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Exempt income must still be reported in the Income Tax Return, even though it is not taxable. Missing, misreporting, or incorrectly classifying exempt income often triggers income tax notices because the department matches every entry with PAN-linked data, bank records, and Form 26AS . Agricultural income, dividends, and certain allowances fall under exempt categories, and any mismatch between what’s declared and what’s captured in the system leads to queries. Platforms like

The GST system makes no exception for months with no business activity. Registered taxpayers must file nil returns for GSTR-1 and GSTR-3B even when outward supplies, inward supplies, and ITC remain at zero. This requirement keeps the GSTIN active, prevents penalty accumulation, and ensures smooth compliance when operations resume. With increasing automation on the GST portal and stricter enforcement of deadlines, timely nil filing has become essential for every business, rega

Choosing between monthly and quarterly GST filing affects compliance workload, cash flow, and Input Tax Credit timelines. Monthly filing suits businesses with higher turnover or frequent transactions that demand real-time reporting, while quarterly filing under the QRMP scheme benefits smaller taxpayers seeking reduced administrative effort. The right choice depends on turnover, transaction volume, and reporting needs. GST rules outline separate due dates, ITC patterns, and e

Bank deposit income tax notices often arise when unexpected or high-value transactions appear in current or savings accounts, or when interest income is not properly reported in the Income Tax Return. These triggers usually come from PAN-linked bank monitoring systems that flag discrepancies between reported and actual transactions. Common issues include unreported interest, incorrect TDS reflection, or mismatches in KYC information. TaxBuddy’s technology and expert support s

A GST return is a mandatory electronic statement used to report sales, purchases, output tax, and input tax credit under India’s Goods and Services Tax system. Small businesses must file these returns accurately and on time to avoid penalties and maintain smooth compliance. Each return type serves a specific purpose, from outward supplies to monthly summaries, making GST filing a detailed process for business owners. With frequent updates in GST rules and reconciliation chall

Wrong deductions in an Income Tax Return often trigger notices under sections like 139(9), 143(1), 154, and 156, especially when income, TDS, or exemption claims do not match department records. The core issue usually stems from incorrect figures, missing proofs, or bank-related reporting gaps. Automated systems quickly flag these mismatches, leading to adjustments or demands. TaxBuddy reduces these errors by reviewing the deductions section-wise, comparing data with the In

Salary mismatch notices are among the most common issues faced by salaried taxpayers. These occur when the salary reported in Form 16, Form 26AS , AIS, or TDS statements does not match the income declared in the Income Tax Return. Even minor discrepancies can trigger notices because the Income Tax Department compares employer filings, bank entries, and payroll records with the taxpayer’s return. Platforms like TaxBuddy help resolve these mismatches by identifying inconsiste

High-value property purchases frequently trigger income tax notices because these transactions appear in the Annual Information Statement (AIS) and compliance portal. When the reported value crosses preset thresholds—often around ₹30 lakh or more—the system automatically checks whether the declared income supports such an investment. If the records don’t align, the department requests clarification on the source of funds. The purpose isn’t to penalise but to ensure the payme

Foreign assets must be reported accurately by every Indian resident earning or holding property, bank accounts, equity, or investments outside India. Any mismatch or omission in Schedule FA immediately increases the chance of receiving an income tax notice, especially with enhanced global data exchange systems and CBDT's foreign asset monitoring. Notices commonly arise when bank accounts, RSUs, overseas properties, or foreign income remain unreported or incorrectly converted

Income tax notices often arise from mismatches in AIS, discrepancies in Form 26AS, missing income details, or verification issues linked to PAN. Quick and accurate responses are crucial because the department allocates strict timelines—usually between 7 and 30 days—to avoid penalties or further scrutiny. A structured approach helps ensure the reply is complete, legally sound, and backed with proper documentation. TaxBuddy’s Notice Management Service supports this process by d