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PAN becoming inoperative due to Aadhaar mismatch is one of the most common reasons for income tax notices and stalled ITR processing. When the two records do not align, the e-filing system blocks refunds, rejects bank validation, and may treat the return as defective under Section 139(9). Notices under Section 143(1) also surface when income or transactions cannot be matched because PAN-Aadhaar is not linked. These issues disrupt the entire compliance cycle, making timely cor

AHigh-Value Transaction notice is issued when the Income Tax Department detects large financial activities that do not appear clearly aligned with the income reported in the return. These notices are not accusations but verification alerts generated through data reported by banks and financial institutions. A timely and accurate online response helps prevent penalties, scrutiny, or reassessment proceedings. Understanding why the notice was issued, which transactions triggered

Section 144 of the Income Tax Act comes into play when notices are repeatedly ignored, allowing the Assessing Officer to estimate income and pass an ex-parte best judgment assessment. The outcome often involves inflated tax demands because the order relies on third-party data, past records, and the AO’s reasonable assumptions. Ignoring notices under Sections 142(1) or 143(2) increases the risk of receiving a Section 144 order, especially when material information is not furn

Startups and freelancers often receive income tax notices because income does not arrive in fixed monthly patterns. Irregular project payments, fluctuating receipts, mismatches with Form 26AS, or incorrect use of presumptive taxation frequently trigger system alerts under the Income Tax Act, 1961. Notices under sections such as 143(1) or 139(9) are rarely about fraud but usually about mismatches, missing disclosures, or compliance gaps. Handling these notices correctly depend

Crypto transactions fall under strict tax rules, and income from Virtual Digital Assets must be reported accurately to avoid scrutiny. A flat 30 per cent tax applies to all profits under Section 115BBH, with no set-off or carry-forward of losses. Inaccurate reporting or skipped entries in Schedule VDA frequently trigger income tax notices, as the department matches AIS data with exchange reports and TDS deductions. Notices issued for AY 2023-24 and AY 2024-25 often arise from

ESOPs and RSUs from overseas employers often trigger income tax notices when perquisite values, foreign income, or capital gains are mismatched in the ITR. Indian residents are required to disclose vesting and sale details, report foreign assets, and claim foreign tax credits with strict accuracy. Any gap between employer reporting, broker statements, and Schedule FA data frequently results in automated system-generated notices. With cross-border filings becoming common for g

Income tax notices, demands, and assessment orders appear directly in the inbox of the e-filing portal, and understanding how to check them ensures quick compliance. The portal centralises every communication from the Income Tax Department, including notices under Sections 142, 143, 148, and 156, as well as outstanding demands and assessment orders. The inbox also provides options to authenticate any notice, respond through e-Proceedings, and track updates in real time. With

Income tax notices often highlight mismatches in income, TDS, or reporting errors, and the next step depends entirely on the section invoked and the nature of the discrepancy. The decision between rectification, appeal, or revision hinges on whether the issue is a simple mistake, a disputed adjustment, or an overlooked correction in the original filing. TaxBuddy examines the notice, matches it against ITR data, and selects the most efficient legal remedy under the Income Tax

AIS alerts for mutual fund and stock investments often arise when capital gains, dividend income, or high-value transactions do not match disclosures in the income tax return. These discrepancies frequently trigger follow-up notices, especially when Schedule CG reporting does not align with AIS, Form 26AS, or broker statements. With post-2024 rule changes tightening equity and debt fund reporting, accurate reconciliation has become essential. TaxBuddy plays a central role in

A scrutiny notice under Section 143(2) often reaches traders when the tax department wants clarity on reported profits, losses, or deductions. These notices commonly arise from mismatches in F&O trades, intraday activity, or inconsistencies between bank entries and declared income. Accurate data reporting is essential because trading incomes have unique tax rules and documentation needs. TaxBuddy supports traders by organising transactional data, validating ledgers, and iden