With the Covid-19 Pandemic, we are all facing major life changes and chaos. Getting things done requires an organised approach more than ever now! One of these things is your Income Tax Return Filing. The Income Tax Department has provided an extension for return filing on account of the pandemic to provide some relief to the people. This year the deadline for filing your Income Tax Returns has been extended to 30th November 2020 from its usual date of 31st July of the Assessment Year.
We’ve compiled a list of documents to keep ready for a smoother return filing experience. Keep them in hand before you start filling your return and you won’t need to run around for last-minute adjustments or information.
Form 16 is one of the most important documents to have in hand when filing the return for a salaried individual. Form 16 is a certificate provided by your employer which acts as a verification for TDS on your income.
Form 16 includes a detailed break-down of your salary structure (along with perquisites), any deduction details which you have provided to your employer, and the tax deducted on such income.
Having your Form 16 in hand while filing can help speed up the filing process massively as the tax calculations and income calculations are given as in the ITR Forms. You can use Form 16 as an absolute reference while filling in your salary data.
Your 26AS is one of the most important documents to have in hand when filing your ITR. It is a form that shows the TDS deducted by all the people who have made payments to you during the year. It serves as a document that shows all the sources of income you have received, the amount of such income, and the tax deducted on such income.
You can download your 26AS from the TRACES Website. While filing the return, ensure that Tax actually deducted from your income matches the 26AS and that the numbers you disclose in your ITR match with your 26AS.
This form is issued by your bank for TDS Deductions on Interest Income (e.g. Interest on Fixed Deposits with the bank).
In case you’ve sold any real estate or any property during the FY, the buyer would have made payment to you after deducting the tax amount. The buyer will then provide you with a copy of Form 16B which indicates the TDS on sale of your property.
Form 16C is generally provided by tenants to their landlords for TDS Deductions made at the time of paying rent to the landlord. Landlords must ensure that they collect the same from their tenants if the monthly rental exceeds Rs. 50,000.
Proof of Tax-Saving Options:
Everyone looks to avail of the deductions provided under the Income Tax Law to reduce their taxable income and subsequently their tax liability. While it is generally not demanded while filing your ITR, it best to keep in hand the proof of such payments. This ensures the accuracy of amounts as well as convenience in case the proof is required. Examples of such documents include:
Investment Receipts under section 80C, 80D, and 80E
Insurance Premium Payment Receipts
Health Insurance Premium Payment Receipts
Proof of investments made in EPF, PPF, Tax-Saving Mutual Funds, etc.
Home loan statement (can claim interest and principal up to certain limits), etc.
Capital Gains Details:
We often forget to include details of our capital transactions which can create issues later. It’s best to keep in hand details of your financial markets’ transactions (such as the sale of shares, bonds, mutual fund units, ETF Units, etc.), details of any asset that you’ve sold during the FY, etc.
These transaction details should be supported by documentary evidence such as sale and purchase deed for the property, broker transaction reports, and holdings statement for shares, mutual fund statements from mutual fund houses, etc.
Details of Unlisted Shares Held:
In case you hold the shares of an unlisted company, it is mandatory for you to disclose this information in ITR-2. Details of your investment along with your PAN Card copy need to be provided.
Bank Account Details:
While filing the ITR, the filer must disclose all bank accounts held and operated by him. Details to be provided include Account Number, Bank Name, Bank IFSC, and MICR. We recommend keeping your Passbooks in hand while filling in these details.
PS: You must pre-link your Bank Account to PAN for the account in which you want the refund to be processed by the IT Dept.
It is important to have your PAN and AADHAR Cards with you when filing your returns. It is mandatory to quote your AADHAR Number during filing.
Interest Certificates are provided by Banks and Post Offices to customers. These show the total interest amount paid to the customer for the year. Having these in hand prevents any mismatch in the interest income and reduces the work involved in estimating the interest income received during the year.
Having passbooks updated till at least 1st April of the following FY i.e. (1st April 2020) is good practice at it ensures that you have all the details of your transactions as may be required by you.