Discover:
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What are the essential documents required for filing an Income Tax Return (ITR)?
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Why is it important to file an Income Tax Return?
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What is the due date for filing ITR for 2024-25?
Are you also one of those people who dread the annual ordeal of filing your income tax return (ITR), feeling like it’s more of a head-scratching puzzle than a straightforward process?
We get it.
But fear not, because we have the solution to ease your tax-filing woes: getting your documents in order.
The process of Income Tax Filing (ITR) requires some preparation. Keep all your necessary documents ready while filing an Income Tax Return. Definitely, certain documents are mandatory for every taxpayer.
Before understanding what are the different documents you require to file an Income Tax return, here are some important questions which we would like to answer:
What is the need to file an ITR?
According to the Income Tax Act of 1961, a person under 60 must file tax returns if a part of their income is taxable. If your taxable income exceeds Rs. 5 lakh in a financial year or you have paid advance tax, you must also file an ITR.
What is the proof of ITR filing?
Form ITR-V is a document received when filing an ITR online without a digital signature. It can be downloaded from the income tax e-filing website. Additionally, there are multiple methods for ITR verification, including Aadhaar OTP, net banking, bank account, Demat account, and bank ATM.
What is the minimum salary to file an ITR?
All individuals earning an annual income exceeding Rs. 2.5 lakh are required to file an Income Tax Return (ITR). In the old regime, individuals below the age of 60 must file an ITR if their income surpasses Rs. 2.5 lakhs, while those aged 60 or above are obligated to file if their income exceeds Rs. 3 lakhs.
Nevertheless, in the new regime, individuals below 60 years old have a basic exemption limit of Rs. 3 lakhs.
DOCUMENTS REQUIRED FOR FILING THE ITR OF SALARIED INDIVIDUAL
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PAN Card Number
The first and foremost prerequisite for filing an ITR is your PAN Card. It acts as an identifier for the person with the tax department. The name on the income tax PAN card must be the same as the one stated in the ITR.
Additionally, you should link it with the bank account for direct credit of income tax refund (if any). PAN card enables the income tax department to link all transactions of the person with the department. Furthermore, these transactions include returns of income/gift/wealth, tax payments, etc.
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Aadhaar Card Number
According to Section 139AA of the Income Tax Act, individuals need to provide his/her Aadhaar card details while filing the ITR. You need to link your PAN card with your Aadhaar card. If they are not linked, you will not be able to file the ITR.
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Salary Slips
A salary slip helps to prepare the income tax returns and evaluate how much tax is to be paid or how much refund is to be claimed by the employee.
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Bank Statement/Passbook
You need to provide your bank account statements or passbook when filing your income tax return to ascertain the interest earned from your savings account, interest income from fixed deposits, and other relevant financial details for the fiscal year.
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Bank Account Details and IFSC Code
Bank account details like your bank name, IFSC code, account number and number of accounts you hold have to be quoted. Out of all accounts, one should be the primary account to assist the tax department in refunding your tax refund by electronic transfer to such account. Your bank details provide information regarding high-volume transactions and provide income disclosures, etc.
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Form 16 and 26AS
Salaried individuals should file an ITR using Form 16 as it is one of the most essential documents. It is issued by the employer to the employee which says that the tax has been deducted from the employee’s salary and has been deposited to the Income Tax Department. Additionally, it also contains all the details of the salary of the employee.
Form 26AS is an annual tax statement like a tax passbook that has details of all the taxes you have deposited. These are:
- TDS deducted by the bank
- Tax Deducted at Source is deducted by the employer
- TDS deducted by other organisations from the payments done by you
- Advance taxes deposited by you
- Self-assessment taxes paid by you
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Foreign Salary Slips (If Applicable) For An Ordinary Resident Of India
The foreign income i.e. income arising outside India is liable to income tax in that year even if it is not received or brought into India.
Other Documents
- Proofs of investment
- Capital Gains from Sale of Property, Mutual Funds, Shares
- Home Loan Statement
- Income earned from house/any property
- The final statement in case of a job change
- Rent receipts and agreement for those who wish to claim HRA Exemption
- Travel bills (in case the employer doesn’t consider them)
- Details of the withdrawn PF (if available)
If you are filing the ITR for the first time, know how to file it
DOCUMENTS REQUIRED FOR FILING ITR FOR BUSINESS
Similarly, as a businessperson, an employee or self-employed, here is a list of documents you need to file an ITR.
