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Reassessment under Section 147 allows the Income Tax Department to reopen completed assessments when income is believed to have escaped taxation. These cases usually arise from mismatches in AIS, Form 26AS, high-value transactions, or unreported income discovered later through data analytics. With changes introduced after 2021, the reassessment process now follows a defined notice-based framework under Sections 148 and 148A, with strict timelines and safeguards. Follow-up inc

AHigh-Value Transaction notice is issued when the Income Tax Department detects large financial activities that do not appear clearly aligned with the income reported in the return. These notices are not accusations but verification alerts generated through data reported by banks and financial institutions. A timely and accurate online response helps prevent penalties, scrutiny, or reassessment proceedings. Understanding why the notice was issued, which transactions triggered

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

Income tax notices often highlight mismatches in income, TDS, or reporting errors, and the next step depends entirely on the section invoked and the nature of the discrepancy. The decision between rectification, appeal, or revision hinges on whether the issue is a simple mistake, a disputed adjustment, or an overlooked correction in the original filing. TaxBuddy examines the notice, matches it against ITR data, and selects the most efficient legal remedy under the Income Tax

A scrutiny notice under Section 143(2) often reaches traders when the tax department wants clarity on reported profits, losses, or deductions. These notices commonly arise from mismatches in F&O trades, intraday activity, or inconsistencies between bank entries and declared income. Accurate data reporting is essential because trading incomes have unique tax rules and documentation needs. TaxBuddy supports traders by organising transactional data, validating ledgers, and iden

Joint property tax notices usually arise when income reported by co-owners does not match the records available with the Income Tax Department, especially for rental income, capital gains, or deductions linked to shared ownership. These notices require every co-owner to clarify ownership share, income allocation, and supporting documentation. Even a small mismatch in the reporting process can trigger scrutiny, additional questions, or penalties. Consistency in responses becom

High business turnover without filing an Income Tax Return immediately triggers compliance red flags under the Income Tax Act. When bank statements, GST data, or AIS entries reflect turnover above statutory limits—such as Rs 1 crore under regular rules or Rs 10 crore under presumptive schemes—the system auto-identifies non-filers. This mismatch commonly leads to notices under Sections 142(1), 143(2), or 148 for unexplained turnover. Many small businesses and professionals are

Misreported or underreported income often results in Income Tax notices triggered by mismatches between the filed return and data captured in AIS or Form 26AS. These discrepancies may involve salary from multiple employers, freelance receipts, capital gains, or TDS credits that do not align with reported figures. Such mismatches prompt notices under Sections 143(1), 142(1), or 148, requiring timely clarification. Penalties for misreporting can reach up to 200% of the tax diff

EXC-001 cash transaction alerts are automated income tax notices issued when banks report high-value or unusual cash deposits that do not align with the income declared in the tax return. These alerts arise from SFT and AIS data, where banks flag deposits exceeding specified thresholds or patterns that appear inconsistent. The purpose is to verify the legitimacy of the cash source and ensure proper tax reporting. When an EXC-001 notice appears, clear documentation, accurate r

Salary mismatches from previous employers often trigger income tax notices when the total salary reported in multiple Form 16s does not match the figures reflected in AIS or Form 26AS. These discrepancies commonly arise after job switches, employer reporting errors, or delayed TDS filings. Notices under Section 143(1) frequently appear when income from a previous employer is missing or incorrectly reported. Automated platforms such as TaxBuddy simplify the process by reconcil