As the financial year ends in India on March 31, individuals and businesses gear up to file their Income Tax Return (ITR). Hopefully, this year the government may extend the ITR filing deadline which usually ends on July 31 due to the coronavirus outbreak.
Even if the filing deadline is extended, it’s important for taxpayers to remain prepared, especially with all the documents required for ITR filing. Keeping in mind the importance of having all the documents at your disposal before filing income tax return, here we will walk you through some key ITR filing documents that you should keep handy.
It’s very important that all the documents required for income tax return are ready because the IT department’s e-filing portal won’t allow you to save your work and then resume again later. In case any of the ITR filing documents is missing while you file the return, you’ll have to start all over again. Therefore, to save time and compliance headaches it’s very important to ensure that all the documents required for ITR filing are ready. Here a checklist of ITR filing documents to help you.
- Form 16: Form 16 is the “Holy Grail” for salaried individuals. Usually, your employer should provide you the Form 16 before May 31stof every year. It contains the breakdown of tax deducted at source by your employer from your salary. If you have no other sources of income, you can just upload Form 16 to the IT department’s website or use a free online vendor to automatically prepare your returns. Ensure that you have this ready before you file your income tax return if you are a salaried worker.
- Interest certificates: If your savings account or fixed deposit account is earning interest, you need to get hold of the interest certificate from the bank or post office. Under section 80TTA of the Income Tax Act, interests earned up to Rs. 10,000 for individuals and up to Rs. 50,000 for senior citizens in a year are tax-free. Banks usually send these certificates by email. If you don’t receive interest certificates, at least ensure that your savings account passbook shows the interest credited to you.
- Form 26AS: Form 26AS keeps a track of all the taxes deposited to the IT department against your PAN during the assessment year. This is one of the most important documents required for income tax return filing. You can download Form 26AS from the TRACES website.
- Form 16A – 16B – 16C: These 3 documents required for income tax return is applicable in the following 3 scenarios:
- Form 16A– If you have received income from fixed deposits, shares, and mutual funds, your bank or financial institution will issue a Form 16A. In this case, the bank deducts applicable tax from your income and issues Form 16A as a TDS certificate.
- Form 16B– If you have sold a house or property, the buyer deducts TDS from the total amount and issues you Form 16B.
- Form 16C – If you are earning a rental income of more than Rs. 50,000 per month, you need to furnish Form 16C.
- Investment proofs: If you have opted to avail tax deductions for your investments in section 80C, 80D and 80E instruments, ensure that all your receipts and certificates are ready before you begin filing your ITR returns. You can keep ready ITR filing documents related to investments in term insurance, traditional life insurance, health insurance, tax saving mutual funds, PPF, ULIPs, bonds, etc. Make sure to keep the proofs of premium handy so it’s easy to upload or to mention details on the ITR portal
- Home loan payments: Keep your home loan statement ready before filing your income tax return. The statement should include all details such as payments made on the principal, interest payments. If you have taken a home loan, you can claim tax deductions up to Rs. 2 lakh in a year on interests paid. Make sure that you don’t miss claiming this deduction.
Apart from these, you also need to report long- and short-term capital gains made on the sale of property, stocks, mutual funds and other assets and securities. This can be done through a statement of capital gains provided by your broker or financial institution. And yes, don’t forget your Aadhaar card, PAN card and always ensure you are providing accurate bank details for refunds.
Make sure that you are dealing with a reputed brokerage house or financial institution when it comes to your investing, trading and managing money. Angel One, which is one of the largest independent full-service retail broking houses in India, can help you make informed investment decisions with detailed research and regular reports.
What are the essential documents required for ITR filing?
These are the necessary documents required for ITR filing.
- PAN card
- Aadhaar card
- Form 16 for salaried individuals
- Form 16A for non-salary incomes such as interest, rent, etc.
- Bank account details
- Bank Statement or Passbook
- Form 26AS and AIS/TIS for TDS deduction
- Home loan statement
- Tax saving investment statements
- Capital gain details
Why is filing an ITR necessary?
Filing an ITR does more than just save your hard-earned money. Here are the reasons why you shouldn’t miss filing ITR.
- It helps you meet tax compliance
- Helps with loan processing
- It allows you to carry forward losses
- Helps you claim a TDS return
Before filing an ITR, check the complete list of documents required for an income tax return.
Do I need to submit physical copies of documents while filing ITR?
No, physical copies of documents are not required for ITR filing. Taxpayers can pay their taxes online either through the e-filing portal of the Income Tax Department or a tax-filing platform, uploading the necessary ITR filing documents in electronic format.
What documents are required for NRIs to file an ITR?
NRIs must file an ITR if their income (from Indian and foreign employers) exceeds the basic exemption limit of ₹2,50,000. Here is a list of documents required for an income tax return.
- Salary slips for Form 16
- Bank account details
- Details of investment
- Investment statements for investments made in India
- Details of foreign bank account and details
- Details of any property owned in India
- Receipt of tax payment
Are digital copies of documents acceptable for ITR filing?
Yes, you can upload digital copies of the necessary documents. However, it is essential to make sure that the scanned copies are legible and contain all the necessary information. You can submit documents required for income tax returns in PDF format.