It’s that time of the year when you have to file income tax returns (ITR). Filing ITR is a very easy process, if you have all the documents ready. Let’s take a look at some of the documents required to file income tax returns.
PAN card issued by the Income Tax Department is mandatory to file Income Tax Returns (ITR). PAN card contains all your information such as Name, father's name, date of birth and the PAN number. Without the PAN card, you will not be able to file Income Tax Returns.
A salaried person should have salary slips to file ITR returns. Salary slip contains information such as taxpayers basic salary, TDS amount, deductions, dearness allowances, travel allowance, house rent allowance and other allowances. All these Information is required to file Income Tax Returns.
Form 16 is a document provided to employees by their employers. It is also called a TDS Certificate. This document contains all details of the employee's salary break-up and TDS deductions. TAN and PAN number of the employer is also included in this document. A salaried person should have this document to file ITR.
Form 26AS is the consolidated annual tax statement. This contains information of all the taxes that have been deposited against your PAN. Form 26AS can be downloaded from the TRACES website.
5. Interest certificate from Post offices and Banks
You are liable to pay taxes on interest received from the SB account, fixed deposits, recurring deposits and post office savings account. In case no TDS has not been deducted from the salary, you need to get the interest certificates from the banks or the post office.
Your tax liability can be reduced through investments and expenditure under Section 80C, 80CCC, 80CCD (1) of the I-T Act during the Financial Year 2017-18. The maximum deduction one can claim under these three sections, cannot exceed Rs 1.5 Lakh in a financial year. These investments include Public Provident Fund, Life insurance premium paid, National Pension Scheme, Employees Provident Fund, Investments in ELSS schemes of mutual funds and so on.
Along with Section 80C, you can also claim tax deductions under Section 80D to 80U, for the various qualified expenditures and investments you have made during the financial year. For instance, you can claim deduction up to 25,000 a year under Section 80D for health insurance premium paid for you +spouse +kids if you are under 60.
If you have made capital gains by selling a property or a mutual fund, you should document this while filing income tax returns.
Do not forget to take the loan statement, if you have availed home loans from any bank or financial institution. Loan statement gives the details of how much interest and principal have been paid by you. You can claim a deduction under Section 24 and Section 80C of the Income Tax Act, 1961 for interest payment and home loan principal repayment. You have to provide home loan statement for the same.
The individual is required to provide Aadhaar details to file income tax returns. It is a unique identification document issued by the Government of India.