itr-review

name	itr-review
description	Review Income Tax Return (ITR) computation before filing. Cross-checks ITR data against Form 26AS, AIS (Annual Information Statement), and TIS. Verifies deductions (80C/80D/ 80G/80GG/others), capital gains schedule, house property income, and identifies discrepancies. Covers all ITR forms: ITR-1 to ITR-7.
when_to_use	When the user wants to review an ITR computation, check against 26AS/AIS, verify deductions, review capital gains, or prepare the income tax computation for a client.
effort	high
model	claude-sonnet-4-6
allowed-tools	["mcp__memory_bank__get_client","mcp__memory_bank__get_firm_profile","Read","Write"]

ITR Review — Pre-Filing Verification

FINANCIAL INTEGRITY: An incorrect ITR can attract notices, penalties under Section 270A, and prosecution in fraud cases. This review does NOT replace the CA's professional judgment. All ITRs must be e-verified by the assessee (OTP/EVC/DSC) and the CA's digital signature must be valid if certification is required.

Firm Context

!python3 ${CLAUDE_PLUGIN_ROOT}/../../shared/bin/get-firm-context.py 2>/dev/null || echo "Run /cold-start:onboard-firm to set up firm profile"

Step 1 — Client Information

Collect:

• Client name, PAN, date of birth / incorporation
• Assessment Year (e.g. 2026-27)
• Residential status (Resident Ordinary / Resident Not Ordinary / Non-Resident)
• ITR form to be filed (ITR-1 / 2 / 3 / 4 / 5 / 6 / 7)
• Sources of income

ITR Form Selection Guide:

Scenario	ITR Form
Salaried individual, interest income < Rs.50L, no capital gains	ITR-1 (Sahaj)
Individual/HUF with capital gains or foreign assets	ITR-2
Individual/HUF with business/profession income	ITR-3
Individual/HUF/Firm under presumptive scheme (44AD/44ADA)	ITR-4 (Sugam)
Firms, LLPs, AOP, BOI	ITR-5
Companies	ITR-6
Trusts, political parties, research associations (12A/10(23C))	ITR-7

Step 2 — Form 26AS and AIS Cross-Check

Critical: ITR figures must be consistent with Form 26AS and AIS.

From Form 26AS, verify:

• All TDS deducted by employers/banks/others matches "Tax Deducted at Source" in ITR
• Advance tax payments match
• Self-assessment tax paid matches
• TCS collected (if applicable)
• Any SFT (Specified Financial Transaction) entries

From AIS (Annual Information Statement), check:

• Salary reported matches Part B / Form 16
• Dividend income matches
• Interest income from bank accounts matches
• Capital gains transactions from broker/mutual fund
• Rent received matches TDS certificates
• Any high-value transactions that should be declared

Mismatch flagging:

26AS / AIS MISMATCH REPORT
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Head           | As per 26AS/AIS | As per ITR Draft | Difference
Salary (TDS)   | Rs.X            | Rs.X             | Rs.X ⚠
Bank Interest  | Rs.X            | Rs.X             | OK ✓
Dividend       | Rs.X            | Rs.X             | Rs.X ⚠
Capital Gains  | Rs.X            | Rs.X             | OK ✓

Step 3 — Income Computation Review

Salary Income (Section 15-17)

• Gross salary matches Form 16 Part A
• Standard deduction Rs.50,000 applied (for AY 2025-26 and earlier) or Rs.75,000 (new regime from AY 2024-25)
• HRA exemption u/s 10(13A): min of [actual HRA / rent paid - 10% salary / 40% or 50% salary]
• Professional tax deduction
• Any other allowances (LTA, medical — check exemption limits)
• Employer's PF contribution > Rs.7.5L taxable

House Property Income (Section 22-27)

• Rental income declared (if rented out)
• Standard deduction 30% applied
• Municipal taxes paid deducted
• Interest on home loan: Rs.2L limit for self-occupied
• Pre-construction interest: 1/5th for 5 years (after construction)

Capital Gains

Use the separate /income-tax:capital-gains skill for detailed computation. Quick checks:

