⭐  How to Avoid Income Tax Notices — Simple Tips for Every Taxpayer (2025 Guide)

By CA Shiwali & Co., Chartered Accountants, New Delhi

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Receiving an income tax notice can feel stressful — even if you haven’t done anything wrong. The good news?
Most notices can be easily avoided by following a few simple habits.

Here’s a complete guide on why income tax notices are issued and how you can avoid them in 2025.

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🔶 Why Do People Get Income Tax Notices?

The Income Tax Department compares your ITR with:

• Form 16

• AIS (Annual Information Statement)

• 26AS statement

• TDS data

• High-value transactions

If something doesn’t match, a notice is triggered.

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🛡️ Top 10 Tips to Avoid Income Tax Notices in 2025

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1️⃣ Match Income with AIS & Form 26AS

AIS shows all income sources: salary, interest, rent, investments, stock trading, etc.

👉 Before filing ITR, always match your details with AIS and 26AS.
Mismatch = Highest chance of getting a notice.

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2️⃣ Report All Income (Even Small Ones!)

Many taxpayers ignore:

• Bank interest

• Side-income

• Tuition income

• Freelance projects

• Cryptocurrency gains

Avoid mistakes — report every income, even if tax is already deducted.

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3️⃣ Claim Deductions Correctly

Popular deductions often claimed incorrectly:

• Section 80C (Investments)

• Section 80D (Medical insurance)

• Section 24(b) (Home loan interest)

• NPS 80CCD(1B)

• HRA exemptions

Incorrect claims = scrutiny notice.

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4️⃣ Verify High-Value Transactions

You must declare if you:

• Deposited ₹10 lakh+ in savings account

• Paid credit card bills over ₹2 lakh+

• Bought/sold property above ₹30 lakh

• Invested large amounts in mutual funds/stocks

These are reported to the IT department automatically.

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5️⃣ File Your ITR Before the Due Date

Late filing causes:

• Automatic penalties

• Interest

• Higher chance of Section 143(1) mismatches

Always file before 31st July (unless extended).

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6️⃣ Choose the Correct ITR Form

Wrong ITR form = notice.

For example:

• Salaried: ITR-1 or ITR-2

• Business owner: ITR-3

• Presumptive business: ITR-4

If confused, consult a CA.

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7️⃣ Report Capital Gains Properly

Capital gains arise from:

• Stocks

• Mutual funds

• Crypto

• Sale of property

• Gold

Many people forget to report short-term or long-term gains, leading to scrutiny.

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8️⃣ Never Ignore TDS Mismatches

If Form 26AS shows TDS from:

• Fixed deposits

• Freelance payments

• Rent income

You must report corresponding income in ITR.

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9️⃣ Verify Bank Account Details

If refund fails, the department may send a communication. Always:

• Update correct account

• Pre-validate it on the e-filing portal

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🔟 Keep All Documents Ready for 6 Years

Maintain:

• Form 16

• Rent receipts

• Investment proofs

• Medical bills

• Home loan certificate

• Bank statements

If any notice comes, replying becomes easy.

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🎯 When to Consult a CA?

You should take help from a professional if:

• You have multiple income sources

• You run a business

• You invest in stocks/crypto

• You sold property

• You received any notice from IT department

A CA ensures accurate filing + smooth compliance.

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🏢 Need Help Filing ITR Without Mistakes?

CA Shiwali & Co., Chartered Accountants – New Delhi
We help with:
✔ ITR Filing
✔ AIS/26AS Reconciliation
✔ GST Filing
✔ Business, Accounting & Audit
✔ Tax Notice Handling
✔ Company Law Services

📞 Call/WhatsApp: 9266032777
🌐 Website: Cashiwali.com

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