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31

May - 2018

10 documents you need to file your income tax return

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The time has come for all of us to start filing our income tax returns. This year it becomes all the more important to file it on time as there is a penalty for missing the deadline. 


To make the process of filing your returns easier, it is always better to keep all the necessary documentary proof ready and handy. Without it, filing your return could be difficult. 

This year, the income tax department has asked taxpayers who file using ITR1 to provide break-up of the gross salary income and income earned from one house property during the FY 2017-18. This is why chartered accountants advise that you must collect all the documents related to income earned during the financial year to ensure that there are no mistakes made while filing ITR. 

Here are the 10 documents you must keep in handy while filing your ITR for FY 2017-18:

1. Form-16


If you are a salaried person, this is one of the most important documents for you to file your ITR. Abhishek Soni, CEO, tax2win.in, a tax-filing company, says "Form-16 is a TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any. It is mandatory for your employer to issue Form-16 if your employer has deducted TDS from your salary. If no TDS is deducted from your salary, then you can request your employer to provide you the same." 

This year, ITR form-1 requires salaried taxpayers to provide the salary break-up, having Form-16 makes it easier to get that information. 

2. Salary slips 

Apart from perquisites and profit in lieu of salary, salaried taxpayers are also required to provide information of allowances such as house rent allowance, transport allowance etc. that are taxable. 

You can find these details in your salary slips. From the salary slips, you can add each allowance received during the year and then calculate the taxability portion of it.

3. Interest certificates from banks and post office 

Interest received from savings bank account, post office savings account, fixed deposits and recurring deposits are taxable. Therefore, one must either get the interest certificates from the bank/s and/or post office branch to know the total interest earned, in case no TDS has been deducted. 

4. Form-16A/Form-16B/Form-16C 

If TDS deducted on the payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws, your bank (in this case) will issue you Form-16A providing you the details of the amount of TDS deducted. 

On the other hand, if you have sold your property, then the buyer will issue you Form-16B showing the TDS deducted on the amount paid to you. 

Soni adds, "If you are a landlord earning rental income, then you should ask your tenant to provide you Form-16C for providing the details of TDS deducted on the rent received by you." As per the current laws, an individual is required to deduct TDS if the monthly rent is more than Rs 50,000. Further, you can check 26AS also for the TDS details. 

5. Form 26AS 

Form 26AS is your consolidated annual tax statement. This is like your tax passbook which has information of all the taxes that has been deposited against your PAN. These include: 

a) TDS deducted by your employer, 

b) TDS deducted by banks if the interest income in FY 2017-18 exceeds Rs 10,000, 

c) TDS deducted by any other organisation for the payments that have been made to you, 

d) Advance taxes deposited by yourself during the FY 2017-18, 

6. Tax-saving investment proofs 

All the tax-saving investments and expenditures incurred by you under section 80C, 80CCC and 80CCD(1) during FY2017-18 can help you lower your tax liability. The maximum tax-break you can claim under these three sections cannot exceed Rs 1.5 lakh in a financial year. 

The most common available tax breaks under section 80C are as follows: 

a) Employees Provident Fund (EPF) 

b) Public Provident Fund (PPF) 

c) Investments in ELSS sch .. 

d) Life insurance premium paid 

e) National Pension System (NPS) etc. 

7. Deductions under section 80D to 80U 

Apart from tax-saving investments and expenditures under section 80C, there are certain expenses on which you can claim deductions under different sections of the Income-tax Act. For instance, health insurance premium paid in the FY 2017-18 is eligible for deduction under section 80D of the Act for maximum up to Rs 25,000 in a year. 

8. Home loan statement from bank/NBFC 

If you have taken a home loan from a bank or any other financial institution, don't forget to collect the loan statement. It will provide you the break-up details of how much principal and interest has been repaid by you. 

9. Capital gains 

If you have earned some capital gains from the sale of property and/ or mutual funds, then you will be required to report these gains in your ITR. 

10. Aadhaar card 

Providing Aadhaar details is mandatory to successfully file your ITR. According to section 139AA of the Income-tax Act, an individual is required to provide his/her Aadhaar details while filing the return of your income. 

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