10 Crucial documents required for ITR Filing in India

Filing an Income Tax Return (ITR) is not just about crunching numbers, it is about gathering the important documents that provide a clear picture of your financial expenses. From income statements to investment proofs for deductions and exemptions, the documents required for ITR filing serves as the base for an easy and accurate tax filing process. This blog provides a comprehensive guide on the documents required for ITR filing.

What is Income Tax Return filing?

Income Tax Return (ITR) filing is a process where individuals and businesses report their earnings and expenses to the government. It’s like sharing a summary of how much money you made and spent during the year. The government uses this information to calculate the amount of income tax you owe or the refund you might be eligible for.

Filing your income tax return is usually an annual requirement, and it helps ensure that everyone pays their fair share of taxes while also allowing individuals to claim certain deductions and credits which will lower tax liability. Knowning the documents required for ITR filing is crucial.

What are the documents required for ITR filing?

In India, some of the mandatory documents required for ITR filing are as follows;

What are the documents required for ITR filing
  1. Form 16
    • Form 16 is one of the most important documents required for ITR filing to a salaried person. It is a Tax Deducted at Source (TDS) certificate given by an employer and provides a detailed break-up of the salary and the tax deducted on it.
    • Your employer must issue Form 16 if TDS has been deducted from your salary. Taxpayers can use the details from Form 16 while filing their tax returns manually.
    • You can ask for Form 16 from your employer if no TDS is deducted from your salary.
      Part A and Part B are the parts in Form 16.
      Part A:
      This part provides details including the tax deducted by your employer during a year; the Permanent Account Number (PAN) and TAN of your employer.
      Part B:
      This gives information about the gross salary break-up details such as exempt allowances, perquisites, and so on.
  2. Bank / Post Office Interest Certificates:
    • This is another most important documents required for ITR filing. Interest earned from savings accounts, post office savings, fixed deposits, and recurring deposits is taxable per income tax regulations.
    • To exactly report this, individuals must gather interest certificates from banks and post offices, detailing the interest income from various sources.
    • This step ensures a clear overview of the total amount received during the financial year across savings accounts and multiple fixed deposits.
ITR Filing service in Bangalore

  1. Form 16A and Other TDS Certificates:
    • For salaried individuals, obtaining TDS certificates is important. When interest earned on fixed deposits exceeds INR 40,000 (INR 50,000 for senior citizens), banks deduct tax, issuing Form 16A. Mutual funds and companies provide Form 16A for tax deducted on dividends exceeding INR 5,000.
    • Further, individuals receiving monthly rent exceeding INR 50,000 must acquire Form 16C (TDS certificate) from tenants. Individuals involved in land or property transactions above INR 50 lakhs should claim Form 16B from buyers for the deducted tax.
  2. Annual Information Statement (AIS):
    • Presented in 2021, the Annual Information Statement (AIS) outlines an individual’s financial transactions information during a financial year. Cross-verifying AIS with the ITR ensures accurate reporting of income.
  3. Form 26AS:
    • Downloading Form 26AS from the new income tax portal is important, aiding as a tax passbook detailing deducted and deposited taxes against your PAN. Cross-checking with TDS certificates and interest certificates is mandatory.
  4. Tax-saving Investment, Expenditure Proofs:
    • Collecting proof of tax-saving investments and expenditures is significant for claiming deductions. It’s worth mentioning that individuals can claim such benefits in the old tax regime while filing their ITR.
  5. Capital Gains:
    • Long-term gains on investments exceeding INR 1 lakh annually, such as shares and property, are taxable. Disclosing details of long-term investments in the ITR is mandatory.
  6. Details of Foreign Assets:
    • Including all foreign assets like bank accounts and properties in the ITR is crucial for compliance.
  7. Aadhaar Number:
    • As per Section 139AA, mentioning the Aadhaar number is mandatory. In case of pending Aadhaar issuance, the enrolment ID suffices. Additionally, the Aadhaar number aids in e-verifying the ITR provided the registered mobile number aligns with the Aadhaar database.
  8. Bank Account Details:
    • Reporting all bank account details, even closed ones during the fiscal year, is mandatory. This includes the bank name, account number, account type, and IFS code.

Make sure you have all the above documents to file ITR as per income tax regulations.

Conclusion

In conclusion, gathering the necessary documents required for ITR filing is a crucial step in ensuring an accurate and hassle-free tax filing process. From Form 16 for salaried individuals to interest certificates from banks, each document plays a vital role in providing a comprehensive overview of financial transactions.

With expert guidance, 24efiling is a great option for filing your Income Tax Return on time. We simplify the process, making it convenient for individuals, ensuring a timely and hassle-free experience.

FAQs
1. What are the essential documents required for ITR?

The essential documents required for ITR are PAN card, Aadhaar card, Form 16, bank statements, and investment proofs.

2. Why are Aadhar and PAN cards required for ITR filing?

Aadhaar serves as proof of identity and address and linking it with PAN is mandatory for ITR filing, enhancing transparency.
PAN serves as a unique identifier for taxpayers and complying with tax laws.

3. Why are bank statements necessary for Income Tax filing?

Bank statements provide a record of financial transactions, and supporting information declared in the ITR.

4. Are there any additional documents needed for specific deductions or exemptions?

Yes, additional documents such as investment proofs, property ownership documents, etc., may be required depending on deductions claimed.

5. What are the documents required for zero ITR filing?

PAN Card, Aadhaar Card, Bank Statements, Form 26AS, Investment Proof, Form 16 (if applicable).

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