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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

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

A large number of income tax notices are triggered not by fraud, but by mismatches between filed returns and data already available with the Income Tax Department. Differences in bank interest, unreported transactions, incorrect ITR selection, or missing schedules often invite scrutiny under Sections 143(1) or 142(1). A notice-ready ITR focuses on aligning every reported figure with Form 26AS, AIS, and TIS before submission. TaxBuddy’s filing process is built around this prin

Income tax e-Campaigns and Compliance Alerts are early warning signals issued by the Income Tax Department to highlight mismatches in reported income, AIS data, high-value transactions, or non-filing of returns. These digital nudges are designed to encourage voluntary correction before the matter escalates into a formal notice. Ignoring them can lead to scrutiny under the Income Tax Act, 1961. Timely review and response play a crucial role in avoiding penalties, interest, and

High deductions claimed under Chapter VI-A often attract closer attention from the Income Tax Department. Sections such as 80C, 80D, and 80G are commonly misused or claimed without adequate documentation, making them frequent scrutiny triggers. When deductions form a significant portion of total income or do not align with AIS and Form 26AS data, scrutiny notices under Section 143(2) become likely. Proper preparation, accurate reporting, and strong documentation are critical

GST and Income Tax turnover mismatches have become a major trigger for automated income tax notices in recent years. When figures reported in GST returns like GSTR-1 or GSTR-3B do not align with gross receipts disclosed in the Income Tax Return, the system flags the discrepancy through inter-departmental data sharing between GST authorities and the Income Tax Department. These mismatches often arise from timing differences, non-GST income, or reporting practices rather than t

Rental income mismatch notices typically arise when the declared rental income in the Income Tax Return differs from entries in AIS, Form 26AS, or reported loan records. The tax system automatically compares TDS on rent, bank credits, tenant-reported payments, and property-linked loan data to identify gaps. Even minor inconsistencies—such as missing rent receipts, incorrect TDS reporting, or unverified property loan details—can trigger a notice under Section 143(1) . Early de

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,