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GSTR-3B  is the most critical GST return because it determines the actual tax paid to the government. Errors in ITC claims, liability reporting, or set-off orders can lead to interest, penalties, and blocked credits. With frequent rule updates, auto-populated data from GSTR-1 and GSTR-2B, and strict filing timelines, manual calculations often create compliance gaps. Automated platforms like TaxBuddy  bridge this gap by pulling real-time GST data, applying statutory set-off ru

Section 131 inquiry notices are issued when tax authorities require deeper verification of income, bank transactions, or financial disclosures using powers similar to a civil court. These notices allow officers to summon individuals, demand documents, examine records, and conduct hearings to uncover potential discrepancies or unexplained funds. Clear understanding of the notice, timely documentation, and structured responses play a crucial role in preventing penalties, prose

F&O trading losses often trigger income tax notices when they are not reported correctly or fail to match broker data reflected in AIS. Futures and options losses are treated as non-speculative business losses and must be disclosed under the correct ITR form to retain set-off and carry-forward benefits. Missing this step can lead to automated scrutiny, demand notices, or loss of future tax relief. Accurate reporting, supported by broker statements and reconciled figures, is c

Section 245 of the Income Tax Act allows the department to adjust a current-year refund against pending tax demands from earlier years. This adjustment is not automatic and requires prior intimation, giving taxpayers a chance to agree, partially agree, or dispute the demand. Many refund losses happen due to ignored alerts, mismatched records, or old demands that no longer apply. Understanding how Section 245 works, how to respond on time, and when to contest a demand helps pr

Missing e-verification after filing an income tax return or ignoring an income tax notice can quietly turn a valid return into a rejected one. In many cases, refunds get blocked, demands appear years later, or adjustment notices under Section 245 reduce current refunds without warning. These issues often arise not due to tax evasion, but because of delayed actions, system mismatches, or lack of clarity on portal responses. Understanding what happens after a missed e-verificat

When an income tax notice arrives, the next step determines how quickly the issue gets resolved. A wrong response can delay refunds, increase tax demands, or trigger unnecessary litigation. Rectification, revised return, and appeal may look similar, but each serves a very specific purpose under the Income Tax Act. The correct choice depends on the nature of the error, the stage of assessment, and the section under which the notice is issued. Platforms like TaxBuddy analyse th

Business cash sales and UPI collections are now closely tracked by the Income Tax Department through bank reports, AIS, and payment gateway data. Even genuine business receipts can trigger turnover-linked income tax notices when reported figures do not align with transaction trails. Notices are commonly issued for high cash deposits, large UPI inflows, or incorrect presumptive reporting. These cases are rarely about evasion but about classification, reconciliation, and disclo

Capital gains computation mismatches arise when figures reported in Schedule CG of the Income Tax Return do not align with broker-reported data reflected in AIS or Form 26AS. These gaps are increasingly flagged by the Income Tax Department through automated systems, often leading to notices under Sections 133(6) or 142(1). Errors usually stem from incorrect cost calculations, holding period classification, missed transactions, or improper exemption claims. With brokers report

Business income and GST turnover are often confused, but tax authorities treat them very differently. Business income reflects net profit after expenses, while GST returns report gross turnover from supplies. When GST-reported turnover is higher than income declared in the ITR, automated systems flag the mismatch. This frequently leads to income tax notices alleging underreported turnover. With increased data sharing between GST and Income Tax departments, such discrepancies

AI-based risk profiling has changed how income tax notices are generated and issued in India. The Income Tax Department now relies on advanced algorithms to analyse data from AIS, TIS, Form 26AS, bank records, PAN databases, and GST portals to identify mismatches and unusual patterns. Even minor inconsistencies can trigger automated alerts and verification notices. This shift has reduced manual discretion while increasing detection speed. Understanding how this system works h