The last date for filing the annual income tax return (ITR) for the financial year 2019-20 is July 31. It is mandatory for people to file tax returns if their gross total income (before allowing deductions under section 80C to 80U) exceeds Rs 2,50,000 in a financial year.
The limit is Rs 3,00,000 for senior citizens (more than 60 years old, but less than 80 years old) and Rs 5,00,000 for super-senior citizens (more than 80 years old). One can file his/her return involuntarily even if your income is less than the maximum exemption limit.
For filing income tax returns (offline or online), you need to keep handy the following documents:
1. Form 16
Form 16 is one of the most important documents for salaried persons. It is a certificate issued by the employer under Section 203 to validate the fact that TDS (tax deducted at source) has been deducted and deposited with the authorities on behalf of the employees.
2. Salary slips
Salaried taxpayers are also required to submit their salary slips to provide information on allowances such as house tent and transport allowance. It is important to remember that the tax amount is different for various allowances.
3. Interest certificates from banks and post offices
Interest certificates are issued by banks to provide information related to show the total amount of interest earned from savings bank account, post office savings account, fixed deposits and recurring deposits.
In the absence of an interest certificate, one can use the bank passport but must ensure it is updated.
4. Form 16A, Form 16B, Form 16C
If TDS is deducted on any income, besides the salary, over specified limit under the income tax law, then the bank will issue a Form 16A form to provide details of the amount of TDS deducted.
On the other hand, if you have sold a property, the buyer will issue a Form 16B to show the TDS deducted on the amount paid to you.
If you are a landlord and earning income from rent, the tenant will provide you with Form 16C to show the TDS deducted on the rent received by you.
5. Form 26AS
Form 26AS is basically a consolidated tax statement that carries information of all the taxes deducted against your PAN card. It carries the TDS deducted by the employer, banks (in certain cases), advance taxes, self-assessment taxes and taxes deducted by any other organisations for the payment made to you.
6. Tax-saving investment proofs
The tax-saving investments and expenditures incurred under section 80C, 80CCC and 80CCD(1) during the financial year 2018-19 can help reduce your tax liability. The maximum tax-break one can claim under these sections cannot exceed Rs 1.5 lakh in a financial year.
Besides investments, certain other expenditures can also provide tax benefits under section 80C.
7. Home loan statement
The home loan statement will help provide break-up details of principal and interest repayment. Interest repaid on the home loan can lower your tax liability by Rs 2 lakh under section 24.
8. Deductions under sections 80D and 80U
Besides the tax-savings investments and expenditures under 80C, there are certain other expenses on which you can claim deductions under other sections.
9. Capital gains
If you have earned some capital gains from the sale of a property and/or mutual funds, then you will be required to mention the same while filing ITR.
10. Aadhaar card
Providing Aadhaar details is mandatory under Section 139AA of the act. If you do not have one and have applied for it, then you will have to provide the enrolment id while filing the returns.