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Unreported capital gains often trigger income tax notices when the Income Tax Department detects mismatches between financial records and the details submitted in a tax return. These notices typically arise from missed mutual fund redemptions, equity sales, property transactions, or incorrect reporting in AIS or Form 26AS. When this mismatch appears, taxpayers are asked to clarify the source of gains, furnish missing documents, or file a corrected return. Understanding why th

Section 143(1) intimation is an automated communication generated after an income tax return is processed, highlighting adjustments such as arithmetic corrections, incorrect claims, or mismatches with AIS or Form 26AS. Many taxpayers confuse this preliminary computation sheet with an actual income tax notice, even though the two serve different purposes. Intimations perform automated checks, while income tax notices require deeper scrutiny, additional information, or reassess

TDS mismatch in Form 26AS occurs when the tax deducted and reported by deductors does not match the tax credit claimed in the Income Tax Return. Such gaps often trigger automated income tax notices, delay refunds, or lead to adjustments under Section 143(1). The issue usually originates from incorrect PAN entry, wrong TDS amounts, delayed TDS return filing , challan errors, or mismatched income reporting. A mismatch signals that the department’s database and the taxpayer’s c

Selecting the correct ITR form is essential for pensioners to ensure accurate reporting and smooth processing under the Income Tax Act, 1961. The choice between ITR-1 and ITR-2 depends on income limits, capital gains, the number of house properties, and the presence of foreign assets. Pension-only income with basic interest earnings often fits within ITR-1 , while capital gains, multiple houses, or income above ₹50 lakh automatically shift the requirement to ITR-2. Filing wi

Preventive health check-up deductions allow taxpayers to reduce taxable income through routine medical screenings, but the benefit is often misunderstood due to uncertainty around acceptable proof and documentation. The Income Tax Act permits a specific limit for these check-ups under Section 80D , provided the taxpayer can support the claim with valid records. This makes the quality of documentation just as important as eligibility. Clear payment evidence, verifiable diagnos

Form 26AS is the primary record the Income Tax Department uses to verify every tax credit linked to a PAN—TDS, TCS, advance tax, and self-assessment tax. When any of these entries appear incorrect, missing, or mismatched, the return may face delays, reduced refunds, or automated adjustments under section 143(1). Most discrepancies arise due to wrong PAN entries, inaccurate challan details, or deductors failing to file updated TDS statements. Correcting these entries early en

Section 244A governs interest on delayed income tax refunds, ensuring compensation when refunds take longer than the timelines set under the Income Tax Act. Interest applies on excess TDS, advance tax, or self-assessment tax, and is calculated at 0.5% per month on qualifying refunds. The refund must exceed 10% of total tax liability or ₹100 to trigger interest. Timely filing and accurate bank validation are essential to prevent delays, and platforms such as TaxBuddy help s

Filing ITR-U is a provision under Section 139(8A) that allows taxpayers to correct missed capital gains income or other omissions from a previously filed return. It provides a structured way to update income details, pay any additional tax, and reduce the risk of scrutiny. Missing capital gains—whether equity, property, or mutual funds—is one of the most common errors, and ITR-U enables reporting these gains correctly even after the original deadline has passed. Platforms li

A reassessment notice under Section 148 signals that the tax department believes income may have escaped assessment in an earlier year. The first priority is understanding why the notice was issued, what documents need to be reviewed, and how the reassessment process works. These notices are grounded in information flagged through AIS, bank statements, TDS data, high-value transactions, or mismatch reports. Immediate verification of deadlines, record reconciliation, and a w

Filing an updated return under Section 139(8A) allows taxpayers to correct omissions, disclose previously unreported income, and regularise tax records even after the original filing deadline has passed. This extended compliance route helps avoid prosecution, reduces the risk of heavy penalties, and promotes transparent tax reporting. The provision gives taxpayers up to 48 months from the end of the assessment year to voluntarily correct mistakes, making it one of the most