In 2025, India's taxation system is evolving with the passing of the Income Tax Bill 2025, looking to streamline compliance as well as add more transparency. As the government is tightening efforts to spot aggressive tax evasion and promote voluntary taxation, it is crucial that citizens and businesses alike stay vigilant.

At Book My Accountant, we are of the opinion that not only is it necessary to pay taxes, but to pay taxes ethically and quick. Through our Pre Review Tax Checks, we help clients remain financially sound and risk-free. Let us speak about the top 10 pre-review checks which need to be performed by each responsible tax payer in 2025.

1. Proper Financial Records

GST, TDS, and income tax returns are being made stricter. Errorless accounts are the need of the day.

Action Plan:

• Keep all the income, expense, and deduction through proper software (like Tally, Zoho Books, QuickBooks).
• Bank statements reconcile on a monthly basis.
• Audit digital and physical documents periodically.

Fact: As per MCA statistics, 78% of SME non-compliances cases are due to incomplete or improper records.

2. Check All Deductions and Tax Credits

Inflating expense or claiming fake credits might tempt clients to notices under Section 143(1).

Action Plan:

• Verify receipts for deductions like 80C, 80D, and HRA.
• Don't mix personal expenses with business claims.
• Familiarize yourself with the new rules of the new tax regime 2025.

‍3. Employ a Qualified Tax Advisor

With evolving norms (such as faceless audits and AI-based scrutiny), expert guidance is no longer a preference—it's a necessity.

Action Plan:

• Start bookings on advisory.
• Pre-March 31 review of tax planning every year.
• Bookmark CA advisory services by experts such as Book My Accountant.

4. Be Aware of Evolving Tax Laws

With electronic taxation, e-invoicing limits, and penalty reforms, ignorant bliss can prove costly.

Action Plan:

• Monitor the CBDT, GSTN updates.
• Attend webinars and government-conducted awareness drives.
• Subscribe to newsletters of known sources like BMA Blog.

5. Avoid Aggressive Tax Planning

Sophisticated arrangements or enigmatic transactions are sure to be a reason for Section 68 or 69 notices.

Action Plan:

• Consider your plan from the "substance over form" angle.
• Maintain highest transparency and justifiability.
• Key to remember: Ethical tax planning is not tax evasion.

6. Maintain Each Transaction in Order

At all times, whether you're submitting ITR-3 or you have a business, documentation is your greatest strength in audits.

Action Plan:

• Keep soft copies and hard copies of all bills, contracts, loan documents.
• Maintain capital gains, investment evidences, and rent deeds.
• In case of a business, maintain board minutes, GST bills, and ledgers.

7. Verify Sources of Income

With the digital monitoring becoming the order of the day, Income Tax Department cross-verifies your ITR with Form 26AS and Annual Information Statement (AIS) today.

Action Plan:

• Reconcile reported incomes with TDS entries in 26AS.
• Reconcile interest received on FDs, mutual funds, receivables for rent, etc.
• Declare all side income, be it crypto, freelancing, or referral apps.

8. Install Internal Compliance Controls

Internal controls identify risk pockets early for startups, SMEs, and companies.

Action Plan:

• Implement an internal tax review team.
• Conduct quarterly internal audits.
• Utilize compliance dashboards to track filings, payments, and notices.

9. Train Personnel in Ethical Tax Practices

Deployment of junior staff to expense classification or recording of invoicing can lead to penalties.

Action Plan:

• Conduct periodic training on tax legislation and ethics.
• Make sure accounting SOP complies with the latest legal requirements.
• Encourage integrity and transparency in accounting reports.

10. Tax Compliance Calendar Preparation

Delayed filing of GSTR-3B, TDS return (Form 26Q), or Advance Tax may attract penalties and interest.

Action Plan:

• List all significant due dates (monthly, quarterly, annual).
• Remind when to file forms.
• Tag new notifications (e.g., Budget 2025 announcements) on the calendar.

Why Book My Accountant for PRP

At Book My Accountant (BMA), our Pre-Review Preparation Check Service ensures:

• Systematic verification of records.
• Professional Tax Compliance Expert.
• Comparison of Form 26AS/AIS.
• Tax planning through ethical means.
• Filing setup compliance calendar.

We work in Kolkata, Bhubaneswar, and Bengaluru through PAN-India remote tax services.

Conclusion

Tax honesty isn't a law—it's a belief. Amidst increased scrutiny and reviews, AI-fortified audits, and live reporting, these 10 PRP checks will keep you safe from future threats and allow you to become part of an honest and fair tax system.

Stay compliant. Stay honest. Send your pre-review jitters to BMA!