The process of Income Tax Filing (ITR) requires some preparation. It’s important to keep the necessary documents ready while filing an Income Tax Return. There are certain documents that are mandatory for every taxpayer. Let’s quickly take a look at the list of documents that are required to file an ITR.
DOCUMENTS REQUIRED FOR FILING ITR FOR BUSINESS
The Balance Sheet of the financial year
A taxpayer carrying on a business or a profession is required to file details of all the assets and liabilities through a balance sheet in the ITR.
Records of audit (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. This helps in maintaining information about income, tax, and deduction of the taxpayer. The audit is conducted by a practising CA and the report is then submitted to the Income Tax Department along with the income tax return.
Certificates of the tax Deduction on the source (TDS)
The person who deducts TDS issues a form to the deductee which is known as a TDS certificate. It shows-
- The particulars of payment
- The date of tax deducted at the source
- The date of its credit to the government
Based on the TDS certificate, the taxpayer can claim the credit and refund. Form 16 and Form 16A are TDS certificates.
Other documents are Pan Card, Aadhar Card (explained below), Loan documents to claim a rebate, and Challan copy of income tax payment (advance tax, self-assessment tax)
DOCUMENTS REQUIRED FOR FILING ITR OF AN INDIVIDUAL
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. In addition, it should be linked 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. These transactions include returns of income/gift/wealth, tax payments, etc.
Aadhaar Card Number
According to Section 139AA of the Income Tax Act, individuals need to provide his/her Aadhar card details while filing the ITR. You are required to link your PAN card with the Aadhar card. If these two are not linked, you will not be able to file the ITR.
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 selected as primary to assist the tax department in refunding your tax refund by electronic transfer to such account. Bank details are used to check high volume transactions, income disclosures, etc.
Form 16 and 26AS
Form 16 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. It 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
- TDS 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
DOCUMENTS REQUIRED BY FIRST TIME FILERS
Form 16 and 26AS
As stated above, these documents are important and are required to help you file your return smoothly.
Documents stating income from other sources
Interest that gets accumulated in your savings bank account must be declared under income from other sources in your tax return. Family pension, money from lottery, online/TV game shows, puzzles, also come under income from other sources.
Details of tax-saving investments
All the tax-saving investments and expenditures incurred by you under Sections: Section 80C, 80CCC, 80 CCD(1) can help you lower your tax liability.
Some of the available tax breaks under Section 80C are-
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- Investments in ELSS schemes of mutual funds
- The life insurance premium paid
- National Pension System (NPS), etc.
Information of any additional deductions
Some other documents that you need to keep handy to claim the following expenses as deductions are:
- Your children’s school tuition fees
- Stamp-duty and registration charges
- Principal repayment on your home loan, etc.
DOCUMENTS REQUIRED FOR SALARIED PEOPLE
Form 16 from the employer
Form 16 is a certificate issued to salaried employees from their employer when he/she deducts tax from the employee salary.
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.
Form 10E is required for furnishing particulars of received income under Section 192(2A). It is compulsory to fill out Form 10E if you want to reclaim tax relief under Section 89 (1) of the Income Tax Act 1961.
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.
- The final statement in case of a job change
- Foreign tax returns (if applicable) and filing Form 67
- 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)
It’s obvious to understand that filing an ITR is a cumbersome process but its benefits are far more than the labour involved in it. Also, it is the duty of all the citizens of the country to file ITRs on a timely basis.