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Income tax notices related to “Income from Other Sources” commonly arise when dividends, lottery winnings, or windfall gains reported in an ITR do not match the figures captured in Form 26AS or AIS. These mismatches are flagged under sections governing such income, including Sections 56, 115BB, 194, and related provisions. The notices typically reflect underreported amounts or discrepancies in gross values, TDS credits, or high-value transactions. With growing automated scru

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

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

Tuition fees paid for a child’s education can reduce taxable income when claimed under Section 80C of the Income Tax Act. This deduction applies only to full-time education for up to two children in recognized schools, colleges, universities, and institutions within India. Only the tuition component qualifies, while charges such as donations, development fees, transportation costs, and hostel expenses are excluded. Since the total Section 80C limit remains ₹1.5 lakh, tuition

Tax-saving choices often look similar at first glance, but NPS, ELSS, and PPF stand apart because they cover three distinct investor needs—growth, stability, and retirement security. All three qualify for deductions under Section 80C of the Income Tax Act, 1961, yet their risk levels, returns, tax treatments, and lock-in rules differ sharply. Understanding these differences helps ensure that the right mix is chosen based on goals, income tax regime, and appetite for market ex

Capital gains reporting in ITR-2 for FY 2024-25 involves detailed disclosure of every asset sold, including shares, mutual funds, bonds, property, or any other capital asset. The Income Tax Department now requires separate reporting of gains earned before and after 23 July 2024 because the Finance Act 2024 introduced revised rules, making accuracy more critical than ever. Each transaction must be captured with cost, sale consideration, ISIN (where applicable), holding perio

Preventive health check-up deductions allow taxpayers to reduce taxable income through routine medical screenings, but the benefit is often misunderstood due to uncertainty around acceptable proof and documentation. The Income Tax Act permits a specific limit for these check-ups under Section 80D , provided the taxpayer can support the claim with valid records. This makes the quality of documentation just as important as eligibility. Clear payment evidence, verifiable diagnos

Section 80DDB of the Income Tax Act allows a tax deduction for medical expenses incurred on specified serious diseases affecting dependent family members, including dependent parents. The provision supports taxpayers facing high treatment costs for illnesses such as cancer, chronic renal failure, neurological disorders, and other critical ailments listed under Rule 11DD. Deduction eligibility depends on age, actual medical bills, and reimbursements received, with higher limi

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