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Documents Required for Filing ITR

E-filing ITR is a duty for all wage-earners in India, and it is mandatory for those whose gross income has crossed the threshold of income tax slab (above 2.5 lakh). As per the national budget passed in 2019, individuals with a net taxable income of up to Rs 5 lakhs can claim a tax rebate under section 87A of the IT Act, which implies zero tax paid.

Even if you don't come under the taxable income range, filing ITR has a plethora of benefits that you can enjoy only after going through the process. However, for e-filing ITR, there are certain documents that you need to collect and keep handy.

Pile of Folders

So, let's delve into the intricacies of the documents that are necessary for filing your income tax return:

Form-16

Form-16 is one of the essential documents to e-file ITR for a salaried person. The employer issues Form-16 to provide a break-up of the salary paid to you and the amount of TDS deducted on it. It is mandatory for your employer to give your Form-16 to you if he/she has deducted TDS from your salary.

Form-16 consists of Part-A and Part-B:

  • Part-A includes the details of the tax deducted by your employer during a financial year along with your PAN information and the TAN of your employer.

  • Part-B shows the break-up of your salary structure, listing your allowances, perquisites, and profits.

Three variants of Form-16: A, B, and C

Form 16A: While Form 16 is for salaried individuals and is applicable only to the salary drawn from a full-time employment, Form 16A applies to other sources of income. If TDS has been deducted on the interest received from fixed deposits and recurring deposits during a financial year, then you can ask your bank to issue Form-16A to you. Similarly, if you have earned from freelance projects that have been subjected to TDS deductions, you would have to get Form 16A from the remitter.

Form 16B: Form 16B is applicable to income from the sale of property. In case you have sold your property, then ask the buyer to issue you Form-16B specifying the TDS deducted on the paid amount.

Form 16C: Income from rent is associated with Form 16C. If you are a landlord earning rental income, then ask your tenant to provide Form-16C containing the details of TDS deducted on the rent received by you.

Salary Slips

Your salary slip is contains your salary structure, and it plays a crucial role in determining the components of your salary that are taxable. The union budget in 2018-19 made several changes to the tax rules, including the standard deduction being raised to Rs 40,000 for salaried employees in place of the deductions for medical reimbursements and travel allowance.

Tax-saving Investment Proof

All your tax-saving investments - such as Employee Provident Fund, PPF, Mutual funds, premium paid for life insurance, National Pension Scheme, etc. - and expenditures - such as home loan principal repayment, child's tuition fee, etc. - that you have made under section 80C, 80CCC and 80CCD(1) in a financial year can help in reducing your tax liability.  However, the maximum amount to claim under these three sections cannot exceed Rs 1.5 lakh. You’d be needing document proof for all such investments that you wish to claim.

Form 26AS

It is a consolidated tax passbook that encompasses the information of all the taxes that have been deducted in a financial year such as TDS deducted by the employer, banks, financial institutions, and other organizations, for the payments that you have received.

Deductions under Section 80D - 80U

There are expenses on which you can claim deductions under numerous sections of the Income Tax Act. For instance - health insurance premium paid in a financial year is eligible for a maximum deduction of Rs.25,000 under section 80D of the income tax act. Receipts for all such deductions are required for filing ITR.

Home Loan Statements from Bank or NBFC

If you have an active home loan from a bank or any other financial institution, then don't forget to ask for the loan statement containing the break-up of principal and interest that you are paying. The interest repaid on the home loan can reduce your tax liability to a maximum of Rs.2 lakhs under section 24.

Capital Gains

If you have earned capital gains from property sale or mutual funds or elsewhere, then you should report these gains in your Income Tax Return file attaching the sale deed or statements.

Aadhaar card

As per section 139AA of the Income-tax Act, it is mandatory to provide your aadhaar card details to successfully file your ITR.

Interest Certificates Received from Savings

The interest that you receive on a savings bank account, post office savings account, fixed deposits, and recurring deposits are taxable. Hence, you need the interest certificates from the bank or post office to file your ITR.

In a Nutshell...

Now that you have a comprehensive list of documents that you need to e-file ITR, then don't wait for the deadline. File your ITR smoothly with us.

Check out our e-filing tool and file your income tax returns with us before the deadline knocks at your door. Happy Tax Filing!


 

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