Essential Checklist Before Filing Income Tax Return for FY 2024–25
- Asharam Swain
- May 13
- 11 min read
Filing your Income Tax Return (ITR) for FY 2024-25 is an important annual task that ensures you comply with the tax laws and avoid penalties for under-reporting or late filing. With the introduction of new amendments in the Budget 2025, understanding the changes in tax laws becomes even more critical. Proper filing not only helps in fulfilling your legal obligations but also ensures that you don’t miss out on potential tax savings through deductions and exemptions available under various sections of the Income Tax Act.
To streamline the ITR filing process, it’s essential to follow a structured approach. This starts with gathering all the necessary documents, such as your PAN card, Aadhaar, Form 16 from your employer, and bank statements, among others. You also need to ensure that you select the correct ITR form based on your income sources and applicable tax provisions. Calculating your taxable income accurately and applying the right deductions will help you determine your tax liability, and understanding the latest tax slabs and exemptions will guide you through the process smoothly.
This checklist covers all the critical steps you need to take before filing your return for FY 2024-25. From choosing the appropriate ITR form to verifying your bank account details, this checklist will walk you through everything you need to know. By following these steps, you will be able to file your return confidently, ensuring that you don’t miss any crucial details and take advantage of all available tax benefits.
Table of Contents
What are the Essential Checklist Before Filing Income Tax Return for FY 2024–25?
Before filing your Income Tax Return for FY 2024-25, it's crucial to gather all necessary documents, including your PAN and Aadhaar card, Form 16, bank statements, and proof of investments for claiming deductions under sections like 80C and 80D. You must choose the correct ITR form based on your income type, such as ITR-1 for salary earners or ITR-2 for those with multiple properties or foreign assets. Next, calculate your total taxable income, apply eligible deductions, and ensure compliance with the latest tax slabs from Budget 2025. Additionally, verify your bank account details for refunds, disclose any foreign assets and income, and e-file your return through the Income Tax portal, completing the e-verification process. Make sure to keep all supporting documents handy for future reference or potential scrutiny, and seek professional help if you're uncertain about any part of the filing process.
Collect All Relevant Documents
Proper documentation is the backbone of an error-free and timely Income Tax Return (ITR) filing process. Ensuring that you have gathered all necessary documents in advance will save you time and reduce the risk of errors during submission.
PAN and Aadhaar Card
Your Permanent Account Number (PAN) is the most important document required for tax filing. The Income Tax Act mandates that your PAN be linked to your Aadhaar number to ensure tax-related transparency and prevent fraudulent claims. If your PAN is missing, you can file using Aadhaar, but you should aim to link your Aadhaar with PAN before proceeding with your return. If your Aadhaar is yet to be issued, the enrolment ID can serve as a temporary solution for filing purposes.
Form 16 and Other Income Documents
Form 16 is your salary certificate, issued by your employer. This form provides a detailed breakdown of your salary (including allowances, bonuses, and deductions), TDS (Tax Deducted at Source) and any other income accrued during the year. Form 16 serves as a critical document in verifying the tax deducted and paid on your behalf. Apart from Form 16, if you receive income from other sources such as savings account interest, fixed deposits, or capital gains, you will need the appropriate TDS certificates, bank statements, and any relevant proof of income. For instance, Form 26AS, a consolidated tax statement, helps verify the TDS deducted by different entities and the tax paid on your behalf.
Bank Statements and Investment Proofs
Bank statements are necessary to disclose interest income from savings and fixed deposits, and they also help verify your refund bank account details. Keep all bank details, including IFSC codes, account numbers, and bank names, organized and available. For investments, you will need proof of PPF contributions, mutual fund investments, insurance premiums, and home loan interest paid. These documents are essential to claim deductions under sections like 80C (for tax-saving instruments like PPF and NSC), 80D (for medical insurance premiums), and 80E (for education loans).
Choose the Correct ITR Form
Selecting the right ITR form ensures that you report your income, deductions, and tax liabilities accurately. Filing the incorrect form can lead to delays or errors that might trigger unnecessary scrutiny or penalties.
ITR-1 (Sahaj) for Salary and Small Investors
ITR-1 (Sahaj) is designed for individuals whose income includes salary/pension, one house property, and income from other sources like interest. For small investors with long-term capital gains (LTCG) of up to ₹1.25 lakh from listed shares and mutual funds, ITR-1 now simplifies the process, as such gains can be directly reported in this form. It’s a straightforward form, perfect for salaried individuals and small investors who don’t have complex financials.
ITR-2 for Multiple Properties or Foreign Assets
ITR-2 is for individuals or HUFs with income from capital gains, multiple house properties, or foreign assets. If you’ve sold shares or received capital gains, or own more than one property, this form should be used. It's more detailed than ITR-1 and requires the reporting of each property, capital gain details, and foreign income/assets. If you have foreign bank accounts, foreign property, or foreign business interests, this form will require extensive disclosures to comply with tax laws.
