Income tax filing preparation: reconcile your records first

Begin with the correct period and filing context

Make a folder labelled with the income period and the return you are preparing. Confirm the applicable form and filing requirements for that period on the official portal. A saved template from a previous year is a useful reference, but it should not decide this year’s rules or terminology.

List each source of income and the record that supports it. Employment, freelance work, interest, rental income and investments can produce different records. A person with more than one income source needs a combined view, even if one employer has already deducted tax.

Build a record list you can reconcile

Use a simple reconciliation sheet with columns for source, amount in your records, amount on the portal and explanation of any difference. This makes an unresolved issue visible before it becomes a number in a filed return.

• Employment: salary statements and the applicable employer tax certificate.
• Banking: account statements and interest certificates for the period.
• Investments: transaction statements and the records needed to calculate realised gains or losses.
• Business or freelance work: invoices, receipts, expense records and an explanation of unsettled balances.
• Tax: relevant deduction / collection information and advance or self-assessment payment records.
• Other claims: evidence for deductions or exemptions that actually apply to the period and your circumstances.

Review AIS rather than assuming it is complete

The Income Tax Department describes AIS as a view of information available to it, with a feedback facility. Review it against your own records. A prefilled amount may need investigation, and an absent item does not mean the underlying income is automatically irrelevant.

Where a record appears incorrect or duplicated, retain the supporting documents and use the available feedback or correction route. Keep a note of the issue, the response and the figure ultimately used in the return. This makes later review easier.

Resolve tax-credit differences and keep the evidence

Compare the tax credit you intend to claim with the relevant official statement for your filing period. The department’s tax-credit mismatch guidance explains why differences should be resolved, including cases where deductor information needs correction. Do not assume a deduction on a payslip is enough to settle a portal mismatch.

For business records, distinguish profit from cash and receivables from collections. A working capital calculation can help you review balance-sheet amounts, but it does not calculate taxable income. Once the figures are reconciled, confirm submission, verification and acknowledgement through the applicable filing workflow. Keep the filed return and evidence together.