Precautions Before Filing ITR: Essential Checklist for FY 2024-25
Filing your income tax return (ITR) for FY 2024-25? Taking basic precautions before filing ITR can save you from notices, penalties, and even tax scrutiny. Whether you’re a salaried employee, freelancer, or business owner, this guide explains what to double-check before hitting submit.
Why Precautions Before Filing ITR Matter
Income tax filing isn’t just about entering numbers and uploading forms. A small mistake—wrong bank detail, missed income, or incorrect regime—can lead to:
- Mismatch notices
- Delayed refunds
- Penalty under Sections 234F or 270A
- Risk of audit or prosecution
Let’s walk through a simple checklist to help you file correctly and confidently.
Must-Do Precautions Before Filing ITR
1. Choose the Right ITR Form
Using the wrong ITR form can make your return defective under Section 139(9).
Here’s a quick guide:
| ITR Form | Who Should Use It |
|---|---|
| ITR-1 | Salaried individuals, pensioners, one house property, income < ₹50 lakh |
| ITR-2 | Capital gains, more than one house property, no business |
| ITR-3 | Business/professional income (non-presumptive) |
| ITR-4 | Presumptive income (Section 44AD, 44ADA, 44AE) |
👉 Refer: CBDT Notification No. 40/2025 dated 29.04.2025
2. Verify Form 26AS and AIS
Cross-check your:
- TDS from salary, FD, interest
- Dividend income
- Sale of securities, property
- Refunds and advance tax paid
Mismatch? You may get a notice under Section 143(1).
💡 Expert Tip: Also check the AIS (Annual Information Statement) on the compliance portal. It now includes stock trades, rent receipts, foreign remittances, and mutual fund redemptions.
3. Reconcile Bank Interest and Dividend Income
Most taxpayers forget to report:
- Savings account interest (Section 80TTA up to ₹10,000)
- FD interest (fully taxable)
- Dividend income (taxable above ₹5,000 if TDS deducted under Section 194)
Even if exempt earlier, these are now reported in AIS.
4. Switch Tax Regime Carefully
For FY 2024–25, new tax regime under Section 115BAC is the default.
Want to opt for the old regime? You must:
- File Form 10-IEA before due date (if you have business income)
- Declare choice in ITR itself (if salaried)
Failure to choose = new regime auto-applied.
📌 CBDT Circular No. 06/2024 explains the process.
5. Report All Capital Gains
Capital gains are traceable via:
- AIS
- Demat statements
- Mutual fund redemptions (Equity or Debt)
Types to report:
- Short-Term Capital Gain (STCG)
- Long-Term Capital Gain (LTCG)
- Exempt gains under Section 10(38) (only if applicable to old cases)
Don’t forget: Set off capital losses if you want to carry forward.
6. Disclose Foreign Assets and Crypto Holdings
If you:
- Have foreign bank accounts, ESOPs, or stocks
- Deal in virtual digital assets (VDAs like Bitcoin, Ethereum)
Then disclosure is mandatory under Schedule FA and Schedule VDA.
Non-disclosure = high penalty under the Black Money Act or Section 271FAA.
7. Claim Deductions with Proof
Ensure valid documentation for:
- Section 80C (LIC, PF, tuition fee, ELSS)
- Section 80D (Mediclaim)
- Section 24(b) (Home loan interest)
- Section 80E, 80G, 80TTA, 80CCD(1B)
No receipts? Risk of rejection during CPC processing or scrutiny.
Legal References to Keep in Mind
| Section | Applicability |
|---|---|
| 139(1) | ITR filing deadline |
| 139(9) | Defective return |
| 234F | Late filing fee (₹1,000–₹5,000) |
| 270A | Penalty for under-reporting |
| 115BAC | New regime rules |
| 10-IEA | Opting old regime (business income cases) |
Common Mistakes to Avoid
- Forgot to verify return on time
- Selected wrong assessment year
- Missed income from previous employer
- Failed to link PAN with Aadhaar
- Claimed both HRA and home loan interest without eligibility
Expert View: Chartered Accountant Insight
“Every year, we see clients lose refunds or face notices due to basic errors—wrong IFSC, wrong ITR, or claiming both 80C and new regime. Spending 30 minutes to cross-check can save months of stress.” — CA Nikhil Varma
FAQs on Precautions Before Filing ITR
Q1. Is it mandatory to check Form 26AS before filing ITR?
Yes. It ensures your TDS and advance tax match your ITR claims.
Q2. Can I file revised ITR if I missed income?
Yes, before 31 December 2025 for AY 2025-26 under Section 139(5).
Q3. Should I include exempt income like PPF or LIC maturity?
Yes, declare under “Exempt Income” to avoid mismatch notices.
Final Words
Precautions before filing ITR aren’t optional—they’re a smart tax habit. A correct ITR builds trust with the Income Tax Department, ensures faster refunds, and keeps your compliance profile clean.
Need help with filing your ITR the right way?
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Summary
Precautions before filing ITR help avoid refund delays and penalties. From choosing the right form to checking Form 26AS and AIS, here’s a full checklist for FY 2024-25.