Avoid Income Tax Notices! Do These 5 Essential Checks Before Filing Your ITR

As the deadline to file your Income Tax Return (ITR) approaches, it’s important to do more than just collect your salary slips or download your Form 16. A simple mistake or oversight can invite a notice from the Income Tax Department. That’s why preparing in advance and verifying key documents is crucial to ensuring your ITR is accurate and compliant.

Whether you're a salaried employee, a freelancer, or someone who’s had capital gains this year, here are essential tasks you must complete before filing your ITR for FY 2024-25.

1. Match Your Income with Form 26AS and AIS

Before entering any figures in your return, cross-check your income details using these two official documents:

• Form 26AS includes tax deducted at source (TDS), advance tax, self-assessment tax, and any refunds received.

• Annual Information Statement (AIS) provides a comprehensive snapshot of your financial transactions, such as:

  • Property purchases/sales

  • Mutual fund investments

  • Interest income from bank accounts

  • Dividends and other capital inflows

Mismatch between your return and AIS/26AS can trigger a tax notice, so ensure consistency and accuracy.

2. Verify Form 16 and Form 16A

For salaried individuals, Form 16 is your primary tax document. Make sure to:

• Check if your PAN is correct

• Ensure allowances like HRA and LTA are properly mentioned

• Confirm the taxable salary figure matches your actual pay

If you missed submitting documents (e.g., rent receipts or investment proofs), your employer might have deducted extra tax. In such cases, request corrections before filing.

Also, Form 16A, which reflects TDS on non-salary income (like bank interest), must be reviewed to ensure it aligns with your reported earnings.

3. Planning Capital Gains? Open a Capital Gains Account Before July 31

If you've earned capital gains from selling property or other assets and plan to claim exemption under Sections 54, 54F, or 54EC, but haven't reinvested yet, here’s a critical step:

Deposit the capital gains amount in a Capital Gains Account Scheme (CGAS) before July 31, 2025, the ITR filing deadline.

Even if you intend to purchase a house later, the exemption is only valid if the capital gains are first deposited in the dedicated CGAS account.

4. Ensure All Documents Are Ready Before You File

A smooth and error-free filing depends on accurate, well-organized documentation. Here’s what you should gather:

• Salary slips and Form 16

• Interest certificates from banks and post office

• TDS certificates (Form 16A)

• Investment proofs under Section 80C, 80D, etc.

• Details of capital gains (if any)

• Home loan interest certificate

• Rent receipts (for HRA claims)

• AIS and 26AS downloads from the income tax portal

Taking the time to cross-verify each of these will prevent data mismatches and reduce the risk of future notices.

5. Don't Miss the Deadline and Avoid Errors

The last date to file your income tax return for FY 2024-25 is July 31, 2025. While the portal allows late filing with penalties, early and correct filing keeps your tax profile clean and avoids unnecessary complications.

Incorrect entries, mismatched income figures, or skipping mandatory disclosures can result in a scrutiny notice from the IT Department, and possibly, penalties.

Final Word

Filing your ITR is not just a formality—it’s a legal responsibility. To ensure your return is processed without delays or queries, be proactive and meticulous. Matching your details with official records like AIS and Form 26AS, reviewing salary and TDS data, and taking timely steps like opening a Capital Gains Account can make your tax filing smooth and stress-free.

So, don’t wait until the last day. Get your documents in order, double-check everything, and file with confidence.