10 Documents That Are Required To File Income Tax Returns In India

As 31^st July approaches, everyone scrambles around to get income tax-ready. While some might be excited to file their income tax for the refund they could be eligible for, many people begin fretting about paying their taxes. Another reason why people get uneasy about income tax filing is the assumed complication revolved around this process. Filing your income tax before the end of July is a mandatory activity and missing the due date could result in a monetary penalty.   

You can’t forgo your tax liability, but you can do something to ease this process. Having the required documents at hand to file your income tax can help your chartered accountant process the filing of your income tax quickly.

Here is the list of documents needed to file income tax return:

Common Documents

Whether you are self-employed or a salaried person, there are some general documents required to file your Income Tax Returns (ITR). Keep a set of these documents ready.

· Aadhaar Card

Aadhaar is a unique identification document issued by the government to every citizen. It carries your name, date of birth, address and a 12-digit unique number called the Aadhaar number. It is considered one of the most important documents for identification and that’s why it is mandatory when filing your ITR. You can also get aadhar card download and use when filing your Income Tax Return (ITR).

· PAN Card

Just like your Aadhaar card, the Permanent Account Number (PAN) card is required for all your tax-related information. The PAN number acts as a user ID when e-filling your ITR. However, you also need to keep a physical copy of the PAN card around too when submitting your documents.

· Bank Account Statements

Your bank account statements carry a record of all your transactions. This could be used to calculate your overall income and tax liability on it. Keep an eye for any high-value transactions in your account as you might have to report it.

Form 16

Form 16 is also known as a salary certificate. An employer issues it to every employee. This document contains details like salary paid, tax deducted at source, deductions, exemptions etc. You will need the Form 16 from companies that give you a salary for the financial year you have been filling your income tax. If you’ve switched jobs during the year, you will need Form 16 from your previous employer too. If you don’t have one in time, keep the salary slip at hand to present your income for taxation.

Form 16A

Form 16A offers details of all the TDS certificates on incomes that are not salary incomes. This is important to people doing project-based work like freelancers and self-employed individuals. A Form 16A is also issued by your bank for TDS deducted from your income on interest received from fixed deposit, recurring deposit etc. It is proof of the tax deducted by the clients on the payment.    

Form 16B

If you’ve sold a property in the financial year you have filed your ITR, then the buyer must issue you a Form 16B showing the TDS deducted on the amount paid to you.

Form 16C

If you’ve been receiving rental income for your property, your tenant needs to provide you with Form 16C. This gives details of TDS deducted on the rent received by you.

Form 26AS

Form 26A is an auto-generated annual tax statement released by the Income Tax Department. It is like a tax passbook that contains all information about taxes deposited against your PAN. You can download your Form 26A from the TRACES portal of the IT Department.

Tax-saving Investment Proofs

Investments like PPF, EPF, ELSS, NPS, life insurance premium etc. can be used to claim deductions under Section 80C, 80CCC and 80CCD(1). You can claim tax breaks of up to Rs. 1.5 lakhs for the financial year you have filed your returns. You will need documentation proof of all investments when filing ITR to claim appropriate deductions.  

Documentation Proof for Deductions Under Other Sections

Other than deductions on investments claimed under Section 80C, you can also claim deductions under Section 80D to 80U for various reasons like health insurance paid, education loan etc. You can also claim deductions on a home loan under Section 24.

Summary

Paying tax is a responsibility every citizen earning an income has to undergo. This money is used by the government for the welfare of the nation. It goes towards funding infrastructure development, paying salaries of government workers etc. As much as you think of taxes as a bother to your personal finance, it is the duty of every citizen to pay taxes to the government. The government in turn recognises your contribution and offers a range of benefits to the taxpayers.  

If you file your taxes correctly, with all the relevant documents, you stand a chance to gain some returns out of it or claim deductions on instruments such as investments and home loans. In spite of the fact that personal loans cannot get you a tax benefit, other types of loans can help you in deducting taxes. These include, interest paid on property mortgages, student loans and home loans. Availing any of these loans can essentially bring down your taxable income for the year. However, it is important to note that one would need to meet specific criteria to obtain tax deductions.