Filing income tax returns (ITRs) is mandatory for individuals with an annual income above Rs. 2.5 lakh. Even if your annual income is below Rs. 2.5 lakh, it is advisable to file your returns as it can come handy during various financial transactions.
If you are amongst those who have joined the job market in the previous financial year, this may be the first time for you to file the returns. As a first step, make yourself aware about the required details while filing the tax return. This will not only save time but will also protect you from unnecessary hassles.
The deadline for filing ITR for FY18 is July 31, 2018 and so it is important to keep the below listed documents handy forhassle free tax filing.
PAN : The unique Permanent Account Number or generally known as PAN Card issued by the Income Tax (IT) Department is the most important document you need to keep handy before filing tax return. This is your financial identity card registered with I-T Department.
Aadhaar : The unique 12 digit Aadhaar number or Unique Identity Number (UID) is mandatory for filing ITR. If your Aadhaar and PAN are linked you may not need this. In fact after filing your returns, e-verification can be done easily using an Aadhaar-generated OTP, but make sure your registered mobile number is linked with your Aadhaar.
Form 16 And Salary Slip:
This is a company generated TDS (Tax Deducted at Source) certificate which you as an employee from your employer within a quarter from the end of every financial year. Generally, by June all employers provide Form 16 where the entire details of your income, taxable income, tax saving investments, deducted tax amount and the deposit of the same to government’s exchequer, among others, is certified.
If you don’t have income from any other sources but your employer, Form 16 along with PAN, Aadhaar and Bank Account are all you need to file your return.
Similarly, your salary slip will give details about the break-up of allowances including HRA, transport allowance and so forth.
This is another important document that is needed while filing returns. This gives details about the tax you have paid to the government. All TDS deductions, including investment and saving related ones are reflected in Form 26AS. It also comes handy if you don’t get Form 16 from your employer for some reason.
You need to keep all your investment details throughout the previous financial year to file ITR. These include your insurance premiums – life or health, public provident fund (PPF), Unit Linked Insurance Plans (ULIPs), National Saving Certificates (NSCs) and tax saving mutual fund investments or ELSS, among others. You can generate the online statements of many of these investments.
Home Loan Details
In case you have a home loan, you need to have loan certificates from your bank ready. It provides the details of your loan and the interest payment of the assessment year. You can avail tax deductions upto Rs 2 lakh for interest paid against your Home Loan under section 24 and the benefit of principal repayment up to Rs 1.5 lakh under section 80(C).
Capital Gain Details
You will be required to report all capital gains/losses during the financial year while filing the ITR. If you have earned capital gains from avenues like selling the property or Mutual Fund investments, it needs to reported in the ITR. You also need to report any dividend earnings from MFs, even though income earned through dividends is tax-free upto Rs 10 lakh.
The writer is CEO, BankBazaar.com.