Keep in mind that the new tax filing portal is facing several technical issues, due to which you should check the details already filled in the ITR form. Let us know the documents that you should keep before filing your ITR.
Income Tax Return Filing: To ease the process of filing Income Tax Return (ITR), it is important to keep all the required documents with you. Most of the salaried taxpayers use the ITR-1 form. And most of the information in it is pre-filled.
The data in ITR-1 is pre-filled even in the newly launched e-filing portal of the government. However, keep in mind that the new tax filing portal is facing several technical issues, due to which you should check the details already filled in the ITR form. Let us know the documents that you should keep before filing your ITR.
1. Form 16
Form 16 is a TDS certificate, which is issued to you by the employer and in it the details of the full salary paid to you are given. It also deducts tax on it. Keep in mind that it is mandatory for an employer to issue Form 16 if tax has been deducted on your salary during the financial year. If no TDS has been deducted from your salary, you can request your employer to give you Form 16.
On receiving Form 16, check that the PAN given on it is yours. If there is any mistake in this, then you must inform your employer about it. Your employer will rectify the mistakes in Form 16 and issue a revised form.
2. Interest Income and TDS Certificate/ Form 16A from Banks and Post Office
In the latest ITR form, the individual is asked to give a break-up of the interest income received from different sources. These include savings accounts, fixed deposits, etc. Therefore, it is important that you collect your certificate of interest at banks and post offices to get an idea of the total amount received on savings accounts and fixed deposits during the financial year. Apart from this, also update and check your bank passbook for the financial year, so that you can get information about any other income, such as interest from RBI bonds, PPF interest etc.
If tax is deducted on interest earned from fixed deposits, then you will also need to obtain Form 16A/TDS certificate from the deductor ie bank.
3. TDS certificate from second income
If you have sold a property during the financial year, the buyer will issue you Form 16B, which will show you the TDS deducted on the amount paid. Apart from this, if you are a landlord, then you should ask your tenant to give Form 16C, so that the details of TDS deducted on the rent received by you. As per the existing law, if the monthly rent is more than Rs 50,000, then the person has to deduct TDS, apart from this you can also check Form 26AS for TDS details.
Apart from this, if the payment is more than Rs 50 lakh, then Form 16D is issued to the contractor or professional, which is a TDS certificate. Tax is deducted at the time of payment of commission, brokerage, contractual payment or profession fee.
4. Form 26AS
Form 26AS is your consolidated annual tax statement. This is a kind of your tax passbook, which contains all the tax information deposited against your PAN. These include TDS deducted by the employer, TDS deducted by banks, TDS deducted by any other entity on payments made to you, advance tax deposited by you and self assessment tax paid by you.
5. Proof of Tax Saving Investments
If you are continuing with the old tax regime, then you should keep all the documents related to your eligible investments and expenses during the financial year 2020-21 ready. If you have submitted tax saving proof related to section 80C, section 80D and HRA exemption etc., then these details will appear in Form 16. However, if you have not declared any tax saving proof, it can be claimed at the time of filing ITR.
Deduction can be claimed under section 80D on health insurance premiums paid in a financial year. Hence, keep the receipt of premium with you. If you have taken a loan from any bank or financial institution, then keep the loan statement with you.
6. Capital Gains
If you have earned capital gains from the sale of property or mutual funds or equity shares, then you have to declare the profit in ITR. To calculate capital gains, you will need a purchase or sale document. In case of capital gains on sale of mutual funds, one would need a statement from the mutual funds house or broker.
7. Aadhaar Number
At the time of filing ITR, the person has to mention his Aadhaar number as well. If you do not have your Aadhaar number yet, you will have to provide the Enrollment ID in your ITR form.
8. Details of Investment in Unlisted Shares
If you had unlisted shares during the financial year, you will have to declare it in your ITR. In this case, keep in mind that you cannot file tax return using ITR-1, if your sources of income are salary and interest earned on bank account, in that case also, you have to file ITR-2. will have to be used.
9. Bank Account Details
It is also necessary for the person to give his bank account details. Even if you have closed your account during the financial year, you will still have to fill the same in your ITR. You have to provide your bank name, account type and IFS code.
