Income Tax is a direct tax that Indian residents are required to pay to the government based on their tax liability for each financial year. Filing the Income Tax Return (ITR) is not only a legal requirement but also serves as documented proof of income. To proceed with the task of filing, there are certain general and specific documents that every taxpayer should have in order to submit accurate information. Let's explore the essential documents required for filing income tax returns in India.
General Documents Required
1. PAN Number
A Permanent Account Number (PAN) is a unique identification number assigned to each taxpayer. It is mandatory to have a PAN for filing income tax returns.
2. Aadhaar Number
An Aadhaar card is another crucial document required for income tax filing. Linking your Aadhaar number with your PAN is mandatory.
3. Bank Account Details
You need to provide details of all your bank accounts, including the account numbers and IFSC codes while filing your income tax returns.
4. TDS Certificates
Tax Deducted at Source (TDS) certificates, such as Form 16 (for salary income) and Form 16A (for other income), are provided by the deductor. Additionally, Form 26AS, which reflects the TDS details as per the records of the Income Tax Department, is also required.
5. Tax Payment Challans
If you have made any tax payments during the financial year, you should keep the challans or payment receipts as proof.
6. Investment Proof
To claim deductions under various sections such as 80C, 80D, 80E, and 80TTA, you need to provide investment proofs such as insurance premium receipts, home loan interest certificates, medical bills, and other relevant documents.
Documents Required for Salary Income
1. Form 16/Salary Certificate
Form 16 is provided by employers to salaried employees at the end of the financial year. This salary certificate contains details of the salary paid, deductions, and taxes deducted. If you have multiple jobs, you need to consider all Form 16s for tax filing.
2. Pension Certificate
If you receive a pension, it is considered a part of your salary and is taxable. Therefore, you should keep your pension certificate handy.
3. Arrears in Salary
If you have received arrears in salary, the taxes due will be higher, and you need to fill out Form 10E to report it.
4. Full and Final Settlement
In case you have changed jobs, the full and final settlement from your previous employer is required for salary computation.
5. Rent Agreement/Receipts
If you want to claim House Rent Allowance (HRA), you need to provide rent receipts or a rent agreement, especially if your employer hasn't considered it. The income tax authorities may require these documents to approve the claim.
6. Withdrawn PF
If you have withdrawn your Provident Fund (PF) in dire situations, the withdrawn amount is taxable, and you should keep the necessary documents for tax filing.
7. Gratuity/Leave Encashment
Maintain records of leave encashment and gratuity to accurately reflect these amounts in your total income for the financial year.
8. Foreign Salary Slips
If you are a resident of India and have earned income abroad, you need to provide details of your foreign salary.
9. Foreign Tax Returns
To claim foreign tax relief, you should furnish Form 67 along with foreign income proofs, such as salary slips and filed foreign tax returns.
10. Joining Bonus/Relocation Bonus
If you have received a joining or relocation bonus from your employer, it is important to include it in your tax calculations.
11. Interest Income and Other Interest Certificates
You need to provide a breakup of the interest income earned from different sources, such as fixed deposits and savings accounts. Collect interest certificates from banks, post offices, and other financial institutions. If certificates are not available, you can refer to your updated bank passbook(s) to report the correct income details in your ITR and claim tax deductions and exemptions.
12. Capital Gains Documents
If you have earned capital gains from the sale of assets, such as shares or mutual funds, it is mandatory to declare both short-term and long-term capital gains while filing your tax return. Even if these assets are tax-exempt, they should be mentioned in your return.
Final Thoughts
These are some of the essential documents required for filing income tax returns in India. It's important to maintain proper records and gather all the necessary documents to ensure accurate and timely filing. By complying with the tax regulations and providing the required documents, you can fulfill your tax obligations and avoid any penalties or legal complications. Please note that this list may not be exhaustive, and depending on your specific situation, you may need to provide additional information. If you have any doubts, we recommend seeking advice from a qualified tax consultant.
The author is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
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