Come June and the annual ritual of filing income tax return begins in full swing. To aid your preparation, we have collated a list of documents and important information you may require to file your returns, that you must have ready now, to avoid last minute glitches. Read on:-
Before we begin, please make sure you have your Aadhaar details (Number/Enrollment ID) PAN details and primary bank account details (IFSC codes) with you. These details will have to be furnished by all taxpayers.
Form 16/Salary Certificate̥
If you are a salaried individual, Form 16 is probably the most important document you must have. Form 16 is issued annually by the employer to the employee as proof of salary paid and the TDS deducted on it. It is mandatory for the employer to give you Form-16 if TDS has been deducted from your salary. Form 16 contains two parts: Part A and Part B.
Part A has details of the tax deducted by the employer, your PAN details, and TAN of your employer. Part B has information regarding your gross salary break up, exempt allowances, etc.
For FY-2018-19 new Form 16 format has to be issued by the employee, as notified by the Central Board of Direct Taxes (CBDT) ( Effective 12 May 2019), where a clear breakup of all exemptions like LTA, HRA, etc will be stated. The detail of every allowance would have to be disclosed while filing ITR as well.
You can ask for a Form 16 even if no tax has been deducted on the salary in that year. Please remember to collect Form 16 from other employers as well if you have changed jobs within the financial year.
Please note: In the rare case, you do not have your Form 16, you can still file your returns using your salary slips.
Interest Certificate from Banks and Post Office
Interest certificates are issued by banks at the end of each financial year and contain details related to interest income from savings bank account, fixed deposits, and recurring deposits, details of which you would have to mention under “ income from other sources” head while filing your returns.
You can request for the interest certificate from the bank either online or by visiting the nearest branch.
If you have a post office savings account/RD account, you would be required to obtain an interest certificate from the post office branch.
In case the bank does not issue you the interest certificate, you are advised to keep your passbook updated as it will provide you the requisite information regarding interest credited to your account at the end of the financial year.
TDS is deducted if you receive income from interest on fixed deposits or recurring deposits above Rs 10,000. When TDS is deducted, the bank will issue you a form called Form 16A providing details of the amount deducted as TDS.
Similarly, if you sold your property, the property buyer has to deduct TDS on the amount paid to you and issue you Form 16B with the TDS details. On the other hand, if you are a landlord earning rental income more than Rs 50,000 you must ask your tenant to give your Form 16 C having details of the TDS deducted.
Now while these changes will be reflected in Form 26AS as well (discussed below),it is wise to cross check the particulars and preserve these documents.
Another very important document that you must have with you is Form 26AS. Consider Form 26AS as your entire tax passbook. It’s your consolidated tax statement, containing information of all taxes that have been deposited against your PAN.
This would include TDS deducted by your employer, TDS deducted by banks for the financial year if interest income on fixed deposits, recurring deposits exceed Rs 10,000, TDS deducted by any other organization who has made payments to you, details of advance tax paid by you during the concerned financial year, self-assessment tax paid by you if any and details of high-value transactions in shares, mutual funds, etc.
It is very important to check whether correct TDS is reflecting against your PAN in your Form 26AS and it matches with other TDS certificates. If there is a discrepancy you should immediately notify the deductor to make corrections, else you won’t be able to claim a tax credit against TDS.
To download/View your Form 26AS, follow the steps mentioned below:-
Visit the Income Tax e-filing website and log in using your Income Tax department Login and Password
Under the “ My Account“ Tab, select “ View Form 26 AS” from the drop-down. Click “Confirm” and you would be redirected to the TRACES website.
Once you have entered the TRACES website, tick the checkbox that pops-up on the screen and click on “ Proceed”.
Click on the link at the bottom of the page – ‘Click View Tax Credit (Form 26AS) to view your Form 26AS’.
Select the assessment year and the format in which you would want to see the Form 26AS. Select HTML if you want to view the form online. To download the form, enter the verification code and click on “ View/Download”
Form 26AS is password protected, to open the doc, the password is your DOB in DD/MM/YYYY format.
Tax Saving Investment Proofs and Deduction Details
If you have not been able to submit proofs of certain deductions, exemptions and tax saving investments ( HRA allowance or Section 80C, 80D, 80 E deductions, etc) to your employer, you can still claim relief under the aforementioned sections while filing your returns. Hence it is important to keep these details ready.
Home Loan Statement from Bank/NBFC
In case you have taken a home loan from a bank or NBFC, don’t forget to collect the home loan statement. The loan statement has details of the principal and interest amount paid by you.
You can claim relief up to Rs 2 Lakh on the interest repaid on the home loan ( Under Section 24) if you reside in the property. You can also claim exemption up to Rs 1.5 Lakh on principal repayment under Section 80 C.
Now ideally who should submit the home loan interest certificate to your employer as investment proof so that your TDS is adjusted accordingly and the details are reflected in your Form 16 subsequently.
However, if you haven’t, keeping this document handy becomes all the more important as you would be required to furnish details related to house property, in order to claim an exemption.
Details Regarding Capital Gains
A very important document, especially if you have capital gains from the sale of property or mutual funds, as you need to report the same while filing your returns. To compute long term or short term capital gains from the sale of house property, you would require the purchase deed and sale deed of the sold property. In case you have capital gains from selling mutual funds or shares, you would require a capital gains statement. Know how to fetch your capital gain statement here
Please note, this is not an exhaustive list of documents and you may be required to furnish more details as per your case. Please read carefully about the ITR form you are eligible to file and take professional help from a qualified Tax consultant in case you have doubts.
Disclaimer:The information related to tax filing presented in this blog post is general in nature. Please consult your tax advisor or CA for accurate tax filing advice related to your particular situation.