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PAN Card
A PAN Card is the first and foremost thing you need to file an income tax return. It is required to deduct TDS and should be linked with your bank account to credit income tax returns if there are any. However, as per the recent amendment by the Govt, taxpayers can also use an Aadhaar number to file an ITR instead of a PAN number.
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Aadhaar Card
According to Section 139AA of the Income Tax Act, individuals need to provide his/her Aadhaar card details while filing their Income Tax returns. In case you don’t have an Aadhaar card, but have applied for the same mention your enrolment ID in your IT return. Additionally, linking your PAN and Aadhaar is mandatory as it helps verify your ITR online via an OTP.
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TDS Certificate
The person who deducts TDS issues a form to the deductee, which is known as a TDS certificate. It shows the payment particulars, the date of tax deducted at the source, and its credit to the government. Additionally, the taxpayer can claim the credit and refund based on the TDS certificate. Both Form 16 and 16A are TDS certificates.
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The Balance Sheet Of The Financial Year
A taxpayer carrying on a business or a profession should file details of all the assets and liabilities through a balance sheet in the ITR.
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Audit Records (if applicable)
Section 44AB in the Income Tax Act 1961 reflects the rules to maintain books of accounts and other financial records by the taxpayer. It helps maintain information about income, tax, and deduction of the taxpayer. Additionally, a practising CA conducts the audit and then submits a report to the Income Tax Department along with the income tax return.
Other documents
- Loan documents to claim a rebate
- Challan copy of income tax payment (advance tax, self-assessment tax)
What Happens If You Don’t File An ITR?
Frequently Asked Questions:
What is the due date for filing ITR for 2024-24?
31st July 2024 is the last date to file ITR for FY 2023-24 (AY 2024-25). Those filing returns after the due date will have to pay a penalty under Section 234F and interest under Section 234A.
What is the standard deduction for ITR 2024-25?
Since no changes were announced in the Interim Budget this year, it will stay at Rs 50,000 for both the old and new income tax regimes.
Can we file an ITR on 1st April?
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April 2024 onwards.
When can I file ITR for AY 2024-25?
ITR filing last date for Financial Year 2023-24 (AY 2024-2025) is July 31, 2024. However, if you miss the date, you can still file a belated return before December 31, 2024.
Is 7 LPA taxable for ITR?
Individuals earning less than ₹7 lakhs will be exempt from paying any taxes if they opt for the new tax regime. Previously, there were only a few exemptions or deductions available. However, the FY 2023-24 Budget has introduced several exemptions and deductions under the new tax regime.
How to pay 0 tax on a 20 lakh salary?
Here are the deductions available to save taxes:
- Equity Linked Saving Scheme funds (ELSS)
- Employees’ Provident Fund (EPF)
- Home loan repayment and Stamp duty.
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Sukanya Samriddhi Yojana (SSY)
- Fixed Deposit for 5 years, and more
Can I file my ITR on my own?
The pre-filling and filing of ITR-1 services are available to registered users on the e-filing portal.
Who is eligible for ITR?
According to the Income Tax Act of 1961, a person under 60 years of age must file tax returns if a part of their income is taxable.
Do all PAN card holders need to submit ITR?
No, Not all PAN cardholders need to file income tax returns. However, the necessity depends on factors such as income level, type of income, and possession of foreign assets.
What is the full form of TDS?
TDS’s full form is Tax Deducted at Source.
Is it necessary to show all bank accounts in ITR?
Since 2015, the Income-tax department has mandated that taxpayers must disclose all of their bank accounts in their tax returns to process their refund.
Can we file an ITR without proof?
No, you cannot file an ITR without proof. Employees must prevent investment proofs for tax-saving investments they disclose at the start of the financial year. Furthermore, anyone who is eligible to pay taxes needs to submit their investment proofs.
Can I use ITR as an address proof?
No, an Income Tax Return (ITR) assessment cannot be used as a valid address for an Aadhaar card.
