When it comes to income tax filing, many taxpayers think “as long as I file something, I’m safe.” Unfortunately, that’s not how the system works. Filing the wrong ITR form, missing income, or entering incorrect deductions can easily trigger notices from the Income Tax Department.
At TaxBuddy, we believe that accurate ITR filing isn’t just about ticking a box—it’s your first line of defence against tax scrutiny. Our expert-led filing process ensures that your return isn’t just filed, but filed correctly, based on your income sources, investments, and official tax records.
How the Wrong ITR Can Lead to Trouble
Every individual or entity is required to choose the correct ITR form based on the nature and complexity of income:
- ITR-1 is for salaried individuals with basic income
- ITR-2 is for those with capital gains, foreign income, or multiple house properties
- ITR-3 applies to business or professional income
- ITR-4 covers presumptive income under sections 44AD, 44ADA, etc.
Filing ITR-1 instead of ITR-2, for instance, when you’ve sold mutual funds or property can lead to a Defective Return notice under Section 139(9) or worse—a scrutiny notice under Section 143(2).
Common Mistakes That Trigger Tax Notices
TaxBuddy has seen hundreds of cases where taxpayers received notices due to common, avoidable errors:
- Choosing the wrong ITR form
- Missing interest income from fixed deposits (visible in AIS)
- Incorrect capital gains reporting
- Claiming deductions without eligibility (like 80G without a valid receipt)
- Ignoring foreign income or foreign assets
- Forgetting to verify the return after submission
These are exactly the areas where our expert intervention makes all the difference.
What Does “Right Filing” Mean at TaxBuddy?
1. Correct ITR Selection
Our experts identify the exact return form based on your salary, capital gains, business income, or foreign assets—ensuring compliance from the start.
2. Matching With Form 26AS, AIS & TIS
We cross-check your income with official records like Form 26AS and AIS (Annual Information Statement) to ensure nothing is missed or misreported.
3. Deduction Verification
You might be eligible for deductions beyond 80C, like 80D (health insurance), 80G (donations), or 80E (education loan). But incorrect claims can backfire. We validate everything you claim.
4. Capital Gains Classification
We handle complex reporting for capital gains—short-term vs. long-term, indexation, exemptions under Sections 54, 54F, etc.—which DIY filers often get wrong.
5. Return Preview and Clarifications
We don’t auto-submit your return. You get a draft preview, and our team explains everything before filing. That way, you’re always in the loop.
Why Most Tax Notices Are Preventable
Income tax notices are not always about evasion. Most are triggered by:
- Mismatch between declared and reported income
- Wrong form usage
- Over-claimed deductions or under-reported income
By simply filing the return correctly and aligning with the IT department’s records, you can avoid more than 90% of all tax notices.
How TaxBuddy Clients Have Benefited
Take the case of a salaried professional who had minor equity sales. He filed ITR-1 using a DIY app and received a Section 139(9) notice for defective return. TaxBuddy corrected the filing with ITR-2, matched all capital gains with AIS, and resolved the issue—without any penalty or further notice.
Or the case of a freelancer with foreign payments—he filed the wrong ITR and missed out on foreign tax disclosures. TaxBuddy not only guided the correct form but also ensured compliance with Schedule FA and FSI to avoid penalties under the Black Money Act.
What Happens If You File Incorrectly Without Knowing?
If you don’t fix a wrongly filed ITR:
- Your return may be invalid
- You could lose your refund
- You might be flagged for audit or scrutiny
- You risk penalty for misreporting or concealment
TaxBuddy’s review process ensures this never happens.
ITR Filing Is More Than a Deadline—It’s Legal Compliance
Many taxpayers focus on deadlines—July 31st, October 31st—but don’t think about accuracy. Filing just to meet a deadline, without verifying, is riskier than not filing at all.
That’s why TaxBuddy’s focus is on compliant, matched, and correct ITR filing. We combine expert review with data reconciliation, ensuring every return is 100% accurate.
TaxBuddy Helps You Stay Safe from These Notice Sections
- Section 139(9): Defective return
- Section 143(1): Mismatch in computation
- Section 143(2): Scrutiny
- Section 245: Refund adjustment due to prior demand
- Section 148: Income escaping assessment
- Section 272A(2)(e): Non-filing of return
Each of these can be prevented with the right return filed at the right time—and TaxBuddy ensures exactly that.
Conclusion: File Smart, Not Just Fast
Filing your income tax return should never be rushed. It should be right. And that’s where TaxBuddy helps—by filing returns that are compliant, matched, and audit-proof.
Whether you’re salaried, self-employed, a freelancer, or an NRI—filing your ITR right the first time saves you from future stress, legal issues, and refund delays.
Want to make sure your ITR is filed right and free from errors?
Schedule a call with TaxBuddy today and file without fear.
