One stop for everything related to taxes,
Our Blogs

Salary mismatches from previous employers often trigger income tax notices when the total salary reported in multiple Form 16s does not match the figures reflected in AIS or Form 26AS. These discrepancies commonly arise after job switches, employer reporting errors, or delayed TDS filings. Notices under Section 143(1) frequently appear when income from a previous employer is missing or incorrectly reported. Automated platforms such as TaxBuddy simplify the process by reconcil

Deduction mismatch notices under Section 143(1) usually occur when claims for 80C, 80D, or similar deductions do not align with the data available in Form 26AS , AIS, or the records validated by the Central Processing Centre. Automated processing identifies differences such as excess claims, missing proof, or incorrect entries, leading to adjustments in total income. These notices push taxpayers to revisit the claimed amounts and validate the supporting evidence. With stric

Income tax notices for NRIs generally arise from mismatches in AIS, incorrect reporting of NRE or NRO account income, or missing details related to foreign income that trigger automated alerts under the Income Tax Act 1961. Most notices link back to unreported NRO interest, rental income, capital gains, or remittances that banks and institutions report through SFT. Any inconsistency between AIS and ITR leads to e-campaign messages or scrutiny. Platforms such as TaxBuddy offer

TCS on foreign travel and big-ticket purchases often triggers income tax notices when the amounts reported in Form 26AS, AIS, or ITR fail to match actual remittances or tour package payments. Incorrect declarations in bank forms, wrong TCS claims, or unreported transactions under the Liberalised Remittance Scheme are common reasons for discrepancies. These mismatches prompt notices under Sections 143(1) or 143(2), requiring accurate documentation and timely correction. With r

The e-Proceedings tab on the income tax portal enables taxpayers to respond to notices online without visiting the tax office. It centralises all assessments, scrutiny notices, questionnaires, and communication from the Assessing Officer, allowing timely and organised submissions directly through the portal. The system helps reduce delays, ensures documentation accuracy, and offers a transparent view of pending actions. TaxBuddy enhances this process by guiding users through

Errors in an income tax return often surface only after an Income Tax Department notice, and choosing the correct corrective route determines whether the issue closes smoothly or escalates into penalties and prolonged scrutiny. The core pathways—rectification, revised return, and updated return—serve very different purposes and operate under strict legal timelines. Each mechanism applies to a specific type of mistake, and selecting the wrong one can complicate compliance inst

Interest income non-reporting notices arise when the figures declared in the income tax return do not match the data captured in the Annual Information Statement. Savings accounts, fixed deposits, and recurring deposits are closely monitored through automated reporting by banks, and even small omissions can trigger alerts. As more taxpayers receive notices under Section 142(1) for unreported interest, the focus has shifted to accurate disclosure and pre-filing checks. TaxBud

Income tax notices in FY 2024–25 generally arise from mismatched income details, incorrect TDS entries, unreported bank interest, or inconsistent disclosures in AIS, TIS, or Form 26AS. A clean ITR reduces the risk of notices under Sections 143(1), 143(2), 148, or other scrutiny triggers. TaxBuddy prevents these issues by validating every income source, auto-reconciling government-reported data, and highlighting discrepancies before submission. AI-based checks combined with ex

Credit card transactions exceeding ₹10 lakh often trigger alerts in the Annual Information Statement because banks report them under Form 61A. When these figures appear inconsistent with declared income, the system issues a credit card high-value transaction notice. This notice seeks clarification on whether the spending matches the income sources disclosed in the return. Accurate mapping of transactions to salary, loans, or gifts becomes essential to avoid scrutiny. Automate

Income tax notices often arise from mismatches in reported income, incorrect bank details, wrong ITR forms, or missing high-value transaction disclosures. Automated systems like AIS and Form 26AS flag discrepancies instantly, increasing the chance of scrutiny under sections such as 143(1) or 147 . Errors in TDS claims, undeclared income, or ineligible deductions are among the most frequent causes of notices. With stricter digital verification post-FY 2024-25, accurate rep