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Large refund income tax notices are issued when the claimed refund appears unusually high compared to reported income, TDS, or advance tax. The Income Tax Department flags these cases for additional verification to confirm that the refund is backed by accurate reporting and valid tax credits. Automated systems review mismatches in TDS, income details, and bank account validations before releasing funds. TaxBuddy streamlines this process by ensuring accurate filings, pre-vali

Income tax notices for F&O trading are commonly triggered when the Income Tax Department detects mismatches between a trader’s reported details and the information submitted by brokers through AIS or SFT reporting. These notices often arise because Futures and Options are classified as business income, requiring specific reporting methods, turnover calculations, and documentation. When any part of this data is missing or inconsistent, scrutiny is initiated. Broker statements,

Non-payment of self-assessment tax under Section 140A places the taxpayer in default and immediately exposes the individual to interest, penalties, and notices from the Income Tax Department. The unpaid amount attracts interest under Sections 234A, 234B, and 234C until cleared, and the tax authority may issue notices demanding clarification or corrective action. These situations often arise from shortfalls in advance tax, TDS mismatches, or miscalculations while filing the r

Online GST return filing requires accurate data entry, timely submission, and adherence to the latest compliance rules. The process becomes simpler when supported by an automated platform that handles document import, reconciliations, return preparation, and submission. TaxBuddy offers a structured, step-by-step workflow that enables businesses to file GSTR-1, GSTR-3B, and other applicable returns with reduced effort and fewer errors. Updated GST changes such as auto-populate

Limited scrutiny and full scrutiny income tax notices examine tax returns at different levels of depth, often triggered by mismatches, high-value transactions, or risk parameters detected by the system. Limited scrutiny focuses on one or two flagged issues, while full scrutiny reviews the entire financial profile, including income sources, deductions, assets, and bank activity. These notices are issued under Section 143(3) to verify accurate reporting and prevent evasion. Un

Updated Return ITR-U under Section 139(8A) allows taxpayers to correct wrong claims, missed income, or excess deductions even after filing the original return. This option helps reduce the risk of scrutiny notices and penalties when mistakes surface later through data matching. Filing ITR-U involves additional tax and interest, but it prevents harsher consequences under reassessment or mismatch provisions. Even after filing ITR-U, notices may still arise due to processing gap

Section 245 refund adjustment notices are issued when the Income Tax Department proposes to set off a current-year refund against outstanding tax demands from earlier years. The notice outlines the refund amount, the pending demand, and the proposed adjustment, requiring a response within the specified timeline. Understanding how these set-offs work, how to verify the accuracy of the demand, and how to submit an objection is essential for ensuring refunds are not withheld in

Clubbing provisions under Sections 60 to 64 of the Income Tax Act require income generated from assets transferred to a spouse, minor children, or certain family members without adequate consideration to be added back to the transferor’s taxable income. These rules prevent tax reduction through indirect family investments and often lead to mismatches in AIS, Form 26AS, or KYC-linked bank records. Notices under Sections 139(9), 143(1), and 142(1) commonly arise when clubbed in

Foreign Tax Credit (FTC) allows relief when tax is paid abroad on income taxable in India, but errors in Form 67 often trigger defect notices that delay refunds or deny credit. These notices commonly arise from mismatches in income details, incorrect currency conversion, late filing, or incomplete documentation. Accurate disclosure under Rule 128 is essential, as the Income Tax Department cross-checks Form 67 with Schedule FSI and foreign tax proofs. With multiple steps invo

Section 148A reshapes reassessment by introducing a mandatory inquiry and reply process before any notice under Section 148 can be issued. The framework ensures that reassessment occurs only when supported by credible information indicating income escapement. The Assessing Officer must evaluate facts, issue a show-cause notice, consider the taxpayer’s response, and obtain higher authority approval before proceeding. This procedure enhances transparency and protects taxpayers