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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

Reprocessing of Income Tax Returns (ITR) occurs when the Income Tax Department reviews a taxpayer’s return again due to errors or omissions in the initial processing. This often happens when deductions, tax credits, or income details submitted by the taxpayer were not considered correctly by the Central Processing Centre (CPC). The reprocessing request allows the department to re-evaluate the return based on the original data furnished, ensuring that genuine claims are proper

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

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

Professional tax is a small but important deduction that can reduce your taxable income. Whether it’s automatically deducted from your salary or paid directly by self-employed individuals, it qualifies for a deduction under Section 16(ia) of the Income Tax Act, 1961. Reporting it correctly in your ITR ensures your taxable income is computed accurately and helps avoid discrepancies during assessment. Understanding where and how to claim it depends on your income type and the I

Income earned by a minor child in India is taxed under specific rules that depend on how the income is generated. The Income Tax Act outlines clear provisions on when a minor’s income must be clubbed with a parent’s tax return and when the child must file a separate ITR. These rules apply to common income sources such as bank interest, gifts, investments, or earnings from a child’s talent or business activity. Understanding these provisions ensures correct reporting, prevents

ITR filing for trusts receiving donations requires strict compliance with the Income Tax Act, 1961. Trusts registered under sections like 12AB, 10(23C), or 80G must file ITR-7 and report all donations in Form 10BD. The process involves maintaining accurate records, meeting audit requirements, and disclosing donor details to retain exemptions under Sections 11 and 12. Updated reporting rules, validation checks, and mandatory disclosures ensure transparency for donors and regu

Reporting F&O trading income in ITR-3 requires clarity on turnover rules, business income classification, tax audit conditions, and how profits or losses from F&O trades must be declared. F&O trades are treated as non-speculative business income, which means they must be reported under the “Profits and Gains from Business or Profession” section. Correct reporting ensures eligibility for loss set-off, avoids tax notices, and keeps compliance clean for future assessments. The

Section 139(8A)  of the Income Tax Act, 1961 allows taxpayers to correct or update their previously filed returns by submitting an Updated Return, known as ITR-U. Introduced in the Finance Bill 2022 and refined in Budget 2025, this provision ensures taxpayers can rectify errors, report missed income, and comply with tax obligations more accurately. The recent Budget 2025 changes have extended the filing window to 48 months and simplified compliance requirements, making it eas

Small business owners often face income tax notices because of mismatched books, incorrect ITR forms, and gaps in AIS or TDS data. A clear system for recording business transactions, reconciling income, and selecting the right return form significantly reduces these triggers. Accurate books support proper deductions, while digital tools streamline tasks like AIS matching and advance tax calculation. TaxBuddy improves this process with automated form selection, real-time reco