to analyse data from AIS, TIS, Form 26AS, bank records, PAN databases, and GST portals to identify mismatches and unusual patterns. Even minor inconsistencies can trigger automated alerts and verification notices. This shift has reduced manual discretion while increasing detection speed. Understanding how this system works h

Section 80C deduction mismatches are one of the most common reasons taxpayers receive income tax notices after filing their return. These notices usually arise when investment claims shown in the ITR do not match data available with the Income Tax Department through Form 26AS or the Annual Information Statement. Even small documentation gaps can lead to disallowance of deductions, higher tax demand, interest, and penalties. Timely and accurate responses supported by valid inv

Foreign stocks and ETF investments held by Indian residents are fully taxable in India and closely monitored by the Income Tax Department. Capital gains, foreign dividends, and overseas assets must be disclosed accurately in the income tax return, especially under Schedule FA. Even small reporting gaps can trigger income tax notices linked to foreign income mismatches, unreported assets, or foreign tax credit errors. With increasing data sharing under global tax agreements, s

NRE and NRO bank accounts sit at the centre of most income tax notices issued to NRIs in India. Interest credits, large inward remittances, repatriation transactions, and TDS deductions are routinely reported by banks to the Income Tax Department. When these figures do not match what appears on the income tax return, automated notices are triggered. Most cases do not involve tax evasion but gaps in reporting, incorrect account classification, or missed disclosures. Understand