• STCG on listed equity: 20% (post FY 2024-25 amendment) / old rate 15%
• LTCG on listed equity: 10% above Rs.1.25L (post FY 2024-25) / old Rs.1L
• LTCG on property: 12.5% without indexation (post FY 2024-25) / old 20% with indexation
• STCG on debt mutual funds: slab rates (post 1 Apr 2023)

Business/Profession Income

• Books of accounts maintained (if turnover > Rs.1 Cr for business / Rs.50L for profession)
• Tax audit required? (Sec 44AB) — If yes, 3CA/3CB + 3CD mandatory
• Presumptive: 8% / 6% (44AD) — digital receipts qualify for 6%
• Disallowances under Section 40/40A (cash payments > Rs.10,000, related-party excessive payments)
• Depreciation schedule correct (WDV / straight-line)

Step 4 — Deductions (Chapter VI-A)

Section	Deduction	Limit	Check
80C	LIC premium, PPF, ELSS, school fees, home loan principal	Rs.1,50,000
80CCC	Pension fund contribution	Rs.1,50,000 (within 80C limit)
80CCD(1)	Employee NPS contribution	Rs.1,50,000 (within 80C)
80CCD(1B)	Additional NPS contribution	Rs.50,000
80D	Medical insurance premium	Rs.25,000 (self) / Rs.50,000 (senior citizen parent)
80DD	Disabled dependent	Rs.75,000 / Rs.1,25,000
80E	Education loan interest	No limit (first 8 years)
80G	Donations	50% or 100% of amount (check NGO approval)
80GG	Rent paid (no HRA)	Least of: Rs.5,000/month / 25% of income / actual rent - 10%
80TTA	Savings bank interest	Rs.10,000
80TTB	Interest (senior citizens 60+)	Rs.50,000

Old Regime vs New Regime (from AY 2024-25, new regime is default):

New Regime: No deductions under Chapter VI-A (except 80CCD(2) employer NPS), but lower slab rates. Old Regime: All deductions available.

Compute tax under both regimes and recommend.

Step 5 — Tax Computation and TDS Credit

TAX COMPUTATION — [Client] | PAN: [PAN] | AY: [AY]
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
INCOME:
Salary / Business Income   : Rs.X,XX,XXX
House Property Income      : Rs.XX,XXX
Capital Gains (STCG/LTCG)  : Rs.XX,XXX
Other Sources (Interest etc): Rs.XX,XXX
GROSS TOTAL INCOME         : Rs.X,XX,XXX
Less: Chapter VI-A Deductions: (Rs.XX,XXX)
TOTAL TAXABLE INCOME       : Rs.X,XX,XXX

TAX CALCULATION (Old Regime / New Regime — whichever selected):
Basic Tax                  : Rs.XX,XXX
Surcharge (if applicable)  : Rs.X,XXX
Health & Education Cess 4% : Rs.X,XXX
TOTAL TAX LIABILITY        : Rs.XX,XXX

TDS CREDITS:
TDS from employer (24Q)    : Rs.XX,XXX
TDS from bank (26Q)        : Rs.X,XXX
Advance tax paid           : Rs.X,XXX
TOTAL CREDITS              : Rs.XX,XXX

BALANCE PAYABLE / REFUND   : Rs.X (Pay / Refund)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Step 6 — Self-Assessment Tax and Interest

If tax payable after TDS credit:

• Pay as Self-Assessment Tax via Challan 280 before filing ITR
• Interest u/s 234B: 1% per month on unpaid tax if > 10% of total tax
• Interest u/s 234C: 1% per month on shortfall in advance tax instalments

Step 7 — Final Pre-Filing Checklist

ITR PRE-FILING CHECKLIST — [Client] | [AY]
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
[ ] PAN active (not operative / inoperative)
[ ] Aadhaar linked to PAN (mandatory)
[ ] Bank account pre-validated for refund
[ ] 26AS/AIS reviewed — all income declared
[ ] All TDS credits matched
[ ] Self-assessment tax paid (if applicable) — Challan in 26AS
[ ] ITR form correct for the sources of income
[ ] Digital signature / EVC ready for e-verification
[ ] Original ITR due date: 31 July (non-audit) / 31 Oct (audit)
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