ITR-3 and ITR-4 for Business Income
ITR-3 is for individuals or HUFs who have business or professional income. Whether you're a freelancer, consultant, or have a full-fledged business, this form is for you. It’s complex, requiring detailed information about your business income, expenses, profits, and losses. ITR-4 is a simplified version for taxpayers opting for the presumptive taxation scheme under section 44ADA or 44AD for small businesses, with income up to ₹50 lakh. This form is meant for those reporting income from business but without the complexities of actual accounting.
Calculate Your Taxable Income and Tax Liability
This is one of the most crucial steps in the filing process. Proper calculation ensures that you are not overpaying or underpaying taxes.
Total Income Computation
Start by calculating your total income, including salary, capital gains, income from house property, and any other income such as dividends or interest. For each source, ensure that you have accurate details regarding the amount received, deductions applicable, and tax payments made.
Applying Deductions and Tax Slabs
Next, apply the relevant deductions under sections like 80C (for investments in PPF, EPF, NSC, etc.), 80D (for health insurance), and 80E (for education loans). Ensure that you are aware of the tax slabs for both the new and old tax regimes. The new regime provides lower tax rates but without most exemptions, while the old regime offers deductions but comes with higher tax rates.
Tax Liability Calculation
Once you have the total taxable income and applied deductions, the next step is to calculate the tax payable. This is done by applying the appropriate tax slab rates to your taxable income, taking into account any advance tax payments or TDS deductions that have already been made. If you have paid advance tax, make sure it is reflected in your final tax computation.
Verify Bank Account Details
Ensuring that your bank account details are accurate and updated is essential for quick refunds and proper tax payments.
Ensure Accurate Bank Information
Double-check that all account numbers, IFSC codes, bank names, and account types (savings or current) are correctly listed in your ITR form. This is important as incorrect bank details can cause delays or errors in your tax refund.
Primary Account Selection for Refunds
Select a primary account where your tax refund will be credited. This account should be one that is active and accessible, as refunds are processed through the details you provide.
Disclose Foreign Assets and Income
Failing to disclose foreign assets or income can lead to severe consequences, including penalties and legal action.
Mandatory Declaration for Foreign Assets
If you own foreign assets or have foreign income, you must disclose these details in your ITR form. This includes foreign bank accounts, property abroad, and income earned outside India. Non-disclosure of foreign income can lead to serious penalties under the Income Tax Act.
Penalties for Non-Disclosure
Not disclosing foreign assets or income can result in penalties, including interest on unpaid taxes and legal scrutiny from the tax authorities. Ensure that all foreign assets are fully disclosed to avoid complications.
Ensure Compliance with Recent Amendments from Budget 2025
There are several key amendments introduced in Budget 2025 that affect ITR filing, including the simplification of forms and changes to tax deductions.
New Amendments for ITR Forms and Tax Deductions
ITR-1 now allows for the reporting of long-term capital gains up to ₹1.25 lakh from listed securities and equity mutual funds directly. Additionally, deductions for Section 80C investments like PPF and life insurance have been streamlined. These amendments aim to simplify the process for individual taxpayers.
Revised Due Dates and Return Filing Rules
The last date for filing returns is July 31, 2025, for most taxpayers, though revised returns can be filed until December 31, 2025, and updated returns can be filed until March 31, 2027. Ensure that you adhere to these deadlines to avoid penalties.
File ITR Electronically and E-Verify
Filing your ITR electronically is now mandatory for most taxpayers.
E-Filing Process on the Income Tax Portal
Filing through the e-filing portal allows you to submit your ITR quickly. Once submitted, your ITR is automatically processed by the Income Tax Department.
E-verification Methods and Importance
After filing, it’s critical to e-verify your return. You can do this through Aadhaar OTP, net banking, or EVC generated from your bank or Demat account. This step confirms your filing, enabling the tax department to process it promptly.
Keep Documents Ready for Future Reference
Though you don't need to submit your documents while filing, keep them organized and easily accessible in case of future scrutiny.
Storage of Documents for Future Scrutiny
Store your ITR forms, bank statements, TDS certificates, and investment proofs safely. These documents may be required for future audits or revision of returns.
Seek Professional Help if Needed
If you find the process overwhelming or have complex income sources, consulting a tax professional can save time and reduce the risk of errors.
When to Consult a Tax Professional
Consult a tax professional or chartered accountant if you have complex income sources like business income, capital gains, or foreign assets. They can help you choose the correct form, apply the right deductions, and file your return in compliance with the latest tax laws. TaxBuddy offers a user-friendly platform that simplifies the filing process, ensuring accuracy, compliance, and a seamless experience for all taxpayers.
