People who file their Income Tax Returns (ITR) on their own, doesn’t matter how much adept they’re at the process, always have one question – what all ITR documents would I need, to file my returns this year.
The reason being that every new budget brings with itself a plethora of new regulations and modifications in the existing ones, and even the income tax has not been spared in this regard.
And even if you take the help of Chartered Accountants (CA) for filing your IT returns, the very first thing they’ll do, is give you a list of all the documents they’d require to do the process. Hence, it’s important that you know what all ITR documents you’d require for filing your returns.
For this reason, we’ve compiled this guide which talks about the 10 most important documents that you absolutely need to have, before filing your returns.
Table of Content
1. Form 16
If you belong to the salaried class, this is one of the most important ITR document that you’ll need before filing your Income Tax Returns (ITR). For those who’re aloof, “Form-16 is a TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any.” Remember, it is compulsory for your employer to issue Form-16 if your employer has deducted TDS from your salary.
If no TDS is deducted from your salary, then you can request your employer to provide you with the same.
Moreover, now that ITR form-1 requires salaried taxpayers to provide the salary break-up this year, having Form-16 makes it more convenient to get that information.
Another point that you should keep in mind is that while receiving Form-16, you must check that the PAN mentioned on it is yours. If there is any disparity, then you must bring this to your employer’s notice. Your employer will correct the mistakes in Form-16 and issue you a revised form.
2. Salary Slips
The next important ITR document that you’ll require will be your salary slip. Not only the bonuses and the perquisites, the working class also has to provide full information about the various allowances that are taxable. They could be house rent allowances, conveyance allowances, etc.
You need not stress out over this, as these details can be very easily found in salary slips. From the salary slips, you can add each allowance received during the year and then calculate the taxability portion of it. If you have received HRA in the last FY and paid rent, then the taxable portion of that will be calculated based on certain conditions. Moreover, the tax treatment of each allowance received by you has a different tax treatment – some allowances will be fully taxable, while some are partially taxed. Salary slips have complete information about them.
3. Interest Certificates from Banks & Post Offices
Being a regular taxpayer, you must be aware that Interest received from savings bank account, post office savings account, fixed deposits and recurring deposits are taxable. Hence, you could either get the interest certificates from the bank/s and/or post office branch to know the total interest earned, in case no TDS has been deducted.
If getting the certificates gets too hectic for you, make sure your account passbook is updated and shows details regarding the interest credited to your account till the end of the said financial year. However, here is some good news for you. Any interest received above Rs 10,000 will be chargeable to tax and you can claim deduction under section 80TTA on the interest received up to Rs 10,000.
4. Form-16A / Form-16B / Form-16C
If TDS deducted on the payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws, your bank (in this case) will issue you Form-16A providing you the details of the amount of TDS deducted.
Also, if you have sold your property, then the buyer will issue you Form-16B showing the TDS deducted on the amount paid to you. Also, if you have tenants in your house, you need to keep yourself updated of the laws. As per the current laws, an individual is required to deduct TDS if the monthly rent is more than Rs 50,000.
5. Form 26AS
For those who are aloof, Form 26AS is your consolidated annual tax statement. This is like your tax passbook which has information of all the taxes that has been deposited against your PAN. This includes:
a) TDS deducted by your employer,
b) TDS deducted by banks if the interest income in FY 2017-18 exceeds Rs 10,000,
c) TDS deducted by any other organization for the payments that have been made to you,
d) Advance taxes deposited by yourself during the FY 2017-18.
e) Self-assessment taxes paid by you. Moreover, you can download Form 26AS from the TRACES website.
6. Tax-saving Investment Proofs
Here is a positive news for you – All the tax-saving investments and expenditures incurred by you, under Section 80C, 80CCC and 80CCD(1), can help you lower your tax liability. However, the maximum tax-break you can claim under these three sections can’t exceed Rs 1.5 lakh in a financial year.
The most common available tax breaks under section 80C are as follows:
a) Employees Provident Fund (EPF)
b) Public Provident Fund (PPF)
c) Investments in ELSS schemes of mutual funds: Check out this complete guide to investing in mutual funds for beginners in India.
d) Life insurance premium paid
e) National Pension System (NPS) etc.
Not only the above but home loan principal repayment, tuition fees paid for your children etc. are also eligible for tax benefits under section 80C.
7. Deductions under Section 80D to 80U
Apart from the sections mentioned above, there are certain expenses on which you can claim deductions under different sections of the Income tax Act.
For instance, health insurance premium is eligible for deduction under section 80D of the Act for maximum up to Rs 25,000 in a year if for a person below 60 years of age, and Rs. 30,000 if above 60 years of age. Moreover, if you have paid any interest on the education loan, you can claim deduction under section 80E. Also, there is no maximum limit on the amount of interest paid on the education loan.
8. Home Loan Statement from bank / NBFC
You need not freak out at the thought of paying taxes if you’re planning to buy a house. Interest repaid on the home loan can lower your tax liability under section 24. The maximum amount one can claim under section 24 is Rs 2 lakh. You will be required to provide the amount of interest repaid in the Income Tax Return (ITR) form along with the rental income earned from that house property, if any.
If the said house property is used for self-occupation purpose, then also you can claim deduction under section 24.
9. Capital Gains
If you are very much into investments, the government has its eye on you. For taxes, of course! If you have earned some capital gains from the sale of property and/ or mutual funds, then you will be required to report these gains in your Income Tax Return (ITR).
Note that equity shares and equity mutual funds sold on or before the end of the said financial year, after holding them for more than a year, will remain exempted from tax. From the start of the new financial year, the sale of equity shares and equity mutual funds, held for at least a year, will be chargeable at the rate of flat 10 percent if gain amount exceeds Rs 1 lakh. However, capital gains accrued till January 31, 2018 will be grandfathered as per the new rules.
10. Aadhaar Card
Lastly, providing Aadhaar details is compulsory to successfully file your Income Tax Return (ITR). If you have not received your Aadhaar card yet but have applied for it, then you would be required to provide an enrollment ID in your tax returns.
Income Tax Return filing can be a gruesome process doesn’t matter if you do it on your own or you take the help of a CA. But in either case, make sure that you have these ITR documents ready, before you get on with the process.
The last thing you’d want is to file incorrect returns.