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Cash withdrawals and deposits in current accounts have become a major point of verification for the Income Tax Department, especially when the transaction pattern does not align with the income profile disclosed in the return. High-value deposits, repeated cash movements, and mismatches with GST or business turnover often lead to scrutiny under sections such as 142(1) , 143(2) , or 69A. Banks also report these transactions through AIS and SFT, allowing the department to track

AIS mismatch income tax notices arise when the income reported in the Annual Information Statement differs from what appears in an income tax return. These discrepancies usually involve bank interest, dividends, TDS entries, securities transactions, or other third-party data submitted to the Income Tax Department. Automated notices highlight mismatched figures that may lead to incorrect tax calculation, refund delays, or additional tax demands. Quick verification and accurate

Section 143(1) intimation is an automated communication generated after an income tax return is processed, highlighting adjustments such as arithmetic corrections, incorrect claims, or mismatches with AIS or Form 26AS. Many taxpayers confuse this preliminary computation sheet with an actual income tax notice, even though the two serve different purposes. Intimations perform automated checks, while income tax notices require deeper scrutiny, additional information, or reassess

Multiple Form 16s often create mismatches in salary reporting, TDS credits, and employer information, causing income tax notices for discrepancies under automated ITR processing. When employment changes occur within a financial year, each employer issues a separate Form 16, and the income must be consolidated accurately to align with AIS and Form 26AS. Errors arise when salary components are double-counted or when TDS details are missed. Platforms such as TaxBuddy streamlin

TDS mismatch in Form 26AS occurs when the tax deducted and reported by deductors does not match the tax credit claimed in the Income Tax Return. Such gaps often trigger automated income tax notices, delay refunds, or lead to adjustments under Section 143(1). The issue usually originates from incorrect PAN entry, wrong TDS amounts, delayed TDS return filing , challan errors, or mismatched income reporting. A mismatch signals that the department’s database and the taxpayer’s c

Income tax notices triggered by AIS, TIS, SFT, or TDS mismatches often require a quick decision: whether to file a belated return or move directly to an updated return. The right choice depends on timelines, the type of discrepancy, and whether the department already holds concrete data that indicates under-reporting. The distinction matters because each option carries different costs, compliances, and legal outcomes. Platforms like TaxBuddy simplify this decision by analys

High TDS deductions without filing an Income Tax Return often trigger non-filing notices because the Income Tax Department detects tax already collected on income that remains unreported. Form 26AS and AIS highlight these high-TDS entries, prompting alerts under sections like 139(9) or 143(1) when no return is filed. These cases signal potential underreporting and require timely correction. TaxBuddy uses automated data reconciliation, expert review, and structured notice res

Section 154 of the Income Tax Act serves as the primary mechanism for correcting apparent mistakes in tax intimations and assessments that often lead to wrong income tax demand notices. Mathematical errors, incorrect TDS credits, or mismatches in bank details commonly trigger avoidable demands during automated processing. Section 154 enables quick rectification by allowing correction of such mistakes directly from the records without requiring a full return revision. Digital

HRA , LTA , and perquisite mismatches in salary deductions often trigger income tax notices when the claimed exemptions do not align with Form 16 , salary slips, or transaction records reported to the Income Tax Department. Most errors stem from incorrect calculations, missing documents, inflated claims, or discrepancies between rent receipts, travel proofs, employer valuations, and bank statements. These are flagged through Section 143(1) intimation or scrutiny notices, requ

A reassessment notice under Section 148 signals that the tax department believes income may have escaped assessment in an earlier year. The first priority is understanding why the notice was issued, what documents need to be reviewed, and how the reassessment process works. These notices are grounded in information flagged through AIS, bank statements, TDS data, high-value transactions, or mismatch reports. Immediate verification of deadlines, record reconciliation, and a w