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Misreported or underreported income often results in Income Tax notices triggered by mismatches between the filed return and data captured in AIS or Form 26AS. These discrepancies may involve salary from multiple employers, freelance receipts, capital gains, or TDS credits that do not align with reported figures. Such mismatches prompt notices under Sections 143(1), 142(1), or 148, requiring timely clarification. Penalties for misreporting can reach up to 200% of the tax diff

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

Clubbing provisions under Sections 60 to 64 of the Income Tax Act require income generated from assets transferred to a spouse, minor children, or certain family members without adequate consideration to be added back to the transferor’s taxable income. These rules prevent tax reduction through indirect family investments and often lead to mismatches in AIS, Form 26AS, or KYC-linked bank records. Notices under Sections 139(9), 143(1), and 142(1) commonly arise when clubbed in

Section 148A reshapes reassessment by introducing a mandatory inquiry and reply process before any notice under Section 148 can be issued. The framework ensures that reassessment occurs only when supported by credible information indicating income escapement. The Assessing Officer must evaluate facts, issue a show-cause notice, consider the taxpayer’s response, and obtain higher authority approval before proceeding. This procedure enhances transparency and protects taxpayers

Input Tax Credit forms the backbone of GST compliance, allowing businesses to offset taxes paid on purchases against their tax liability. The credit remains available only when strict conditions under Section 16 are met and all supplier invoices match government systems like GSTR-1, GSTR-2B, and the Invoice Management System. Frequent mismatches, late filings, or supplier non-compliance can block credits and increase tax outflow. With tighter restrictions introduced from 2025

GSTR-2B serves as a static, monthly ITC statement that lists all invoices, debit notes, ISD credits, and import-related data reported by suppliers. Its accuracy directly determines how much Input Tax Credit can be claimed in GSTR-3B. Businesses depend on GSTR-2B to prevent excess claims, avoid mismatches, and ensure compliance with GST rules. TaxBuddy uses this monthly dataset to simplify reconciliation, highlight discrepancies before filing, and reduce the risk of interest

E-commerce sellers face some of the most complex GST obligations in India, primarily due to platform-based transactions, automated TCS deductions, and strict reporting rules under GSTR-1 and GSTR-3B. Every sale, return, commission, and fee flows through digital records that must match the GST portal’s ledgers exactly, making reconciliation essential for avoiding mismatches and notices. Since e-commerce operators collect TCS under Section 52 and deposit it through GSTR-8, sell

The GST Composition Scheme reduces compliance pressure for small businesses by offering simplified tax reporting and fixed-rate payments for eligible traders, manufacturers, restaurants, and service providers. Its two core filings—CMP-08 every quarter and GSTR-4 annually—form the backbone of compliance under this scheme. Each filing captures taxable outward supplies, tax payable, and yearly consolidated records without involving Input Tax Credit calculations. Missing these fi

GST compliance for online traders has become a non-negotiable obligation, especially for sellers operating on platforms like Amazon, Flipkart, and Meesho, where GST registration is mandatory irrespective of turnover. Marketplaces deduct TDS under Section 194-O and collect TCS under GST, which pushes traders to maintain accurate monthly filings and reconciliations. Rising enforcement, MFA rollout across the GST portal, and tighter scrutiny in 2025 make structured compliance e

Freelancers and consultants registered under GST must manage invoice reporting, tax payments, and input tax credit claims with precision to avoid notices and blocked credits. GSTR-1 and GSTR-3B form the backbone of monthly or quarterly compliance, while ITC reconciliation ensures accuracy across suppliers and expenses. The rules apply whether services are offered within India or to overseas clients, and even voluntary registrants face the same filing obligations. TaxBuddy p