List of required Documents for filing Income Tax Return in India

Thanks to technological evolution, the process of income tax return filing has become so easy that any taxpayer could file ITR at his own. Simply, he needs to login to his account on Income Tax Portal<<select ITR form applicable<<fill details<<submit form<<verify through OTP and it’s done…

Gone are the days when you had to visit the office of tax consultant, fill and submit return in paper format to Income Tax Department. But online filing of ITR has also brought some challenges and confusions for the taxpayers. Furnishing of incomplete or inaccurate details in the ITR might result in heavy penalties under Income Tax Act and you might end up losing your hard-earned money.  So, it becomes pertinent for every tax return filer to have all important documents beforehand he/she files ITR. 

Filing of ITR by an individual

If you are an individual and liable to file your income tax return, you should follow the following simple steps:

• Choose correct ITR form

Income Tax Department has issued various ITR forms [ITR-1 to ITR-7] for filing of ITR for various categories of taxpayers. Therefore, before filing ITR, selection of appropriate ITR form is most important. In case you are a salaried person, ITR-1 or ITR-2 will serve your purpose. 

• Linking Aadhar and PAN

Check whether your PAN and Aadhar is linked or not. If PAN-Aadhar is not linked, get it done first. The last date of linking PAN-Aadhar is 30th September, 2021. Non-linking of PAN-Aadhar will result in blocking of your PAN card by the Income Tax Department. 

How to link PAN and Aadhar

Step-I: Visit the Income Tax Portal clicking on the following link: https://www.incometax.gov.in/iec/foportal

Step-II: Click on “Link Aadhar” box on the Home Page

Step-III: A new window will open where you will be prompted to fill your PAN, Aadhar number, Name as per Aadhar and mobile number. Fill the details as appearing in the image below and click on “Link Aadhar” and your PAN-Aadhar is linked…

• Common Documents required for filing of Income Tax Return

There are certain common documents which should be in hand before filing of ITR whether you are a salaried employee or a business person. These are listed below:

• PAN Number 

• Aadhar Number 

• Form No. 26AS

• Bank Details- all saving and current accounts with their account numbers, Branch address and IFSC

• Advance Tax Payment Challans

• Documents needed for income tax return of salaried employees

If you are a salaried person, you need to arrange the following additional documents regarding your salary details apart from above common documents:

• Form-16 issued by the employer

• Filed Form-10E, if you have earned arrears of salary [Format Form 10E]

• Rent Receipts from landlord for claiming HRA exemption

You should also be aware that interest income received by you is also taxable. So, if you are getting interest or any other income, be sure to disclose it in ITR form. 

Documents related to interest and other income

• Saving Bank Passbook or Bank Statement- Saving Bank interest up to Rs. 10,000 is not taxable under section 80TTA

• Interest certificate from Bank or Post Office (if you are having Fixed Deposits with Bank or Post Office)

• Sukanya Samridhi Account Passbook (if you have opened account in the scheme)- Interest under Sukanya Samridhi Scheme is exempt from tax.

• PPF Passbook (for computing PPF Interest)- PPF interest though exempt need to be disclosed in ITR

Certainly, every taxpayer wants to get benefit of deductions allowed by the Income Tax Department. So, if you are intending to reduce your tax burden, get ready with the following documents…

Documents needed for claiming Income Tax Deductions

• Life Insurance Premium Payment Receipts

• Tuition/ School Fee Receipts of your kids

• Mutual Fund Statement if you have invested in tax saver mutual fund

• Tax saver Fixed Deposit Receipt

• Public Provident Fund (PPF) Passbook 

• National Saving Certificate (NSC)

• Housing Loan Repayment Certificate 

• Medical Insurance Premium Receipts- Read more: https://www.taxwink.com/blog/deduction-for-medical-insurance-premium-under-section-80d

• Donation receipt under section 80G (if you have made donation for any social cause)

• Receipt under section 80GGC for donation made to a political party

• Documents needed for filing of ITR of business persons

If you are a businessman, you need to gather all the documents mentioned above except Form No. 16 & Form No. 10E. Besides this, you must prepare the following other documents so that you are ready to file your ITR:

• Balance Sheet and Profit & Loss Account for the Financial Year (Audited if applicable)

• Details of TDS deducted during the year (Reconcile it with Form 26AS)

• Details of TCS during the year (Reconcile it with Form 26AS)

• GST Returns of the Financial Year (If registered under GST)

• Documents needed for calculation of capital gains

Not the least, if you have sold any property or shares or jewellery during the financial year, you might have to pay capital gains tax. For correct assessment of capital gains tax, you should keep in hand the following documents with you:

• Sale Deed of the property and its purchase deed

• Details of cost of improvement of the property

• Details of transfer expenses related to sale of the property

• Global Transactions Report in case of share transactions

• Share Brokers’ Ledger

• Sale and purchase invoice of jewellery 

Having done all this, you are ready for filing your income tax return. You need not attach any document with your ITR as the Income Tax Department does not ask for any document. But still, you should keep in safe custody the documents forming basis of your ITR. Friends, it is not a choice but a legal mandate. In case the Assessing Officer (AO) calls for any information in support of your ITR, you will be obliged to produce the relevant documents for his satisfaction.