banner

Income Tax Documents

Know about various income tax documents you need to file ITR.

#Income-Tax 100 Views 83 Shares
banner

Income Tax is the direct tax that Indian residents pay to the government based on their tax liability for each financial year. As per the Income Tax Act, 1961, it is mandatory to pay income tax based on the tax slab their income falls into. Filing the Income Tax Return (ITR) is crucial as it works as documented proof of income. However, every taxpayer on whom income tax is applicable is required to submit certain relevant income tax documents. 

Income Tax Documents Required to Claim Various Expenses as Deductions

There are various deductions which tend to reduce your tax liability. You can avail the deductions using income tax documents related to the tax-savings investments you have made or incurred eligible expenses.

Here are the related income tax documents you should keep at hand to claim various expenses as deductions:

1. Income tax documents related to your Provident Fund contribution

2. Life insurance premium payment receipts

3. Stamp-duty and registration charges paid

4. Principal repayment on a home loan

5. Equity Linked Savings Scheme investment proof to be used as one of the income tax documents

6. Self-contribution to National Pension Scheme (NPS)

Why Choose the Right ITR Form Max Life Insurance

Income Tax Documents Required to File ITR

The Income Tax department wants the taxpayers to provide a breakup of their gross salary income and income earned from other sources while filing the ITR. It is why both taxpayers and tax professionals tend to collect their income tax documents timely.

In general, it is a good practice to keep all the income tax documents required for ITR handy. 

Here is a list of income tax documents required for Income Tax Return e-filing:

1. Aadhar and PAN Card

Your Aadhar card and PAN card are two essential income tax documents required for ITR filing. Under Section 139AA of the Income Tax Act, every Indian taxpayer must provide his/her Aadhar card details while filing ITR.

2. Form 16

Form 16 is one of the most crucial income tax documents required by salaried individuals to file ITR. It is a TDS certificate issued by their employers to provide details on the TDS deducted on their salary.

What makes it one of the essential income tax documents is the details it carries, which include tax deducted from salary, employees’ PAN, employer’s PAN and TAN, and gross salary breakup. 

3. Salary Slips

For salaried taxpayers, their latest salary slips form a part of the income tax documents required for Income Tax Return e-filing. These slips provide information about House Rent Allowance, Transport Allowances, and other allowances which have different tax treatment.

4. Interest Certificates from Post Office and Banks

The interest you receive from a savings bank account, savings account in the post office, or Fixed Deposits (FDs) are taxable. Therefore, you must get interest certificates from the respective banks/post office, which will work as the income tax documents required to file ITR.

5. Tax-saving Investment Proofs

Under section 80C, 80CCC and 80CCD(1) during FY 2019-20, the tax-saving investments made by you can help in lowering the tax liability. The proofs of investments in Employee Provident Fund (EPF), Public Provident Fund (PPF) and Life Insurance, thus, form the part of income tax documents you need to file ITR.

With all the required income tax documents, the maximum deduction you can claim under these sections is Rs. 1.5 Lakh.

6. Health Insurance Premium Receipts

Apart from income tax documents related to the tax-saving investments, the health insurance premium paid during FY 2019-20 is eligible for deduction u/s 80D of the Income Tax Act.

The maximum deduction you can avail by using insurance receipts as income tax documents is Rs. 25,000 for yourself, spouse, and children. It increases to Rs. 50,000 if you also pay health insurance premium for your parents below 60 years of age.

Also Read: Tips to Conside Before Buying Health Insurance in India

7. Proofs of Capital Gains

If you have earned capital gains from your mutual funds/equity investments or sale of the property, the proof of these gains is to be used as income tax documents required for ITR.

The computation of capital gains required the following income tax documents:

a) Purchase/Sale deed for the sale of house property, land, or building

b) Statements from mutual fund houses or brokers involved 

What is Form 26AS?

Form 26AS is one of the most crucial income tax documents and has all the information of the taxes deposited against your PAN number. It is a certificate issued u/s 203 of the Income Tax Act to cover TDS deducted from income under the head ‘salary’.

To add Form 26AS to your stack of income tax documents, simply login to your account on:

www.incometaxindiaefiling.gov.in.

