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An income tax notice for non-disclosure of income is issued when the Income Tax Department identifies earnings that do not appear in your filed return. Such mismatches often arise from bank deposits, AIS data, Form 26AS , TDS records, or high-value financial transactions flagged through automated reporting systems. The goal of the notice is to correct discrepancies, seek clarification, or request additional disclosure to ensure accurate assessment. Understanding the reason be

Owning more than one house can significantly change how income tax is calculated in India, especially after the FY 2025-26 updates. Budget 2025 allows two residential properties to be treated as self-occupied without any occupation-based restrictions, while additional properties are taxed as deemed let-out. These changes simplify the annual value rules under Section 23 and influence deduction availability under Sections 24 and 80C. Filing ITR with multiple houses also requir

A defective return notice under Section 139(9) of the Income Tax Act, 1961, is issued when your income tax return (ITR) contains missing details, inconsistencies, or calculation errors. Such notices are common and must be addressed promptly to prevent your return from being treated as invalid. Failure to respond within 15 days may lead to penalties and the loss of benefits like carry-forward of losses. Understanding how to respond and file a corrected or revised return is es

Income tax notices are issued when the Income Tax Department detects mismatches, errors, or missing information in the details submitted during return filing or through third-party sources. These notices highlight discrepancies in reported income, TDS, high-value transactions, or compliance checks under the Income Tax Act, 1961. Automated systems flag inconsistencies instantly, resulting in formal communication requiring timely clarification or correction. Accurate disclosur

Common allowances exempt under Section 10(14) of the Income Tax Act help employees reduce taxable salary by excluding payments that cover genuine work-related or location-based expenses. These include allowances for travel, children’s education, uniforms, helpers, and high-altitude postings. The exemption applies only to the amount actually spent or to the notified limits, whichever is lower. Understanding these rules helps employees claim accurate tax relief and avoid unnece

Schedule OS in the Income Tax Return is the section where interest income and dividend income must be disclosed for accurate tax reporting. Every taxpayer earning from savings accounts, fixed deposits, recurring deposits, listed shares, or mutual funds is required to report this income under the “Other Sources” category. The Income Tax Department uses this schedule to match disclosures with Form 26AS, AIS, and AIS dividend data, making correct filing essential for avoiding no

Interest income mismatch between the Annual Information Statement and the Income Tax Return is one of the most frequent issues flagged during tax processing in India. Banks, NBFCs, and other entities often report interest at different times, causing figures in AIS to differ from what appears in the taxpayer’s ITR. These discrepancies commonly trigger notices under sections 143(1) or 139(9) , delay refunds, or lead to incorrect tax calculations. Early reconciliation helps avoi

A Section 143(1) intimation often highlights mismatches in income, deductions, or tax credits, prompting many taxpayers to recheck their original filing. When the numbers in the intimation differ from what was reported, a revised return under Section 139(5) becomes the corrective tool to ensure accuracy. Filing it on time helps prevent unnecessary tax demands, interest, or scrutiny. Platforms like TaxBuddy naturally simplify this journey by identifying discrepancies and guidi

Defective return notices under Section 139(9) are issued when an income tax return contains missing information, incorrect details, or mismatches that prevent accurate processing by the Income Tax Department. These defects often involve incorrect bank account entries, wrong ITR forms, unreported income, or discrepancies with AIS/TIS and Form 26AS. The notice outlines the error and provides a window to correct and resubmit the return. Resolving these issues quickly helps avoid

When your Income Tax Return (ITR) is processed and an outstanding tax demand appears, it signals a difference between the tax paid and the tax the department believes you owe. This usually arises due to mismatched TDS credits, unreported income, incorrect data entry, or selection of the wrong ITR form. The key is not to panic but to review, verify, and act quickly using the Income Tax e-filing portal. The process has been made simpler in 2025, with faster rectification and i