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Form 26AS is the primary record the Income Tax Department uses to verify every tax credit linked to a PAN—TDS, TCS, advance tax, and self-assessment tax. When any of these entries appear incorrect, missing, or mismatched, the return may face delays, reduced refunds, or automated adjustments under section 143(1). Most discrepancies arise due to wrong PAN entries, inaccurate challan details, or deductors failing to file updated TDS statements. Correcting these entries early en

The new tax regime removes most deductions, raising a common question for taxpayers earning interest from savings accounts: is any part of this interest deductible? With 80TTA and 80TTB restricted to the old tax regime, savings interest now falls under fully taxable income when opting for Section 115BAC . Since the Finance Act 2024 made the new regime the default, understanding this shift is essential for planning taxable income accurately and avoiding incorrect claims during

Section 244A governs interest on delayed income tax refunds, ensuring compensation when refunds take longer than the timelines set under the Income Tax Act. Interest applies on excess TDS, advance tax, or self-assessment tax, and is calculated at 0.5% per month on qualifying refunds. The refund must exceed 10% of total tax liability or ₹100 to trigger interest. Timely filing and accurate bank validation are essential to prevent delays, and platforms such as TaxBuddy help s

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

Filing ITR-U is a provision under Section 139(8A) that allows taxpayers to correct missed capital gains income or other omissions from a previously filed return. It provides a structured way to update income details, pay any additional tax, and reduce the risk of scrutiny. Missing capital gains—whether equity, property, or mutual funds—is one of the most common errors, and ITR-U enables reporting these gains correctly even after the original deadline has passed. Platforms li

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

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

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

A duplicate income tax refund occurs when the Income Tax Department unintentionally credits the refund amount more than once because of technical delays, system errors, or bank-side processing issues. Since the extra amount is not treated as legitimate income under the Income Tax Act, it must be reported and returned immediately. Timely reporting protects the taxpayer from scrutiny, unnecessary notices, and avoidable legal consequences. Most duplicate refunds are resolved thr