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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 144 of the Income Tax Act comes into play when notices are repeatedly ignored, allowing the Assessing Officer to estimate income and pass an ex-parte best judgment assessment. The outcome often involves inflated tax demands because the order relies on third-party data, past records, and the AO’s reasonable assumptions. Ignoring notices under Sections 142(1) or 143(2) increases the risk of receiving a Section 144 order, especially when material information is not furn

Old vs latest ITR mismatches typically arise when the Income Tax Department identifies differences between the information reported in a filed return and the latest data received from banks, employers, or financial institutions. These mismatches often trigger follow-up notices, demanding clarification or correction. The core issue is usually traced to AIS, TIS, or Form 26AS variations that were updated after filing or inaccurately reflected in the original return. Understandi

Credit card transactions exceeding ₹10 lakh often trigger alerts in the Annual Information Statement because banks report them under Form 61A. When these figures appear inconsistent with declared income, the system issues a credit card high-value transaction notice. This notice seeks clarification on whether the spending matches the income sources disclosed in the return. Accurate mapping of transactions to salary, loans, or gifts becomes essential to avoid scrutiny. Automate

Rental income mismatch notices typically arise when the declared rental income in the Income Tax Return differs from entries in AIS, Form 26AS, or reported loan records. The tax system automatically compares TDS on rent, bank credits, tenant-reported payments, and property-linked loan data to identify gaps. Even minor inconsistencies—such as missing rent receipts, incorrect TDS reporting, or unverified property loan details—can trigger a notice under Section 143(1) . Early de

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

GST return types determine how businesses report sales, purchases, tax liabilities, and input tax credit under India’s GST framework. Each taxpayer category—regular, composition, e-commerce, TDS deductor, and marketplace operator—is assigned specific forms such as GSTR-1, GSTR-3B, GSTR-4, and GSTR-9. The right filing frequency and accurate data reporting help maintain compliance and avoid penalties. TaxBuddy supports businesses by automating return preparation, integrating i

The GST return filing calendar for 2025–26 plays a critical role in helping businesses stay compliant with monthly, quarterly, and annual deadlines under the CGST Act. The schedule covers major forms like GSTR-1 , GSTR-3B , CMP-08, GSTR-4, and GSTR-9/9C, each carrying specific due dates based on turnover and the QRMP scheme. Recent changes, such as auto-locking of GSTR-3B from July 2025 and multiple extensions issued by CBIC, make timely compliance essential. Automated remind