Conclusion
Filing your Income Tax Return (ITR) for FY 2024-25 is an important process that ensures your tax obligations are met and that you claim all the eligible deductions, exemptions, and tax benefits. From gathering the necessary documents to choosing the correct form and filing your return electronically, each step plays a vital role in ensuring compliance and avoiding penalties. By staying updated with the Budget 2025 amendments and following the essential checklist, you can file your ITR with confidence. However, if the process seems complex or if you're uncertain about any aspect, seeking professional help or using a reliable platform like TaxBuddy can simplify the filing process and ensure accuracy. Ensure that all information is accurate, verify your details, and complete the e-verification process for a smooth filing experience.
FAQs
What is the last date for filing ITR for FY 2024-25?
The last date for filing the Income Tax Return (ITR) for FY 2024-25 is July 31, 2025, for individuals who are not required to undergo a tax audit. If you miss this deadline, you may still file a belated return until December 31, 2025. However, late filing can attract penalties and interest under Section 234A.
Can I file ITR without a PAN card?
PAN is a mandatory requirement for filing ITR. However, if you do not have a PAN card, you can use your Aadhaar number for filing ITR. The Aadhaar-PAN linkage is essential for smooth processing of your returns. If you still don’t have a PAN, it’s advisable to apply for one before starting the filing process.
How do I choose between ITR-1 and ITR-2?
You should choose ITR-1 (Sahaj) if your income comes from salary, one house property, and other sources such as interest. ITR-2 is for individuals who have income from capital gains, more than one house property, or foreign assets. If your income is more complex, such as from multiple properties, business income, or foreign assets, ITR-2 will be the appropriate form.
What deductions can I claim under section 80C?
Section 80C allows you to claim deductions for investments and payments made towards certain instruments. These include:
Public Provident Fund (PPF)
Employee Provident Fund (EPF)
National Savings Certificates (NSC)
Tax-saving Fixed Deposits
Life insurance premiums
Tuition fees for children
The total deduction under 80C is capped at ₹1.5 lakh in a financial year.
What if I miss the ITR filing deadline?
If you miss the deadline to file your ITR, you can still file a belated return before December 31, 2025. However, a penalty of up to ₹5,000 may be levied under Section 234F. Additionally, if you have any tax due, interest under Section 234A will apply for late payment. Filing your ITR late also means that you won’t be eligible for certain benefits like revised return filing.
How do I correct mistakes in my ITR?
If you realize that there are mistakes in your ITR after submission, you can file a revised return under Section 139(5). This must be done before the end of the assessment year (March 31, 2026, for FY 2024-25). You’ll need to provide the acknowledgment number of the original return and correct the errors before re-submitting the return.
Do I need to e-verify my ITR?
Yes, after submitting your ITR online, you must complete the e-verification process to authenticate the return. This can be done using methods like Aadhaar OTP, net banking, or an EVC (Electronic Verification Code) generated through a bank or Demat account. If you do not complete the e-verification, your ITR will be considered invalid.
Can I change my bank account details after filing ITR?
No, once your ITR has been filed and processed, you cannot change the bank account details provided for refunds. However, if you make a mistake during the filing process, you can correct it by filing a revised return with updated bank details. Be sure to double-check your bank information before filing to avoid any delays in refund processing.
What is the penalty for not disclosing foreign income or assets?
Non-disclosure of foreign income or assets can lead to severe penalties under Section 271 of the Income Tax Act. These penalties can range from a fine of ₹5 lakh to ₹10 lakh, depending on the seriousness of the non-disclosure. In cases of willful concealment or fraudulent reporting, the penalty may go up to ₹30 lakh or more. Therefore, it is important to disclose all foreign assets and income accurately.
How do I get Form 16 from my employer?
Form 16 is issued by your employer, and it details your salary income, the TDS deducted, and other allowances or deductions applicable during the year. Employers are obligated to issue Form 16 to employees by June 15 following the end of the financial year. If you haven’t received it, contact your HR or payroll department to obtain the form.
What are the recent key amendments introduced for ITR filing?
There several key amendments for ITR filing introduced recently:
Simplification of ITR-1: Long-term capital gains from listed shares and equity mutual funds up to ₹1.25 lakh can now be reported in ITR-1.
Increased exemptions: There are revisions in tax slabs, with more tax relief offered under the new tax regime.
Revised ITR forms: There have been updates in various forms to accommodate new income sources and deductions, especially for small businesses.
Due date extensions: New due dates for revised and updated returns have been extended to accommodate any delays.
Do I need to consult a tax professional for filing my ITR?
While many individuals can file their ITR independently, it is highly advisable to consult a tax professional if you have complex sources of income, such as business income, capital gains, or foreign assets. A professional can help you maximize deductions, ensure accuracy, and prevent mistakes that could lead to penalties. If you’re looking for an easy way to file your return, using platforms like TaxBuddy can provide expert assistance while simplifying the process.
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