The Government of India provides taxpayers with ample time to compile their documents, such as bank statements, salary/income details, and previous year’s tax statements. This is important for the hassle-free filing of Income Tax Returns in India. To make the filing process smoother, this article provides the checklist of the most important documents required for ITR filing. These documents should be gathered and made ready before starting the ITR filing process.
PAN Card
For ITR filing in India, this is the most important prerequisite. The name on your PAN card must match the name provided in your ITR. PAN is used for TDS deduction and must be linked to your bank account for direct credit of tax refunds. The Income Tax Department issues PAN and salaried employees can find their PAN numbers on various documents, including PAN cards, Form 26AS, Form 16, Form 12BB, etc. According to a recent government amendment, taxpayers can also now file ITR with their Aadhaar number instead of PAN.
Aadhar Card
When filing tax returns, individuals are required to provide their Aadhaar card information as per Section 139AA of the Income Tax Act. If you have applied for your Aadhaar card but haven’t received it yet, you need to mention the enrolment ID in your IT returns. Linking your PAN and Aadhar enables you to verify your income tax return online using an OTP. UIDAI issues the Aadhar card. If you have misplaced or cannot locate your Aadhar card, you can easily download it online.
Form 16
This form includes information about the employee’s salary and the deducted TDS amount. Form 16 is divided into two parts, namely Part A and Part B. Part-A of the document shows the employer’s PAN and TAN details, as well as the amount of tax deducted during the financial year. Part B of the form includes TDS calculations such as gross salary breakdown, exempted allowances, and perquisites.
Bank Account Details
You must include information about all your current bank accounts in your ITR. You need to mention your bank name, account number, IFSC code, and the number of accounts you have while filing ITR. You need to choose one account as your primary account for receiving your tax refund through electronic transfer. This will help the Income Tax Department to process your refund quickly and efficiently. Your bank information is utilized to verify your income statements and monitor high-volume transactions. You can find these details easily from your bank passbook, chequebook, statement, or net banking account.
Form 26AS
Form 26AS is an annual tax statement, similar to a tax passbook. It contains details of all taxes deposited against an individual’s PAN. This includes TDS deducted by banks, employers, and other organizations from payments made by the individual. The statement also includes advance taxes deposited by the individual and self-assessment taxes paid by the individual.
Home Loan Statement
The loan statement shows borrowers the principal and interest they need to repay. You may require breakup information as evidence and for tax purposes when filing your income tax returns. If someone has a home loan from a bank or other financial institution, they should get their statement from the previous fiscal year.
Tax Saving Instruments
Make sure to keep all the necessary documents handy while ITR filing if you have invested in tax-saving schemes such as tax-saving FDs, ELSS, investment receipts, etc.
Capital Gains Details
Selling shares, securities, or property can lead to either capital gains or losses. To accomplish this, you will require documents such as broker statements and property sale deeds.
Rental Income
If you make money from your home or property, you need to report it when you file your ITR. Remember to ask your landlord for rent receipts if you’re paying rent. You don’t need to attach these documents with your ITR, but it’s a good idea to keep them safe in case you need to provide them to your employer or the Income Tax Department later on.
Foreign Income
If you earned income in a foreign country, whether it was during a job or just part of the year, make sure to provide your tax consultant with the necessary documents. This will help you claim tax credits and DTAA benefits. You should coordinate with your employer or contractor to gather the necessary paperwork for any income earned abroad.
Dividend Income
When you file your income tax return, remember to report any dividend income earned from your investments in shares or mutual funds. You can find information about the dividends you earned in the financial year by checking your broker statement or Demat account summary.
ITR filing is an important aspect of managing one’s finances for all taxpayers. Preparing all the required documents beforehand is crucial to avoid any last-minute difficulties while filing ITR. You need to have the ten documents mentioned above ready before filing your ITR. They are mandatory and essential for the process.
