India Income Tax Filing Checklist and Common Errors for Salaried Workers

A comprehensive 25‑point checklist outlines key provisions for filing Indian income‑tax returns under the Income‑Tax Act, 1961. It covers taxation of excess EPF/VPF interest, mandatory disclosure of foreign assets and income, capital‑gains exemptions (Sections 54, 54F, 54EC), loss set‑off and carry‑forward, disclosures for company directorships and unlisted equity, DTAA benefits, foreign tax credit, reconciliation of AIS, TIS and Form 26AS, reporting of bank interest, ESOPs, RSUs, home‑loan benefits, gifts, minor children’s income, agricultural land, and virtual digital assets, as well as selection of the tax regime under Section 115BAC and TCS on foreign remittances.

Common filing mistakes highlighted for salaried employees include choosing the wrong tax regime, over‑claiming deductions, misreporting capital gains or foreign assets, and failing to reconcile Form 16 with Form 26AS, AIS and TIS. Such errors can trigger notices, interest, penalties and additional tax demands, especially given the digitised reporting system that captures high‑value transactions and overseas holdings.