The Institute of Chartered Accountants of India (ICAI) has unveiled its latest publication, Checklist for Preparation of ITR Forms (ITR-1 & ITR-4), aimed at assisting taxpayers and chartered accountants in accurately and efficiently filing income tax returns for the Assessment Year (AY) 2025-26.
The guide, prepared by the ICAI’s Direct Taxes Committee under the leadership of Chairman CA. Piyush S. Chhajed and Vice-Chairman CA. Vishnu Kumar Agarwal, provides a detailed, step-by-step framework for preparing and verifying all relevant sections of ITR-1 (Sahaj) and ITR-4 (Sugam).
Key Highlights of the Publication
Coverage and Applicability:
The checklist outlines the eligibility criteria for filing ITR-1 and ITR-4, specifying who can and cannot use these forms. For instance, ITR-1 applies to resident individuals (other than ‘not ordinarily resident’) with total income up to ₹50 lakh, covering income from salary, one house property, and other specified sources. ITR-4 is applicable to certain resident individuals, HUFs, and partnership firms (other than LLPs) under presumptive taxation schemes.
Detailed Filing Instructions:
The document explains the modes of filing—online, offline utility, and paper forms (for individuals aged 80 years or above)—along with prerequisites such as PAN-Aadhaar linkage, pre-validation of bank accounts, and having an active mobile number for verification.
Step-by-Step Filing Process:
It includes clear online filing steps, from logging into the e-filing portal and selecting the assessment year, to choosing the correct form, reviewing pre-filled data, entering income and deduction details, computing tax liability, making payments if necessary, and completing e-verification.
Comprehensive Checklists:
Separate, exhaustive checklists for each part of the forms—covering general information, gross total income, deductions, computation of tax payable, and verification—are included to help avoid errors and ensure compliance with the latest Income-tax Act provisions.
New Reporting Requirements:
The checklist reflects recent changes such as the default applicability of the New Tax Regime from AY 2024-25, mandatory disclosure under the seventh proviso to section 139(1) for high-value transactions, and details for interest on borrowed capital under section 24(b).
Educational Resource for Professionals:
The ICAI emphasizes that this publication is part of its ongoing efforts to keep members updated through technical guides, handbooks, webinars, and seminars, considering the dynamic nature of tax laws and frequent amendments through Finance Acts, CBDT notifications, and judicial rulings.
Extended Deadlines for AY 2025-26
The government has extended the due date for filing ITR-1 and ITR-4 to September 15, 2025, offering taxpayers additional time to adapt to the updated filing requirements.
The Checklist for Preparation of ITR Forms is expected to serve as an indispensable tool for tax practitioners and assessees alike, aiming to reduce errors, improve compliance, and ensure a smoother filing experience ahead of the extended deadline.
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Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
