Income Tax Return (ITR) Filing 2019-20: Filing income tax returns (ITRs) are necessary for every taxpayer in India. It is advised that a salaried person should file his/her return even if he/she does not fall under the tax slab. Moreover, the ITR is a necessary document for those seeking a home loan or a car loan.
However, it can be a little stressful when you are filing your ITR for the first time. Even though this year there is time to file income tax returns however, it is very important to keep all the documents ready to avoid any last-minute hiccups. Earlier this week we discussed how we can file ITR online and today we look at the documents which are necessary for filing an ITR.
What are the list of documents that are required for filing income tax return (ITR)?
1. Form 16
For all salaried individuals, Form 16 is the most important document for filing the ITR. This document is issued by the employer to its employees. It is a mandatory document and every employer is liable to issue Form 16 to all its employees from whom income tax has deducted from their salaries. It is a tax deducted at source (TDS) certificate and carries the details of the salary paid to the employee and their TDS.
Now what you must know about Form 16 is that it consists of two parts – Part A and B. Part A is the portion that consists of the income tax deducted by the employer in the financial year. Separately, it has the Permanent Account Number (PAN) details of the employee and the Tax Deduction Account Number (TAN) of the employer. Part B of Form 16 includes the break-up information of the employee’s gross salary.
2. Certificates related to interest income
Apart from the income from salary, an individual gets income from various interest investments such as savings account deposits and fixed deposits from banks and post office. These financial institutions provide interest certificates/bank statements to their depositors for the same. An individual can claim deduction under section 80TTA of the Income Tax Act up to Rs 10,000 on the interest earned from their savings account held with a bank/post office.
3. Tax Saving Investments
Those individuals who could not submit their tax-saving investments to their employers during the stated period in the previous financial year will now have to submit the proof of the same directly to the Income Tax (I-T) Department for claiming tax deductions.
These include receipt of life insurance (LIC) premium paid, receipt of medical insurance, Public Provident Fund (PPF) passbook, 5-year FD receipts, mutual funds investment (ELSS), home loan repayment certificate/statement, donation paid receipt, tuition fee paid receipt etc.
4. Form 26AS
Form 26AS is an annual consolidated tax statement generated by the Income Tax Department. It can easily be accessed from the income-tax website by all taxpayers using their PAN. It contains the amount of the TDS of the salaried class and taxes paid during the financial year (in case of self-employed or businessmen).
While filing the ITR, taxpayers can refer to their Form 26AS and tally it with their Form 16 for the amount of taxes they paid to the treasury of the central government.
Last month, the government introduced an improved Form 26AS which would carry some additional details of an individual’s financial transactions specified in the Statement of Financial Transactions (SFTs) in various categories.
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