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Filing Income Tax Returns in India demands precision, compliance, and up-to-date knowledge of the Income Tax Act, 1961. Taxpayers face a choice: rely on AI-powered bots for speed and automation or consult human tax experts for nuanced guidance and complex case handling. While AI bots efficiently handle simple returns and reduce manual errors, human professionals provide strategic advice, error detection, and post-filing support, especially for multiple income sources, capita

Filing an income tax return after receiving a condonation of delay approval follows a specific process under Section 119(2)(b) of the Income Tax Act. This approval allows taxpayers who missed the deadline due to genuine reasons to file their return without facing late-filing penalties. The tax authority’s order acts as a formal clearance to proceed with filing for the relevant assessment year, ensuring compliance and enabling the processing of refunds or carry-forward of los

Section 143(1) of the Income Tax Act pertains to the preliminary processing of Income Tax Returns (ITRs) filed by taxpayers. It is often the first stage in the tax assessment process where the Income Tax Department checks for discrepancies in the returns, such as misreported income, discrepancies in tax payments, or mismatches in TDS (Tax Deducted at Source) credits. If the department finds any issues, it can issue a notice under Section 143(1) to the taxpayer, highlighting

Introduction Filing your Income Tax Return (ITR) can sometimes lead to errors that result in scrutiny notices under Section 142(1) of the Income Tax Act. These letters request more information or documents to clarify any discrepancies or missing information in your return. When such disparities are discovered, the Income Tax Department issues a Section 142(1) notice indicating that your return is under examination. This examination may cause delays in your tax filing process

Donations made to registered charitable institutions under Section 80G of the Income Tax Act, 1961, allow taxpayers to claim tax deductions and reduce their overall tax liability. These deductions apply to individuals, companies, HUFs, and NRIs, encouraging contributions to social and national causes. However, only donations made to approved and registered organizations qualify. To claim the benefit, donors must ensure proper documentation and payment through permissible mod

Receiving an income tax notice often signals mismatches, omissions, or verification requirements flagged by the Income Tax Department. Immediate action helps prevent penalties, delays, or escalations. A structured approach—starting with understanding the notice type, verifying authenticity, gathering documents, and submitting the right response—ensures smooth resolution. TaxBuddy simplifies each stage with guided workflows, expert-backed checks, and accurate document handlin

Income mismatch notices have become more frequent in 2025 as the Income Tax Department expands automated cross-verification across Form 26AS, AIS, and TIS. These systems now track interest income, salary variations, capital gains, property transactions, and high-value financial activity reported by banks, employers, and financial institutions. Any inconsistency between reported income and department records is immediately flagged. Even minor differences—such as missed FD inte

Income tax notices often arrive unexpectedly, and most taxpayers struggle to understand what the letter means, why it was issued, and how to respond within the deadline. Each notice under the Income Tax Act carries a specific purpose—ranging from mismatch alerts, inquiry requests, scrutiny triggers, or outstanding demands. Recognizing the section number, verifying authenticity, and decoding the document are crucial steps in avoiding penalties or incorrect tax assessments. Tax

An AIS mismatch occurs when the financial data reported in your Income Tax Return (ITR) does not match the information available in the Annual Information Statement (AIS) maintained by the Income Tax Department. This can lead to discrepancies, delay refunds, and even trigger tax notices under various sections of the Income Tax Act. Identifying and correcting such mismatches before filing ensures accuracy, reduces compliance risk, and helps maintain a clean tax record. Table

The Updated Income Tax Return (ITR-U) allows taxpayers to voluntarily correct errors or disclose missed income after filing the original or belated return. However, confusion often arises when assessment proceedings or notices have already been issued. Budget 2025 refined these provisions under Section 139(8A) by extending the filing window to 48 months while tightening restrictions around assessments and notices. Understanding when and how ITR-U can be filed post-assessmen