Key Points to Note Before Filing Your Income Tax Return (ITR)

Filing your Income Tax Return (ITR) is not just a legal obligation, but also an opportunity to review your finances, claim eligible deductions, and avoid penalties. Whether you're a salaried individual, freelancer, or business owner, ensuring that your return is accurate and complete is essential.

Here are some key points you should keep in mind before filing your ITR for the financial year 2024–25 (assessment year 2025–26):

1. Know Your ITR Filing Due Date

The due date for filing ITR depends on your category:

• Individual / HUF not requiring audit – July 31, 2025

• Businesses requiring audit – October 31, 2025

• Transfer pricing cases – November 30, 2025

Mark these dates and set reminders well in advance to avoid last-minute rushes or penalties.

2. Choose the Correct ITR Form

The Income Tax Department offers different ITR forms based on your income source:

• ITR-1 (Sahaj) – For salaried individuals earning up to ₹50 lakhs

• ITR-2 – For individuals with capital gains, foreign income, or multiple properties

• ITR-3 – For professionals or business owners

• ITR-4 (Sugam) – For presumptive income under Sections 44AD, 44ADA, 44AE

Using the wrong form can lead to return rejection. When in doubt, consult a tax expert or use tools like TaxStuff360 to guide you.

3. Reconcile Form 26AS, AIS & TIS

Cross-check your:

• Form 26AS – For TDS deducted by employers, banks, etc.

• Annual Information Statement (AIS) – For high-value transactions like investments, credit card spends

• Taxpayer Information Summary (TIS) – For income categorization

Ensure your declared income matches these records to avoid scrutiny or notices from the IT Department.

4. Report All Sources of Income

Don't forget to include:

• Interest from savings accounts and fixed deposits

• Dividend income

• Freelance or side gig earnings

• Capital gains from mutual funds or shares

• Rental income from property

Even if TDS is already deducted, undeclared income can raise red flags.

5. Claim All Eligible Deductions and Exemptions

Maximize your tax savings by claiming:

• Section 80C – Investments in PF, PPF, ELSS, life insurance, principal repayment of home loan (up to ₹1.5 lakh)

• Section 80D – Health insurance premium

• Section 24(b) – Interest on home loan (up to ₹2 lakh)

• Section 80G – Donations

• NPS under Section 80CCD(1B) – Additional ₹50,000 deduction

Make sure you have proof and supporting documents for each claim.

6. Report Foreign Assets and Crypto Transactions

If you hold:

• Foreign bank accounts

• Investments in overseas companies

• Cryptocurrencies or NFTs

You are required to disclose these, even if there’s no income, especially if you're an Indian resident. Non-disclosure can lead to hefty penalties under the Black Money Act.

7. Verify Bank Account and PAN-Aadhaar Linking

• Ensure your bank account is pre-validated for tax refunds.

• Your PAN must be linked to Aadhaar; otherwise, your return may not be processed.

8. File Even If Your Income is Below Taxable Limit (Optional but Beneficial)

Filing helps if:

• You want to claim a refund

• You're applying for a visa or loan

• You have TDS deducted

• You want to carry forward capital losses

9. Avoid Common Mistakes

• Mismatched TDS figures

• Forgetting to e-verify ITR after submission

• Filing under the wrong assessment year

• Not disclosing exempt income like EPF withdrawals or gifts

Double-check all entries before submission.

10. Use Reliable Platforms or Consult a Tax Professional

Using tools like TaxStuff360 can simplify the entire process — from documentation and deductions to reminders and refunds. If your tax situation is complex, don't hesitate to reach out to a qualified tax consultant.

Conclusion

Filing your ITR should never be a last-minute task. Being organized and informed helps you avoid errors, reduces the risk of notices, and maximizes your refund. With the right guidance and tools, tax filing can be a hassle-free experience.

For a smoother experience, download our mobile app TaxStuff360 on Android and iOS, or reach out to us for assistance.

Have questions about your ITR?
Drop us a message at connect@taxstuff.in or visit our Contact Page.