Other Investments-related Documents Required for Filing ITR

Apart from the income tax documents detailed above, here are some other investment documents required to file ITR:

a) Interests paid on home loan borrowed for a self-occupied house (eligible for tax-saving up to Rs. 2,00,000) 

Why Choose the Right ITR Form Max Life Insurance

Other Investments-related Documents Required for Filing ITR

Apart from the income tax documents detailed above, here are some other investment documents required to file ITR:

a) Interests paid on home loan borrowed for a self-occupied house (eligible for tax-saving up to Rs. 2,00,000)

Why Choose the Right ITR Form Max Life Insurance

b) Education loan interest payment receipts to be used with other income tax documents

c) Stock trading statement

Importance of Choosing the Right ITR Form

 

ITR form is a document using which the taxpayers file information about their income and tax payable. The Income Tax Department has issued seven different ITR forms for various income tax requirements, which are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7

Why Choose the Right ITR Form Max Life Insurance

Importance of Choosing the Right ITR Form

ITR form is a document using which the taxpayers file information about their income and tax payable. The Income Tax Department has issued seven different ITR forms for various income tax requirements, which are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7

Why Choose the Right ITR Form Max Life Insurance

While submitting various income tax documents required for ITR, it is crucial to choose the right form as well. Wrong selection of the form may get your return rejected, even though you have submitted all the required income tax documents.

As per income tax requirements, it is mandatory to file ITR in India with the required income tax documents if the gross annual income of a taxpayer is[2]as follows:

Age Group

Amount

Below 60 years

INR 2.5 Lakh

Between 60 to 80 years

INR 3.0 Lakh

Above 80 years

INR 5.0 Lakh

Hence, you must also know about different ITR forms while you start collecting income tax documents to file ITR.

By asking for Aadhar-PAN linking along with various income tax documents, the government also takes the initiative to curb black money.

Those who are yet to link their PAN with Aadhar must know that the deadline for Aadhar-PAN linking is June 30, 2020. PAN card, being one of the essential income tax documents may become inoperative otherwise.

FAQs About Income Tax Documents 

Q. Is it necessary to attach income tax documents while filing ITR?

A. The ITR you file is an annexure-less return, which means that no income tax documents are to be attached with it. The Income Tax Act says that you must have all the income tax documents in place for future references, particularly those in which you are asked to provide the proof or clarification about transactions mentioned in the ITR by an Assessing Officer.

Q. Will I get tax refund If I have paid more tax than my tax liability?

A. It often happens that taxpayers pay more tax than what they are liable for. It can be because of mistakes done while computing tax using various income tax documents. Similarly, failing to provide certain income tax documents to the employer leads to tax refund situations.

You can claim a refund of excess tax paid online and will get the amount credited to the linked bank account through ECS transfer facility.

Q. What precaution should I take while filing ITR?

A. You should take the following precautions while filing ITR:

· Keep all the income tax documents handy while computing your tax liability

· File the ITR before the due date

· Download Form 26AS and check the actual TDS deducted/paid to avoid any discrepancy

· Identify the correct ITR form to be filed

· Carefully study the income tax documents while filing the ITR

Q. Will I face any consequences by not filing ITR?

A. If you do not file ITR at all as peryour tax liability, you may face penalty and prosecution under the provisions defined in the Income Tax Act. Thus, it is crucial to collect all the income tax documents and file the ITR timely.

Q. One of my income tax documents was misplaced before. Am I allowed to file a revised return?

A. You can file a revised return at any time during the assessment year. Make sure you check various income tax documents correctly before revising the return.

Sources:

[1]: https://www.incometaxindia.gov.in/Pages/downloads/income-tax-return.aspx

[2]: https://www.indiabudget.gov.in/budgetglance.php

[3]: https://www.tin-nsdl.com/

[4]:https://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=act&cname=cmsid&cval=102120000000071816&searchfilter=%5B%7B%22crawledpropertykey%22:1,%22value%22:%22act%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:0,%22value%22:%22income-tax+act,+1961%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:29,%22value%22:%222018%22,%22searchoperand%22:2%7D%5D&k=&isdlg=0

[5]: https://www.incometaxindia.gov.in/Pages/faqs.aspx?k=FAQs%20on%20filing%20the%20return%20of%20income

ARN: Aug/Bg/27A

Calculate Term Insurance Premium