Checklist for Chartered Accountants: Pre-Filing Tasks for Accurate ITR Filing

The accurate and timely filing of Income Tax Returns (ITRs) is a vital responsibility for both taxpayers and the Chartered Accountants (CAs) who assist them. For Assessment Year (AY) 2025–26, corresponding to Financial Year 2024–25, CAs must stay ahead of evolving tax regulations, frequent form changes, and nuanced client requirements. A structured pre-filing checklist ensures not only compliance but also enhances client trust and filing efficiency.

This guide offers a comprehensive checklist to help CAs execute each pre-filing step with precision. It includes updates from the Income Tax Department, Union Budget, and the Institute of Chartered Accountants of India (ICAI), ensuring readiness for AY 2025–26.

Read More: Avoid These Costly GST E-Way Bill Mistakes in 2025: A Complete Compliance Guide

1. Understanding the Client’s Profile and Requirements

Thorough client profiling is the foundation of accurate ITR filing.

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

Determine the Correct ITR Form

The applicable ITR form depends on:

• Income sources: Salary, house property, capital gains, business/profession, foreign income
• Taxpayer category: Individual, HUF, firm, company, trust
• Residential status: Resident, RNOR, or Non-Resident

Read More: 7 Key Insights from ACCA: What Indian Accountants Need to Know in 2025

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

Choose the Relevant Tax Regime: Old vs. New

Tax Rate Comparison:

Surcharge and cess apply in both regimes.

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

2. Identify Specific Reporting Requirements

Ensure clients with the following characteristics are flagged for special disclosures:

• Foreign income/assets: Mandatory reporting in ITR-2/3
• Capital gains: Special schedules for assets sold before/after July 23, 2024
• Buybacks (post Oct 1, 2024): Must be reported as deemed dividend under “Other Income”
• Income > Rs. 50 lakh/Rs. 1 crore: Requires Schedule AL (Assets and Liabilities)

Read More: Auditing and Ethics Standards: Your Best Defense Against NFRA Penalties

3. Document and Information Gathering Checklist:

Before initiating the ITR filing process, Chartered Accountants must ensure that all necessary documents and information are collected from the client. This includes:

Identity and Personal Info

• PAN card (linked with Aadhaar)
• Aadhaar card (not Aadhaar enrolment ID)
• Contact details (email, mobile)

Income Documents

• Form 16, salary slips
• Interest certificates from banks and institutions
• Capital gains statements from brokers and mutual funds
• Rental agreements and receipts
• Invoices and business receipts for professionals
• Freelance income: payment records, bank statements

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

Tax Credit Documents

• Form 26AS
• AIS and TIS
• Advance tax/self-assessment tax challans

Deduction Proofs (Old Regime)

• Section 80C: PPF, LIC, ELSS, tuition fees
• Section 80D: Health insurance
• Section 80E: Education loan interest
• Section 80G: Donation receipts
• Section 24(b): Home loan interest certificate
• HRA and LTA proofs
• Disability certificate, if applicable

Bank Details for Refund

• Account number and IFSC
• Bank account pre-validation on the IT portal

For Businesses/Professionals

• P&L statement and balance sheet
• GSTR-1, 3B (if applicable)
• Audit reports (3CA–3CD or 3CB–3CD)
• Form 3CEB for transfer pricing

Read More: GSTN Issues Advisory: No Lock on Table 3.2 of GSTR-3B for Now, Editing Allowed Until Further Notice

4. Verification and Reconciliation Checklist

Once all necessary documents are collected, the next crucial step is to verify the accuracy of the information and reconcile it with both the client’s records and data available with the Income Tax Department. This ensures consistency, reduces the risk of notices, and facilitates faster processing of refunds.

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

Verifying Personal Details and PAN-Aadhaar Linking

• Ensure the client’s name, date of birth, and gender are consistent across PAN, Aadhaar, bank accounts, and official records.
• Confirm PAN-Aadhaar linking. This is mandatory for return filing, e-verification, and processing refunds.

Reconciling Income Details with Supporting Documents

• Match salary entries in the ITR with Form 16 and salary slips.
• Cross-check interest income with certificates from banks and NBFCs.
• Validate capital gains using statements from brokers or mutual fund houses.
• Reconcile rental income with rent agreements, receipts, and credits in the bank statement.

Cross-Checking TDS and Advance Tax Payments

• Reconcile TDS entries with Form 26AS and Annual Information Statement (AIS).
• Confirm that all advance tax and self-assessment tax payments are correctly reflected in the tax portal using challan numbers.

Ensuring Accuracy of Deduction and Exemption Claims

• Review deduction claims under Sections 80C, 80D, 80E, and 24(b), ensuring they are supported by valid documentation.
• Calculate exemptions like HRA and LTA based on employer-provided documentation and actual expenses incurred.

Verifying Bank Account Details for Refund

• Confirm that the bank account number and IFSC code provided are accurate.
• Ensure the refund account is pre-validated on the Income Tax e-filing portal.

Read More: Company Secretary Duties: Annual Compliance Checklist for CS for Private Company Under Companies Act

5. Staying Updated with Latest Tax Laws and Form Changes (AY 2025–26)

Tax laws evolve annually through the Union Budget and CBDT circulars. Chartered Accountants must be fully aware of recent policy changes, form structure updates, and reporting obligations to ensure accurate ITR filing.

Understanding the Notified ITR Forms (ITR-1 to ITR-7)

• Familiarize yourself with the updated ITR forms notified for AY 2025–26.
• Each form has specific eligibility criteria, and CAs must ensure selection is based on income source, taxpayer type, and disclosure requirements.

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

Key Changes in ITR Forms for AY 2025–26

These changes reflect the Income Tax Department’s push toward granular disclosures and tighter compliance.

Awareness of Amendments in Tax Rules and Regulations

CAs must stay informed about:

• Revisions in capital gains tax rules, including taxation on unlisted securities.
• Reporting requirements for buybacks, now treated as deemed dividends from October 1, 2024.
• Clarifications on deductions related to disability (Section 80U/80DD), including mandatory acknowledgment numbers.
• The new tax regime is the default regime unless opted out explicitly using Form 10-IEA.
• The extended timeline for filing updated returns, now available for up to 36 months under Section 139(8A).

E-Filing Mistakes Can Be Costly! Avoid penalties now – Click Here

6. Compliance with ICAI Guidelines

• Financial Statement Format: Adopt new format for non-corporate (from April 1, 2025)
• Documentation and Record-Keeping: Keep copies of supporting evidence for income, deductions, and taxes. Maintain an audit trail of filings and communications
• Ethical Conduct: Follow the ICAI code of ethics and provide clear fee disclosures, and act diligently

7. Pre-Filing Review and Validation

• Cross-check all entries
• Ensure all schedules are completed
• Preview the final return with the client
• Confirm TDS, bank details, and PAN-Aadhaar status

8. Prepare for E-Filing

• Ensure the client is registered on the e-Filing portal
• PAN is active and Aadhaar-linked
• Pre-validate the refund bank account
• Mobile/email are up to date
• Understand e-verification options (Aadhaar OTP, net banking, Demat, EVC)

E-verification must be completed within 30 days to validate the ITR.

9. Common Errors to Avoid

• Filing under the wrong ITR form
• Missing or mismatched entries in AIS or 26AS
• Deduction claims without documentary proof
• Not e-verifying the ITR within time
• Failure to report foreign income or digital assets

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates