Compliance Checklist for Individual Taxpayers under 2025 Act
The Income-tax Act, 2025 has strengthened compliance expectations for individual taxpayers. With increased digitisation, data matching, and faceless proceedings, casual or delayed compliance now carries higher risk.
This checklist is designed to help individual taxpayers stay compliant, avoid notices, and protect their legal rights.
Think of it as a yearly compliance discipline, not a one-time task.
1. PAN, Aadhaar, and Bank Account Linking
Ensure the following are completed and verified:
PAN is active and valid
PAN is linked with Aadhaar
Bank account is pre-validated on income-tax portal
Any mismatch can result in:
Refund failure
Invalidation of return
Notice generation
2. Track All Sources of Income
Under the 2025 Act, reporting must match digital records.
Include income from:
Salary or pension
Business or profession
Interest (bank, FD, savings)
Capital gains (shares, MF, property, crypto where applicable)
Rental income
Other income (dividend, winnings, etc.)
Unreported income is easily traceable through AIS and TIS.
3. Verify AIS and TIS Before Filing Return
Always reconcile:
Form 26AS
Annual Information Statement (AIS)
Taxpayer Information Summary (TIS)
If incorrect data appears:
Submit feedback on the portal
Maintain supporting documents
Ignoring AIS mismatches is a common trigger for scrutiny.
4. Choose Correct Tax Regime
Evaluate whether:
Old tax regime
New tax regime
is more beneficial.
Once selected:
Apply it consistently
Ensure deductions claimed are legally available under chosen regime
Wrong regime selection can result in demand notices.
5. File Return Within Due Date
Timely filing is critical.
Late filing can lead to:
Late filing fee
Interest on tax payable
Loss of carry forward of losses
Restricted revision options
Belated filing is a concession, not a right.
6. Pay Correct Advance Tax and Self-Assessment Tax
Individuals with income beyond salary must:
Estimate advance tax correctly
Pay self-assessment tax before filing return
Short payment leads to interest and demand.
7. Report Exempt Income and Assets Properly
Even exempt income must be disclosed, such as:
Agricultural income
PPF interest
Tax-free bonds
Also disclose:
Foreign assets or income (if applicable)
Non-disclosure can have serious consequences.
8. Maintain Documents and Records
Keep records for:
Salary slips and Form 16
Bank statements
Investment proofs
Capital gain workings
Rent agreements
Loan statements
Under faceless assessment, documents speak louder than explanations.
9. Respond Promptly to Notices
If a notice is received:
Do not ignore it
Check section and deadline
Respond through portal with clarity and evidence
Non-response leads to adverse orders.
10. Use Revision and Rectification Correctly
If a mistake is found:
Use revised return for genuine errors
Use rectification only for apparent mistakes
Do not confuse rectification with appeal.
11. Monitor Refunds and Demands
After filing:
Track refund status
Check if refund is adjusted against demand
Raise grievance if refund is delayed
Refund is a right, not a favour.
12. Preserve Appeal Rights
If assessment is incorrect:
File appeal within limitation
Seek stay of demand where required
Delay can permanently close remedies.
Conclusion
Under the Income-tax Act, 2025, individual taxpayers are part of a data-driven, system-monitored tax environment.
Compliance is no longer about form-filling.
It is about consistency, accuracy, and timely action.
A disciplined checklist approach:
Prevents notices
Protects refunds
Preserves legal rights
Smart compliance today avoids litigation tomorrow.
Written by:
Abhishek Gupta
Chartered Accountant
Office No. 19, Sagar Building, 4th Floor, Plot-327,
Narshi Natha Street, Masjid Bunder (West),
Mumbai – 400009
📞9324776120
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