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Reporting mutual fund redemptions and capital gains correctly in an Income Tax Return (ITR) ensures compliance with the Indian Income Tax Act and prevents mismatch notices from the department. Each redemption—whether from equity, debt, or hybrid mutual funds—must be classified as short-term or long-term based on the holding period, and taxed accordingly. Gains are declared under Schedule CG, while dividends fall under income from other sources. With revised rules under Budget

ITR validation errors are one of the most common hurdles faced by taxpayers each year while filing income tax returns . These errors occur due to data mismatches, incomplete details, or incorrect form usage during e-filing. The Income Tax Department’s system automatically flags such inconsistencies to maintain accuracy and compliance. Understanding these validation checks and knowing how to correct them helps prevent delays, refund issues, or notices. TaxBuddy  simplifies thi

Section 154  of the Income Tax Act, 1961, empowers taxpayers to correct apparent mistakes  in their income tax assessments or intimation orders issued by the department. These errors are typically factual or computational and do not involve complex legal interpretations. The government’s e-filing portal now allows individuals to file rectification requests entirely online, making it simpler and faster to correct discrepancies such as mismatched TDS, wrong loss carry-forwards,

Form 26AS  and Form 16  are two key documents under the Indian Income Tax Act that ensure transparency and accuracy in income tax filing. Both serve as crucial records of taxes deducted and deposited, but they differ in purpose, structure, and scope. Form 26AS reflects the total tax deducted, collected, or paid under your PAN, while Form 16 certifies the tax deducted on your salary by your employer. Understanding their differences helps prevent tax mismatches, avoid defective

When  filing an Income Tax Return (ITR) , ensuring that the salary declared matches the figures in Form 16, the Annual Information Statement (AIS) , and Form 26AS is essential for smooth processing. Any mismatch can trigger refund delays, error notices, or scrutiny by the Income Tax Department. Salary mismatches often occur due to incorrect TDS reporting, multiple employers, or missing income entries. Understanding how to identify and resolve such discrepancies can help taxpa

When an Income Tax Return (ITR) is filed with incomplete information, incorrect details, or without fulfilling mandatory requirements, it can be flagged as defective under Section 139(9)  of the Income Tax Act, 1961. The notice is issued by the Assessing Officer (AO) to allow the taxpayer to rectify these errors within a specified period. Common reasons include wrong ITR form selection, missing schedules, mismatched income and TDS data, or non-submission of audit reports. Und

A TDS mismatch between Form 26AS and the Annual Information Statement (AIS) can lead to refund delays, inaccurate tax credit claims, and even income tax notices. The Income Tax Department uses both documents to verify reported income and tax deductions, so even minor differences must be resolved quickly. For Assessment Year 2025–26, the emphasis on reconciling TDS data across Form 26AS  and AIS has increased, as Form 26AS remains the official record of TDS credits, while AIS

Filing an Income Tax Return (ITR) for crypto income under Section 115BBH in India involves specific reporting rules, fixed tax rates, and detailed compliance steps. Income from Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs is taxed at a flat 30% rate, with no deductions or loss set-off permitted. Every crypto transaction must now be reported in the ITR under a dedicated “Schedule VDA,” ensuring transparency and compliance with Income Tax Department guidelines.

Taxpayers classified as Resident and Ordinarily Resident (ROR) in India are required to disclose all foreign income and assets in their Income Tax Return (ITR-2). This includes overseas bank accounts, shares, properties, and other financial interests held during the relevant calendar year. The reporting must be done in Schedule FA, covering assets and income from January 1 to December 31 of the previous year. The disclosure is mandatory even if such income is not taxable in I

Section 245 of the Income Tax Act, 1961, empowers the Income Tax Department to adjust a taxpayer’s refund against any outstanding tax demand from previous years. Before such adjustment, the taxpayer receives an official intimation and a 30-day window to respond. This mechanism ensures recovery of unpaid dues while maintaining transparency and safeguarding taxpayer rights. With the Finance Act 2023 merging refund withholding provisions from Section 241A into Section 245, the