Documents you must keep handy to file income tax returns

The Income-Tax (I-T) Department nowadays provides pre-filled forms to make the filing of income-tax return (ITR) easier.

Nonetheless, you must have a number of documents handy at the time of filing return so that you can cross-check the data in the pre-filled form.

“Filing ITR doesn’t require you to upload any document. But in case an assessing officer makes an inquiry, you will need to present documents and certificates as proof,” says Deepak Jain, chief executive,

Form 16

Form 16 is provided to all salaried persons whose tax has been deducted by the employer.

It is a tax deducted at source (TDS) certificate stating the details of salary paid, tax deducted and deposited during the financial year.

Maneet Pal Singh, partner, I.P. Pasricha & Co says, “When an employee receives Form 16, she must check whether it is digitally signed, and if the employer has correctly filed all the details in Part A and B.”

Both the parts can be downloaded from the TRACES portal of the I-T Department.

Interest certificates

An interest certificate is a summary of the interest credited in an account.

It allows an account holder to ascertain how much interest she has earned on her balances in current and savings accounts, and fixed and recurring deposits.

Sandeep Bajaj, managing partner, PSL Advocates & Solicitors says, “If there is a tax liability on adding interest income to your total income, it must be paid on or before March 31 of the financial year.

“FD interest is fully taxable at the individual’s slab rate.”

Interest earned in the savings account up to Rs 10,000 is tax deductible under Section 80TTA.

If the interest income from all FDs with a bank is less than Rs 40,000 in a year, the bank can’t deduct TDS.

The limit is Rs 50,000 for senior citizens.

A portion of the interest income from EPF has also become taxable.

“If your contribution exceeds Rs 2.5 lakh, download the Employees Provident Fund (EPF) account statement from the EPF portal to verify the taxable component of interest,” says Singh.

Annual Information Statement

The Annual Information Statement (AIS) provides a more detailed view of the information contained in Form 26AS.

All the relevant information in the AIS gets pre-filled in the ITR form.

Bajaj says, “The AIS contains information on TDS, tax collected at source (TCS), 53 specified financial transactions (SFTs), other taxes paid, rent on plant and machinery, winnings from lottery, crossword puzzle or horse race, receipt of accumulated balance from provident fund (PF), interest from bonds, government securities, offshore funds, shares of Indian companies, insurance commission, and tax demand and refund, among others.”

It can be downloaded from the tax portal.

According to Suresh Surana, founder, RSM India, “Taxpayers must ensure that the details re­ported in the ITR are in line with the information in the AIS.

“If th­ere is any error in the AIS, or a particular income reflected in the AIS does not relate to her, she should report this online.”

Form 26AS

This statement consolidates and presents the amount of tax paid in a financial year by the assessee, and the amount to be refunded to her.

It is thus a single statement showing her tax liability.

It discloses the details of tax credit in the taxpayer’s account, including TDS, TCS, and tax paid by the taxpayer in other forms like advance tax, self-assessment tax, etc.

AIS provides more detailed information on the taxpayer’s income than Form 26AS. Surana adds, “The taxpayer must refer to and reconcile the income and other financial tra­n­saction details reflected in the AIS, Form 26AS, and the return of income for that period.”

Proof of tax-saving investment, expenditure

The taxpayer must gather the relevant proof of tax-saving investments and expenditures before filing ITR. Singh says, “An individual can claim deduction from tax-saving investments if she opts for the old tax regime at the time of filing ITR.”

Nikhil Varma, managing partner, Miglani Varma & Co-Advocates, Solicitors and Cons­ultants, says, “Taxpayers who are employed often prefer to submit their tax-saving investment and expenditure proof to their employers, to avoid paying higher TDS on their salary.

“Such proofs are recorded in Part B of Form 16 and then get reflected in the pre-filled ITR forms. In case you missed declaring any tax-saving proof, furnish it while filing ITR.”

Investments included under sections 80C, 80CCC and 80CCD(1), such as EPF, life insurance premium, etc are eligible for tax deduction.

Keep the documents related to these investments handy.

A person who has taken a home loan can claim a deduction of up to Rs 2 lakh under Section 24 of the I-T Act on interest paid on home loan.

Amay Jain, senior associate, Victoriam Legalis-Advocates & Solicitors, says, “Collect the previous year’s home loan statement from your bank to avail of this deduction.

“It provides the break-up of the principal and interest repaid to the bank.”

Capital gains from sale of property, shares, MFs

Taxpayers must also disclose the capital gains earned on the sale of property, shares or mutual funds at the time of filing ITR.

Varma says, “Individuals who have capital gains must file their returns either in ITR-2 or ITR-3, not ITR-1.”

He adds that computation of capital gains from the sale of house property requires the property’s sale deed.

The capital gains statement for mutual funds can be obtained from the fund house or the registrar’s office.

Gains from bitcoins must also be reported for 2021-22. Jain says, “Stock trades are also subject to capital gains, therefore obtain documentary proof for them as well.”

Provide details of all bank accounts, including those closed during  2021-22

For unlisted shares, keep documents handy to know the opening balance on April 1, 2021, cost of acqui­sition and closing balance as on March 31, 2022

Quote your Aadhaar number while filing ITR; also have PAN card handy

Salaried individuals must have salary slips ready in case their tax consultant asks for details of salary

Rental income needs to be disclosed in ITR, so preserve rent receipts

Details of dividend received from shares and mutual funds have to be submitted in ITR; get them from broker statement or demat account summary

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