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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

Capital gains exemptions under Section 54, Section 54F, and Section 54EC often trigger income tax notices when reinvestment details, timelines, or amounts do not align with the law. These provisions allow tax relief on long-term capital gains only when specific conditions are met, such as reinvesting in residential property or specified bonds within defined limits. Even small reporting errors in the capital gains schedule or missing proof can lead to scrutiny. Understanding h

ESOPs and RSUs from overseas employers often trigger income tax notices when perquisite values, foreign income, or capital gains are mismatched in the ITR. Indian residents are required to disclose vesting and sale details, report foreign assets, and claim foreign tax credits with strict accuracy. Any gap between employer reporting, broker statements, and Schedule FA data frequently results in automated system-generated notices. With cross-border filings becoming common for g

AIS alerts for mutual fund and stock investments often arise when capital gains, dividend income, or high-value transactions do not match disclosures in the income tax return. These discrepancies frequently trigger follow-up notices, especially when Schedule CG reporting does not align with AIS, Form 26AS, or broker statements. With post-2024 rule changes tightening equity and debt fund reporting, accurate reconciliation has become essential. TaxBuddy plays a central role in

Unreported property sales often trigger capital gains notices because the Income Tax Department cross-verifies transaction details through the Annual Information Statement and Form 26AS . When a sale appears in AIS but not in the return, the system flags a mismatch, leading to notices under Section 143(1) or detailed scrutiny under Section 143(2) . Capital gains must be calculated and reported in Schedule CG of the appropriate ITR form, regardless of taxable income after exem

Capital gains income tax notices usually emerge when the figures reported in the Income Tax Return differ from those appearing in the AIS or broker capital gains statements. These mismatches often involve incorrect STCG or LTCG values, missing transactions, or inconsistent reporting across intermediaries. The tax system flags such gaps automatically, resulting in Section 143(1) notices. TaxBuddy reviews AIS data, reconciles broker statements, and identifies the source of mism

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

Filing ITR-U is a provision under Section 139(8A) that allows taxpayers to correct missed capital gains income or other omissions from a previously filed return. It provides a structured way to update income details, pay any additional tax, and reduce the risk of scrutiny. Missing capital gains—whether equity, property, or mutual funds—is one of the most common errors, and ITR-U enables reporting these gains correctly even after the original deadline has passed. Platforms li

Filing an Income Tax Return that includes dividend income and capital gains requires selecting the correct ITR form and reporting each income category accurately. Dividend income from domestic companies is fully taxable, and capital gains from shares, mutual funds, and property must be declared under their respective schedules. Proper classification of short-term and long-term gains is essential to ensure correct tax calculation and avoid notice-driven corrections. With upda

Missing capital gains while filing an income tax return can lead to inaccurate reporting and unnecessary scrutiny. Fortunately, the Income Tax Act, 1961, allows taxpayers to correct such errors through a revised return under Section 139(5). This provision enables individuals to include omitted capital gains, ensuring that income statements reflect accurate details and compliance remains intact. With the government’s latest updates for AY 2025-26, taxpayers now have a more str