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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

A mismatch between Form 16 and Form 26AS is one of the most common reasons salaried individuals receive income tax notices, particularly under Section 143(1)(a). This happens when the TDS shown in Form 16 does not match the tax credit reflected in Form 26AS, usually due to errors or delays from the employer’s side. Identifying the discrepancy early prevents incorrect tax demands. Platforms like TaxBuddy simplify this process by reconciling both documents accurately and guid

Capital gains income tax notices usually emerge when the figures reported in the Income Tax Return differ from those appearing in the AIS or broker capital gains statements. These mismatches often involve incorrect STCG or LTCG values, missing transactions, or inconsistent reporting across intermediaries. The tax system flags such gaps automatically, resulting in Section 143(1) notices. TaxBuddy reviews AIS data, reconciles broker statements, and identifies the source of mism

Large refund income tax notices are issued when the claimed refund appears unusually high compared to reported income, TDS, or advance tax. The Income Tax Department flags these cases for additional verification to confirm that the refund is backed by accurate reporting and valid tax credits. Automated systems review mismatches in TDS, income details, and bank account validations before releasing funds. TaxBuddy streamlines this process by ensuring accurate filings, pre-vali

Income tax notices for F&O trading are commonly triggered when the Income Tax Department detects mismatches between a trader’s reported details and the information submitted by brokers through AIS or SFT reporting. These notices often arise because Futures and Options are classified as business income, requiring specific reporting methods, turnover calculations, and documentation. When any part of this data is missing or inconsistent, scrutiny is initiated. Broker statements,

Limited scrutiny and full scrutiny income tax notices examine tax returns at different levels of depth, often triggered by mismatches, high-value transactions, or risk parameters detected by the system. Limited scrutiny focuses on one or two flagged issues, while full scrutiny reviews the entire financial profile, including income sources, deductions, assets, and bank activity. These notices are issued under Section 143(3) to verify accurate reporting and prevent evasion. Un

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

GST return types determine how businesses report sales, purchases, tax liabilities, and input tax credit under India’s GST framework. Each taxpayer category—regular, composition, e-commerce, TDS deductor, and marketplace operator—is assigned specific forms such as GSTR-1, GSTR-3B, GSTR-4, and GSTR-9. The right filing frequency and accurate data reporting help maintain compliance and avoid penalties. TaxBuddy supports businesses by automating return preparation, integrating i

The QRMP scheme under GST allows eligible small businesses with a turnover up to ₹5 crores to file GSTR-3B quarterly while paying tax monthly, easing compliance without disrupting cash flow. Designed to reduce routine filing load, the scheme uses structured monthly payments through PMT-06 and optional IFF uploads to help buyers claim timely ITC. For many small businesses, QRMP becomes a practical way to stay compliant while focusing more on operations. Platforms such as TaxBu