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Section 131 inquiry notices are issued when tax authorities require deeper verification of income, bank transactions, or financial disclosures using powers similar to a civil court. These notices allow officers to summon individuals, demand documents, examine records, and conduct hearings to uncover potential discrepancies or unexplained funds. Clear understanding of the notice, timely documentation, and structured responses play a crucial role in preventing penalties, prose

Income tax notices under the Income Tax Act, 1961, follow a clear structure that helps identify why the notice was issued, which section applies, and what action is required. Each section points to a specific trigger—mismatches, missing information, scrutiny selection, or defective returns. Reading the notice correctly prevents unnecessary confusion and ensures timely compliance. The necessary details include the section invoked, discrepancies detected, supporting documents d

Global work opportunities, overseas investments, and remote employment have made it common for Non Resident Indians to earn income across borders. In such situations, the same income can become taxable in both the country of residence and the country where it is earned, leading to double taxation and higher tax outflow. To prevent this, India has signed Double Taxation Avoidance Agreements with more than 100 countries, such as, US, UK, Australia, France, Canada, Germany, Hong

When it comes to tax planning, Section 80C of the Income Tax Act is one of the most valuable tools available to Indian taxpayers. It enables individuals and Hindu Undivided Families (HUFs) to reduce their taxable income by up to INR 1,50,000 per year through a variety of investments and expenses. By planning investments in financial assets like PPF, NSC, ELSS, and others, you can claim deductions up to Rs. 1.5 lakh under Section 80C, effectively reducing your taxable income.

Agricultural income is exempt under section 10(1), yet mixing it with salary, business income, or capital gains often leads to scrutiny and avoidable tax notices. Misreporting, incorrect ITR selection, missing land details, and AIS mismatches are common triggers. Understanding what qualifies as agricultural income, how partial integration works, and how to report mixed income correctly helps prevent issues before they surface. Digital platforms such as TaxBuddy simplify this

Selecting the correct ITR form is essential for pensioners to ensure accurate reporting and smooth processing under the Income Tax Act, 1961. The choice between ITR-1 and ITR-2 depends on income limits, capital gains, the number of house properties, and the presence of foreign assets. Pension-only income with basic interest earnings often fits within ITR-1 , while capital gains, multiple houses, or income above ₹50 lakh automatically shift the requirement to ITR-2. Filing wi

Section 194R requires a business to deduct 10% TDS when providing benefits or perquisites to a resident if their value crosses ₹20,000 in a financial year. The rule covers cash, kind, or mixed benefits and ensures that incentives, gifts, vouchers, travel perks, and commercial advantages are properly reported as taxable income. The responsibility lies with the person providing the benefit, not the receiver, which broadens the tax net and reduces the possibility of unreported

Fixed deposit interest does not qualify for any deduction under Section 80TTA of the Income Tax Act. This provision is restricted to interest earned from savings bank accounts and offers a maximum deduction of ₹10,000, but only under the old tax regime and only for individuals and HUFs below 60 years of age. FD interest continues to be fully taxable at slab rates under “Income from Other Sources,” while senior citizens may claim relief through Section 80TTB. Understanding th

Section 194Q requires specified buyers to deduct TDS on the purchase of goods once the threshold of ₹50 lakh is crossed in a financial year. The rule applies only when the buyer’s turnover exceeds ₹10 crore in the preceding year, and the purchase is made from a resident seller. A TDS rate of 0.1% applies on the value exceeding ₹50 lakh, and 5% applies if the seller fails to furnish PAN. The intent is to bring high-value transactions into the reporting net and ensure better c

Filing an updated return under Section 139(8A) allows taxpayers to correct omissions, disclose previously unreported income, and regularise tax records even after the original filing deadline has passed. This extended compliance route helps avoid prosecution, reduces the risk of heavy penalties, and promotes transparent tax reporting. The provision gives taxpayers up to 48 months from the end of the assessment year to voluntarily correct mistakes, making it one of the most