15 Smart Habits to Keep Income-Tax Notices at Bay (FY 2024-25)

Updated for the newest ITR forms and CBDT e-verification drives

1. File the right ITR form before 31 July 2025

The normal due date for non-audit cases remains 31 July 2025. New ITR-1/2/3 versions ask for deeper capital-gains and asset details—use the correct form or risk an automated “defective return” notice. @EconomicTimes

2. Reconcile every figure with Form 26AS, AIS & TIS

Download these statements, tick off TDS, interest, dividends, stock sales, etc., and raise feedback for errors before you press “Submit”. CBDT’s December 2024 e-verification campaign specifically targets AIS-ITR mismatches. 

3. Watch the Specified Financial Transaction (SFT) thresholds

Banks, registrars and AMCs file these in Form 61A; your ITR must echo them. 

4. Never break the ₹2 lakh cash-receipt rule (Sec 269ST)

Accepting ₹2 lakh or more in cash from a single person in a day or for one event invites a 100 % penalty (Sec 271DA) plus notice.

5. TDS/TCS discipline—deduct, deposit, file on time

Late or short deductions trigger notices both for the deductor (Sec 201) and the deductee (mismatch with 26AS).

6. Salary checks: Form 16 ≠ the whole story

Add previous-employer income, perquisites, gratuity, PF withdrawals, etc.; the portal cross-verifies with employer filings.

7. Capital gains (listed, unlisted & buy-backs)

From AY 2025-26, ITR-2 asks for ISIN-wise gains and now allows set-off of losses on share buy-backs (post 01-Oct-2024). Missing data is a red flag.

8. Report crypto / VDA trades in Schedule VDA

All gains are taxed at 30 % under Sec 115BBH; exchanges share data with the tax department. Income Tax Department

9. Foreign assets & income—don’t skip Schedule FA

Non-disclosure can invite ₹10 lakh per asset penalty under the Black Money Act, even for dormant accounts. 

10. Sync business turnover with GST returns

The analytics engine matches ITR P&L, GSTR-1/3B and e-invoice data; large gaps (>₹10 lakh) routinely trigger enquiries.

11. Keep proofs for deductions & exemptions 7 years

Rent receipts, 80C/80D evidence, capital-gain exemption bonds, etc., may be demanded during faceless assessments.

12. PAN–Aadhaar linkage & updated contact details

Incorrect contact or unlinked Aadhaar stalls e-verification and can push your return into the “defective” basket.

13. E-verify within 30 days

Unsigned ITR-V or delayed e-verification converts a valid return into “not-filed”.

14. Review the Compliance Portal periodically

Log in → Pending Actions → Compliance; respond to any AIS or non-filing alerts quickly to avoid escalations.

15. Maintain a year-end reconciliation file

A simple workbook matching books vs 26AS vs AIS vs GST makes next year’s filing—and any future scrutiny—much easier.

Final word

Almost every modern income-tax notice is data-mismatch driven. Keep your reported figures identical to what banks, employers, brokers and the GST portal have already told the tax department, and 90 % of the risk disappears.

Disclaimer: This post is for educational purposes only. Consult a qualified tax professional for advice tailored to your specific situation.

rate sites to personal blogs.