ITR Filing 2025: ICAI releases Checklist for Preparation of ITR-1 and ITR-4 [Read Checklist]

The Institute of Chartered Accountants of India ( ICAI ), through its Direct Taxes Committee, has released a comprehensive Checklist for Preparation of Income Tax Return ( ITR ) Form 1 and 4 for Assessment Year (AY) 2025-26.

This is to guide taxpayers and professionals in accurately preparing and filing ITR-1 (SAHAJ) and ITR-4 (SUGAM) according to the latest amendments, reporting requirements, and compliance norms under the Income-tax Act, 1961.

The checklists were created to ensure error-free submissions and reduce the risk of getting notices from the Income Tax Department by handling shifting tax laws, form changes, and increased reporting requirements.

The publication stated that taxation remains a dynamic field, with provisions updated annually through the Finance Act, CBDT notifications, and judicial pronouncements. ICAI’s checklists serve as a practical reference for members to navigate these changes.

For ITR-1, the document specifies that it is applicable to resident individuals (other than not ordinarily resident) with total income up to ₹50 lakh, comprising salary/family pension, income from one house property, certain other sources, agricultural income up to ₹5,000, and limited capital gains under section 112A.

It cannot be used by individuals with business income, multiple house properties, foreign assets, directorship in companies, or incomes taxable at special rates, among other exclusions. The checklist provides a step-by-step process, from verifying pre-filled data and ensuring PAN-Aadhaar linkage to validating income details, claiming eligible deductions, selecting the appropriate tax regime, and completing mandatory e-verification within 30 days to avoid invalidation.

For ITR-4, intended for certain resident individuals, HUFs, and partnership firms (other than LLPs) with total income up to ₹50 lakh and income computed under presumptive taxation (sections 44AD, 44ADA, 44AE), the checklist outlines applicability, documentation, and detailed instructions for each section of the form. It includes guidance on reporting income, deductions, tax computations, and filling schedules such as BP (business/profession income), IT (tax payments), and TDS/TCS details.

The ICAI mentioned correct classification of income, proper disclosure of high-value transactions under the seventh proviso to section 139(1), and the importance of selecting the right filing section, whether original, revised, or in response to a notice.

These checklists are intended to assist professionals in carrying out their duties with attention by maintaining regulation, avoiding common mistakes, and adjusting to the increasing complexity of return preparation, said ICAI President CA Charanjot Singh Nanda and DTC Chairman CA Piyush S. Chhajed. In addition to assisting tax professionals, the guide acts as a reference for taxpayers who want to accurately and quickly complete their forms.

ICAI ITR Forms - AY 2025- 26 Quick Reference

ITR Form	Who can File	Who cannot File
ITR 1	Resident Individual (other than RNOR) with total income ≤ ₹50 lakh	NRIs, RNOR, business/profession income, >1 house property, foreign assets, directorship, incomes taxable at special rates, capital gains (other than LTCG u/s 112A ≤ ₹1.25 lakh), agri. income > ₹5,000
ITR 2	Individuals/HUFs with income from salary, house property, capital gains, other sources; no business/profession income	Persons with income from business/profession
ITR 3	Individuals/HUFs with income from business/profession	-
ITR 4	Resident Individual/HUF/Partnership Firm (non-LLP), total income ≤ ₹50 lakh, income under presumptive taxation u/s 44AD/44ADA/44AE, 1 house property, agri. income ≤ ₹5,000, LTCG u/s 112A ≤ ₹1.25 lakh	NRIs, RNOR, LLPs, more than 1 house property, foreign assets, directorship, incomes taxable at special rates, non-presumptive business/profession
ITR 5	Persons other than: (i) Individual, (ii) HUF, (iii) Company, (iv) Persons filing ITR-7. Includes Firm, LLP, AOP, BOI, Artificial Juridical Person, Local Authority, Representative Assessee, Co-operative Society, Certain Trusts (non-ITR-7), Business Trust, Investment Fund, etc.	Individuals, HUFs, Companies, entities eligible to file ITR-7
ITR 6	Companies (other than those claiming exemption u/s 11 – charitable/religious trusts)	Companies claiming exemption u/s 11
ITR 7	Persons including companies required to furnish return u/s 139(4A) (charitable/religious trusts), 139(4B) (political parties), 139(4C) (specified institutions, universities, hospitals, etc.), 139(4D) (colleges/institutions not required to furnish return under other provisions)	Entities not covered under these specific provisions

Notes:

• From AY 2024-25, the new tax regime is default. Must opt out explicitly under Sec. 115BAC(6) to use the old regime.
• E-verification within 30 days of uploading is mandatory, else return is treated as invalid.
• High-value transactions (foreign travel > ₹2 lakh, electricity > ₹1 lakh, savings deposits > ₹50 lakh, etc.) require disclosure under 7th proviso to Sec. 139(1) even if below basic exemption limit.
• ICAI advises cross-verifying AIS (Annual Information Statement) & TIS (Taxpayer Information Summary)data before submission.
• Senior citizens ≥ 80 years can file a paper return for ITR-1 and ITR-4.

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