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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

Section 115BAC forms the core of India’s new tax regime, designed to simplify taxation by offering lower slab rates in exchange for fewer deductions. Recent updates under the Union Budget FY 2025-26 have significantly changed how taxpayers calculate benefits, especially around the higher standard deduction of ₹75,000 and the increased Section 87A rebate of up to ₹60,000. These changes push the effective tax-free income threshold to ₹12.75 lakh for salaried individuals and pe

Refund reissue requests often get denied when bank details fail validation, TDS entries do not match the Income Tax Department records, ITR verification is incomplete, or documents supporting deductions are missing. Denial simply means the system could not process the refund due to mismatches or unresolved issues. The Income Tax portal allows taxpayers to correct details, file rectification requests, or raise a grievance to get refunds reprocessed. Most cases are resolved by

Small business owners often face income tax notices because of mismatched books, incorrect ITR forms, and gaps in AIS or TDS data. A clear system for recording business transactions, reconciling income, and selecting the right return form significantly reduces these triggers. Accurate books support proper deductions, while digital tools streamline tasks like AIS matching and advance tax calculation. TaxBuddy improves this process with automated form selection, real-time reco

Introduction Making mistakes when filing your income tax returns (ITRs) is a typical occurrence. In these cases, the income tax department sends out letters to fix the mistakes. There are numerous reasons why income tax letters are sent out, and each one calls for a unique answer. Income tax notices might be sent to you via email or the mail, but you have to respond to them in a certain way. For a variety of reasons, including incomplete or delayed ITR filing, unpaid self-ass