Documents Required for Filing Income Tax Returns in India
Income tax returns filing is an important financial obligation for all. While the process is easy, not many people know the various documents required to file the returns, and they often tend to commit errors in their filing. Read on to know more about the critical documents required for filing ITR in India.
Before you undertake any important task, you must take necessary precautionary measures to avoid committing errors. While the mistakes may happen, being adequately prepared can save you from committing common errors. Before filing your Income Tax Returns or ITR, you must collect all the necessary documents for easy speedy and correct filing. Let us look at some of the important documents required for income tax return filing.
For all salaried employees, who TDS is deducted from the salary by the employer must get Form 16 from the employer. This form shows details of the total salary you have earned in a financial year as well as the tax deductions and exemptions you are applicable for that year. If you do not fall under the tax bracket, the employee will not deduct any tax from your salary. In this case, you must ask the employer to provide you with a salary certificate. If you switch job in the mid of a financial year, you must get form 16 from both your new and previous employers.
Form 16 A
It is a document that records details of taxes that are deducted at source other than your employer. The banks and other financial institutions usually deduct the tax for the interest or any commission you may earn in a fiscal year. You can collect this form from the respective bank or the institution that has deducted the tax.
The Permanent Account Number or PAN is one of the most important documents you must keep handy when filing your returns. It acts as your proof of identity, and it must be mentioned in your ITR form.
Earlier it was mandatory to link the PAN Card with the Aadhaar card. But, recently, the Supreme Court of India has issued a stay order on the Aadhaar and PAN linking mandate. However, you should keep the Aadhar ready as you may require to provide your Aadhar number in the ITR form. Aadhar makes the e-verification process simple as you would have to enter an OTP (one-time-password) sent you on the mobile phone that is registered with Aadhaar.
If you work in a government organisation, you may be entitled to receive pension post-retirement. The pension is treated as an income, and therefore, it is taxable. You must collect the pension certificate from the payment bank and keep it ready while filing ITR.
Interest certificate from the post office and bank
If you have invested in any of the post office investment or savings scheme or a bank fixed deposit or recurring deposit, the interest you receive on these investments is taxable. Therefore, you must get an interest certificate from the bank or the post office branch to know exactly how much interest you have earned in a year and know if any TDS has been deducted.
If you do not get the interest certificate, make sure that your passbook is updated and it shows the details of the interest credited in your account. While filing ITR, you can claim for deduction on the interest received from the savings bank account under Section 80TTA.
Home loan-related statements
If you have availed a home loan, you must collect a statement of loan from the lender. It allows you to know the deduction you can claim in the principal and the interest amount repaid based on the break-up provided in the statement. You can request for a deduction on the principal amount under Section 80C and deduction on the interest can be claimed under Section 24.
The list of documents mentioned above is not comprehensive. These are just some of the most common documents that everyone must have while filing ITR.