Income Tax Return Filing for FY 2024-25: Criteria and Precautions

1.     Income-Based Criteria:

• General taxpayers: If Total income exceeds the basic exemption limit (₹2.5 lakh for HUFs, AOPs, BOIs and Individuals under 60 years, ₹3 lakh for senior citizens between 60-80 years, and ₹5 lakh for super senior citizens above 80 years).


• Under the new tax regime: Total income exceeds ₹3 lakh.

2.     Mandatory Filing Requirements (Regardless of Income):

• Deposited ₹1 crore or more in one or more current accounts.


• Deposited ₹50 lakh or more in one or more savings bank accounts.


• Spent ₹2 lakh or more on foreign travel.


• Spent ₹1 lakh or more on electricity bills.


• TDS/TCS deducted is ₹25,000 or more (₹50,000 for senior citizens).


• For claim of refund of excess tax paid.


• For carry forward losses under various heads of income.


• Ownership of foreign assets, foreign income, or signing authority in a foreign bank account.


• Company or firm regardless of profit or loss.

Important Precautions for Filing Return

• Before Filing -

1. Collect all income source details, bank Statements, investment proofs, loan statements and all transaction documentation of Business/profession.


2. Ensure PAN-Aadhaar linking is active and valid.


3. Ensure PAN, Aadhaar, mobile number, and email address are correctly updated in the Income Tax Portal. Any discrepancies can lead to communication gaps or processing delays.


4. Check if any outstanding tax demands or notices are issued.

• During Filing -

1. Report all income sources of Income: Report all income including salary, Rental Income, Other Sources, Virtual Digital Asset income, Capital gains, Exempt Income etc.,. Include all sources of income, even those not subject to TDS.


2. Reconciliation of data: Match income and high value transactions with details from Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary).


3. Correct LTCG/STCG classification: Proper classification of capital gains based on holding periods shall be made.


4. Regime selection: Decide between the old regime (with deductions and exemptions) and the new regime (lower tax rates but no major deductions) based on what offers greater tax efficiency. Understand the implications of switching tax regimes, especially regarding future claims.


5. Claiming eligible deductions: Verify eligibility of deductions before claiming them and maintain necessary documentation for the same.


6. Report foreign assets: Disclose all foreign investments and income.


7. Pre-Validate Bank Account: Ensure bank account is pre-validated on the Income Tax e-filing portal. This is essential for receiving any tax refunds directly to account without any delay. All bank account details to be mentioned in return and more than one account can be selected for refund credit.


8. Tax alerts: Pay attention to system-generated notifications about potential discrepancies.

• Post filing -

1. Filing is complete only after e-verification. E-verify return within 30 days of filing to avoid the return being treated as invalid.


2. Create a dedicated digital folder for all tax-related documents and maintain year on year documentation.


3. Check for processing completion notification. Address any defects or notices promptly and Monitor refund status if applicable


4. Be wary of phishing attempts claiming to be from tax authorities

• Last date to file ITR (without audit requirement): 31st July 2025​.(Extended to 15th September 2025, vide Circular no 06/2025, dated 27th May 2025) (circular-6-2025.pdf)


• If audit is required: 31st October 2025 (subject to notification updates)