Important Things You Should Check Before Filing Income Tax Return
Important Things You Should Check Before Filing Income Tax Return
Income Tax return filing is a crucial step to report your income, deductions claimed, taxes paid and assets with the Income Tax Department. It allows you to claim a deduction and exemption under the Income Tax Act. However, before filing ITR, there are a few things you should check. As per CA Harshil Sheth, taxpayers should do the following checks before filing their ITR:
1) Check under which regime you filed your Income Tax Return last year, and if you want to continue with that same regime for this year.
2) If you have opted for the presumptive scheme under section 44AD, check for its continuity. Once the taxpayer selects this scheme, they are required to continue to opt for the same scheme for five consecutive years.
3) Match the Broker’s Profit and Loss Report with AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) Data.
4) If you opted out new regime using Form 10IEA last year, check its details from the last year.
5) Calculate the turnover for intra-day or Futures and Options (F&O) for the purpose of tax audit.
6) If your cash receipts and cash payments are less than 5% of the total, the tax audit limit rises from 1 Crore to Rs 10 Crore. Check this cash exposure before assuming audit exemption.
7) The old tax regime offers several deductions. Therefore, if you are choosing the old tax regime, make sure you submit details of the policy number for 80C,80D,80G donation details, etc.
8) If you had a capital loss or business loss in previous years and want to carry it forward, check your last year’s ITR to see how much loss is still available to carry forward in this year’s ITR.
9) Make sure the data between AIS, TIS, and 26AS matches with each other.
10) When you buy shares and take delivery, you need to decide if they are trading or an investment. Make sure you do this before filing ITR.
Few checks before you file ITR – broad categories of important checks
1. continuity of New regime or Old regime – check last year
2. continuity of Presumptive scheme 44AD ( 5 YEAR BLOCK ) in case of business – check last year
3. Matching Broker’s PRofit loss report and AIS…
— CA Harshil sheth (@CA_HarshilSHETH) July 28, 2025