10 Pre Review Tax Checks to Build Your 2025 Compliance

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!






Disclaimer:
Information within this blog is educational and general information. It is not professional tax advice. To learn about custom services, visit a seasoned tax practitioner or call Book My Accountant. Laws and regulations can shift, and as of print accuracy is provided based on available materials
Book My Accountant






					


				

								

					

						
Implementation of Mandatory HSN Codes in GSTR-1 & GSTR-1A
					


					

						

What You Need to Know





From January 2025, GSTN started phasing in the implementation of mandatory HSN codes in Table 12 of both GSTR 1 and GSTR 1A. It is a step based on the correct reporting of tax that has minimal human errors and simplifies compliance for businesses across the nation. 





Below is a blog that has broken down what HSN codes are, change that has been introduced in Phase III, and compliance steps that need to be followed by businesses in India.





What Are HSN Codes and Why Are They Important?





It is, in fact the Harmonized System of Nomenclature, or HSN-an internationally accepted classification of goods and services. It classifies products or services with a unique numerical code, thereby standardizing trade and tax systems.





HSN is important for Goods and Services Tax in India in the following manners:









The implementation of HSN codes must be done correctly, and GST registered entities should cover it.





Phase III Implementation: Key Changes





GSTN has brought phase III in the process of reporting of HSN Codes in GSTR -1 and GSTR-1A. Here are the critical changes in the same:





    

  1. Segmentation of Table 12

      

    • Table 12 divided into two heads:

        

      • B2B Supplies: Business-to-business.
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      • B2C Supplies: Sales to consumers.
        • 

      

      • 




    • Separation gives clear clarity and easy reporting of supplies.
      • 

    

    2. 




  2. Validations Rules of Supplies and Value of Taxation

      

    • These supplies and taxation reported values have the new validations developed which cross-matching will happen on this reported value of supplies.
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    • The business must complete the submission during this time period, so the rule will initially serve as a warning due to the mismatching.
      • 

    

    3. 




  3. Features associated with the upgraded user

      

    • Download HSN Code List now with a new button whereby taxpayers can download the latest HSN and SAC codes along with descriptions in the Excel format.
      • 




    • My Master now facilitates search on product descriptions, making it easy to decide which HSN codes to use.
      • 

    

    4. 






Change in Detail





    

  1. Verification for B2B Supplies

      

    • Verification rules will be applicable on tables like:

        

      • 4A, 4B, 6B and 6C for registered recipient.
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      • 9A, 9B, and 15A for Exports or to registered recipient. 
        • 

      

      • 




    • This verification is an adjustment of tax values with correct tax amount.
      • 

    

    2. 




  2. Verification in B2C Supplies

      

    • We will verify the non-registered recipient on the table such as.

        

      • 5A, 6A, 7A, and 7B. Domestic Supplies for non-registered recipient.
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      • 9A (Ex) and 10 or 15 for unregistered recipient.
        • 

      

      • 

    

    3. 






Addressing Amendments





If they conduct a revaluation, they will compare it based on differential value to eliminate the reuse of similar data.





Business Implication





Phases III Changes to GST registered will have more substantial effects for tax payers as follows -What Businesses should know:





Benefits of the new system









Challenges to be Overcome









Steps to comply with Phase III





To align the business to the new needs and ensure compliance, the businesses need to do:





    

  1. Study the Advisory

      

    • Read the official advisory given by GSTN in detail and understand what is changed and its implications.
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    • The complete guidance is available on the GST portal that can be referred to.
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    2. 




  2. Accounting System

      

    • Check whether your accounting and billing software has the facility of dropping down the codes of HSN.
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    • If yes then collaborate with the software vendor also to make the changes
      • 

    

    3. 




  3. Train Your Employee

      

    • Train those employees who are handling GST return, which will file returns along with new updations.
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    • Completely educate them about the drooping system as well as newly implemented validation rule and all change
      • 

    

    4. 




  4. Validation Warnings Monitoring

      

    • Develop a procedure in order to trace the validation warnings that are arising while filing of returns.
      • 




    • Clear up the mismatches at once so no further penalties should arise.
      • 

    

    5. 








FAQs on HSN Code Implementation





Q1:  Will the validation warnings prevent the returns from being filed?





No, in the initial days, the validation warnings will not stop the filing of returns. However, the business needs to correct the warnings so as not to incur improper compliance in the future.





Q2: How can I get the new list of HSN codes?





You can download the latest HSN and SAC codes from the GST portal by clicking on the "Download HSN Code List" button on Table 12.





Q3: Is the drop-down selection compulsory for all taxpayers?





No, HSN code entry cannot be done manually. All the taxpayers must choose the appropriate HSN codes available in the list.







Why Compliances Are Important





In case of non-compliance with the latest rule, among other issues, the following may be faced:









Companies can avoid such issues and maintain smooth compliance with GST regulations by raising awareness and taking proactive measures.





Conclusion
The introduction of HSN codes in GSTR-1 and GSTR-1A in Phase III is a major step toward the betterment of GST compliance and accuracy. Mandatory drop-down selection, validation rules, and enhanced features make the process easy for businesses and promote transparency in taxation.
For that, companies should update their systems, train the teams, and be vigilant for validation warnings. Need help? 
Contact Book My Accountant for expert assistance with GST compliance, tax planning, and more. Together, let's simplify your tax journey!
Book My Accountant